Balter Inc The Building Has a 10-Year Remaining Useful Life and the the Purchase

Multiple Choice

Balter Inc. acquired Jersey Company on January 1, 20X5. When the purchase occurred Jersey Company had the following information related to fixed assets: $\begin{array}{lr}\text { Land } & \$ 80,000 \\\text { Building } & 200,000 \\\text { Accumulated Depreciation } & (100,000) \\\text { Equipment } & 100,000 \\\text { Accumulated Depreciation } & (50,000) \end{array}$ 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:
$\begin{array}{lr}\text { Land } & \$ 100,000 \\\text { Building } & 130,000 \\\text { Equipment } & 75,000\end{array}$ What is the 20X5 depreciation expense Balter will record related to purchasing Jersey Company?

A) $8,000
B) $15,000
C) $28,000
D) $30,000