1. Suppose the business purchased a new car with a value of $30,000, on January 1, 2019. It is estimated that the car will last 6 years in the business, at which time it can be sold for $6000. a) Calculate the Annual Depreciation Expense for 1 years, b) Create the year 1 journal entry, c) Post how each of the 3 years will look on the balance sheet (refer to slide 25 to do this)

Your business buys a desk for $3,000.  You figure the desk will be useful for 10 years and have a value of $500 at the end of the 10-year period.  For financial accounting purposes, what is the asset’s depreciable basis?

Depreciation Problems: 1. Strand Corp purchases a machine on 4/1/20. Cost $110,000, costs to ship $5,000, costs to install $5,000. They borrowed the money from a bank. Estimated Salvage Value 20%. Estimated Useful Life = 6 years. Strand is a calendar year-end. REQUIRED: A. For the year 2020 and 2021 only a. Calculate Straight Line Depreciation expense b. Using the Accounting Equation, account for Depreciation Expense for the year c. Show the Tangible Asset section of Strand's Balance Sheet at 12/31/20 and 12/31/21

Determine what the interest rate would have been if a financial asset valued at $156,500 amounted to a total value of $199,800 after 2 years.

A company is purchasing equipment  for $150,000 (7yr MACRS property). The estimated useful life of the equipment to the company is 5 years. At the end of 5 years it will be sold for $20,000. Calculate the MACRS depreciation, book value, and the gain or loss on the sale of the equipment.