1. If Apple purchases an asset that it receives right now but will pay $250,000 for it in 4 years, what cost should be recorded on the balance sheet? (Interest rate assumed to be 7%)

2. What would be the straight-line depreciation for the asset in #1 for 2013 if the useful life is 10 years and it is received on August 1, 2013 (no half year convention).

3. What adjusting entry is needed at the end of 2013 for the interest on the loan recorded upon receipt of the asset in #1?

4. How much amortization was recorded on finite lived intangible assets during 201

CONSOLIDATED BALANCE SHEETS (In ilions, except number of shares which are reflected in thousands) tenber 28. 2013 ASSETS: Current assets 14,259 26,287 13,102 1,764 3,453 7,539 6.882 73,286 106,215 16,597 1,577 4,179 5,146 207.000 Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowances of $99 and $98, respectively Inventories Deferred tax assets Vendor non-trade receivables Other current assets Total current assets Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities 22,367 13,856 7.435 43,658 2,625 16,960 20,208 83.451 Accounts payable Accrued expenses Deferred revenue Total current liabilities Deferred revenue non-current Long-term debt Other non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity Common stock, no par value; 1,800,000 shares authorized; 899,213 and 939,208 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) 19,764 104.256 471) 23.549 207,000 Total shareholders' equity Total liabilities and shareholders' equity