Question Completion Status: Depreciation represents: a the valuation of long-lived (fixed) assets such as equipment and buildings as of the date of the preparation of the statement of financial position Ob the allocation of the costs of fixed assets such as buildings or equipment to expense of a given accounting period. c both and b. d. neither a norb 1 points QUESTION 23 On January 1, 20X1, Emily's Boutique purchased equipment for $74,000 which is expected to have a 8-year useful life and a $4,000 salvage value. Using straight-line depreciation, what is the annual depreciation expense on this equipment for the year-ended December 31, 20X3? a 59,250 6.58.750 c $27,750 d. 526.250 Answer: Straight-line depreciation - Cost-Salvage value574.000 - 54,000 - $8,750 year expense per year Estimated Life 8 years Question Completion Status: On January 1, 20x1, Emily's Boutique purchased equipment for $74,000 which is expected to have a 8-year useful life and a $4,000 salvage value. Using straight-line depreciation, what is the accumulated depreciation on this equipment through December 31, 20x3? * $9,250. b. 58,750. c. $27,750 d. $26,250 QUESTION 25 1 points On January 1, 20X1, Emily's Boutique purchased equipment for $74,000 which is expected to have a 8-year useful life and a $4,000 salvage value. Using straight-line depreciation, what is book or carrying value of this equipment that will appear in the statement of financial position on December 31, 20X3? $42,000 $44,000. $47,750 $46,250 QUESTION 26 In the reporting of property, plant, and equipment, the IASB's International Financial Reporting Standards (IFRSs) allow the use of: a historical cost minus accumulated depreciation only. b.asset revaluation to fair value at the financial statement date only. c. either historical cost minus accumulated depreciation or asset revaluation to fair value at the financial statement date. d. None of the above QUESTION 27 An engineering firm acquired a patent on January 1, 20x1 for $140,000. The patent had an original legal life of 20 years. On January 1, 20X1, when the patient was acquired by the engineering firm, it had a remaining legal life of 8 years. This patent is expected to be of value to the firm's operations for the next 4 years, through December 31, 20X5. What is the annual patent amortization expense that will appear on the income statement for the year ended December 31, 20X3? a. 552,500. b. $10,500 Oc$17.500 d. $35,000