Menu
support@authoritypapers.com
+1(805) 568 7317

8 5 points on 01 01 15 g purchased a machine for 15 000 000 installation costs incur 5125615

8. (5 points) On 01-01-15, G purchased a machine for$15,000,000. Installation costs incurred and paid for on 01-01-15were $10,000. G started using the machine on 01-01-15. G estimatesit will use the machine for 5 years. At the end of the 5th year, Gwill have to dispose of the machine at an estimated cost of$1,250,000. Assume as of 01-01-15 the interest rate on US Treasurysecurities was 0.75% and G’s credit standing required a 2.25% riskpremium. G uses a sum-of-the years digits depreciation method andassumes no salvage value. a. What amount should G report on its balance sheet as a fixedasset (machine) as of 12-31-15? b. Prepare an excel spreadsheet that clearly identifies andclearly labels G’s ARO obligation balance as of 12-31 for everyyear from 2015 to 2019 AND G’s accretion expense for every year for2015 to 2019. c. Prepare the entries G should make related to the equipmentand its ARO for the year ended 12-31-16 AND 12-31-18? d. What amount should G report on its balance sheet as its AROas of 12-31-17? . . .

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now