Compute the depreciation for this asset

Assignment Help Accounting Basics
Reference no: EM132008397

Question - Bonds Company purchased a new plant asset on April 1, 2015, at a cost of $355,500. It was estimated to have a service life of 20 years and a salvage value of $30,000. Bonds's accounting period is the calendar year.

Instructions

(a) Compute the depreciation for this asset for 2015 and 2016 using the straight-line method.

(b) Compute the depreciation for this asset for 2015 and 2016 using the sum of-the-years'-digits method.

(c) Compute the depreciation for this asset for 2015 and 2016 using the double-declining balance method.

Reference no: EM132008397

Questions Cloud

Prepare the entry to correct the prior years depreciation : Depreciation has been entered for 5 years on this basis. Prepare the entry to correct the prior years' depreciation, if necessary
Default and liquidity risks : You are also considering two corporate bonds, one with a 3-year maturity and one with a 6-year maturity. Both have the same default and liquidity risks.
What rate of return should an investor : Under these conditions, what rate of return should an investor expect to earn if he or she purchases these bonds?
Graph the call option cash flow schedule : Graph the call option cash flow schedule. Determine the speculator’s profit if the yen appreciates to $1.00/100 yen.
Compute the depreciation for this asset : Bonds Company purchased a new plant asset on April 1, 2015, at a cost of $355,500. Compute the depreciation for this asset for 2015 and 2016
What is the default risk premium : White Corporation's 5-year bonds yield 5.75% and 5-year T-bonds yield 4.40%. The real risk-free rate is r* = 2.5%, the inflation premium for 5-year bonds
Implementing firewall technologies : ITNE - Implementing Firewall Technologies - Configuring Zone-Based Policy Firewalls - Configure static routing to enable end-to-end connectivity
Company plans to buy insurance to cover : The company plans to buy insurance to cover such a loss. Given its WACC of 13%, what will be the maximum premium?
What will the depreciation expense for this purchase : What will the depreciation expense for this purchase (exclude all other plant and equipment) be after its second year of use

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.

  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!

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