24. Tatiana Company issues $100,000 6 % 10-year bonds at 97. What entry should Tatiana made at the issuance date? Debit cash $100,000 and cre 3dit bonds payable $100,000 Debit cash $100,000 and credit bonds payable $97.000 and discount on bonds payable $3,000 C. Debit cash $97.000, discount on bonds payable $3,000 and credit bonds payable $100,000 d. Debit cash $97,000 and interest expense $3,000 and credit bonds payable $100,000 a. 25. When the sum-of-the-years'-digits method is used, depreciation expense for a given asset will: Decline by a constant amount each year. b. Be the same each year C. Decrease rapidly and then slowly over the life of the asset. d. Vary from year to year in relation to changes in output a. 26. Perry Corporation acquired land, buildings, and equipment from a bankrupt company at a lump- sum price of $825,000. At the time of acquisition Perry paid $30,000 to have the assets appraised. The appraisal disclosed the following values: Land $480,000 Buildings Equipment 384,000 96,000 What cost should be assigned to the land, buildings, and equipment, respectively? a. $480,000, $384,000, and $96,000. b. $412,500, $330,000, and $82,500. c. $427,500, $342,000, and $85,500. d. $285,000, $285,000, and $285,000 In accordance with GAAP, the maximum period over which a patent can be amortized is 27. 20 years. b. 28 years. 40 years d. 50 years. a. C 28. Purchased goodwill represents Excess of price paid over fair value of net assets obtained in a combination. Excess of price paid over the book value of the net assets obtained in a combination. The difference in the aggregate amount of the market prices of the stock of the combining companies. d. Tangible asset. a. b C. Use the following information to answer questions 29, 30 and 31. Davis Company purchased a new piece of equipment on July 1, 2017 at a cost of $2,400,000. The equipment has an estimated useful life of 5 years and an estimated salvage value of $200,000. The current year end is 12/31/18. Davis records depreciation to the nearest month. 29. What is straight-line depreciation for 2018? a. $220,000 b. $240,000 c. $440,000 d. $480,000