What is the net book value of the equipment held by Zane

Assignment Help Accounting Basics
Reference no: EM132591024

Question - You have been given the following information for Zane Corp.:

Equipment was purchased at a cost of $525,000 on March 1, 20X8, and was ready for use on April 1, 20X8. Zane paid a cash deposit of $25,000 and signed a 7% note for the balance payable in full on March 1, 20X9. The interest rate in the note was the market rate of interest for obligations of this nature. The equipment is estimated to have a seven-year useful life and a $50,000 residual value.

Zane's depreciation policy is to use the straight-line method to depreciate all equipment, prorating the expense to the nearest full month.

What is the net book value of the equipment held by Zane as at December 31, 20X8? Round each calculation to the nearest whole dollar.

Reference no: EM132591024

Questions Cloud

What is John recognized gain or loss : The fair market value of Ted's property is $100,000 and the fair market value of John's property is $125,000. What is John's recognized gain or loss
Calculate the molarity of an acetic acid solution : Calculate the molarity of an acetic acid solution if 34.57 mL of this solution are needed to neutralize 25.19 mL of 0.1025 M sodium hydroxide.
About the disaster recovery : Disaster recovery has been the topic of study this week. What do you think is the most difficult and expensive disaster to plan for?
Calculate the molarity of an acetic acid solution : Calculate the molarity of an acetic acid solution if 34.57 mL of this solution are needed to neutralize 25.19 mL of 0.1025 M sodium hydroxide.
What is the net book value of the equipment held by Zane : Equipment was purchased at a cost of $525,000 on March 1, 20X8, What is the net book value of the equipment held by Zane as at December
Leading through effective strategic management : Explain what may happen if working cultures are overlooked when developing a strategy. Recommend one way to prevent working cultures from being overlooked.
Estimate the net present value of the investment : Great Northern Fishing Company,Determine the net present value of the investment if the required rate of return is 14 percent and the tax rate is 40 percent.
Concentration of the calibrating solution : At an environmental testing lab, a lab technician calculated the known concentration of the calibrating solution three times too high.
Relational database model : A relational Database Model allows database users to analyze data thoroughly

Reviews

Write a Review

Accounting Basics Questions & Answers

  Post the transactions using the standard t-account form

Campbell's chart of accounts shows No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, Post the transactions using the standard t-account form

  Statement of financial or position under ifrs

In what ways does the format of a statement of financial or position under IFRS often differ from a balance sheet presented under GAAP - Describe some of the issues the SEC must consider in deciding whether the United States should adopt IFRS.

  What amount should wood report as dividend income

Arlo's common stock was $10 per share. What amount should Wood report as dividend income in its Year 2 income statement

  Determine the dollar amounts that alpha will report

On January 2, 2017 the first year of operations, Use this info to determine the dollar amounts that alpha will report on its fiscal 2017 balance sheet

  What are the low risk auditing ares for the home depots

1. what are the low risk auditing ares for the home depots 2. If management of the Home Depot faced tremendous pressure regarding the entity's financial performance, what opportunities might exist for them to engage in fraudulent financial reporti..

  Sole-proprietorship merchandizing business

You have a sole-proprietorship merchandizing business dealing with photography equipments. The business was established three years back and had an average annual turnover of $50,000.

  What should be included in the engagement letter

What are the fundamental concepts in conducting financial statement audit? What should be included in the engagement letter

  Discuss about the balance of clarks retained earnings

The balance of Clark's retained earnings as of March 31

  During march the supervisor left for vacation without

the following computations of march labor variances for sams supply company are incomplete. the missing items are

  Compute the firm operating income before income taxes

The Davis Company normally produces 150,000 units of Product LM per year. Compute the firm's operating income before income taxes

  Compute the cost of goods sold under fifo and lifo

Compute the cost of goods sold under Fifo, Lifo and average cost

  What percentage of apple authorized common stock was issued

What is the par or stated value per share of Apple's common stock? What percentage of Apple's authorized common stock was issued at September 27, 2014

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