Answer:
The equipment originally cost 40,000 and has a salvage value of 8,000, which means that the amount that can be depreciated is 32,000. It has a life of 8 years and follows a straight line method so the yearly depreciation would be 32,000/8= 4,000.
The depreciation for the first 2 years is 4000*2= 8,000
So the book value of the asset is 40,000-8000= 32,000
Since according to the new estimate the total life is 5 years, and 2 years have already passed the remaining life of the asset is 3 years. Also since there is no change in salvage value the amount that can be depreciated is 32,000-8,000= 24,000
To find out the deprecation in year 3 we will divide 24,000 by the reaming life which is 3.
24,000/3= 8,000
The depreciation expense in year 3 would have been $8,000
Explanation:
No, there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
Given that Starbucks purchased bonds with $ 7 million face value at par for cash on July 1 of the current year and the bonds pay 7 percent interest the following June 30 and December 31 and mature in three years.
We are required to tell whether there is requirement of any recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
A bond is basically a debt security, similar to an IOU and borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When we buy a bond, we are lending to the issuer, which may be a government, municipality, or corporation.
There is not any requirement of any recording when the fair value decreases to $600000 because it is not affecting our books of accounts because in our books they are recorded at face values.
Hence there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
Learn more about bonds at brainly.com/question/25965295
#SPJ4
The answer is B)<span> Older persons nearing retirement and needing to know what their income will most likely be during retirement
Option D, would be wrong since without the means to have a financial planning assistant would not really be able to achieve much aside from probably saving some more money.
However, older people who are nearing retirement are probably at the top of their careers and have a lot of savings in cash, bongs, stocks and maybe even property.
It is these kinds of people who can get maximum benefit from proper financial planning.
</span>
red and orange because tertiary colors are combinations with primary and secondary colours.
