#### Details of this Paper

##### AC2799 Week 4 Depreciation Analysis 41

Description

solution

Question

AC2799 Week 4 Depreciation Analysis 41;Scenario for Analysis;Drive and Fly, an airport parking service, incurred the following costs to acquire land, buildings, and other expenditures;to start the business. Here are the various expenditures incurred.;Expenditures Amount;Land price \$80,000;Previous delinquent taxes paid at closing by Drive and Fly \$5,600;Earthmoving \$9,000;Title Insurance \$3,200;Fence around boundary \$9,100;Building Permit for new building \$500;Architects fee for new building \$20,700;Signage at front of property \$9,000;Building cost (labor and materials) \$375,000;Construction loan interest cost \$9,500;Parking lot construction costs \$29,000;Lights for parking lots \$11,300;Construction supervisor salary (80% to building, 20% to land improvements) \$80,000;Furniture \$11,600;Freight costs for furniture FOB shipping point \$2,200;Landscaping \$6,300;Tow Truck \$25,000;Three Busses to shuttle to/from airport \$90,000;Computer system \$12,000;Land has an unlimited lifespan, the building has a 40-year lifespan, land improvements have a 20-year lifespan;furniture has a 10-year lifespan, the tow truck has a five-year lifespan, the computer system has a five-year lifespan;with 40% of derived revenue in year one, 25% in year two, 15% in year three, and 10% for remaining years, and finally;the shuttle busses have an eight-year or 50,000 travel hours.;Tasks also include calculating the depreciable cost for the land, land improvements, building, furniture, truck, busses;and computer. Then determine which depreciation method would be best and why.

Paper#30744 | Written in 18-Jul-2015

Price : \$37