# Kansas Enterprises purchased equipment for \$74,000 on January 1, 2015

Question
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Kansas Enterprises purchased equipment for \$74,000 on January 1, 2015. The equipment is expected to have a ten-year life, with a residual value of \$6,900 at the end of ten years.

Using the double-declining balance method, the book value at December 31, 2016 would be (Do not round your intermediate calculations):

\$43,440.\$45,840.\$7,400.\$47,360.

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Berry Co. purchases a patent on January 1, 2015, for \$44,000 and the patent has an expected useful life of five years with no residual value. Assuming Berry Co. uses the straight-line method, what is the amortization expense for the year ended December 31, 2016?

\$0\$8,800\$17,600\$44,000
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Bricker Enterprises purchased a machine for \$206,000 on October 1, 2015. The estimated service life is ten years with a \$20,600 residual value. Bricker records partial-year depreciation based on the number of months in service. Depreciation expense for the year ended December 31, 2015, using straight-line depreciation, is (Do not round your intermediate calculations. Round your answer to the nearest dollar amount):

\$15,450.\$5,150.\$3,360.\$4,635.

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The balance sheet of Cattleman’s Steakhouse shows assets of \$85,400 and liabilities of \$15,200. The fair value of the assets is \$89,900, and the fair value of its liabilities is \$15,200. Longhorn paid Cattleman’s \$82,820 to acquire it. Longhorn should record goodwill on this purchase of:

\$12,200\$12,620\$8,120\$2,580
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Kansas Enterprises purchased equipment for \$77,500 on January 1, 2015. The equipment is expected to have a ten-year life, with a residual value of \$8,850 at the end of ten years.

Using the double-declining balance method, depreciation expense for 2016 would be(Do not round your intermediate calculations):

\$12,400.\$15,500.\$13,730.\$10,984.