ORTH METHO
Q: ABC and XYZ establish a joint arrangement using a separate vehicle. The legal forn of the separate…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: Q8: What is the value of a perpetuity of P100 per year if the discount rate is 5% and the cash flows…
A: The perpetuity value = $100 per year Discounting Rate = 5% First Perpetuity receivable: after 2…
Q: 10. Louise Corp. has a contribution margin ratio of 31%, fixed costs of $62,000, and a profit of…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: II User pays ($) DELL Type here to search $500 ded plan Estimated medical costs ($) 0007 0009 000s…
A: The medical expenses are the costs incurred either to prevent from disease or cost incurred to treat…
Q: Q7-4. What is the relation between the present value of an investment and time and interest rate?…
A: The present value of an investment is inversely proportional to TIME: As the number of years…
Q: e current year expires in 20 years and lue for 5 years. Additionally, research sts of $300,000 were…
A: An intangible asset is a non-physical asset that will be consumed over more than one accounting…
Q: Blossom, Inc. is considering the purchase of a warehouse directly across the street from its…
A: Net present value is the excess of present value of cash inflows over cash outflows.
Q: On January 1, 2020, X and Y have capital balances of P 50.000 and P 100.000. Partner X made monthly…
A: Partnerships are such a type of business where two or more people come together to manage and…
Q: Which of the following statements is TRUE? * A business should credit Revenue when the business…
A: Accounting The recording of a financial transaction related to a business is known as accounting.…
Q: Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative…
A: The income statement shows the net income or net loss of the company. It is calculated by deducting…
Q: Jarett Motors is trying to decide whether it should keep its existing car washing machine or…
A: Cost: It implies to the expenditure that is incurred by the business on it's activities related to…
Q: X a partner in the XY partnership, is entitled to 35% of the profits and losses. During the year, X…
A: X's Capital account had a balance of P 40,000 (P35,000 + P5,000) at the end of the year. X's share…
Q: properties before the donation of land. What advice will you give them?
A: Donor tax is the tax which has been charged by the tax authorities on the donation which has been…
Q: ABC and XYZ (the parties) entered into an agreement to establish a separate vehicle (DEF) and share…
A: Investment: Investment is the amount funded by one company for acquiring the business assets and…
Q: Crane Company uses special strapping equipment in its packaging business. The equipment was…
A: Depreciation as per straight line method = (cost - residual value) /usefullife
Q: The following income statement and additional year-end information is provided. SONAD COMPANY Incone…
A: Direct method of cash flow means only considering cash receipts and cash payment for calculating the…
Q: The nominal annual interest rate on 6-month U.S Treasuries is 0.06% (i.e, the semiannual return is…
A: At Interest Parity, Forward Rate = Spot Rate x (1 + Interest Rate of Price Current) / (1 + Interest…
Q: Worth Company reported the following year-end information: beginning work in process inventory,…
A: The Cost of Goods Sold estimates the "direct cost" of producing any goods or services (COGS). It is…
Q: Pls answer the all questions with solutions 12 – 13. Wins Department Store had net credit sales of…
A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = (beginning…
Q: Bee, Cee and Dee, accountants, agree to form a partnership and to share profits in the ratio of…
A: The question requires the amount that need to be credited into Bee's capital account from Net…
Q: Based on event #1 above, what would be the ending inventory balance on the December 31, 2X01…
A: Consolidated financial statement is the statement which has been prepared by the parent company at…
Q: On the first day of the fiscal year, a company issues a $1,800,000, 6%, five-year bond that pays…
A: Since bond has been issued at discount, difference between face value and issue price will be…
Q: Hillary sells cosmetics from her part time home based business. she receives a straight commission…
A: Often companies do not sell their own products directly. Instead they use third parties as…
Q: E. The following accounts appear in the general ledger of Rey's Internet Café on December 31, 20OD:…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: 6 S1: Reciprocal accounts in the statement of financial position under home office and branch…
A: Combined or consolidated financial statement refer to the financial statement of a parent company…
Q: No SIM 2:41 PM © 86% D T-account-Pr.. Scanned with CamScanner 154 | Basic Accounting SCORE: NAME:…
A:
Q: If furniture is overvalued by P1,000 in the trial balance, ----------. a. the total debit balance is…
A: Since asset's nature is debit balance and when furniture account is overvalued then Total of debit…
Q: Use the formula for computing future value using compound interest to determine the value of an…
A: Future Value = Present Value x (1 + r)^n
Q: Total gross sales for the period include the following: Credit card sales (discount 3%) Sales on…
A: Terms 3/15, n/60 denotes that in case payment is made within 15 days, there will be a discount of…
