$\mathrm{}$ Dr$.$ Jay is opening an emergency vet service within his community in January. He invested $$4\mathrm{}75,000$ cash into the business. Dr$.$ Jay bought vet supplies, equipment, vet software, and office equipment for $$2\mathrm{}90,000.$ In addition, there is a long$-$term loan for $$\mathrm{}80,000.$ What is his total owner$$s equity? 

 

 

  $2.)$ A dental organization has $$7\mathrm{}55,000$ as an outstanding loan, for which the principal must be paid at the rate of $$1\mathrm{}80,000$ for the next $5$ years. In the balance sheet, what would be the current portion of long$-$term debt and what is the remaining debt? 

 

 

 $3.)$ Plastic Surgery Associates buys surgical lights for $$1\mathrm{}5000.$ The lights have an estimated salvage value of $$2,000$ and a useful life of $5$ years. Calculate the straight$-$line depreciation. 

 

 

 $4.)$ A large urban health maintenance organization $($HMO$)$ purchases a vacant office building to house expanded administrative functions for $$3\mathrm{}60,000.$ Prior to using the building, renovations costing $$100,000$ are completed. The renovated building has an estimated useful life of $27\mathrm{.}5$ years, with no residual value. What is the annual charge for depreciation? 

Answer rating: 100% (QA)

1 To calculate the total owners equity we need to consider the initial investment and any retained earnings or additional capital contributed by the o... View the full answer