It's a week before Scotiabank's October 31, 2014, year-end. You are the personnel director and are reviewing some financial information regarding the March 1, 2012, purchase of office furniture for the western region offices totalling $700,000 ($300,000 was paid in cash and the balance was financed over four years at 4% annual interest with annual principal payments of $100,000). The useful life of the furniture was estimated to be five years with a projected resale value at that time of $20,000. Insurance was purchased on the furniture at a cost of $8,000 annually, payable each March 1. You leave the office for the day wondering what needs to be considered regarding these items in preparation for year-end.
Required
Using the elements of critical thinking described on the inside front cover, respond.