Calculate depreciation expense and book value

Assignment Help Financial Management

Reference no: EM131025808

On January 1, 2013, Boston Company purchased a machine having an invoice price of 13,000. Boston paid transportation and installation costs totalling $3,000. During installation the machine was damaged in an accident and repairs cost $500. The machine is estimated to have a 4-year useful life and a $1,400 residual value. Calculate depreciation expense and book value as of December 31, 2014, assuming double declining balance method of depreciation.

Reference no: EM131025808

Questions Cloud

What is the employment-to-population ratio approximately : In an economy, 20 million people are full-time workers, 5 million are part-time workers, 2 million are unemployed, and 6 million are not in the labor force. Assume that all people in this economy are 16 years or older. What is the employment-to-po..

An asset-or-nothing call delivers the underlying asset : A cash-or-nothing call pays $10 if the underlying asset price is above the strike at expiration and 0 otherwise. Price the call in terms of sigma, K, S0, r, and T under the Black-Scholes assumptions. An asset-or-nothing call delivers the underlying a..

What was net income for the most recent four quarters : You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today’s newspaper. 52-WEEK YLD VOL NET HI LO STOCK (DIV) % PE 100s CLOSE CHG 143.85 88.53 RJW 2.80 2.0 15 18,282 ?? − .79 What was the closing price for thi..

What is affordable home purchase price : Kelly Manchester wants to know what price home she can afford. Her annual gross income is $45,000. She owes $750 per month on other debts and expects her property taxes and homeowners insurance to cost $250 per month. What is Michelle's affordable ho..

Calculate depreciation expense and book value : On January 1, 2013, Boston Company purchased a machine having an invoice price of 13,000. Boston paid transportation and installation costs totalling $3,000. During installation the machine was damaged in an accident and repairs cost $500. Calculate ..

Find the determinant for this matrix : Provide a coefficient matrix corresponding to the system of linear equations.

What is market to book ratio : Raleigh has $15 bilion in total assets. Its balance sheet shows $2 billion in current liabilities . $5 billion in long term debt, and $8 billion in common equity. It has 750 million of shares of common stock outstanding, and its stock price is $37 pe..

Find total number of turns needed to produce a flux density : Consider the magnetic circuit shown in Figure. Assume that the reluctance of the iron is small enough so it can be neglected. The lengths of the air gaps are 0.1 cm, and the effective area of each gap is 20 cm2. Determine the total number of turns..

Find an optimal solution to solve a linear problem : Matrix methods can be used to solve linear programming problems. A linear programming problem is used to find an optimal solution, subject to stated restraints.

User Account

All Pages