User Account

All Pages

Calculate how much depreciation will be charged

Assignment Help Accounting Basics
Reference no: EM132822239

Question - Deep Oil Inc. bought a drilling rig on 1st January 2021 for £210,000,000 and plan to sell it for £90,000,000 after 15 years for

a. Using the straight line method, calculate how much depreciation will be charged to Deep Oil Inc. Income Statement every year. [Please Show the workings and how the drilling rig will be depreciated every year. Please Kindly Make sure to use ruler on all your lines]

b. What will be the value of the drilling rig at the end of this year (2021) and at the end of next year (2022)?

c. A colleague of yours, in the accounts department, has calculated that the value of the drilling rig at the end of year 9 will be £132,000,000. Are your colleague's calculations right? Please Justify the answer by showing the value of the drilling rig at the end of the 9th year.

d. Kindly Explain what impact depreciation has on the Income Statement and in the Balance Sheet.

Reference no: EM132822239

Questions Cloud

What is the amount of sales ambrose will remit to taxing : Prepare the journal entry to record sales for the current month. What is the amount of sales Ambrose will remit to taxing authorities?
Human resource management in times of crisis : A crisis refers to an unexpected event that poses a significant threat to economies, business organizations and individuals (Quarantelli, 1988).
Prepare the journal entry to record salaries and employee : Prepare the journal entry to record salaries and employee withholding items for the month of January. Prepare the journal entry to record employer payroll
Create a diagram of a security model for your research paper : Considering the importance of data in organization, it is absolutely essential to secure the data present in the database. What are the strategic and technical.
Calculate how much depreciation will be charged : Using the straight line method, calculate how much depreciation will be charged to Deep Oil Inc. Income Statement every year
Relationship between training and individual development : Explain the relationship between training and individual development; and between training and organizational development?
What is the gain or loss on the retirement : What is the gain or loss on this retirement? A company has bonds outstanding with a par value of $200,000. The unamortized premium on these bonds is $6,600.
What is your experience with computer forensics : What is your experience with Computer Forensics? What are the different types of web browsers based on use and popularity? Compare and contrast.
Unstructured interviews for predicting job performances : How would you explain the fact that structured interviews, regardless of content, are generally more valid than unstructured interviews for predicting job perfo

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much did shareholders initially invest in the business

The company earned $75,000 during the first year and distributed $30,000 to shareholders as Dividends. How much did shareholders initially invest in business

  Write six-month call options on bhp shares with strike price

It is February 2017. You have formed a consortium of Monash University finance alumni and your group, currently called Finance Fanatics.

  Determine the necessary caption and amount

Determine the necessary caption(s) and amount(s) that should appear on Concord's statement of cash flows, using the indirect method

  Record the sale of the equipment assuming horizon sells

Horizon Co. owns equipment that cost $138,750, with accumulated depreciation of $81,000. Horizon sells the equipment for cash

  Why identification of favorable variance important compa ny

Why is the identification of favorable and unfavorable variances so important to a company? How can the identification of the variances help management control

  Calculate the amount of the firms after tax cash flow

Moby dick corporation has sales of $4,925,290; income tax of $419,532; calculate the amount of the firms after tax cash flow from operations

  Determine the amount and character of each gain

Determine the amount and character of each gain or loss from the property transactions and Juno Corporation's taxable income for the current year

  Determine the dividend yield

Common stock, $20 par (no change during the year) $10,000,000. For the common stock, determine the dividend yield

  Record the above transactions in general journal form

Prepare an income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for 2013.

  What is sam basis in the moore stock

Barbara transfers $10,000 cash and machinery having a $!5,000 basis and a $35,000 FMV to Moore Corp. in exchange for 50 shares of Moore stock.

  Calculate the company depletion expense

n 20X5, Barton Iron Ore Co purchased a mine for $200 million ($30 million was applicable to the land). Calculate the company's depletion expense for 20X5

  Return on assets and return on equity for firm

The company has total assets of $104,912.112 and shareholders' equity of $43,623,445. Use the extended DuPont identity to find the return on assets and return on equity for the firm.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd