Multiple Choice Accounting Problems (Simple)

Question 17 (1 point) Company X paid $700,000 for 30% of the net assets of Company Z. The fair value of the assets are $3,000,000 and the fair value of the liabilities are are $1,000,000. What is the amount of goodwill? $600,000 $500,000 $100,000 Onone of the above Question 18 (1 point) Marlowe Corporation purchased factory equipment that was installed and put into service January 2, 2010, at a total cost of $110,000. Residual value was estimated at $6,000. The equipment is being amortized over four years using the double declining-balance method. For the year 2011, Marsh should record depreciation expense on this equipment of (a) $21,000. Ob) $55,000. Oc) $27,500. Od) $48,000