Merton company purchased a building on january 1, 2016, at a cost of $364,000. merton estimated that its life would be 25 years and its residual value would be $14,000.
on january 1, 2017, the company made several expenditures related to the building. the entire building was painted and floors were refinished at a cost of $21,000. a federal agency required merton to install additional pollution control devices in the building at a cost of $42,000. with the new devices, merton believed it was possible to extend the life of the building by six years.
in 2018, merton altered its corporate strategy dramatically. the company sold the building on april 1, 2018, for $392,000 in cash and relocated all operations to another state.
required:
1. determine the depreciation that should be on the income statement for 2016 and 2017.2. what amount of gain or loss did merton record when it sold the building? do not round intermediate calculations.

Paar corporation bought 100 percent of kimmel, inc., on january 1, 2012. on that date, paar’s equipment (10-year life) has a book value of $420,000 but a fair value of $520,000. kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. paar uses the equity method to record its investment in kimmel. on december 31, 2014, paar has equipment with a book value of $294,000 but a fair value of $445,200. kimmel has equipment with a book value of $190,400 but a fair value of $357,000. the consolidated balance for the equipment account as of december 31, 2014 is $574,000. what would be the impact on consolidated balance for the equipment account as of december 31, 2014 if the parent had applied the initial value method rather than the equity method? the balance in the consolidated equipment account cannot be determined for the initial value method using the information given. the consolidated equipment account would have a higher reported balance. the consolidated equipment account would have a lower reported balance. no effect: the method the parent uses is for internal reporting purposes only and has no impact on consolidated totals.

Coop inc. owns 40% of chicken inc., both coop and chicken are corporations. chicken pays coop a dividend of $10,000 in the current year. chicken also reports financial accounting earnings of $20,000 for that year. assume coop follows the general rule of accounting for investment in chicken. what is the amount and nature of the book-tax difference to coop associated with the dividend distribution (ignoring the dividends received deduction)?

Effective capacity is the: a. capacity a firm expects to achieve given the current operating constraints.b. minimum usable capacity of a particular facility.c. sum of all the organization's inputs.d. average output that can be achieved under ideal conditions.e. maximum output of a system in a given period.