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