CHAPTER 2 The Balance Sheet 83 2.17. The Lazy Ranch just purchased equipment time 0000. The equipment is expected to last five years and have no salvage value (a) Calculate the depreciation expense using the straight-line method for the first two years the equipment is owned (b) Calculate the depreciation expen using the double declining balance method for the first two years the equipment is owned 2.18. Using the information below for Dean Caroration calculate the amount of dividends Dean most likely paid to common stockholders in 2013, 2014, and 2015. Retained Earnings Balances Year Net Income January 1, 2013 $ 700 December 31, 2013 890 2008 $250 December 31, 2014 1,045 2009 December 31, 2015 1,010 2010 40 225 2.19. From the following accounts, prepare a balance sheet for Chester Co. for the current calendar year. Accrued interest payable $ 1.400 Property, plant, and equipment 34,000 Inventory 12.400 Additional paid-in capital 7,000 Deferred taxes payable (noncurrent) 1,600 Cash 1,500 Accumulated depreciation 10,500 Bonds payable 14,500 Accounts payable 4,300 Common stock 2.500 Prepaid expenses 700 Land held for sale 9,200 Retained earnings Current portion of long-term debt 1,700 Accounts receivable 6,200 Notes payable 8,700 2.20 Writing Skills Problem. At fiscal year-end December 31, 2015. Shop World had the following assets and liabilities on its balance sheet (in millions): Current liabilities Long-term debt Other liabilities Total assets 59,459 12,330 1,180 37.411 Shop World reported the following information on leases in the notes to the financial statements: Total rent expense was $195 million in 2015, 5189 million in 2014, and $188 million in 2013. Most of the long-term leases include options to renew, with terms varying from 1 to 50 years. Certain leases also include options to purchase the property. Question 2.18. Using the information provided in the problem on page 83, calculate/answer the following questions. Note where the text shows the years 2008, 2009, and 2010, that should be 2013, 2014, and 2015, respectively. a. Dividends for 2013 b. Dividends for 2014 c. Dividends for 2015