User Account

All Pages

Compute the depreciation expense for the year ended december

Assignment Help Accounting Basics
Reference no: EM132598297

Question - Blue Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $11,000,000 on January 1, 2020. Blue expected to complete the building by December 31, 2020. Blue has the following debt obligations outstanding during the construction period.

Construction loan-12% interest, payable semiannually, issued December 31, 2019 $4,400,000

Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021, 3,080,000

Compute the depreciation expense for the year ended December 31, 2021. Blue elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $660,000.

Assume that Blue completed the office and warehouse building on December 31, 2020, as planned at a total cost of $11,440,000, and the weighted-average amount of accumulated expenditures was $7,920,000. Compute the avoidable interest on this project.

Reference no: EM132598297

Questions Cloud

Current trends in consolidations-mergers and acquisitions : What are the current trends in consolidations, mergers and acquisitions within the past few years? What is expected in the future?
Find interesting or surprising about information : What do you find interesting or surprising about the information in the video? How does it relate back to your weekly objectives?
Explain the legal and ethical responsibilities : Explain the legal and ethical responsibilities health care professionals face in upholding risk management policies and administering safe health care at your.
Use unsaturated fats for cooking : Should restaurants be forced to use unsaturated fats for cooking? Explain your opinion
Compute the depreciation expense for the year ended december : Compute the depreciation expense for the year ended December 31, 2021. Blue elected to depreciate the building on a straight-line basis
Family law-temporary alimony and permanent alimony : What would you tell them about the two (2) types of support: temporary alimony and permanent alimony?
Describe barriers to advancement that currently exist : Describe barriers to advancement that currently exist in your state and explain how nursing advocates in your state overcome these barriers.
Compute the weighted-average accumulated expenditures : Compute the weighted-average accumulated expenditures on Shamrock's new building during the capitalization period
Review the motivational ideas or theories : What was it about the second example that did not work? Provide an example of a situation where an attempted motivational tool did not work.

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd