30) Which of the following most accurately reflects the concept of depreciation as used in accounting? 31) Prentice Company purchased a depreciable asset for $ 200,000. The estimated salvage value is $ 20,000, 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? 32) Pine Company purchased a depreciable asset for $ 360,000. The estimated salvage value is $ 24,000, 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? 33) 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? 34) 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 35) 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 36) Which of the following methods of amortization is normally used for intangible assets? 37) General Products Company bought Special Products Division in 2006 and appropriately booked $ 250,000 of goodwill related to the purchase. On December 31, 2007, the fair value of Special Products Division is $ 2,000,000 and it is carried on General Product’ s books for a total of $ 1,700,000, including the goodwill. An analysis of Special Products Division’ s assets indicates that goodwill of $ 200,000 exists on December 31, 2007. What goodwill impairment should be recognized by General Products in 2007? 38) Twilight Corporation acquired End-of-the-World Products on January 1, 2008 for $ 2,000,000, and recorded goodwill of $ 375,000 as