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Apex Fitness Club uses straight line depreciation for a machine costing $ 23,860, with an estimated four year life and a $ 2,400 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $ 2,000 salvage value.
Compute:
(1) The machine's book value at the end of its second year
(2) The amount of depreciation for each of the final three years given the revised estimates.
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The interest (settlement) rate applicable to the plan is 10% On January 1, 2011, the company amends its pension agreement so that service costs of $500,000 are created. Other data related to the pension plan are as follows:
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A new retail store has offered to buy 8,300 of its skateboards for $59 per unit. The store is in a different market from Calla's regular customers and it would not affect regular sales. A study of its costs in anticipation of this additional busin..
The use of straight-line amortization?
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