Manju123
Feb 5, 2011, 01:42 PM
Balter Inc. acquired Jersey Company on January 1, 20X5. When the purchase occurred Jersey Company had the following information related to fixed assets:
Land $ 80,000
Building 200,000
Accumulated Depreciation (100,000)
Equipment 100,000
Accumulated Depreciation (50,000)
The building has a 10-year remaining useful life and the equipment has a 5-year remaining useful life. The fair value of the assets on that date were:
Land $100,000
Building 130,000
Equipment 75,000
What is the 20X5 depreciation expense Balter will record related to purchasing Jersey Company?
1. $30,000
2. $15,000
3. $8,000
4. $28,000
Land $ 80,000
Building 200,000
Accumulated Depreciation (100,000)
Equipment 100,000
Accumulated Depreciation (50,000)
The building has a 10-year remaining useful life and the equipment has a 5-year remaining useful life. The fair value of the assets on that date were:
Land $100,000
Building 130,000
Equipment 75,000
What is the 20X5 depreciation expense Balter will record related to purchasing Jersey Company?
1. $30,000
2. $15,000
3. $8,000
4. $28,000