4) Dennis Company purchases Miles Company for $5,000,000 cash on January 1, 2018. The book value of Miles Company's net assets reported on its December 31, 2017 financial statement was $3,600.000. An analysis indicated that the fair value of Miles's tangible assets exceeded the book value by $600,000, and the fair value of identfiable intangible assets exceeded book value by $320,000. Determine the fair value of identifiable net assets used to record goodwill. $280,000 200,000 53,600,000. 5) During 2018, Leon Co. incurred the following costs Testing in search for process alternatives Costs of marketing research for new product Modification of the formulation of a process Research and development services performed by Beck Corp. for Leon s 380,000 250,000 560,000 475,000 In Leon's 2018 income statement, research and development expense should be 5560,000 $1,035,000. $1,415,000 $1,635,000. D. On July 1, 2017, Mendes Corporation purchased factory equipment for $300,000. Salvage value was estimated to be $8,000. The equipment will be depreciated over five years using the double-declining balance method Counting the year of acquisition as one-half year, Mendes should record depreciation expense for 2018 on this equipment of 6) $120,000 $96,000 $93.440 S72,000 7) Regis Inc. bought a machine on January 1,2008 for $800,000. The machine had an expected life of 20 years and was expected to have a salvage value of $80,000. On July 1, 2018, the company reviewed the potential of the machine and determined that its future net cash flows totaled $400,000 and its fair value was $280,000. If the company does not plan to dispose of it, what should Regis record as an impairment loss on July 1,2018? A. $22,000 $40,000 $142,000