Which of the following depreciation methods is said to be the best at estimating fair values of long-term assets?

Unit-of-production method

Straight-line method

Declining-balance method

Sum-of-the-years-digits method

None of the above

Miley Company purchased equipment that had a $300,000 price tag. 3% tax was paid. The shipping and installation costs totaled $5,000. In order to get the equipment ready for use, Miley had to hire a crew of specialists to conduct test runs. That cost $10,000. On the suggestion of the citys beloved mayor, Miley had the equipment painted yellow and green, the citys proud colors. The painting job cost $2,000. What is the total cost of equipment to be listed in the balance sheet?

$300,000

$309,000

$314,000

$324,000

$326,000

Leona Company buys 40% of Lowly Companys equity securities. Accounting treatment for this investment is to

Use equity method

Consolidate financial statements

Use fair value method

Do nothing