Help Please

Use straight-line depreciation and prepare the journal entry to depreciate the leased asset at the end year 1. Assume zero salvage value and a five-year life for the office equipment. (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.) The bank has offered a long-term secured note to Success Systems. The bank's loan procedures require that a client's debt-to-equity ratio not exceed 0.8. As of March 31, 2014, what is the maximum amount that Success Systems could borrow from this bank (rounded to nearest dollar)? If Success Systems borrows the maximum amount allowed from the bank, what percentage of assets would be financed by debt and by equity? What are some factors Adria Lopez should consider before borrowing the funds