McKinley Industries purchased a piece of equipment for their…

McKinley Industries purchased a piece of equipment for their manufacturing facilities and paid with a 3-year, zero-interest bearing $150,000 notes payable.  Assuming a 5-year useful life and no salvage value, how much straight-line depreciation expense would McKinley record for this asset each year?  McKinley typically borrows at a rate of 5%. The present value of one for 3-periods at 5% is: .86384 The present value of one for 5-periods at 5% is: .78353 Round all calculations to whole dollars.

Barton Corporation acquired a coal mine for $2,000,000. Inta…

Barton Corporation acquired a coal mine for $2,000,000. Intangible development costs totaled $390,000. After extraction is completed, Barton must restore the property. The estimated fair value of the obligation is $210,000, after which the company estimates that it can be sold for $310,000. Barton estimates that 5,000 tons of coal can be extracted. What is the amount of depletion per ton?

During 2024, Fleissner, Industries constructed a specialized…

During 2024, Fleissner, Industries constructed a specialized piece of equipment for use in their manufacturing facility. Construction began on January 1 and finished on December 31.  Expenditures were $400,000 on February 1, $600,000 on June 1 and $500,000 on November 1. Fleissner, Industries borrowed $1,000,000 on January 1 on a 3-year, 8% note to help finance construction of the building.  In addition, the company had outstanding all year a 9%, 5-year, $6,000,000 note payable and a 6%, 4-year, $10,000,000 note payable. Calculate Fleissner’s avoidable interest: