Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

On December 31, 2012, before the books were closed, the management and accountants of Madrasa Inc. made the given determinations regarding three depreciable assets.

1) Depreciable asset A was purchased January 2, 2009. This originally cost $410,000 and for depreciation purposes, the straight-line method was originally selected. The asset was originally expected to be helpful for 10 years and encompass a zero salvage value. In year 2012, the decision was made to change the depreciation process from straight-line to sum-of-the-year's digits, and the estimates relating to useful life and salvage value remained unchanged.

2) Depreciable asset B was purchased January 3, 2008. This originally cost $259,500 and for depreciation purposes, the straight-line method was selected. The asset was originally expected to be helpful for 15 years and encompass a zero salvage value. In the year 2012, the decision was made to shorten the total life of this asset to 9 years and to estimate the salvage value at $2,600.

3) Depreciable asset C was purchased January 5, 2008. The asset's original cost was $193,100, and this amount was completely expensed in 2008. This specific asset has a 10-year useful life and no salvage value. The straight-line method was selected for depreciation purposes.

Additional data:

a) Income in 2012 before depreciation expense amounted to $422,000.
b) Depreciation expense on assets other than A, B, and C totaled $52,700 in year 2012.
c) Income in 2011 was reported at $410,000.

4. Avoid all income tax effects.

5. 100,800 shares of common stock were outstanding in the year 2011 and 2012.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915899

Have any Question? 


Related Questions in Basic Finance

1 when are correlational research designs used in

1. When are correlational research designs used in behavioral research? What are their advantages and disadvantages? 2. What are a linear relationship and a curvilinear relationship? What does it mean if two variables ar ...

Dr jones conducts an experiment investigating the effects

Dr. Jones conducts an experiment investigating the effects of distraction on memory. A list of 40 two-syllable words is prepared. Dr. Jones obtains a sample of 50 students, all between the ages of 18 and 22, and presents ...

Using the following information calculate the total

Using the following information, calculate the total salesforce size necessary by using each of the following approaches: breakdown, workload, and incremental. Be sure to show your work. Also, explain the advantages and ...

What are inventories briefly explain what happens to the

What are inventories? Briefly explain what happens to the level of inventories when aggregate expenditure is greater than real GDP, what happens when aggregate expenditure is less than real GDP, and what happens when agg ...

Gun manufacturer bloodbath amp beyond currently has a cash

Gun manufacturer Bloodbath & Beyond currently has a cash balance of $750,000. It projects that cash outflows of $390,000 a month. The company pays a fee of $500 every time it sells securities through its broker and the a ...

1 why is book value often meaningless what improvements to

1. Why is book value often meaningless? What improvements to financial statements would make it more meaningful? 2. Why should an investor read the note concerning stock options? How might stock options affect profitabil ...

Emphasize receiver benefits-revise the following sentences

Emphasize receiver benefits:- Revise the following sentences to emphasize receiver benefits. a. We have been in the business of repairing sewing machines for more than 40 years. b. We need donations so that we can expand ...

1 what do we mean by overage in a retail lease agreement

1. What do we mean by overage in a retail lease agreement? How might it be calculated? 2. What is sensitivity analysis? How might it be used in real estate development? 3. Why is the practice of "holdbacks" used? Who is ...

A stock is expected to grow 3 per year what is the price of

A stock is expected to grow 3% per year. What is the price of this stock if the required return is 9%? The stock is expected to pay a $1.4 dividend next year.

Grind co is considering replacing an existing machine the

Grind Co. is considering replacing an existing machine. The new machine is expected to reduce labor costs by $153,000 per year for 5 years. Depreciation on the new machine is $124,000 compared with $86,000 on the old mac ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro