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Determine depreciation method used and date of asset acquisition; record disposal of asset. The balance sheets of HiROE, Inc., showed the following at December 31, 2014, and 2013:
Required:a. If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2014?b. Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HiROE, Inc., is eight years and that there is no estimated salvage value. Determine:1. What the original cost of the equipment was.2. What depreciation method is apparently being used. Explain your answer.3. When the equipment was acquired.c. Assume that this equipment account represents the cost of 10 identical machines. Calculate the gain or loss on the sale of one of the machines on January 2, 2015, for $60,750. Use the horizontal model (or write the journal entry) to show the effect of the sale of the machine.
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: - Explain the goals and uses of special journals.
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