determine the total equivalent cost in present worth at an interest rate of 10%.
Q: on, the
A: Given: Company purchases for 550,000 salvage value of $50,000
Q: This year, Amber purchased a business that processes and packages landscape mulch. Approimately 20 p...
A: The tax laws of United States require that the companies should evaluate the ending value of invento...
Q: percent. The tax
A: The formula is shown as,
Q: CASE 1 (22 points: 4 problem solving; 1 journal entry) On May 1, 20x1, the statement of financial po...
A: Solution A journal is a company's official book in which all business transaction are recorded in ch...
Q: Confection Bakery Supply began the year with an Accounts Receivable balance of $25,000. Net sales (a...
A: The ratio analysis helps to analyse the financial statements of the business. The account receivabl...
Q: Factory overhead for the period amounted to P1,200,000. Normal production of the finished goods is 5...
A: Overheads are the estimated cost which are not directly related with production. In simple, it is ag...
Q: Pete Frank bought a computer for $4,000. Pete put down $500 and financed the balance at 10 ½% for 36...
A: Monthly Payment = Principal Amount x Monthly Payment Factor @ 10.5% for 36 months (From Table) / 100...
Q: s money hc holdingr
A: She will withdraw 4 x 100 = $ 400
Q: Tech Co. and Robotics Co. are joint operators in the development of Super OS, a mobile phone operati...
A: Lets understand the basic. Joint operation is an arrangement in which two or more parties contribute...
Q: Use this problem to answer the next three questions: On January 2, year 1, ABC Company purchased 75%...
A: Dividend that should be reported in consolidated financial statement: = Cash dividend paid by ABC + ...
Q: The Chowning Company manufactures ear buds that sell for $20 a pair. The variable cost of each set o...
A: Formula: Total cost = Variable cost + Fixed cost
Q: The company determines that the interest expense on a note payable for the period ending December 31...
A: Introduction: A journal entry is a record of a company's financial activities that is kept in its ac...
Q: X Company Y Company Amount Percent Amount Percent Sales S 148,000 100.00 $ 148,000 100.00 Variable c...
A: Solution.. Actual sales of company Y = $148,000 Contribution margin ratio = 70% Fixed cost = $70...
Q: Corporation, a cash basis taxpayer, received $10,000 from a customer in 2019. In that year, the cust...
A: Whenever the taxes you had already paid exceed your entire tax burden, the government reimburses you...
Q: Prepare the necessary journals for the given transactions 1. Cash paid to Sara BD 600 2. Sold Furnit...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Saved Help Save & Exit Subr Check my wor Pablo Management has five employees, each of whom earns $25...
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.
Q: Vaasa Chemicals makes a product by way of two processes – Mixing & Refining. Its process costing sys...
A: Introduction: An equivalent unit of production is a measure of the amount of work done by a manufact...
Q: Onix Limited made an offer to the public via a prospectus of 1,000,000 shares with an issue price of...
A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...
Q: Several years ago. cosmetics manufacturer Elizabeth Arden announced its decision to cancel the launc...
A: The cash outflows for the costs that were already incurred in past are termed as sunk costs and amou...
Q: ngs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 ...
A: In this question, we have to find out the unit cost to manufacture each unit
Q: n 2019, Datasoft Inc. received $350,000 in dividends from CSLabs Inc. Datasoft's taxable income befo...
A: Dividend received deduction (DRD) is a tax deduction that is applicable to the entities which receiv...
Q: The P10.00 million mutual fund Pingu manages has a beta of 1.05 and a 9.50% required return. The ris...
A: In order to determine the required rate of return of the portfolio, we first need to compute the mar...
Q: Summarized data for Walrus Co. for its first year of operations are: Sales (90,000 units) $4,500,00...
A: Income statement under Absorption costing Income statement under Variable costing
Q: A fre wiped out Paine Paper Company's Inventory The insurance company will accept an estenate using ...
A: calculation of cost of ending inventory using retail method Particulars Cost Retail Beginning ...
Q: Required information [The following information applies to the questions displayed below.] Burlingto...
A: >Predetermined overhead rate is the overhead allocation rate, used to 'apply' or 'allocate' the o...
