What is the implied total economic life of the improvements

Assignment Help Financial Accounting
Reference no: EM132934529

The subject property is a 10-year old commercial building that has been badly maintained. It is estimated that the effective age of the improvements is at 20 years. At the effective valuation date it is estimated that the production cost new and the remaining economic life of the improvements would be at $200,000 and approximately 35 years respectively.

Problem i. What is the implied total economic life of the improvements?

Problem ii. What is the percentage amount of accrued depreciation for the subject improvements by the economic age-life method?

Problem iii. What is the lump-sum dollar amount of accrued depreciation for the subject improvements?

Problem iv. What is the contributory value (depreciated value) of the improvements?

Problem v. Assuming a land value of $100,000, what is the value indication by Cost approach?

Reference no: EM132934529

Questions Cloud

Predict what types of outcomes are possible : The purpose of this assignment is to understand the principles of Mendelian and human genetics and the structure of DNA and how genetic code is converted to pro
Determine the cash flow from asset for each year : Determine the cash flow from asset for each year and compute the net present value for the project. Produce a Pro Formal Income Statement for the project.
What is the value of the bond if investors demand a yield : The bond has a coupon of 8.4% payable annually and mature after 4 years. What is the value of the bond if investors demand a yield of 9.5%?
How many units were produced this year : Total applied overhead for the year was $39,000 and it was applied on the basis of budgeted unit production. How many units were produced this year
What is the implied total economic life of the improvements : What is the implied total economic life? What is the percentage amount of accrued depreciation for the subject improvements by the economic age-life method?
Explain how children survive : Explain how children survive in the absence of one hemisphere
Create an example of scientific inquiry : Create an example of scientific inquiry using the Interactive page at the end of the HHMI Interactive website. Your inquiry can be a way to study an observation
Compute the operating cycle for year : Compute the operating cycle for Year 2020. The company still experience cash flow issues occasionally. In order to prevent such incidence to happen again
How much will you have saved for? retirement : You plan to save $5,500 at the end of each year? (so the first deposit will be one year from? now), How much will you have saved for? retirement

Reviews

Write a Review

Financial Accounting Questions & Answers

  Sum-of-years-digits method-double-declining-balance method

Muggsy Bogues Company purchased equipment for $280,115 on October 1, 2014. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,120. Compute depreciation expense under each of the following methods. Bogues ..

  Discuss the financial strengths of bbcc

Discuss the financial strengths and weaknesses of BBCC based on the financial condition as evident from the ratio analysis. Which ratios should you analyze

  Standard mileage method

Jan receives no reimbursement from her employer. Jan has an AGI for year of $50,000 and no other itemized deductions.

  Compare and contrast the treatment of the dividend by otter

an individual taxpayer in the 35% marginal bracket, also owns 25% of Marmont's stock. Compare and contrast the treatment of the dividend by Otter Corporation and Gerald.

  What is Tailor Johnson US tax liability on Ethiopian

What is Tailor Johnson's U.S. tax liability on its Ethiopian subsidiary? Tailor Johnson, a U.S. maker of fine menswear, has a subsidiary in Ethiopia

  Question the employees of the lending store inc did connect

question the employees of the lending store inc. did connect the union. the corporation was profitable for several

  Distributions to shareholders and capital structure decision

Determine whether you would prefer to see the company that you researched declare a 100% stock dividend or declare a 2-for-1 split.

  What is the contribution margin ratio

Companies Sunny, Rainey, Cloudy, Windy.- What is the Variable cost? and  What is the  Contribution margin ratio ? - What is the Fixed cost ?

  Prepare statement of activities for a nonprofit organization

Based on the following data, prepare a Statement of Activities for a nonprofit organization. - Unrestricted support- contribution $335,000,000 - Unrestricted support- donated materials $10,000,000.

  Effect of each transaction on the individual accounts

Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets = Liabilities + Owner's Equity

  Determine which of the following statements is correct

Determine Which of the following statements is correct, The financial manager should seek that combination of assets, liabilities, and capital

  Which one is better in order to reduce the income tax

Which one is better in order to reduce the income tax in a deflationary economy, where the prices are continuously going down and why?

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd