An asset acquired January 1, 2016, for $15,500 with an estimated 10-year life and no residual value is being depreciated in an equipment group asset account that has an average service life of eight years. The asset is sold on December 31, 2017, for $6,800. The entry to record the sale would be: Cash 6,800 Accumulated depreciation 3,875 Loss on sale of equipment 4,825 Equipment 15,500 Cash 6,800 Equipment 6,800 Cash 6,800 Accumulated depreciation 8,700 Equipment 15,500 Cash 6,800 Loss on sale of equipment 8,700 Equipment 15,500

Cutter Enterprises purchased equipment for $75,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of $8,100. Using the double-declining balance method, depreciation for 2016 and the book value at December 31, 2016, would be: $26,760 and $48,240. $30,000 and $45,000. $30,000 and $36,900. $26,760 and $40,140.

Short Corporation acquired Hathaway, Inc., for $27,690,000. The fair value of all Hathaway's identifiable tangible and intangible assets was $24,200,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition? $3,490,000. $872,500. $1,745,000. $0. Cutter Enterprises purchased equipment for $72,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of $6,000. Using the straight-line method, the book value at December 31, 2016, would be: $57,600. $51,600. $58,800. $52,800.

Archie Co. purchased a framing machine for $45,000 on January 1, 2016. The machine is expected to have a four-year life, with a residual value of $5,000 at the end of four years. Using the double-declining balance method, depreciation for 2017 and book value at December 31, 2017, would be: $10,000 and $5,000. $10,000 and $10,000. $11,250 and $6,250. $11,250 and $11,250

On January 1, 2014, Al's Sporting Goods purchased store fixtures at a cost of $180,000. The anticipated service life was 10 years with no residual value. Al's has been using the double-declining balance method, but in 2016 adopted the straight-line method because the company believes it provides a better measure of income. Al's has a December 31 year-end. The journal entry to record depreciation for 2016 is: Depreciation expense 23,040 Accumulated depreciation 23,040 Depreciation expense 14,400 Accumulated depreciation 14,400 Accumulated depreciation 28,800 Retained earnings 28,800 No entry Fryer Inc. owns equipment for which it paid $90 million. At the end of 2016, it had accumulated depreciation on the equipment of $27 million. Due to adverse economic conditions,

Fryer's management determined that it should assess whether an impairment loss should be recognized for the equipment. The estimated undiscounted future cash flows to be provided by the equipment total $60 million, and the equipment's fair value at that point is $40 million. Under these circumstances, Fryer: Would record no impairment loss on the equipment. Would record a $3 million impairment loss on the equipment. Would record a $23 million impairment loss on the equipment. None of these answer choices are correct.