Lake Incorporated purchased all of the outstanding stock of Huron Company, paying $1,010,000 cash. Lake assumed all of the liabilities. Book values and fair values of acquired assets and liabilities were: Current assets (net) Property, plant, equip. (net) Liabilities Book Value Fair Value $195,000 $135,000 610,000 785,000 275,000 275,000 Lake would record goodwill of Multiple Choice $480,000 $392,000 $365,000 Saved Help Save & Exi Submit Kansas Enterprises purchased equipment for $77,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $8,850 at the end of five years Using the straight-line method, depreciation expense for 2021 would be Multiple Choice $13,730 $17,270 $31,000 $15,500 Kansas Enterprises purchased equipment for $76,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $7,200 at the end of five years. Using the straight-line method, the book value at December 31, 2021, would be: Multiple Choice $55,440 $61,200. $69,300 $62,640