AW of AW of Defender, Challenger, Year $ per year $ per year 1 -24,000 -31,000 2 -25,500 -28,000 3 -26,900 -25,000 4 -27,000 -25,900 -28,000 -27,500
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In trying to decide whether or not to replace a sorting/baling machine in a solid waste recycling operation, an engineer calculated the annual worth
values for the in-place machine and a challenger. On the basis of these costs, the defender should be replaced:
a. now.
b. 1 year from now.
c. 2 years from now.
d. 3 years from now.
Step by step
Solved in 3 steps
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- ABC begins the construction of a building on 1 January 20X1. The following expenditures on this property incurred during the year 20X1: (Unit: CU 1000)1 January 20X1 – 100,0001 June 20X1 – 300,0001 October 20X1 – 600,000On 1 January 20X1, Entity A had 500,000 of general borrowings which increased by 1 million to 1.5 million in total on 1 June 20X1. Interest expense on these borrowings calculated to 50,000 for full-year 20X1.Calculate the amount relating to borrowing cost that should be capitalized in the cost of the building?On September 1, 2020, Peter Senen began a service proprietorship with an initial investment of P400,000. Peter Senen provided P800,000 of service during September. Collections were made except for P200,000 which were paid the following month. Expenses were incurred in the amount of P400,000, including P100,000 which are to be paid next month. Peter Senen withdrew P60,000 against the capital account. On September 30, 2020, financial statement, what amount of capital should be reported under the cash basis accounting? A.P740,000 B.P640,000 C.P840,000 D.P800,000Mr. and Mrs. Grant recognized the following capital gains and losses this year: Short-term capital gain $12,000 Short-term capital loss $(6,000) Long-term capital gain $35,000 Long-term capital loss $(50,000) Their AGI before considering these capital gains and losses was $150,000. Compute their AGI. a. $150,000 b. $147,000 c. $145,000 d. $141,000