ACCT 557

ACCT 557 WEEK 5 Problems The Diamond Glitter Company is in the process of preparing its financial statements for 2012. Assume that no entries for depreciation have been recorded in 2012. The following information related to depreciation of fixed assets is provided to you. 1. The company purchased equipment on January 2, 2009, for $165000. At that time, the equipment had an estimated useful life of 7 years with a $25000 salvage value. The eq

10 Other / Other strayer university / ACCT 557 24 Nov 2015

ACCT 557 WEEK 4 Problem 1 Kingdom Leasing Inc. agrees to lease jousting equipment to Knight Inc. on Jan 1, 2014. They agree on the following terms: 1) The normal selling price of the jousting equipment is $410000 and the cost of the asset to Kingdom Leasing Inc. was $250000. 2) Knight will pay all maintenance, insurance,and tax costs directly and annual payments of $60000 on Jan 1 each year. 3) The lease begins on Jan 1, 2014 and payment

12 Other / Other strayer university / ACCT 557 24 Nov 2015

ACCT 557 WEEK 2 Problem 1 California Surplus Inc. qualifies to use the installment-sales method for tax purposes and sold an investment on an installment basis. The total gain of $75000 was reported for financial reporting purposes in the period of sale. The installment period is 3 years; one-third of the sale price is collected in 2014 and the rest in 2015 and 2016. The tax rate was 35% in 2012, 30% in 2013, and 30% in 2014. The enacted tax r

10 Other / Other strayer university / ACCT 557 24 Nov 2015