Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 25

(This serial problem began in Chapter 1 and continues through most of the book. If previous chapter segments were not completed, the serial problem can begin at this point. It is helpful, but not necessary, to use the Working Papers that accompany the book.
Selected ledger account balances for Business Solutions follow.

Required
1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2016. Compute amounts for the year ended December 31, 2016, for Depreciation Expense-Office Equipment and for Depreciation Expense-Computer Equipment (assume use of the straight-line method).
2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2016
3. Compute the three-month total asset turnover for Business Solutions as of March 31, 2016. Use total revenue for the numerator and average the December 31, 2015, total assets and the March 31, 2016, total assets for the denominator. Interpret its total asset turnover if competitors average 2.5 for annual periods. (Round turnover to two decimals.)