Variety of improvements to the asset at cost

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Reference no: EM131292883

Nezcorp makes a variety of improvements to the asset at a cost of $300,000 (these improvements have useful life of 9 years); assume (ridiculously) that these improvements could all happen instantaneously on January 1, 2015 and that the entire cost is paid in cash. Additionally, assume that Nezcorp is required to make 2 deposits consisting of the following: 50% of final (i.e., 3rd) payment 10% of asset's value to ensure asset is returned in appropriate condition a. Prepare the depreciation schedule. ii. What if Nezcorp could extend the lease for an additional 5 years for $1000 per month? b. Ignore the bargain renewal option. Prepare the journal entries on: i. January 1, 2015 ii. December 31, 2015 iii. January 1, 2016 iv. December 31, 2016 v. January 1, 2017 vi. December 31, 2017 (assume Nezcorp returned the asset in poor condition and thus received back only 40% of the security deposit)

Reference no: EM131292883

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