User Account

All Pages

Compute the depreciation expense for the year ended december

Assignment Help Accounting Basics
Reference no: EM132598297

Question - Blue Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $11,000,000 on January 1, 2020. Blue expected to complete the building by December 31, 2020. Blue has the following debt obligations outstanding during the construction period.

Construction loan-12% interest, payable semiannually, issued December 31, 2019 $4,400,000

Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021, 3,080,000

Compute the depreciation expense for the year ended December 31, 2021. Blue elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $660,000.

Assume that Blue completed the office and warehouse building on December 31, 2020, as planned at a total cost of $11,440,000, and the weighted-average amount of accumulated expenditures was $7,920,000. Compute the avoidable interest on this project.

Reference no: EM132598297

Questions Cloud

Current trends in consolidations-mergers and acquisitions : What are the current trends in consolidations, mergers and acquisitions within the past few years? What is expected in the future?
Find interesting or surprising about information : What do you find interesting or surprising about the information in the video? How does it relate back to your weekly objectives?
Explain the legal and ethical responsibilities : Explain the legal and ethical responsibilities health care professionals face in upholding risk management policies and administering safe health care at your.
Use unsaturated fats for cooking : Should restaurants be forced to use unsaturated fats for cooking? Explain your opinion
Compute the depreciation expense for the year ended december : Compute the depreciation expense for the year ended December 31, 2021. Blue elected to depreciate the building on a straight-line basis
Family law-temporary alimony and permanent alimony : What would you tell them about the two (2) types of support: temporary alimony and permanent alimony?
Describe barriers to advancement that currently exist : Describe barriers to advancement that currently exist in your state and explain how nursing advocates in your state overcome these barriers.
Compute the weighted-average accumulated expenditures : Compute the weighted-average accumulated expenditures on Shamrock's new building during the capitalization period
Review the motivational ideas or theories : What was it about the second example that did not work? Provide an example of a situation where an attempted motivational tool did not work.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Some accountants have advocated that a companys human

some accountants have advocated that a companys human assets be measured and included directly in the financial

  Discuss the non-monetary factors

What cost-volume relationships should Paulsen take into consideration for the original price and the proposed new selling price?

  How much must jamal and chyna save annually

If instead, Jamal and Chyna decide to save outside of a 529 plan or other tax-advantaged plan, how much must they save each year?

  What effect will this action have on ghosh net income

On June 30, 2012 Ghosh Company concludes that a customer's $4750 receivable, What effect will this action have on Ghosh's 2012 net income? Explain

  Compute amount of gross margin reported on income statement

If Stubbs uses a weighted average cost flow method and sells 2,000 units of inventory for $17 each, the amount of gross margin reported on the income statement

  What is the selling price of the bonds

At the time of issuance, the market interest rate for similar financial instruments is 14%. What is the selling price of the bonds

  Compute the actual return on the plan assets

(Computation of Actual Return) Gingrich Importers provides the following pension plan information.

  Prepare common-sized financial statements for leslie fay

Prepare common-sized financial statements for Leslie Fay for the period 1987-1991. For that same period, compute for Leslie Fay the ratios.

  Which type of power was employed to deceive Wilma

Wilma participates in a fraud scheme by executing some derivative trades. Which type of power was employed to deceive Wilma

  The temporary book-tax difference for the depreciable asset

Ayres Services acquired an asset for $80 million in 2011. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value).

  Early in january 2010 tellco acquired a new machine and

early in january 2010 tellco acquired a new machine and incurred 100000 of interest installation and overhead costs

  Compute the total variable and total fixed overhead variance

Sedona Company set the following standard costs for one unit of its product for 2015. Compute the total variable and total fixed overhead variances

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