Equipment is purchased for $1,500,000 (no salvage value). The company uses strai

Question

Equipment is purchased for $1,500,000 (no salvage value). The company uses straight line depreciation for 9 years. Assume no other fixed assets. What is the accumulated depreciation at end end of year 4? A. $833,333 B. $166,667 C. $1,500,000 D. $666,667

You purchase a $1000 par value, 6% annual coupon rate bond for the price of $960 on 4/26/2016. The most recent interest payment was on 12/01/2015 and the next interest payment is scheduled for 06/01/2016. what is the total amount you must pay for the bond? A. $1,008.20 B. $960.00 C. $965.90 D. $ 984.10

Explanation / Answer

Part 1

Equipment is purchased for $1,500,000 (no salvage value). The company uses straight line depreciation for 9 years. Assume no other fixed assets. What is the accumulated depreciation at end end of year 4?

accumulated depreciation =(1500000/9)*4=$666,667

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