Question
1.Cantaloupe Company acquired equipment on January 1, Year 1 for $600,000. Estimated useful life of the equipment was seven years and the estimated residual value
1.Cantaloupe Company acquired equipment on January 1, Year 1 for $600,000. Estimated useful life of the equipment was seven years and the estimated residual value was $19,000. On January 1, Year 4, after using the equipment for three years, the total estimated useful life has been revised to nine total years. Residual value remains unchanged. The company uses the straight-line method of depreciation. Calculate depreciation expense for Year 4.
A.$64,556
B.$57,143
C.$66,667
D.$55,333
2.Kiwi Corporation paid $216,000 to acquire Strawberry Company, a U-Pick fresh fruit farm. At the time of the acquisition, Strawberry's balance sheet reported total assets of $216,000 and liabilities of $108,000. The fair market value of Strawberry's assets was $216,000. The fair market value of its liabilities was $108,000. How much goodwill did Kiwi purchase as part of the acquisition of Strawberry?
A.$216,000
B.$162,000
C.$54,000
D.$108,000
3.On January 1, Year 1, Nectarine Company purchased a patent for $212,000. Although the patent gives legal protection for 20 years, the patent is expected to be used for only 10 years. The patent has no residual value. What will be the balance in the patent account on December 31, Year 1?
A.$106,000
B.$201,400
C.$190,800
D.$212,000
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