4. How is the book value of a depreciable
asset computed? How does a depreciable asset’s book value change from one
accounting period to the next? Discuss the difference between the terms book
value and fair value.

(LO 6.2)

8. Explain why you think goodwill is
referred to as an ‘‘unidenti?able intangible asset.’’ What types of items would
be considered ‘‘identi?able intangible assets’’? Is there any difference in the
annual treatment of identi?able and unidenti?able intangible assets? (LO 6.4)

16 .Depreciation Methods (LO 6.2)

Ohio Box Co. purchased a bundling machine
on January 1, 2009, for a cost of $22,800. The machine is expected to last 5
years, or bundle 660,000 items, at which time it should have a salvage value of
$3,000. A counter on the machine revealed that the machine was used at the following
levels: 2009, 110,000 bundles; 2010, 140,000 bundles; 2011, 150,000 bundles;
2012, 141,800 bundles; and 2013, 152,000 bundles.”

(a) How much depreciation will be taken
each year if the straight-line method of depreciation is used? Show calculations.
“

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