Q: In Jackson Jones Company, land decreased $180,000 because of a cash sale for $180,000, the equipment…
A: Solution:- Given, Jackson Jones Company, Land decreased = $180,000 Cash sale = 180,000 The equipment…
Q: Cash Flows from (Used for) Operating Activities The income statement disclosed the following items…
A: Cash flow from (used for) operating activities means cash brought in or used in the regular…
Q: Q7-7. Is the present value of an ordinary annuity more valuable than an annuity due? Explain,
A: The present value of an ordinary annuity is less valuable than the present value of annuity due.…
Q: 1. Calculate the break-even point in units if Candice Corporation uses the labor-intensive…
A: Break Even Point (Units) = Total Fixed Costs / Contribution Per Unit Break Even Point (Pesos) =…
Q: an auditor, you are tasked to audit the income tax liability of Evader Corp. which of the following…
A: the deferred tax is such tax that is payable in the future. entity pay there income tax on the…
Q: Statement I: The estimated deficiency to unsecured claims represents the amount unrecoverable by the…
A: when we have to calculate estimated deficiency to on secured creditors estimated deficiency is…
Q: Sales for J. P. Hulett Inc. during the past year amounted to $4.3 million. Gross profits totaled…
A: Calculation of Taxable Income Particulars $ Gross Profit 1060000 Less : Operating Expenses…
Q: In testing controls over cash disbursements, an auditor most likely would determine that the person…
A: The question is related to Auditingbof Cash disbursement.
Q: Cathy wishes her daughter Aleah receive Php 100,000 ten years from now. What amount should she…
A: In this problem, first we have find present value at the end of 2 years taking time as 8 years and…
Q: QS 13-12 (Algo) Computing inventory turnover and days' sales in inventory LO P3 SCC Company reported…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: The payables clerk obtains and matches the purchase order, receiving report, and vendor's invoice…
A: The "three-way match" refers to matching three documents - the invoice, the purchase order, and the…
Q: As of December 31, 2020, the separate company financial statements of Drao co and Its 80% owned…
A: Consolidated retained earnings: The consolidated retained earnings refer to the parent company's…
Q: Jack Corporation purchased a 40% interest in Jill Corporation for $15 million on January 1, 2016.…
A: A financial statement that illustrates a company's costs and revenues is known as an income…
Q: A facto
A: The total amount of products or units of products that need to be sold so that the total costs and…
Q: AA, BB and CC formed a partnership on January 1, 2022. Their capital balances before share in profit…
A: Calculation of opening capital of partners as at 01.01.2022: AA BB CC Closing capital…
Q: Which of the following statements is TRUE? * O A business should credit Revenue when the business…
A: When a donation is received it is not shown as a revenue instead as receipts. A business should…
Q: This is Mason's monthly bank statement and check register. What is the ending balance on the…
A: To answer above questions following bank reconciliation has been prepared: Bank…
Q: Direct material $50 Direct labor 20 Overhead (20% variable) 10 Other information: Sales price 100…
A: Special order is the one time order which the seller gets in addition of its normal operating level.…
Q: Putnam & Putnam, a legal firm, uses the balance sheet approach to estimate uncollectible accounts…
A: The allowance for doubtful accounts reflects the amount that is probably uncollectible.
Q: The amount of cash dividends paid during the year would be:
A: Cash dividend paid during the year $24,000
Q: If the initial accounting for a business combination is incomplete by the end of the reporting…
A: As per the Standard, the measurement period is not an open period in which to adjust the acquisition…
Step by step
Solved in 2 steps
- 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 the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.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.
- 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?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.Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.
- Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6–10 (the entry will be the same for each of the five years).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 ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
- Filkins Fabric Company is considering the replacement of its old, fully depreciated knitting machine. Two new models are available: Machine 190-3, which has a cost of $190,000, a 3-year expected life, and after-tax cash flows (labor savings and depreciation) of $87,000 per year; and Machine 360-6, which has a cost of $360,000, a 6-year life, and after-tax cash flows of $98,300 per year. Knitting machine prices are not expected to rise because inflation will be offset by cheaper components (microprocessors) used in the machines. Assume that Filkins’ cost of capital is 14%. Should the firm replace its old knitting machine? If so, which new machine should it use? By how much would the value of the company increase if it accepted the better machine? What is the equivalent annual annuity for each machine?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.
