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What is the investment cost of Alternative 2 that will cause it to breakeven with Alternative 1, assuming the MARR = 12% per year. Further assume cotermination at the end of year five. State any other assumptions you make.
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- Q#3 Following in the adjusted trial balance of M/s Rizwan for the year 2020ACCOUNT TITLES DEBIT CREDITCash 150000Inventory 10,000Prepaid rent 50,000Office Supplies 60,000Land 900,000Building 800,000Accumulated Depreciation 40,000Accounts payable 80,000Salaries payable 55,000Long term loan 390,000Purchases 400,000Sales 600,000Purchase returns 18,000Sales returns 14,000Transportation-in 5,000Interest expense 2,000Salaries expense 44,000Depreciation expense 29,000Electricity expense 5,000Interest expense 5,000Interest payable 25,000Commission Income 22,000Capital 1,254,000Drawing 10000Total 2,484,000 2,484,000Inventory Closing Rs. 50,000REQUIRED a) Prepare Income Statement for the year ended December 31, 2020. b) Prepare Balance Sheet in classified account form as of December 31, 2020Q#3 Following in the adjusted trial balance of M/s Rizwan for the year 2020ACCOUNT TITLES DEBIT CREDITCash 150000Inventory 10,000Prepaid rent 50,000Office Supplies 60,000Land 900,000Building 800,000Accumulated Depreciation 40,000Accounts payable 80,000Salaries payable 55,000Long term loan 390,000Purchases 400,000Sales 600,000Purchase returns 18,000Sales returns 14,000Transportation-in 5,000Interest expense 2,000Salaries expense 44,000Depreciation expense 29,000Electricity expense 5,000Interest expense 5,000Interest payable 25,000Commission Income 22,000Capital 1,254,000Drawing 10000Total 2,484,000 2,484,000Inventory Closing Rs. 50,000REQUIRED a) Prepare Income Statement for the year ended December 31, 2020.QUESTION 2 (20) INFORMATION:Vista Limited intends purchasing a new machine and has a choice between the following two machines:Equipment A Equipment BInitial cost R220 000 R240 000Expected useful life 5 years 5 yearsScrap value Nil NilExpected net cash inflows: R REnd of:Year 1 55 000 70 000Year 2 60 000 70 000Year 3 62 000 70 000Year 4 60 000 70 000Year 5 70 000 70 000The company estimates that its cost of capital is 12%.Required:2.1 Calculate the Payback Period of both equipment. (Answers must be expressed in years, months and days). (4)2.2 Calculate the Accounting Rate of Return (on initial investment) for both equipment A and B. (Answers must be expressed to 2 decimal places). (5)2.3 Calculate the Net Present Value of each equipment. (Round off amounts to the nearest Rand. (6)2.4 Calculate the Internal Rate of Return of Equipment B. (5)
- Pls answer number 5 with solutions On January 1, 20x1 WRECK RUIN Co. acquired land by issuing a three-year, 12%, ₱4,000,000 note payable. Principal and all accrued interests are due on December 31, 20x3. How much is the interest expense in 20x2? a. 1,017,600 c. 537,600 b. 960,000 d. 764,213Q 2. Woolard Supplies (a sole proprietorship) has taxable income in 2022 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Note: Do not round intermediate calculations. Round your intermediate calculations and final answers to the nearest whole dollar amount. Asset Placed in Service Basis Office Furniture (used) March 20 $1,194,000 a. If Woolard elects $50,000 of §179, what is Woolard's total depreciation deduction for the year? b. If Woolard elects the maximum amount of §179 for the year, what is the amount of deductible §179 expense for the year? What is the total depreciation that Woolard may deduct in 2022? What is Woolard's §179 carryforward amount to next year, if any? c. Woolard is concerned about future limitations on its §179 expense. How much §179 expense should Woolard…part 3 4 solution needed Year Net cashflows 0 -575,000 1 £125,000 2 £248,000 3 £176,000 4 £146,000
- Question 1.2 I could only attach 2 pictures, the last picture has only 1 column "Cash and cash equivalent alent at the end of the year R36000" Calculate the amount of interest paid for the year ended 31 December 2020PA7. LO 4.3Using the following information: make the December 31 adjusting journal entry for depreciation determine the net book value (NBV) of the asset on December 31 Cost of asset, $250,000 Accumulated depreciation, beginning of year, $80,000 Current year depreciation, $25,000Problem 4–4 Redlands Inc. made the following investments on January 1, 2020, its first year of business: Item Cost Expected Life Cost Allocation Warehouse $100 20 years Straight-line Machine 60 10 years Double-declining Patent 20 5 years Straight-line Invest in stock* 10 Indefinite Not applicable * Rancho’s stock had a fair (market) values of $8 and $7 on December 31, 2020 and December 31, 2021, respectively. Required (A): 1. Present the depreciation, amortization, and losses on the 2020 income statements. 2. Report the book values of the long-term assets on the December 31, 2020 balance sheet. Required (B): 1. Compute the gain or loss on the sale of the warehouse if Redlands sold it for $111 on January 1, 2021. 2. Compute the impairment loss on the machine if Redlands determined it had a fair value of $45 on…
- Exercise 10 – Accrued Expenses Entity D acquired a piece of land on April 1, 2020. The purchase price was reduced by a creditfor the real property taxes accrued during the year. Entity D records real property taxes at eachmonth-end by adjusting the prepaid tax or tax payable account as appropriate. On May 1, 2020,Entity D paid the first of two equal installments of P72,000 for real property taxes. Required:What is the entry to record the payment on May 1?Q.11. Land shown in the books at $600,000 was revalued as 1,000,000. What journal entries will be passed at the time of revaluation and at the end of year. Under what head, gain on revaluation will be shown in the Income statement?PROVIDE COMPUTATION! 5. Cumulative compensation expense at the end of year 1a. P407,000 c. P430,000b. P645,000 d. P82,500 6. Cumulative compensation expense at the end of year 2a. P1,290,000 c. P810,000b. P330,000 d. P822,000 7. Cumulative compensation expense at the end of year 3a. P1,221,000 c. P1,215,000b. P1,290,000 d. P1,500,000