Balter Inc The Building Has a 10-Year Remaining Useful Life and the Occurred

question 17

Multiple Choice

Balter Inc.acquired Jersey Company on January 1, 2016.When the purchase occurred Jersey Company had the following information related to fixed assets:
$$\begin{array} { l r } \text { Land } & \$ 80,000 \\\text { Building } & 200,000 \\\text { Accumulated Depreciation } & ( 100,000 ) \\\text { Equipment } & 100,000 \\\text { Accumulated Depreciation } & ( 50,000 ) \end{array}$$ 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:

$$\begin{array} { l r } \text { Land } & \$ 100,000 \\\text { Building } & 130,000 \\\text { Equipment } & 75,000\end{array}$$ What is the 2016 depreciation expense Balter will record related to purchasing Jersey Company

• A)$8,000
• B)$15,000
• C)$28,000
• D)$30,000

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Definitions:

Apples

A common fruit that is grown worldwide, known for its variety in colors, sizes, and flavors.

Bananas

Edible fruits, typically elongated and slightly curved, featuring a soft flesh covered by a yellow peel when ripe.

Utility Function

A mathematical representation in economics that quantifies the satisfaction or happiness that a consumer derives from consuming goods and services.

Budget Constraint

The limitations on the purchase capabilities of an individual or entity, based on their available income and the prices of goods and services.