6. Lover's Chocolate Company purchased a machine on 1/1/17 for $42,000. Lover's originally depreciated the machine over a life of 10 years using straight-line depreciation with salvage of $4,000, but on 1/1/20 Lover's realized that the machine was aging fast and was impaired. Now the machine has only a useful life of 4 years remaining with the same salvage value. If Lover's continues to use the straight-line depreciation method, what amount of depreciation would be recorded for 2020? a. $9,500 b. $ 15,200 c. $ 6,650 d. $ 7,350 7. Which depreciation method results in the largest depreciation amount and the lowest net| income during the earlier years of owning a tangible asset? a. Straight-line b. Triple-Declining Balance c. Double-Declining Balance d. Sum of Years Digits 8. Below is the information relative to an exchange of assets by Peanut Company and Butter Company. The exchange lacks commercial substance. You are doing the books for Peanut Co (which is exchanging the old machine). Peanut's old Machines Price of Peanut's old Machine $ 200,000 Accumulated Depreciation of old $ 25,000 Fair Value of old machine $ 105,000 Cash Received $ 45,000 What would Peanut Company record the value of the new Butter Machine at? a. $ 45,000 b. $ 130,000 C. $ 67,000 d60