Q: efore the year began, the following static budget was developed for the estimated sales of 100,000. ...
A: In this question, we have to calculate the flexible budget.
Q: In its December 31, year 1 consolidated statement of retained earnings, what amount should ABC repor...
A:
Q: 2. Ann is Bob's supervisor. While completing his performance appraisal, Ann tells Bob that he is laz...
A: Effective communication is important for organization in order to achieve the goal. organization to...
Q: Arnina established a service business to be known as Arnina Photography on July 1, 2021. During the ...
A: Your journal entries may not be seen if you use accounting software or outsource your accounting, bu...
Q: Rob Rote, the president and CEO of RRR Waste Management, was recently hospitalized, suffering from e...
A: Business Ethics: Implementing proper corporate rules and procedures in the face of potentially conte...
Q: • Sam's gross pay is $4,050 and take-home pay is $3,000. • If Sam is eligible for Social Security di...
A: Disability benefits refers to the money received which is paid through the government who could not ...
Q: Blue Spruce Limited reported profit of $436,010 for its November 30, 2021, year end. Cash dividends ...
A: Profit available to common shareholders = Net income - Preferred dividends = $436,010 - $69,500 = $3...
Q: Appliance Apps has the following costs associated with its production and sale of devices that allow...
A: An income statement is a financial report that indicates the revenue and expenses of a business. It ...
Q: E17-13. Please solve part d, and show all workings clearly. FYI: The securities-held to maturities...
A: Unrealized Holding Gain- An unrealized holding gain is enhancing in the value of an asset that a com...
Q: SOLUTION IN GOOD ACCOUNTING FORM In the December 31, year 1 consolidated balance sheet, noncontrolli...
A: The question is related to the Consolidation. The details are as under ABC Corporation Share = 80% ...
Q: hite purchased land with a current market value of $144,000, a building with a market value of $18,0...
A: Total market value of land, building nd equipment = $144, 000 + 18000 + 18000 =$180, 000
Q: The a
A: Tax refers to the mandatory charge levied by the government over the income gained by an entity.
Q: Since its incorporation in 2010, Park Inc. has qualifed as a CCPC. During the period since incor-por...
A: 1. Sale proceeds from sale of property $275000 Less : book value on the date of sale ($129600...
Q: Reg 1 and 2 Reg 3 The company's business conditions are improving. One possible result is a sales vo...
A: Flexible Budget: It is the budget that is adjusted to the volume level of company and continuously ...
Q: c. Stephanie reported $18,000 of earnings from her babysitting. Standard deduction
A: Solution:- Given, Stephanie is 12 years old and often assists neighbors on weekends by babysitting t...
Q: Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the...
A: Solution:- Preparation of journal entries to record merchandising transactions of Lowe's, which uses...
Q: A. What is the value of the annuity 5 years from now? B. What is the current value of the annuity?
A: Solution:- Given, A 5-year annuity of ten = $50,000 semi annul payments Begin 9 years from now, wit...
Q: S1] When the entity issues a long-term debt instrument, it exposes itself to solvency risk. [S2] Whe...
A: The correct answer is given in the following steps for your reference.
Q: Catalina Corporation begins the year with a $195 balance in Retained Earnings and a $320 balance in ...
A: Introduction: Balance sheet: All Assets , liabilities and owners equity are shown in Balance sheet. ...
Q: Wilma Company experienced a P500,000 decline in the market value of inventory at the end of the firs...
A: ANSWER The correct option is d.) first quarter 0 , Second quarter 0 EXPLANATION Interim periods are ...
Q: 13,655 units/year and
A: Given as, Batch Size (Q) = 795 units Production rate = P = 13,655 units / year
Q: ABC Company acquired 80% of DEF Company outstanding shares on January 1, 2022 by paying cash. The co...
A: Solution Goodwill is an intangible assets that is associated with the purchase of one company by ano...
Q: Melissa Jackson, bookkeeper for Kinko Company, cannot prepare a bank reconciliation. From the follow...
A: Bank reconciliation statement is prepared with a view to reconcile the cash balance as per cash book...
Q: The following monthly data in contribution format are available for the MN Co. and its only product:...
