accounting? 29) Which of the following principles best describes the
conceptual rationale for the methods of matching depreciation expense
with revenues? 30) The major difference between the service life of an
asset and its physical life is that 31) Starr Company purchased a
depreciable asset for $150,000. The estimated salvage value is $10,000,
and the estimated useful life is 8 years. The double-declining balance
method will be used for depreciation. What is the depreciation expense
for the second year on this asset? 32) Bigbie Company purchased a
depreciable asset for $600,000. The estimated salvage value is $30,000,
and the estimated useful life is 10,000 hours. Bigbie used the asset for
1,100 hours in the current year. The activity method will be used for
depreciation. What is the depreciation expense on this asset? 33)
Harrison Company purchased a depreciable asset for $100,000. The
estimated salvage value is $10,000, and the estimated useful life is 10
years. The straight-line method will be used for depreciation. What is the
depreciation base of this asset? 34) Costs incurred internally to create
intangibles are 35) The cost of purchasing patent rights for a product that
might otherwise have seriously competed with one of the purchaser's
patented products should be 36) Riser Corporation was granted a patent
on a product on January 1, 1998. To protect its patent, the corporation
purchased on January 1, 2007 a patent on a competing product which
was originally issued on January 10, 2003. Because of its unique plant,
Riser Corporation does NOT feel the competing patent can be used in
producing a product. The cost of the competing patent should be 37)
Twilight Corporation acquired End-of-the-World Products on January 1,
2008 for $2,000,000, and recorded goodwill of $375,000 as a result of
that purchase. At December 31, 2008, the End-of-the-World Products
Division had a fair value of $1,700,000. The net identifiable assets of the
Division (excluding goodwill) had a fair value of $1,450,000 at that
time. What amount of loss on impairment of goodwill should Twilight
record in 2008? 38) Fleming Corporation acquired Out-of-Sight
Products on January 1, 2008 for $4,000,000, and recorded goodwill of
$750,000 as a result of that purchase. At December 31, 2008, the Out-of-
Sight Products Division had a fair value of $3,400,000. The net
identifiable assets of the Division (excluding goodwill) had a fair value