Question
Klein Co. purchased machinery on January 2, 2011, for $440,000. The straight-line method is used and useful life is estimated to be 10 years, with
Klein Co. purchased machinery on January 2, 2011, for $440,000. The straight-line method is used and useful life is estimated to be 10 years, with a $40,000 salvage value. At the beginning of 2017 Klein spent $96,000 to overhaul the machinery. After the overhaul, Klein estimated that the useful life would be extended 4 years (14 years total), and the salvage value would be $20,000. The depreciation expense for 2017 should be
Need one answer as follows:
$28,250.
$34,500.
$40,000.
$37,000.
Turner Company's 12/31/15 balance sheet reports assets of $6,000,000 and liabilities of $2,500,000. All of Turner's assets' book values approximate their fair value, except for land, which has a fair value that is $400,000 greater than its book value. On 12/31/15, Benedict Corporation paid $6,100,000 to acquire Turner. What amount of goodwill should Benedict record as a result of this purchase?
Need answer as follows:
$ -0-
$ 100,000
$2,200,000
$2,600,000
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