Cost in Today's S Revenues in Stage Investment Today's $ 1 A small FCC-licensed commercial $180,000 $270,000 radio station New antenna and hard-line from transmitter 2 $30,000 $50,000 New amplifier to boost from 5,000 watts to 30,000 watts 3 $40,000 $30,000 4 New lightning-protection equipment $30,000 $60,000 5 New control console $15,000 $5,000

Cost in Today's S Revenues in Stage Investment Today's $ 1 A small FCC-licensed commercial $180,000 $270,000 radio station New antenna and hard-line from transmitter 2 $30,000 $50,000 New amplifier to boost from 5,000 watts to 30,000 watts 3 $40,000 $30,000 4 New lightning-protection equipment $30,000 $60,000 5 New control console $15,000 $5,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 30BE: Acquisition Cost Desert State University installed a HD video board with an invoice price of...

See similar textbooks

Similar questions

. Ataxanddutyfreeimportationofa30-horsepowersandmillforpaint manufacturing costs P360,000, CIF Manila. Bank charges, arrester and brokerage cost P5,000. Foundation and installation costs were P25,000. Other incidental expenses amount to P20,000. Salvage value of the mill is estimated to be P60,000 after 20 years. Find the appraisal value of the mill using straight-line depreciation at the end of: a.) 10 years b.) 15 years
Q7.Alyoum Newspaper purchased LG printing machine for 100,000. Installation of the machine costs 8,000. The machine is expected to be used for 10 years at end of which the salvage value is expected to be 10,000. DDB method is used. What is the book value at end of year 3? 55,296 51,200 64,000 None of the other answers Q8.Given an asset that has a cost basis of $300,000 and was sold for $350,000. The book value for the asset at the time of sale was $150,000. Assume that the capital gain tax rate is 40% while the ordinary gain tax rate is 20%. What are the net proceeds from this sale? $300,000 $310,000 $270,000 None of the other answers Q9.Consider a 5-year MACRS asset, which was purchased at $140,000. The asset was disposed of at end of year 5 with a salvage value of $50,000. What is amount of gain(or loss) when asset is disposed of ? $33,872 $11,280 $17,744 $16,128
ng Enabled: Final Exam S23An energy production company has the following information regarding the acquisition of new gas-turbine equipment.Purchase price = $820,0002Transoceanic shipping and delivery cost = $4,300Installation cost (1 technician at $1,600 per day for 4 days) = $6,400Tax recovery period = 12 yearsBook depreciation recovery period = 8 yearsSalvage value = 12% of purchase priceOperating cost (with technician) = $185,000 per yearThe manager of the department asked your friend in accounting to enter the appropriate data into the tax-accountingprogram. What are the values of B, n, and Sin depreciating the asset for tax purposes that he should enter?The value of B is determined to be $The value of Sis determined to be $The value of n is determined to beSavedyears.
MANUAL SOLUTIONS NOT EXCELDOWNVOTE IF EXCEL Determine the difference between the capitalized cost of the timber and steel penstock for a hydroelectric plant with interest of 10%: Timber Steel First Cost Php50,000 Php80,000 Estimated Life 10 years 30 years Scrap Value Php2,000 None Annual Maintenance Php1,200 Php200 Show calculations for the capitalized cost of each item separately.
ABC Corp acquired an equipment with an invoice price of P2,500,000 with terms of 3/30, n/65. Installation cost is P50,000. Decommissioning cost is P200,000. Expected useful life is 10 years and effective rate was 12% How much is the initial cost of the equipment? 2,550,000 2,539,395 2,614,395 2,750,000
38. CLC Publishing is considering the purchase of an offset printing machine. A study of three available alternatives shows the following estimates: Determine the best printing machine using ROR analysis for the data given. A B C Acquisition Cost P700 000.00 P850 000.00 P1 000 000.00 Shipping Cost 5% 5% 8% Net Annual Benefit P155 000.00 P145 000.00 P170 000.00 Useful Life 8 years 16 years 16 years Salvage Value P35 000.00 P70 000.00 P80 000.00 (Ans. Select machine B; iB-A= 15.34%; iC-B=10.9%)
Y3 (e) Kwik Ltd (Kwik) runs a unit in Ablekuma Metropolis that has suffered a massive drop in income due to failure in its technology on 1 January 2018. As a result, the following carrying amounts were recorded in the books immediately before the impairment test. GH¢million Goodwill 20 Technology 5 17 Equipment 10 Land 50 Buildings 30 Other net assets 40 The value in use of the unit is estimated at GH¢85 million, and Kwik has received an offer of GH¢75 million for the unit. The technology is worthless, following its complete failure. Other net assets include inventory, receivables and payables. It is considered that the carrying amount of other net assets is a reasonable representation of its net realizable value. Required: In accordance with IAS 36: impairment of assets, show the accounting treatment for the above transactions.
! SHOW FULL SOLUTION !*use given data below Answer: P 556,597.5 A Machine was purchased on 1st January 2004 at a cost, of P58,000 and the cost of installation Rs 8 000 his expected that its total working life will be 100,000 hours. The scrap value may be P3,000. During the year 2004, the machine worked for 1200 hours and in 2005 for 1,350 hours. Calculate the book value after 2005.
Given the two machines’ data Machine A Machine B First Cost P8,000.00 P14,000.00 Salvage value 0 2,000.00 Annual operation 3,000.00 2,400.00 Annual maintenance 1,200.00 1,000.00 Taxes and insurance 3% 3% Life, years 10 15 Money is worth at least 16% Using equivalent uniform annual cost method, determine the value of alternative A and alternative B:
Civil Engineering The first cost of an electric rebar bender is P364,000 and a salvage value of P45,000 at the end of its life for 5 years. Money is worth 5.9% annually. If there is no salvage value and the annual maintenance cost is P16,000, find the annual cost of perpetual service. Express your answer in whole number. Not use excel
The Befort Company field for a patent on a new type of machine. The application coststotaled P12,000. R&D costs incurred to create the machine were P75,000. In the year inwhich the company filed for and received the patent, it spent P20,000 in the successfuldefense of a patent infringement suit.
Don Williams is General manager of Carib Systems who received a proposal to replace theVersion 1 with Version 2 Point of Sales (POS) equipment at the company. Williams collectsdata about the proposal on Version 1 and Version 2 as follows:Version 1 POS Version 2 POSOriginal cost $425,000 $170,000Useful life 5 years 3 yearsCurrent age 2 years 0 yearsRemaining useful life 3 years 3 yearsAccumulated depreciation $195,000 Not purchased yetCurrent book value $230,000 Not purchased yetCurrent disposal value (in cash) $120,000 Not purchased yetFinal disposal value (in cash 3 years from now) $0 $0Annual POS cash operating costs $60,000 $20,000Annual revenues $1,250,000 $1,250,000Annual non POS related operating costs $920,000 $920,000Required:As the Management Accountant:1. Compare the costs of Version 1 POS and Version 2 POS. Consider the cumulative resultsfor the three years together, ignoring the time value of money and income taxes.