The pharmacy purchased a computer to maintain financial records. The cost of the computer was $1,863.00. Its estimated useful life is 6 years, and the disposal value is $175.00. What is the annual depreciation? (round to the nearest whole number) Group of answer choices $486 $813 $441 $281
Q: Tea and Crumpet’s Inc. needs $11,302.77 to purchase a new commercial oven. If the company can afford...
A: Here, Required Amount (FV) is $11,302.77 Amount Deposited Today (PV) is $6,400 Interest Rate (r) is ...
Q: ABC Corporation issued 12%, 1000-par value preference shares. Interest is payable quarterly. It will...
A: To Find: Value of preference share
Q: How much would an investor expect to pay for a $1,000 par value bond with a 9% annual coupon that ma...
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of...
Q: Repaying a Loan While Mary Corens was a student at the University of Tennessee, she borrowed $9,000...
A: Loan repayment is the process by which loan taken is returned to the lender with applicable interest...
Q: When the price of the underlying financial instrument exceeds the exercise [strike] price of a call ...
A: An option is a financial derivative that represents a contract that the option writer sells to the o...
Q: on gives the right to sell an asset at any time prior to or at maturity? * A. European Put B. Americ...
A: Options gives the opportunity Buy or sell the stock on or before maturity of stock. But there is obl...
Q: Mrs. Pores invested P150,000 in a bank that pays an 13% interest converted monthly. If her account b...
A:
Q: MC Corporation’s current free cash flow is $400,000 and is expected to grow at a constant rate of 5%...
A: Data given: Free cash flow (FCF) = $400,000 Expected growth at a constant rate (g)= 5% WACC= 12% ...
Q: What is the beta of a U.S. Treasury bill? O 1.0 negative 1.0 O Unknown
A: US treasury bills are issued by the US government. They are issued at low interest rate. This bill a...
Q: 7. If net sales amounted to P200,000, net income before tax is P80,000 and the income tax rate is 30...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: DISCUSS WHY ESTIMATING THE VALUE FOR A BOND IS EASIER THAN ESTIMATING THE VALUE FOR COMMON STOCK.
A: Stocks are known as equity securities in finance because they make the holder a part owner of the co...
Q: Why is financial management so important for small and larger businesses?
A: Financial Management: Financial management means the planning and organization of the financial acti...
Q: Use the following information in the table below to answer the question: Blanc Blanc Financial Year ...
A: The accounting return on equity (ROE) is calculated as net income divided by average shareholder equ...
Q: Bramble Company sells 8% bonds having a maturity value of $2,000,000 for $1,848,366. The bonds are d...
A: Bond Amortization is similar amortization of loan which is prepared to determine the actual interest...
Q: ABC Inc. share will pay dividends of 40 for the first year, 45 for the second year, and 3% above the...
A: Dividend in year 1 (D1) = 40 Dividend in year 2 (D2) = 45 Growth rate (g) = 3% Required return (r) =...
Q: 1) Law of one price implies the price of the coupon bond to be $1186, suggesting no arbitrage opport...
A: The law of one price states that a particular commodity or asset has the same price globally.
Q: Which technique is expected to be most accurate in the valuation of an operating retail shopping cen...
A: The various types of methods for valuation are cost approach, income approach, sales comparison meth...
Q: Aaron contributed $2100 to his RRSP at the end of every half-year. What was the value of his RRSP af...
A: The worth of a present commodity at a date in the future predicated on an estimated rate of growth i...
Q: Given that market interest rates is higher then bond's coupon rate, the bond will: sell for less tha...
A: The price of bond is sum of present value of the future cash flow from its coupons and the present v...
Q: not use of the excel Q)You plan to purchase a new TIG welder for your company. It will cost $2,800 ...
A: Cost now = 2800 Cost at end of 3rd year = 60 Cost at end of 4th year = 130 Sale value at end of 5th ...
Q: For items 1-10, refer to the following The owner of Dawn Winery decided to lend kegs of we amounting...
A: The rate of interest is the rate at which an investment grows. In the case of compounding, the inves...
Q: Albert Ang invested P88,000 at ABC Credit Union at 12% interest compounded quarterly. What is the ef...
A: Answer - The effective annual interest rate is the real return on a interest-paying investment when...
Q: Maria takes out a 30-year fixed rate mortgage at 5% to buy a house that costs $450,000. To avoid pay...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: Please select the risk that affect only a single company? market risks. specific risks. systematic r...
A: Systematic risk is also known as non-diversifiable risk, and it exist for entire market. It arises d...
Q: Find the nominal rate of an investment with duration of 4 and a half years compounded once a year. T...
A: Time period is 4.5years Present value of investment is Php50,010 Future Value is Php60,072.82 To Fin...
Q: Find the nominal rate of an investment with duration of 4 and a half years compounded once a year. T...
A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv], [typ...
Q: ABC Corporation will be investing in X Corporation shares. X provided dividends of 45 per share last...
A:
Q: e of the investment, knowing that inflation is 3% cumulative annually and that the required profitab...
A: The internal rate of return (IRR) is a financial metric for determining the profitability of potenti...
Q: Blunderbluss Manufacturing’s balance sheets report $200 million in total debt, $70 million in short-...
A: Data given:: Total debt = $200 million Short-term investments = $7...
Q: A solar lighting system is to be purchased and installed for 310,000. This system will save approxim...
A: PW is one of the methods of evaluating the profitability of the project. It considered the PV of cas...
Q: Suppose you invest $5,000 into a mutual fund that is expected to earn a rate of return of 7%. The am...
A: Mutual Fund is an investment option where large number of investors put their investment amount coll...
Q: $300 $270 $240 $210 $180
A: Given information : Year Cash flows 0 $ - 1 $ ...
