rate of 3 %. The market interest rate is 8 %. The compound interest factor of $ 1 due in nine months at 8 % is. 944. At what amount should the note payable be reported in Roth ' s December 31, 2004 balance sheet?
Question 4
Rye Co. purchased a machine with a four-year estimated useful life and an estimated 10 % salvage value for $ 80,000 on January 1, 2003. In its income statement, what would Rye report as the depreciation expense for 2005 using the double declining balance method?
Question 5
Turtle Co. purchased equipment on January 2, 2002, for $ 50,000. The equipment had an estimated five-year service life. Turtle ' s policy for five-year assets is to use the 200 % double declining depreciation method for the first two years of the asset ' s life, and then switch to the straight-line depreciation method. In its December 31, 2004 balance sheet, what amount should Turtle report as accumulated depreciation for equipment?
Question 6
During 2005, Jase Co. incurred research and development costs of $ 136,000 in its laboratories relating to a patent that was granted on July 1, 2005. Costs of registering the patent equaled $ 34,000. The patent ' s legal life is 17 years, and its estimated economic life is 10 years. In its December 31, 2005,