(3) Desmond Corp purchased 5, \$1,000, 5% bonds of Geotherm Corporation when the market rate of inter

(3)

Desmond Corp purchased 5, \$1,000, 5% bonds of Geotherm Corporation when the market rate of interest was 14?% Interest is paid semiannually on the? bonds, and the bonds will mature in four years Using the PV function in Excel , compute the price Desmond 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)

Desmond paid \$on the bond investment

(2)

West Side?’s Pizza bought a used Toyota delivery van on January? 2, 2014, for \$22,000 The van was expected to remain in service for four years left parenthesis (80,000 miles) At the end of its useful? life, West Side?’s officials estimated that the? van’s residual value would be \$2,000

The van traveled 32,000 miles the first? year, 28,000 miles the second? year, 15,000 miles the third? year, and 5,000 miles in the fourth year

Requirements

A

Make a schedule ofdepreciation expenseper year for the van under the three depreciation methods

B

Which method best tracks the wear and tear on the? van?

C

Which method would West Side?’s prefer to use for income tax? purposes? Explain in detail why

West Side?’s prefers this method

Requirement 1 Make a schedule ofdepreciation expenseper year for the van under the three depreciation methods

?(For units-of-production and? double-declining-balance, round to the nearest two decimal places after each step of the calculation

For years with? \$0 depreciation, make sure to enter? “0” in the appropriate? column)?

Year Straight-Line

2014

2015

2016

2017

Total