Q: A college student, needs to borrow $5,000 today for his tuition bill. He agrees to pay back the loan...
A: Time period is 5 years Borrowed amount is $5,000 Amount to be paid is $7012.76 To Find: Nominal int...
Q: What is the indicated value of the subject property using direct capitalization, rounded to the near...
A: Direct Capitalization Method: This method computes the value by dividing the net operating income re...
Q: Edison Power and Light has an outstanding issue of cumulative preferred stock with an annual fixed d...
A: Cumulative preffered stock is that type of preferred stock in which the company will have to pay out...
Q: Calculate the IRR of the previous project. Justify for what type of discount this investment will be...
A: Internal Rate of Return: It is the rate at which the project's net present value is equal to zero. H...
Q: LAST YEAR ABC CO MADE PROFITS BEFORE TAX OF $2628000. TAX AMOUNTED TO $788000 ABC COMPANY SHARE CAPI...
A: Profit before tax = $2628000 Tax = $788000 Shares outstanding = 2000000
Q: Are the following statements true or false? Provide a short justification for vour answer. Suppose y...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: 7. Rodrick invested 2M to an account that earns 8.3% compounded continuously. Determine the amount o...
A: Investment (PV) = 2,000,000 Interest rate (r) = 8.3% Period (t) = 17 years Mathematics constant (e) ...
Q: When the return on sales (also known as net profit margin) is negative, what does this mean? Group o...
A: Net profit margin (NPM) or return on sales measures the profitability of the company. Higher the rat...
Q: can be progressively eliminated by adding stocks to a portfolio? Systematic risk Specific risk Marke...
A:
Q: You would like to have $29,753 in 7 years.. If the rate is 9.57%, how much do you have to invest eac...
A: Given Information : Amount Required = $29,753 Number of years = 7 Annual interest rate = 9.57%
Q: Use the figure for the question(s) below. Consider the following graph of the security market line: ...
A: Portfolio B falls below the SML, hence statement (A) is incorrect.
Q: Consider a trader who takes a long position in a six-month forward contract on the euro. The forward...
A: Forward rate: $1.75 = €1 Contract size = €62500 Spot exchange rate at the maturity: $1.65 = €1
Q: 22. What is a de facto merger according to the Bank of Commerce vs. Radio Philippines Network, Inc. ...
A: De facto merger is a merger which there is common management structure established between two entit...
Q: Solve each of the following completely. 1. Find the compound amount and compound interest in Php62,0...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: The cash price of a motorcycle is Php325,000. A fixed amount is to be paid at every end of the month...
A: Here, Cash Price of Motorcycle is Php325,000 Time Period (n) is 1.5 years Interest Rate (r) is 9% Co...
Q: Accumulate $2000 for 3 years at 7% simple interest. O I = $420; F = $2420 %3D %3D O 1= $4200; F= $64...
A: Amount (P) = $2000 n = 3 years r = 7%
Q: Is there a reason to pick one over the other? 1. FCFF=CFO +Int (1-Tax rate) - FCInv 2. FCFF=NI + NCC...
A:
Q: A preferred stock will pay a dividend of $1 per year. If the annual return is 7.63%, what is the sto...
A: Stock price today = Annual dividend / Annual return where, Annual dividend = $1 Annual return = 7.63...
Cost of computer = $1863.00
Useful life = 6 Years
Disposal value = $175.00
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the life of the truck two years beyond the original estimated life. Related information is provided below. Cost of truck 65,000 Salvage value 5,000 Original estimated life 6 years The truck was purchased on January 1, 20-1. The engine was replaced on January 1, 20-6. Using straight-line depreciation, compute depreciation expense for 20-6.Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
- A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Required Prepare a depreciation schedule for the four-year period using the straight-line method. Check Figure Year 1 depreciation, 4,000To test your formulas, assume the machine purchased had an estimated useful life of three years (20,000, 30,000, and 50,000 hours, respectively). Enter the new information in the Data Section of the worksheet. Does your depreciation total 320,000 under all three methods? There are three common errors made by students completing this worksheet. Lets clear up two of them. One, an asset that has a three-year life should have no depreciation claimed in Year 4. This can be corrected using an =IF statement in Year 4. For example, the correct formula in cell C32 is =IF(B32D9,0,(D7D8)/D9) or =IF(B32D9, 0, SLN(D7, D8, D9)). You may wish to edit what you have already entered rather than retype it. Two, as mentioned in requirement 2, the double-declining-balance calculation needs to be modified in the last year of the assets life. Assuming you have already modified the formula for Year 4 (per instructions in step 2), alter the formula for Year 3 also. If you corrected any formulas, test their correctness by trying different estimated useful lives (between 3 and 8) in cell E9. Then reset the Data Section to the original values, save the revised file as DEPREC2, and reprint the worksheet to show the correct formulas. The third common error doesnt need to be corrected in this problem. The general form of the double-declining-balance formula needs to be modified to check the net book value of the asset each year to make sure it does not go below salvage value. =DDB does this automatically, but if you are writing your own formulas, this gets very complicated and is beyond the scope of the problem.During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
- Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.Stem Corp. bought a machine in February of year 7 for 20,000. Then Stem bought furniture in November of year 7 for 30,000. Both machines were placed in service for business purposes immediately after purchase. No other assets were purchased during year 7. What depreciation convention must Stem use for the machine purchased in February year 7? a. Mid-month b. Half-year c. Mid-quarter d. Full-yearDuring the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
- Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.Baglias Wholesale Trinkets has a 3-D printer used in operations. The original useful life was estimated to be six years. However, after two years of use, the printer was overhauled, and its total useful life was extended to eight years. How many years of depreciation remain after the overhaul in year 2?Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.