Information for Everett, Inc. for 2009 and 2008 is presented below. Everett uses the straight-line depreciation method. Property, Plant and Equipment Accumulated Depreciation Depreciation Expense Net Sales Total Assets 2009 $ 250,000 100,000 62,500 1,000,000 625.000 2010 $ 190,000 85,000 47,500 900.000 475,000 Refer to Everett, Inc. Using the data for 2009, determine the average age of Everett's property, plant, and equipment. 1.60 years 2.50 years 4.00 years 10.00 years Question 2 (3 points) On October 1st, Hillsmith Company borrowed $160,000 from Eighth National Bank on a 1-year, 7% note. If the company's fiscal year ends on December 31st, Hillsmith should make a year-end adjusting entry to increase interest expense by $11,200. notes payable by $1,867. interest payable by $2,800. O prepaid interest by $3,733. Question 3 (3 points) Goodwill can be recorded as an asset when a(n) business has above normal profitability compared to other businesses in its industry. business can determine that it has created customer goodwill and name recognition. offer is received to purchase the business at a price in excess of the fair value of the assets. business is purchased and payment is made in excess of the fair value of the net assets uestion 4 (3 points) Shiphen, Inc. has a weekly payroll of $10,000 for its employees who work Monday through Friday. Federal and state income taxes are withheld in the amounts of $1,700 and $400, respectively, and FICA taxes are withheld at a mandatory rate of 7.65% (6.2% for Social Security and 1.45% for Medicare). In addition, the federal and state unemployment taxes are applied at rates of 2% and 5%, respectively. Refer to the information for Shiphen, Inc. When Shiphen's journal entry is recorded for the payment of these wages and related liabilities, which of the following statements is true regarding the impact on the accounting equation? Both assets and liabilities will decrease. Assets, liabilities, and stockholders' equity will all decrease. Assets and stockholders' equity will decrease, while liabilities will increase. Both assets and liabilities will increase