Straight lines and Family of Straight lines Summary
Summary - The equation of a straight line parallel to x-axis and at a distance h from it is given by y = h. The equation of the straight line parallel to y-axis and at a distance k from it is given by x = k. The equation of the straight line..
Summary - The equation of a straight line parallel to x-axis and at a distance h from it is given by y = h. The equation of the straight line parallel to y-axis and at a distance k from it is given by x = k. The equation of the straight line..Equations Of StraightLines
A straight line is represented by an equation of the first degree in two variables (x and y). Conversely locus of an equation of the first degree in two variables is a straight line..
Depreciation: Straight Line Method www.gboyinc.net www.gboyinc.net depreciation, straight line method, declining balance method, sum of the years digits method, unit of production method, modified acceleratewd cost recovery system, 200% method, depriciable amount, residual value, dalvage value, MACRS, tangible assets, Publication 946, REcovery classes, incom tax method, useful life, IRS, depreciation fraction, accumulated depriciation, book value, cost...
Straight Line Method of depreciation
Question : Most companies use the straight-line method of depreciation for reporting purposes and a different method for tax purposes. Why do they do that and how do they reconcile the methods on the balance sheet? I am i even close?
Answer : Straight line method is used for simplicity. It does not accurately define depreciation on all assets, which is the requirement of being an accounting method. Certain assets benefit by using reduced balance. Some assets loose more in the first years and using straight line would reflect an untrue value short term, however longer term methods balance out. Whichever method is used, consistancy is required... More from Yahoo Answers
Answer : Straight line method is used for simplicity. It does not accurately define depreciation on all assets, which is the requirement of being an accounting method. Certain assets benefit by using reduced balance. Some assets loose more in the first years and using straight line would reflect an untrue value short term, however longer term methods balance out. Whichever method is used, consistancy is required... More from Yahoo Answers
Question : Alberto Company issues 8%, 10-year bonds with a par value of $350,000 and semiannual interest
payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling
price of 871 2. The straight-line method is used to allocate interest expense.
1. What are the issuer s cash proceeds from issuance of these bonds?
2. What total amount of bond interest expense will be recognized over the life of these bonds?
3. What is the amount of bond interest expense recorde..
Answer : 1. What are the issuer s cash proceeds from issuance of these bonds? $350,000 x 87.5% = $306,250 2. What total amount of bond interest expense will be recognized over the life of these bonds? Total inflow $306,250 Total outflow ($28,000 x 10) + $350,000 = 630,000 Total interest expense recognised = the difference, i.e. $323,750 3. What is the amount of bond interest expense recorded on the first interest payment date? $14,000 + $2,187.50 = $16,187.50.. More from Yahoo Answers
Answer : 1. What are the issuer s cash proceeds from issuance of these bonds? $350,000 x 87.5% = $306,250 2. What total amount of bond interest expense will be recognized over the life of these bonds? Total inflow $306,250 Total outflow ($28,000 x 10) + $350,000 = 630,000 Total interest expense recognised = the difference, i.e. $323,750 3. What is the amount of bond interest expense recorded on the first interest payment date? $14,000 + $2,187.50 = $16,187.50.. More from Yahoo Answers
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