User Account

All Pages

How much is the depreciation expense on December

Assignment Help Accounting Basics
Reference no: EM133123149

Question - On January 1, 2021, Norway Company leased machinery from Chile Company for 5 years. The useful life of the asset is 10 years.

Equal annual payments under the lease are P1,800,000 and are due on December 31 each year starting December 31, 2021.

The bargain purchase option to be reasonably exercised at the end of the lease term is P300,000.

The incremental borrowing rate is 12%.

The implicit interest rate is 14%.

(Use 2 decimal places for PV factor).

Required - How much is the depreciation expense on December 31, 2021?

Reference no: EM133123149

Questions Cloud

Do you think such a change would be more likely driven : Do you think such a change would be more likely driven by the information role of accounting or by the stewardship role of accounting
Complete working papers to consolidate financial statements : Complete the working papers to consolidate the financial statements of Candy and Bun Corporations for the year ending December 31, 2013
What the NCI share of equity at the date of acquisition : The company tax rate was 30%, The partial goodwill method is adopted by the group. What the NCI share of equity at the date of acquisition
Indicate the production levels that should be adopted : Indicate the production levels that should be adopted for the three products in order to maximise contribution, and state the maximum contribution achievable
How much is the depreciation expense on December : The bargain purchase option to be reasonably exercised at the end of the lease term is P300,000. How much is the depreciation expense on December
Calculate the tax liability for Farm Fresh Produce Inc : Using the 21% corporate tax rate specified in the "Tax Cuts and Jobs Act" of 2017, calculate the tax liability for Farm Fresh Produce, Inc. for the current year
Discuss the correctness of this statement : As the risk is high the $ value of materiality should also be high. Discuss the correctness of this statement
What is the ytm on bond : Suppose you pay $508 for a zero-coupon bond that has 10 years left to maturity. Assuming annual compounding, what is the YTM on this bond? Answer in the percent
Build intended development : Suppose that you have just purchased a 70,000 square foot lot with the intention of developing 100,000 square feet of office space. You intend to configure your

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