Libby_7e_MBA_Companion_Solutions

Lease payments of 300000 are due at the end of each

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Unformatted text preview: ents of $300,000 are due at the end of each year. Google uses the straight-line method to depreciate leased assets, and the effective interest rate method to amortize lease liabilities. Assume that the appropriate annual discount rate is 9 percent. Fill in the depreciation and amortization table below. Page 4 of 21 END-OF-CHAPTER MATERIAL Depreciation and amortization schedule for leased servers Year Book value of servers on January 1 Depreciation expense recorded on December 31 Book value of lease payable on January 1 Interest expense recorded on December 31 Cash paid to lessor on December 31 Amortization of lease payable recorded on December 31 2010 2011 2012 2013 2014 ANSWER Depreciation and amortization schedule for leased research and development center Year 2010 2011 2012 2013 2014 LO 1 LO 3 Book value of servers on January 1 Depreciation expense recorded on December 31 1,166,895.3 8 933,516.30 700,137.23 466,758.15 233,379.08 233,379.08 233,379.08 233,379.08 233,379.08 233,379.08 Book...
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This homework help was uploaded on 03/27/2014 for the course ACCOUNTING 151 taught by Professor Chinn during the Spring '12 term at Lehigh University .

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