1 Anna Company reported the following in the long term asset section of its balance sheet They did not purchase or sell any equipment during the period Dec 31, Year 2 Dec 31, Year 1 Equipment, net of depreciation of $120,000 and 100,000, respectively $167,500 $187,500 Patent, net of amortization of $31,500 and $27,000, respectively 88,000 92,500 The company uses the straight line method to depreciate and amortize all of its operating assets How much depreciation expense did Anna record in Year 2 Select one a $20,000 b $120,000 c $100,000 2 Anna Company reported the following in the long term asset section of its balance sheet They did not purchase or sell any Equipment during the period Dec 31, Year 2 Dec 31, Year 1 Equipment, net of depreciation of $120,000 and 100,000, respectively $167,500 $187,500 Patent, net of amortization of $31,500 and $27,000, respectively 88,000 92,500 The company uses the straight line method to depreciate and amortize all of its operating assets No new long term assets were acquired nor sold during the year What is the historical cost of the equipment Select one a $120,000 b $167,500 c $287,500 3 Anna's Company reported the following in the long term asset section of its balance sheet assume that not PPE was purchased or sold during the period Dec 31, Year 2 Dec 31, Year 1 Equipment, net of depreciation of $120,000 and 100,000, respectively $167,500 $187,500 Patent, net of amortization of $31,500 and $27,000, respectively 88,000 92,500 The company uses the straight line method to depreciate and amortize all of its operating assets Assume the salvage value of the equipment is 10 of cost What is the useful life of equipment You may round to the nearest year year Select one a 11 b 12 c 13 d 14 e 10

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1. Anna Company reported the following in the long-term asset section of its balance sheet. They did not purchase or sell any equipment during the

1. Anna Company reported the following in the long-term asset section of its balance sheet. They did not purchase or sell any equipment during the period.

	Dec. 31, Year 2	Dec. 31, Year 1
Equipment, net of depreciation of $120,000 and 100,000, respectively	$167,500	$187,500
Patent, net of amortization of $31,500 and $27,000, respectively	88,000	92,500

The company uses the straight-line method to depreciate and amortize all of its operating assets. How much depreciation expense did Anna record in Year 2? Select one:

a. $20,000

b. $120,000

c. $100,000

2. Anna Company reported the following in the long-term asset section of its balance sheet. They did not purchase or sell any Equipment during the period.

	Dec. 31, Year 2	Dec. 31, Year 1
Equipment, net of depreciation of $120,000 and 100,000, respectively	$167,500	$187,500
Patent, net of amortization of $31,500 and $27,000, respectively	88,000	92,500

The company uses the straight-line method to depreciate and amortize all of its operating assets. No new long-term assets were acquired nor sold during the year.

What is the historical cost of the equipment? Select one:

a. $120,000

b. $167,500

c. $287,500

3. Anna's Company reported the following in the long-term asset section of its balance sheet; assume that not PPE was purchased or sold during the period.

	Dec. 31, Year 2	Dec. 31, Year 1
Equipment, net of depreciation of $120,000 and 100,000, respectively	$167,500	$187,500
Patent, net of amortization of $31,500 and $27,000, respectively	88,000	92,500

The company uses the straight-line method to depreciate and amortize all of its operating assets. Assume the salvage value of the equipment is 10% of cost. What is the useful life of equipment? You may round to the nearest year year. Select one:

a. 11

b. 12

c. 13

d. 14

e. 10