Estimated residual value-straight-line depreciation is used

Assignment Help Financial Management

Reference no: EM131070662

On January 1, 2009, Pyle Company purchased an asset that cost $50,000 (no estimated residual value, estimated useful life 8 years, straight-line depreciation is used). An error was made because the total cost amount was debited to an expense account for 2009 and no depreciation on it was recorded. Pretax income for 2009 was $42,000. The correct pretax income for 2009 was

Reference no: EM131070662

Questions Cloud

Equation using estimated figures from starbucks : Must give an equation using estimated figures from Starbucks. construct an equation to calculate the expected or required rate of return for starbucks using the APT model.

What role does investing play in personal financial plan : What role does investing play in a personal financial plan? Are there situations where an individual should not be investing and instead focusing resources in other areas of their financial plan?

How much will you have to start graduate school : You are starting college this month, and your favorite aunt has agreed to give you $4,000 at the end of each of your four years and you can save $8,000 at the end of each year for the first two years after you graduate. If all of these amounts are in..

Company would call its outstanding bonds at this time : Which of the following factors would increase the likelihood that a company would call its outstanding bonds at this time?

Estimated residual value-straight-line depreciation is used : On January 1, 2009, Pyle Company purchased an asset that cost $50,000 (no estimated residual value, estimated useful life 8 years, straight-line depreciation is used). An error was made because the total cost amount was debited to an expense account ..

Value corporate bond with an annual coupon rate : At beginning of year you bought 1,000 par value corporate bond with an annual coupon rate of 13%. Maturity = 15 years. expected yield to maturity is 11%. today bond sells for $1320.00. A. What did you pay for the bond? B. If you sell the bond today, ..

Stock has required or expected rate of return : An investor desires to own a stock whose price moves no greater than 50% versus the overall market. Given that ABC stock has a required or expected rate of return of 15%, the average market return is 11% and the interest yield on 10-year US Treasury ..

Uses collar strategy by buying puts with strike : US Silver mines silver at a total cost of $9 per ounce. To hedge their sale price, US Silver uses a collar strategy by buying Puts with strike $9.75 and selling Calls with strike $10.25. The respective premia are P = 0.246 and C = 0.374. Assume that ..

What should be the yield to maturity on risk-free bonds : The rate of inflation for the next 12 months (Year 1) is expected to be 1.4 percent; it is expected to be 1.8 percent the following year (Year 2); and it is expected to be 2.0 percent every year after Year 2. Assume the real risk-free rate, r*, is 3 ..

User Account

All Pages