User Account

All Pages

Find what is book value of the equipment after upgrade

Assignment Help Financial Accounting
Reference no: EM132764402

On 10 January 2017, Rainy Company purchased $1,000,000 equipment, with estimated useful life of 120 months and no residual value. Straight-line method was adopted. For partial years, depreciation in the year of acquisition/upgrade/disposal is recorded to the nearest whole month. The Company records annual depreciation expense at the year-end date, 31 December.

  • On 28 June 2019, the company spent $100,000 to upgrade the above equipment in order to enhance the capacity. The company paid $5,000 to employ a technician to upgrade the equipment and paid $1,000 interest to finance the upgrade. The company decided to extend the estimated useful life to 150 months and revise the estimated residual value to $75,000 on the same date.

Problem 1: What is the book value of the equipment after the upgrade?

Reference no: EM132764402

Questions Cloud

Local police and private security personnel : What do you think is the difference between local police and private security personnel?
Calculate the stock price for company : Calculate the stock price for each company. Red Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.65 next year.
What will be preference for taking on proposed new product : Daffodil Corporation, requires a minimum return on investment of 8%, what will be the preference for taking on the proposed new product?
How much is the unadjusted cash balance per book : The cash in bank account of S-mart, Inc. for April 2010 showed an ending balance of P129,298. How much is the unadjusted cash balance per book
Find what is book value of the equipment after upgrade : What is the book value of the equipment after the upgrade? The company paid $5,000 to employ a technician to upgrade the equipment and paid $1,000 interest.
Calculate the stock price for company : Red Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.65 next year. The growth rate in dividends for all three
Find and provide the journal entry to record the payroll tax : Find and Provide the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank.
Difference between criminology and criminal justice : Describe in your own words the difference between Criminology and Criminal Justice.
What is the early exercise premium : What is the early exercise premium? The European call option corresponding to which coupon payment has the maximum price?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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