On December 31 , 2004 , Roth Co . issued a $ 10,000 face value note payable to Wake Co . in exchange for services rendered to Roth . The note , made at usual trade terms , is due in nine months and bears interest , payable at maturity , at the annual 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 , balance sheet , what amount should Jase report as patent , net of accumulated amortization ?