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.