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
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
Make a schedule ofdepreciation expenseper year for the van under the three depreciation methods
Which method best tracks the wear and tear on the? van?
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)?