A: Projected sales to achieve target profit is calculated by using CVP analysis ( cost-volume-profit), ...
Q: Philip works at a nursing home as an aide and earns $27,000 a year. IF he went to school to get a nu...
A: An education loan seems to be an amount of money obtained to cover the costs of graduate school or h...
Suppose that you purchased industrial equipment that requires special software to run the machine. The licensing agreement calls for a $20,000 payment immediately and $10,000 every other year to renew and get any update on the software. If the machine is to be kept for 48 years, determine the total equivalent cost in present worth at an interest rate of 10%.
Step by step
Solved in 2 steps
- Dauten is offered a replacement machine which has a cost of 8,000, an estimated useful life of 6 years, and an estimated salvage value of 800. The replacement machine is eligible for 100% bonus depreciation at the time of purchase- The replacement machine would permit an output expansion, so sales would rise by 1,000 per year; even so, the new machines much greater efficiency would cause operating expenses to decline by 1,500 per year The new machine would require that inventories be increased by 2,000, but accounts payable would simultaneously increase by 500. Dautens marginal federal-plus-state tax rate is 25%, and its WACC is 11%. Should it replace the old machine?For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a ten-year remaining legal life was purchased for $300,000. The patent will be usable for another eight years. B. A patent was acquired on a new smartphone. The cost of the patent itself was only $24,000, but the market value of the patent is $600,000. The company expects to be able to use this patent for all twenty years of its life.Caduceus Company is considering the purchase of a new piece of factory equipment that will cost $565,000 and will generate $135,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return In Excel, see Appendix C.
- Gina Ripley, president of Dearing Company, is considering the purchase of a computer-aided manufacturing system. The annual net cash benefits and savings associated with the system are described as follows: The system will cost 9,000,000 and last 10 years. The companys cost of capital is 12 percent. Required: 1. Calculate the payback period for the system. Assume that the company has a policy of only accepting projects with a payback of five years or less. Would the system be acquired? 2. Calculate the NPV and IRR for the project. Should the system be purchasedeven if it does not meet the payback criterion? 3. The project manager reviewed the projected cash flows and pointed out that two items had been missed. First, the system would have a salvage value, net of any tax effects, of 1,000,000 at the end of 10 years. Second, the increased quality and delivery performance would allow the company to increase its market share by 20 percent. This would produce an additional annual net benefit of 300,000. Recalculate the payback period, NPV, and IRR given this new information. (For the IRR computation, initially ignore salvage value.) Does the decision change? Suppose that the salvage value is only half what is projected. Does this make a difference in the outcome? Does salvage value have any real bearing on the companys decision?Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master Industries (the manufacturer) has agreed to accept $23,500 at the end of each of the next 4 years. Based on this deal, how much interest will Grummet pay over the life of the loan? A. $94,000 B. $80,000 C. $23,500 D. $14,000Shonda & Shonda is a company that does land surveys and engineering consulting. They have an opportunity to purchase new computer equipment that will allow them to render their drawings and surveys much more quickly. The new equipment will cost them an additional $1.200 per month, but they will be able to increase their sales by 10% per year. Their current annual cost and break-even figures are as follows: A. What will be the impact on the break-even point if Shonda & Shonda purchases the new computer? B. What will be the impact on net operating income if Shonda & Shonda purchases the new computer? C. What would be your recommendation to Shonda & Shonda regarding this purchase?
- For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a seventeen-year remaining legal life was purchased for $850,000. The patent will be usable for another six years. B. A patent was acquired on a new tablet. The cost of the patent itself was only $12,000, but the market value of the patent is $150,000. The company expects to be able to use this patent for all twenty years of its life.The Ham and Egg Restaurant is considering an investment in a new oven that has a cost of $60,000, with annual net cash flows of $9,950 for 8 years. The required rate of return is 6%. Compute the net present value of this investment to determine whether or not you would recommend that Ham and Egg invest in this oven.Conestoga Plumbing plans to invest in a new pump that is anticipated to provide annual savings for 10 years of $50,000. The pump can be sold at the end of the period for $100,000. What is the present value of the investment in the pump at a 9% interest rate given that savings are realized at year end?