Wyckoff Company reported the following in the long-term asset section of its balance sheet; The company uses straight-line depreciation for all of its operating assets. No new long-term assets were acquired nor sold during the year. As of December 31, Year 2. approximately how old is the equipment in years? 2 years 11 years 8 years 18 years Which of the following statements is false? Expenditures for ordinary repairs are a capital expenditure. Betterment expenditures are a capital expenditure. Expenditures to acquire low-cost assets are capital expenditures. Both A and C Which of the following statements is true? Intangible assets are shown on the balance sheet net of the Accumulated Amortization account. Goodwill is shown on the balance sheet net of the Accumulated Amortization account. The Accumulated Depreciation account need not be used for long-lived fixed assets. Long-lived fixed assets are shown on the balance sheet net of the Accumulated Depreciation account. Prudence Farms Equipment Company had goodwill valued at $85 million on its balance sheet at year-end. A review of the goodwill by the company's CFO indicated that the goodwill was impaired and was now only worth $50 million. How will the goodwill impairment appear on the Income Statement of the company? As an Impairment Loss of $50 million As an Impairment Loss of $35 million As an Impairment Loss of $10 million None of the above Smith & Stephens obtained a patent for a new optical scanning device. The fees incurred to file for the patent and to defend the patent in court against several companies which challenged the patent amounted to $45.000. Smith & Stephens concluded that the expected economic life of the patent was 12 years, although its remaining legal life was 17 years. What amortization expense should be recorded in year two? $2, 647.06 $3, 750.00 7, 500.00 $11, 250.00