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Use the following to answer question 15: On January 1, 2017, Garrett Company purchased a machine costing $350,000. The machine is in the MACRS 5-year

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Use the following to answer question 15: On January 1, 2017, Garrett Company purchased a machine costing $350,000. The machine is in the MACRS 5-year recovery class for tax purposes and has an estimated $70,000 salvage value at the end of its economic life. 15. Assuming the company uses the optional straight-line method, the amount of MACRS deduction for tax purposes for the year 2017 is A) $56,000. B) $70,000 C) $28,000. D) $35,000, 16. Intangible assets are reported on the balance sheet A) with an accumulated depreciation account. B) in the property, plant, and equipment section. ")separately from other assets. D) None of these answer choices are correct, 17. Which of the following does not describe intangible assets? A) They lack physical existence [B) They are financial instruments. C) They provide long-term benefits. D) They are classified as long-term assets. 18. Which of the following characteristics do intangible assets possess? A) Physical existence. B) Claim to a specific amount of cash in the future. C) Long-lived. D) Held for resale. 19. Dotel Company's 12/31/18 balance sheet reports assets of $12,000,000 and liabilities of $5,000,000. All of Dotel's assets' book values approximate their fair value, except for land, which has a fair value that is $800,000 greater than its book value. On 12/31/18 Egbert Corporation paid $12,200,000 to acquire Dotel. What amount of goodwill should Egbert record as a result of this purchase? A) S -0- B) $ 200,000 C) $4,400,000 D) $5,200,000 20. When a company develops a trademark the costs directly related to securing it should generally be capitalized. Which of the following costs associated with a trademark would not be capitalized? A) Attorney fees. B) Consulting fees. C) Research and development costs. D) Design costs

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