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

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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