On January 1, 2021, Twix Company acquired equipment for $200,000. The estimated life of the equipment is 5 years or 50,000 hours. The estimated residual value is $50,000. What is the book value of the asset on December 31, 2023, if Twix Company uses the straight-line method of depreciation? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.) $110,000 $90,000 $80,000 $140,000 Question 18 1 First Company has a leverage ratio of 2.6, and Second Company has a leverage ratio of 12.5. Which of the following statements is TRUE? Second Company's higher leverage increases the upside risk and downside risk of the company relative to First Company First Company uses relatively more debt to finance its operations than Second Company. None of these statements are true. Second Company's higher leverage indicates that it is better positioned to make interest payments on its debt relative to First Company 1 pts Question 19 On January 1, 2021, Red Corporation issues $300,000, 5-year, 6% bonds at 95. Interest is paid semiannually on January 1 and July 1. Orange Corporation uses the straight-line method of amortization. The company's fiscal year ends on December 31. How much Discount on Bonds Payable would be amortized on December 31, 2021? $1,500 $15,000 No Discount on Bonds Payable is amortized on that date. $9,000