Calculate the annual amortization charge

Assignment Help Financial Accounting
Reference no: EM133004340

Problem 1: The RM of Bismarck is looking to sell a piece of equipment in 2010 that they purchased in 2004 for $54,321. When the purchase was completed in 2004, the RM administrator set the asset's useful life at 10 years and a residual value of $5,000. The RM of Bismarck's TCA policy states that they municipality uses straight line depreciation to calculate their annual amortization charge. If the RM anticipates a sale price of $20,000 in 2010, what is the anticipated gain or loss on the sale of the asset?

Reference no: EM133004340

Questions Cloud

Pay particular attention to the implied volatility : Pick any stock and look up the current Option prices. Pay particular attention to the implied volatility, the volatility which, if plugged into the Black-Schole
What will be tax savings for the first year ending december : he interest rate for the loan is 6.75% for the entire year, and they took out the loan. What will be their tax savings for the first year ending December 31st?
Transient analysis of Series RL and RC circuits : To obtain the transient response and measure the time constant of a series RL and RC circuit for a pulse waveform - Make the connections as per the circuit
Global economic integration and humanitarian development : Does a consistent Christian worldview require definite support for or opposition to increasing global economic integration and humanitarian development
Calculate the annual amortization charge : Calculate their annual amortization charge. If the RM anticipates a sale price of $20,000 in 2010, what is the anticipated gain or loss on the sale of the asset
Create the journal entry to record receipt of the payment : Create the journal entry to record receipt of the payment. On May 1, 2021, Jackson Corporation sold five computers to Computing Plus for $10,000
Explain the big data fundamentals : Explain the Big Data Fundamentals, including the evolution of Big Data, the characteristics of Big Data and the challenges introduced
Find how many years will take to reach nominal goal : Find how many years will it take you to reach your $10,000 nominal goal and what was the last deposit amount? You need to raise $10,000.
Create monthly schedule of cash receipts for second quarter : Create a monthly schedule of cash receipts for the second quarter of 20X5. Ten percent of Frank's sales are for cash, 70% of accounts receivable are collected.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepaid insurance listed under current assets

Cougar Corp pays for 3-years of prepaid insurance by paying $5,400. What would be the amount of prepaid insurance listed under current assets on the Cougar Corp’s 2014 Balance Sheet.

  Prepare the necessary journal entries to record the issue

Prepare the necessary journal entries to record the issue of the bond at face value and the payment of the first coupon on June 30, 2020

  What is the weighted average cost of capital for black bird

The required rate of return on equity is 13.95% percent. If the company is in the 34 percent tax bracket, what is the weighted average cost of capital?

  Difference between preventive control and detective control

Controls are put in place to minimize risks so that organization's can achieve their objectives. Objectives are typically identified as operations, reporting and compliance. What in general are operational, reporting and compliance objectives? What i..

  Define the meaning of significant influence according to aas

Discuss the key differences between full and partial goodwill methods. Define the meaning of significant influence according to AASB 128.

  What is the firm net working capital

At the end of the most recent year the firm had current assets of $ 48,900, what is the firm's net working capital

  What will xyz ltd post merger be

If ABC ltd.'s P/E ratio is 8 what is its current market price? What is the exchange ratio? What will XYZ ltd. post merger be? what is the premerger EPS

  How much is the transaction price of the contract

How much would CEE's net Income (loss) in 2019 on that contract? How much would CEE's Net Income (loss) in 2018 on that contract?

  What is the dollar amount of investment in stock d

The beta of your portfolio is equal to the market beta. What is the dollar amount of your investment in Stock D?

  How much is the estimated liability as of december

How much is the estimated liability as of December 31, 2002? In an effort to increase sales, Blue Razor Blade Company inaugurated a sales promotion campaign

  How many cans of tomato juice will be needed to make

How many 5 lb cans of tomato juice will be needed to make Bloody Mary's for a brunch for 230 people? Each Bloody Mary requires 4 oz. of tomato juice

  Purpose an income statement showing the byproduct

Purpose an income statement showing the byproduct (1) as a cost reduction during production, and (2) as a revenue item when sold.

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!

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