23 - 24. The following information is available for equipment: Cost (purchased on 1/1/X1) $200,000 Expected Useful Life 5 years Estimated Residual Value $10,000 Assume that the double-declining balance method is used. Depreciation Expense for year two (12/31/X2) is:

A. $45,600

B. $48,000

C. $76,000

D. $80,000

E. $128,000

24. (connected to question above) The following information is available for equipment: Cost (purchased on 1/1/X1) $200,000 Expected Useful Life 5 years Estimated Residual Value $10,000 Assume that the double-declining balance method is used. The asset's book value at the end of year three (12/31/X3) is:

A. $10,000

B. $41,040

C. $43,200

D. $56,000

E. $190,000

25. Cold Corporation acquired equipment on January 1, 20X4, for $300,000, with an estimated useful life of 10 years and an estimated salvage value of $25,000. On January 1, 20X7, Cold Corporation revised the salvage value to $0 with no change in the useful life. What is depreciation expense for the year ended December 31, 20X7, if Cold Corporation used straight-line depreciation?

A. $21,750

B. $27,143

C. $27,500

D. $30,000

E. $31,071

26. Quinn Company accounts for its 30% investment in Cook Corporation using the equity method of accounting. The investment cost $650,000 on 1/1/X1. During X1, Cook reported net income of $500,000 for the year X1, and paid total dividends of $100,000 during X1. On December 31, 20X1, the balance in Quinn Companys Investment in Cook account will equal

A. $680,000

B. $710,000

C. $740,000

D. $770,000

E. $800,000

27 - 28. The equity accounts of S Company total $3,000,000. P Company purchases 75% of S for $2,850,000 on 1/1/X9. The fair values of net assets are equal to book values. What is the amount of goodwill?

A. $400,000

B. $750,000

C. $800,000

D. $950,000

E. $1,200,000

28. (connected to question above) The equity accounts of S Company total $3,000,000. P Company purchases 75% of S for $2,850,000 on 1/1/X9. The fair values of net assets are equal to book values. What is the amount noncontrolling interests?

A. $400,000

B. $750,000

C. $800,000

D. $950,000

E. $1,200,000