What amount of depreciation expense should company report

Assignment Help Accounting Basics
Reference no: EM132538773

Question - In year 1, a company purchased equipment that cost $70,000. The equipment has a useful life of seven years and no salvage value. The company used the straight-line method to depreciate the equipment and reported $10,000 of depreciation expense in years 1 and 2. At the beginning of year 3, the company determines that the equipment will last for only three more years (five years total) and changes the depreciable life of the asset accordingly. What amount of depreciation expense should the company report in year 3?

a. $10,000

b. $14,000

c. $16,667

d. $22,000

Reference no: EM132538773

Questions Cloud

How much money will you have in savings : If you invest $21,264 today at an interest rate of 5.05 percent, compounded daily, how much money will you have in your savings account in 14 years?
What is the amount of the rental payments : Flounder Corporation leased equipment to Shamrock, Inc. on January 1, 2020. What is the amount of the rental payments used in the lease agreement
Explain in detail the various steps involved : Explain in detail the various steps involved (with the importance) in the fin flows sheet. Why and what the bank needs to check before financing the project.
Prepare marigold journal entries related to note receivable : Prepare all of Marigold's journal entries related to the note receivable, assuming that Marigold's fiscal year-end is June 30 and that repayment of the note
What amount of depreciation expense should company report : In year 1, a company purchased equipment that cost $70,000. What amount of depreciation expense should the company report in year 3
Calculate the total interest paid in the 4th year : Calculate the total interest paid in the 4th year. Can you help me with this?
What is the purpose of general reserve account : What is the purpose of "General Reserve" account and explain accounting for General Reserve. Provide journal entries to record
Board of governors and the federal open market committee : How does The Board of Governors and the Federal Open Market Committee impact the way all banks run?
About performance management issues : Explain the concept of "performance management." Discuss the relationship between performance management and compensation.

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.

  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!

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