Klingon Widgets, Inc., purchased new cloaking machinery four years ago for $8 million. Themachinery can be sold to the Romulans today for $7.4 million. Klingon's balance sheet shows netfixed assets of $6 million and current assets of $900,000. If all of the firm's current assets weresold today, the company would receive $1.2 million cash. The book value of Klingon's assets isand their market value is.Enter your answers in millionswith one decimal place.

Market value of Machinery= $7.4 millionBook value of Net Fixed Assets=$6 millionBook value of…

Answered: Klingon Widgets, Inc., purchased new…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter25: Taxation Of International Transact Ions

Section: Chapter Questions

Problem 25P

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The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate net after-tax operating cash flows, including depreciation, of $6,250 per year. The truck has a 5-year expected life. The expected salvage values after tax adjustments for the truck are given here. The company’s cost of capital is 10%. Should the firm operate the truck until the end of its 5-year physical life? If not, then what is its optimal economic life? Would the introduction of salvage values, in addition to operating cash flows, ever reduce the expected NPV and/or IRR of a project?
Alfredo Company purchased a new 3-D printer for $900,000. Although this printer is expected to last for ten years, Alfredo knows the technology will become old quickly, and so they plan to replace this printer in three years. At that point, Alfredo believes it will be able to sell the printer for $15,000. Calculate yearly depreciation using the double-declining-balance method.
Taos Productions bought a piece of equipment for $79,860 that will last for 5 years. The equipment will generate net operating cash flows of $20,000 per year and will have no salvage value at the end of its life. What is the internal rate of return?
Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?
Cinemar Productions bought a piece of equipment for $55,898 that will last for 5 years. The equipment will generate net operating cash flows of $14,000 per year and will have no salvage value at the end of its life. What is the internal rate of return?
Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $4.0 million. The machinery can be sold to the Romulans today for $6.2 million. Klingon’s current balance sheet shows net fixed assets of $2.8 million, current liabilities of $710,000, and net working capital of $130,000. If all the current accounts were liquidated today, the company would receive $825,000 cash. What is the book value of Klingon’s total assets today? What is the sum of the market value of NWC and the market value of fixed assets?
Klingon Widgets, Inc.., purchased new cloaking machinery three years ago for $7 million. The machinery can be sold to the Romulans today for $4.9 million. Klingon's current balance sheet shows net fixed assets of $3.7 million, current liabilities of $1.1 million, and net working capital of $380,000. If all the current assets were liquidated today, the company would receive $1.6 million cash. What is the book value of Klingon's assets today?
Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $4.4 million. The machinery can be sold to the Romulans today for $6.6 million. Klingon’s current balance sheet shows net fixed assets of $3.2 million, current liabilities of $750,000, and net working capital of $134,000. If all the current accounts were liquidated today, the company would receive $865,000 cash. What is the book value of Klingon’s total assets today? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. What is the sum of the market value of NWC and the market value of fixed assets? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.
Klingon Widgets, Inc., purchased new cloaking machinery five years ago for $5 million. The machinery can be sold to the Romulans today for $4.5 million. Klingon’s current balance sheet shows net fixed assets of $3.5 million, current liabilities of $750,000, and net working capital of $229,000. If all the current assets and current liabilities were liquidated today, the company would receive $1.11 million cash. a. What is the book value of Klingon’s total assets today? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) b. What is the sum of the market value of NWC and the market value of fixed assets? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
Klingon Widgets, lnc., purchased new cloaking machinery four years ago for $12 million. The machinery can be sold to the Romulans today for $10.8 million. KlingonOs current balance sheet shows net fixed assets of $10 million, current liabilities of $ 850, 000, and net working capital of $249, 000. If all the current assets were liquidated today, the company would receive $1.16 million cash. What is the book value of Klingons total assets today? What is the market value?
Manson Builders Inc. company bought a machine three years ago for $6 million. The machine can be sold to Rason Builders, Inc. today for $5.4 million. Manson's current balance sheet shows net fixed assets of $3.5 million, current liabilities of $945, 000, and net working capital of $275,000. If the current assets and current liabilities were liquidated today, the company would receive a total of $1.25 million cash. What is the book value of Manson's total assets today? (Please express the value as million dollars and keep two digits after the decimal point. Note: if your answer is 1.23 million, please just enter 1.23 in the blank below.)
Webster & Moore paid $148,000, in cash, for equipment three years ago. At the beginning of last year, the company spent $21,000 to update the equipment with the latest technology. The company no longer uses this equipment in its current operations and has received an offer of $96,000 from a firm that would like to purchase it. The firm is debating whether to sell the equipment or to expand its operations so that the equipment can be used. The equipment, including the updates, has a book value of $44,500. When evaluating the expansion option, what value, if any, should the firm assign to this equipment as an initial cost of the project? a) $0 b) $44,500 c) $96,000 d) $124,500 e) $160,000

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