Reference no: EM132924397

Questions -

Q1. Sun Corporation acquired a new office machine on 1/1/2008, for $240,000. The machine has a 20-year life and a $20,000 estimated salvage value. The firm uses the sum-of-the-years'-digits method to depreciate the asset. What is the Accumulated Depreciation amount that appears on the balance sheet of Sun Corporation as of 12/31/2010?

a. $20,952

b. $40,857

c. $59,714

d. $18,857

e. None of the above is correct

Q2. On 7/1/Year1, the Ish-U-Bonds Company issued bonds with a face amount of $1,000,000 due in 20 years. Coupons are paid semi-annually on December 31 and July 1, beginning 12/31/ Year1. The annual coupon rate is 8%, and the annual market yield on the issuance day is 6%. What are the bonds issuance proceeds?

a. There are missing parameters to solve this question

b. $1,123,151

c. $306,560

d. $1,191,917

e. None of the above is correct