Solution-In what year was the building placed into service

In what year was the building placed into service

Assignment Help Financial Accounting

Reference no: EM132316309

Question : Melnik Shops, Inc., a chain of specialty women's apparel stores, reported the following information about leases in its annual report (in thousands):

December 31
	2012	2011
Capital lease asset, gross	$1,960	$1,960
Less: Accumulated depreciation	1,421	1,323
Capital lease asset, net	$539	$637
Capital lease obligation	$842	$864

The only asset under a capital lease is a warehouse and office building. The building has an economic life of twenty years and is being depreciated on a straight-line basis. Lease payments are made on the last day of the year.

Required:

a. Calculate the depreciation expense on the warehouse and office building for the fiscal year ending December 31, 2012.

b. The interest on the lease obligation was $108 (in thousands) in fiscal 2012. What is the interest rate used for the lease obligation? What was the total lease payment on December 31, 2012? Reconstruct the 2012 journal entry.

c. In what year was the building placed into service?

Reference no: EM132316309

Questions Cloud

What is the inter-relationship among functional management : What is the inter-relationship among functional management that is, human resource management, production management

What is the amount of jazzs dividends received deduction : What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.?

Describe the four early theories of motivation : What challenges do managers face in motivating today's workforce? Describe the four early theories of motivation

How should changes to the project scope : How should changes to the project scope, timeline, and budget will be requested, reviewed, approved, reported, and communicated?

In what year was the building placed into service : Calculate the depreciation expense on the warehouse and office building for the fiscal year ending December31,2012. In what year was the building placed into ?

Determine the barriers to implementation of the solution : As of 2014 health care expenditures in the United States are near 17% of our gross domestic product (GDP), with a major portion of Medicare funding.

New performance management system : How would you monitor and evaluate the new performance management system?

Issues that affect human and social services profession : Issues that affect the human and social services profession and society often involve ethical considerations. Should this situation raise ethical concerns?

How to explain the concept of critical path : How to explain the concept of critical path to someone who may not be aware of it.

User Account

All Pages

In what year was the building placed into service

Reference no: EM132316309

Reference no: EM132316309

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT