Solution-What is the cost of the asset

What is the cost of the asset

Assignment Help Business Management

Reference no: EM131185857

Bayliner Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method.

Year	Straight-Line	Sum-of-the- Years'-Digits	Double-Declining-Balance
1	$15,000	$25,000	$34,000
2	15,000	20,000	20,400
3	15,000	15,000	12,240
4	15,000	10,000	7,344
5	15,000	5,000	1,016
Total	$75,000	$75,000	$75,000
Required:
Answer the following questions:

What is the cost of the asset being depreciated?
What amount, if any, was used in the depreciation calculations for the salvage value for this asset?
Which method will produce the highest charge to income in Year 2?
Which method will produce the highest charge to income in Year 5?
Which method will produce the lowest book value for the asset at the end of Year 3?
If the asset is sold at the end of Year 4, which method would yield the lowest gain (or highest loss) on disposal of the asset?

Reference no: EM131185857

Questions Cloud

What are the options to consider to ensure digital privacy : What are the issues of concern raised around digital materials? What are the options to consider to ensure digital privacy? What is digital legacy

Pharmacist in a small mid-western small town : Assume that you are the only pharmacist in a small mid-western small town. You know that the closest pharmacy is about 50 miles away. There are two population groups in your town.

Create the common size balance sheets and income statements : Create the common size balance sheets and income statements for each company for the two fiscal years. Express the most recent fiscal year statements for each company using the prior fiscal year as the base year.

Calculate easy-flo optimal output : a. Where Q is the number of barrels of ink produced. b. Calculate Easy-Flo's optimal output and profits if ink prices are stable at $55 per barrel. c. Calculate Easy-Flo's optimal output and profits if ink prices rise to $65 each.

What is the cost of the asset : What is the cost of the asset being depreciated? What amount, if any, was used in the depreciation calculations for the salvage value for this asset? Which method will produce the highest charge to income in Year 2?

What is the standard deviation-variance of this portfolio : Consider the following information: Rate of Return If State Occurs State of Probability of Economy. Your portfolio is invested 32 percent each in A and C, and 36 percent in B. What is the expected return of the portfolio? What is the variance of this..

What is the firms total assets turnover : The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. W..

Make decisions that are in the interests of the owners : Corporate managers work for the owners of the corporations. Consequently, they should make decisions that are in the interests of the owners, rather than in their own interests. What strategies are available to shareholders to help ensure that manage..

Calculate cost of equity with capital asset pricing model : Calculate the… Cost of debt. Cost of equity with the Capital Asset Pricing Model (CAPM). Cost of equity with the Dividend Growth Model (DGM)DGM.

User Account

All Pages

What is the cost of the asset

Reference no: EM131185857

Reference no: EM131185857

Questions Cloud

Reviews

Write a Review

Business Management Questions & Answers

Organizations implementing plans they createalthough

What is ceo toback''s most pressing concern

Establishing pay in international contextsdiscuss the

Business leadership - delegation and relationships1 manning

Elements of escalation

Summary of the reading listed below about cyber ethics

What are the key characteristics of the social model

Chlorofluorocarbons (cfc''s) are organic compounds

Elements of the total cost of procurement

How companies can get smart about raising prices

Fundamental problem statement in organizational behavior

Production opportunities of module five lecture document

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT