Requirement 2 . Which method best tracks the wear and tear on the van ? The units-of-production method tracks the wear and tear on the van most closely .
Requirement 3 . Which method would Tasteful ' s prefer to use for income tax purposes ? Explain in detail why Tasteful ' s prefers this method . For income tax purposes , Tasteful ' s would prefer the double-declining-balance method because it provides the most depreciation , and thus , the largest tax deductions in the early life of the asset .
E8-20A
Corp . purchased 10 , $ 1,000 , 77 % bonds of Power Source Corporation when the market rate of interest was 12 %. Interest is paid semiannually on the bonds , and the bonds will mature in ten years . Using the PV function in Excel Superscript ® Excel ®, compute the price Haygood paid ( the present value ) on the bond investment . ( Assume that all payments of interest and principal occur at the end of the period . Round your answer to the nearest cent .) E9-23A Assume that Jasper Electronics completed these selected transactions during March 2014 : a . Sales of $ 2,100,000 are subject to estimated warranty cost of 2 %. The estimated warranty payable at the beginning of the year was $ 34,000 , and warranty payments for the year totaled $ 57,000 . b . On March 1 , Jasper Electronics signed a 45,000 note payable that requires annual payments of $ 9,000 plus 4 % interest on the unpaid balance each March 2 . c . Music For You , Inc ., a chain of music stores , ordered $ 135,000 worth of CD players . With its order , Music For You , Inc ., sent a check for $ 135,000 in advance , and Jasper shipped $ 80,000 of the goods . Jasper will ship the remainder of the goods on April 3 , 2014 .