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Marlowe Corporation purchased factory equipment that was installed and put into service January 2, 2010, at a total cost of $110,000. Residual value was estimated at $6,000. The equipment is being amortized over four years using the double declining-balance method. For the year 2011, Marsh should record depreciation expense on this equipment of

Question 13 options:

	a) $21,000.
	b) $55,000.
	c) $27,500.
	d) $48,000.

Question 14 (1 point)

Jakob Corporation uses the fair value model of accounting for its investment property. The fair values of its property were $124,000 and $129,000 at December 2011 and December 2012 respectively. At December 2012 Jakob should

Question 14 options:

	a) Recognize a gain of $5,000 in income
	b) Report a gain of $5,000 in other comprehensive income
	c) Defer the gain until realized
	d) none of the above

Question 15 (1 point)

Jessup Corp. will acquire a controlling stake in the outstanding shares of Parasol Inc. for $9.2 million in cash.

Assuming the fair value of Parasol's net-assets is $12.5 million, and Jessup acquired a 75% share, goodwill can be calculated as

Question 15 options:

	a) $175,000
	b) $175,000 negative
	c) $375,000
	d) nil

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