20,00020,00020,000360,000200,000360,0008.6Which of the following best explains what is meant by 'capital expenditure?AB.Expenditure on non-current assets, including repairs and maintenanceExpenditure on expensive assetsExpenditure relating to the isue of share capitalExpenditure relating to the acquisition or improvement of non-current assets8.7A replacement for a broken windowRepainting the restaurantAn illuminated sign advertising the business nameCleaning of the kitchen floorsWhich one of the following costs would be classified as revenue expenditure on the invoice for a hewcompany car?8.8A.Road taxNumber platesFitted stereoCDelivery costs8.9 Lance is entering an invoice for a new item of equipment in the accounts. The invoice shows thefollowing costs:Water treatment equipmentDeliveryMaintenance chargeSales tax$39,800$1,100$3,980$7,854$52,734Invoice totalWhich of the costs would be as for a business?

8.6 Capital Expenditures are the expenses incurred by an organization for acquiring, upgrading, and…

Answered: 20,000 20,000 20,000 360,000 200,000…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter5: Adjusting Entries And The Work Sheet

Section: Chapter Questions

Problem 1MC: LO1 The purpose of depreciation is to (a) spread the cost of an asset over its useful life. (b) show...

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P10.5 (LO 2, 3, 5), AP At December 31, 2022, Grand Company reported the following as plant assets. Land $4,000,000Buildings $28,500,000 Less: Accumulated depreciation—buildings 12,100,000 16,400,000Equipment 48,000,000 Less: Accumulated depreciation—equipment 5,000,000 43,000,000Total plant assets $63,400,000During 2023, the following selected cash transactions occurred. April 1 Purchased land for $2,130,000.May 1 Sold equipment that cost $750,000 when purchased on January 1, 2019. The equipment was sold for $450,000.June 1 Sold land purchased on June 1, 2013 for $1,500,000. The land cost $400,000.July 1 Purchased equipment for $2,500,000.Dec. 31 Retired equipment that cost $500,000 when purchased on December 31, 2013.
LO1 The purpose of depreciation is to (a) spread the cost of an asset over its useful life. (b) show the current market value of an asset. (c) set up a reserve fund to purchase a new asset. (d) expense the asset in the year it was purchased.
LiabilitiesOMRAssetsOMRShare capital400,000Land and building280,000Net profit60,000Plant and machinery700,000General reserve80,000Stock400,000Debentures840,000Debtors200,000Creditors200,000Bills receivables20,000Bills payable100,000Cash80,000Total1,680,000Total1,680,000 1>calculate total current liabilites 2>calculate total Current assets
PQ16.05 A company has the following assets: Buildings and Equipment, less accumulated depreciation of $5,000,000 Patents Trademarks Land $25,000,000 2,400,000 10,000,000 12,000,000 Goodwill 2,000,000 Cash 8,000,000 The total amount reported under Property, Plant, and Equipment would be??
2. A company has £1.5 million available in one or more of the following projects. Each project cannot be undertaken more than once but they are fully divisible. Project Investment at t0 NPV K £900,000 £135,000 L £900,000 £315,000 M £1,800,000 £600,000 To maximise shareholder wealth, which projects should be undertaken either fully or in part? A K, L and M B K and L C K and M D L and M
2. The sale of the non-cash assets resulted in a total loss ofA. P70,000b. P60,000c.P65,000 d. P80.000e. answer not given
What is the share of A in the asset impairment? ' P120,000 P80,000 P150,000 P250,000
23Which one of the following is capital expenditure? Select one: a. repairs to motor vehicles. b. goods taken by owner for own use. c. cost of raw materials used in extending the premises. d. renewing the electrical wiring in the office. 28Which of the following best explains what is meant by “capital expenditure”? Capital expenditure is expenditure Select one: a. relating to the acquisition or improvement of non current assets. b. relating to the issue of share capital. c. on non current assets, including repairs and maintenance. d. on expensive assets. 7Revenues may be defined as: Select one: Increases in assets from all sources. The amount of capital invested by the owners of a business. The reduction of liabilities previously owed. The increase in equity other than contributions from equity participants. 1-The cost of start-up activities include fees of attorneys should be: A.expensed when incurred B. Captilazed and amortized C. Captailazed but not amortized 2-A…
NOPAT 8250000 EBITDA 17725000 Net Income 5050000 Capital Expenditures 6820000 After tax capital costs 6820000 Tax rate 40%Calculate the depreciation and amortization expense
3. A company has £5 million available and three possible projects, all of which are divisible: Project Investment at t0 NPV S £1.75m £0.56m T £2.50m £0.90m U £3.75m £1.30m What percentage of project T should be undertaken in order to maximise shareholder wealth? A 0% B 50% C 63% D 100%
1. What is the carrying amount of the biological assets on December 31? а. 3,160,000 b. 2,350,000 c. 2,800,000 d. 2,380,000 What amount should be reported as gain from change in fair value attributable to price change? a. 810,000 b. 450,000 c. 360,000 d. 0. 3. What amount should be reported as gain from change in fair value attributable to physical change? а. 810,000 b. 450,000 c. 360,000 d. 700,000
24 If K.mart.CO total assets is 600000, and total liabilities 400000, and goodwill 20000. Compute the identifiable net assets. Select one: a. 180000. b. 200000. c. 220000. d. 240000.

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