1. Which of the following would not be classified as an operating asset (PP&E)

a. Construction in progress

b. Coal mine

c. Land improvements

d. Land held as an investment

2. Determine the second year depreciation for an asset purchased at the beginning of the first year for $100,000. Assume the asset has a 5-year useful life and a residual value of $10,000. Use the straight-line method.

Determine the second year depreciation for an asset purchased at the beginning of the first year for $100,000. Assume the asset has a 5-year useful life and a residual value of $10,000. Use the straight-line method.

		$20,000
		$18,000
		$16,400
		$16,000

3. On January 2, 2012, Wang Company acquired equipment to be used in its manufacturing operations. The equipment has an estimated useful life of 10 years and an estimated salvage value of $30,000. The depreciation applicable to this equipment was $140,000 for 2015, computed under the sum-of-the-years'-digits method. What was the acquisition cost of the equipment?

a. $1,070,000

b. $1,083,333$

c.1,100,000

d. $1,130,000

4.Dennis Company purchases Miles Company for $5,000,000 cash on January 1, 2015. The book value of Miles Company's net assets reported on its December 31, 2014 financial statement was $3,800,000. An analysis indicated that the fair value of Miles's tangible assets exceeded the book value by $600,000, and the fair value of identifiable intangible assets exceeded book value by $320,000. Determine the fair value of identifiable net assets used to record goodwill

a. 3,800,000

b. 4,720,000

c. 4,400,000

d. 280,000