QUESTION 25 Every year companies test for impairment of goodwill. Pick the best description of this process. A. Impairment has nothing to do with goodwill. B. Goodwill is increased by the impairment. C. Goodwill has been damaged and the damaged portion will be written off. D. The impairment will be recorded as another asset. E. Goodwill once impaired is never written off. QUESTION 26 "Current Portion of Long-Term Debt" is A. the principal payment which is due on a loan in the next 12 months B. None of these C. subtracted from current assets to get the book value of the long-term debt D. the total payment on a loan due in the next 12 months E. an example of a significant non-cash investing and financing transaction On January 1, 2015, Kylie's Plumbing, Inc., declared a $2.00 per share dividend payable on February 1, to holders of record on January 15. Before the dividend was declared, the company had 100,000 shares of $10 par value stock outstanding. On the date of payment, the journal entry would include a A. There would be no journal entry on this date. B. None of these is correct. C. credit to Common Stock of $200,000. D. credit to Dividends Payable of $200,000. E. debit to Dividends Payable of $200,000. QUESTION 28 Baker Company bought a new pickup for $50,000 to use in their business. They estimate the truck will be useful for 5 years and then will be worth $5,000. If Baker uses the straight-line method of depreciation, how much would depreciation expense be for the fourth year? A $7,000 B. $ 6,000 C. $ 9,000 D. $ 18,000 E $10,000 QUESTION 30 At December 31, 2015, Johnson Co. stock price was $ 30 per share. If the EPS was $5. The Current (Earnings) Yield was approximately A. 6.00% B. 15.48% C. None of these OD. 10.90% E. 16.67% QUESTION 31 Melton Co. issues 5,000 shares of $1 par value stock for $100,000. The credit to "common stock" would be A. $ 95,000 B. None of these C. $ 105,000 D. $ 98,000 E. $5,000