Business, 26.10.2021 09:50 cristalybarrientos15

Eastern National Bank installed a wireless encryption device in January 2007. The device cost $180,000. At the time the device was installed, Eastern estimated that it would have an expected life of eight years and a residual value of $10,000. By 2010, the bank’s business had expanded and modifications to the device were necessary. At the beginning of 2011, Eastern spent $45,000 on modifications for the device. Eastern estimates that the new expected life of the device (from January 2011) is six years and the new residual value is $5,000. Eastern uses the straight-line method of depreciation. Had Eastern not modified the device, it estimates that processing delays would have caused the bank to lose at least $100,000 of business per year. Required:
1. Compute the accumulated depreciation for the device at the time the modifications were made (four years after acquisition).
2. What is the book value of the device before and after the modification?
3. What will be annual straight-line depreciation expense for the device after the modification?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 18:20

Amathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. thus, if mexico's real gdp per person is growing at 7 percent per year, it will take about 10 years(=70/7) to double. apply the rule of 70 to solve the following problem. real gdp per person in mexico in 2005 was about $11,000 per person, while it was about $44,000 per person in the u.s. if real gdp per person in mexico grows at the rate of 5 percent per year: how long will it take mexico's real gdp per person to reach the level that the united states was at in 2005? (hint: how many times would mexico's 2005 real gdp per person have to double to reach the u.s.'s 2005 real gdp per person?

Answers: 3

Answer

Business, 21.06.2019 20:30

Elizabeth believes her company has discriminated against her because her minority coworkers, who are less qualified, have been promoted ahead of her. which agency should elizabeth contact? - national alliance of business- affirmative action council- equal employment opportunity commission- federal trade commission- fair employment practices agency

Answers: 2

Answer

Business, 22.06.2019 08:00

Why do police officers get paid less than professional baseball players?

Answers: 2

Answer

Business, 22.06.2019 09:40

Boone brothers remodels homes and replaces windows. ace builders constructs new homes. if boone brothers considers expanding into new home construction, it should evaluate the expansion project using which one of the following as the required return for the project?

Answers: 1

Answer

You know the right answer?

Eastern National Bank installed a wireless encryption device in January 2007. The device cost $180,0...

Questions