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Walt Inc. acquired Sam Company on January 1, 2006....

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Walt Inc. acquired Sam Company on January 1, 2006. When the purchase occurred Sam 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 2006 depreciation expense Walt will record related to purchasing Sam Company? a. $8,000 b. $15,000 c. $28,000 d. $30,000

 

Paper#9445 | Written in 18-Jul-2015

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