User Account

All Pages

Compute the annual depreciation that would have been charged

Assignment Help Accounting Basics
Reference no: EM131120146

1. Depreciation Computation-Addition, Change in Estimate In 1983, Abraham Company completed the construction of a building at a cost of $1,900,000 and first occupied it in January 1984. It was estimated that the building will have a useful life of 40 years and a salvage value of $60,000 at the end of that time. Early in 1994, an addition to the building was constructed at a cost of $470,000. At that time it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years, and a salvage value of $20,000. In 2012, it is determined that the probable life of the building and addition will extend to the end of 2043 or 20 years beyond the original estimate.

(a) Using the straight-line method, compute the annual depreciation that would have been charged from 1984 through 1993.

(b) Compute the annual depreciation that would have been charged from 1994 through 2011.

(c) Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2012.

(d) Compute the annual depreciation to be charged beginning with 2012. 

Reference no: EM131120146

Questions Cloud

What amount of depreciation should be charged : What amount of depreciation should have been charged annually from the years 1991 to 2010? (Assume straight-line depreciation.)
Capital punishment and active euthanasia : In both capital punishment and active euthanasia, someone's life is ended. Discuss these two. What the moral difference between these two acts?
How easy or difficult ms project seems to be : Describe why it is important to use a tool like MS Project instead of using other tools (e.g., MS Word, MS Excel) to manage and track your schedule.
Advantages and disadvantages of different output methods : What are the objectives of effective output design and associated explanations and/or impacts? How do we relate output content to output methods inside and outside the organization?
Compute the annual depreciation that would have been charged : Using the straight-line method, compute the annual depreciation that would have been charged from 1984 through 1993.
Conduct a comparative analysis of the firms : Analyze political, social, ethical, and legal differences facing both organizations and determine the impact these differences have on management decision making.
Importance of good communication skills : 1. Select a proverb from a source of your choice and explain in a five to six sentence paragraph how it can help provide insight into the importance of good communication skills.
Depreciation change in estimate machinery purchased : Depreciation-Change in Estimate Machinery purchased for $52,000 by Carver Co. in 2006 was originally estimated to have a life of 8 years with a salvage value of $4,000 at the end of that time.
Difference between instrumentalists and structuralists : Watch the video and discuss the difference between instrumentalists and structuralists. Think of other examples where "the rich" were sent to prison for white collar crimes. You may also discuss in comparison with Bernie Madoff. Are there similari..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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