(Answered) Question - walt inc acquired sam company on january 1 2006

Accounting

Question - Walt Inc. acquired Sam Company on January 1, 2006. When the purchase occurred Sam Company had the following information related to fixed

assets:

Land 80,000

Building 200,000

Accumulated Depreciation (100,000)

Equipment 100,000

Accumulated Depreciation (50,000)

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:

Land 100,000

Building 130,000

Equipment 75,000

What is the 2006 depreciation expense Walt will record related to purchasing Sam Company?

a. $8,000

b. $15,000

c. $28,000

d. $30,000

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