Software and hardware for optimizing the cell design of robotic picking lines have an installed cost of $78,000 with no residual value after 8 years. For years 2 and 7, use DDB (Double Declining Balance) book depreciation. The book value for year 2, (in $) Round to the nearest two (2) decimal places Add your answer
Q: Current Attempt in Progress Wildhorse Marina has 300 available slips that rent for $800 per season.…
A: The revenues which are received but not earned are called unearned revenues. The unearned revenue is…
Q: Arley's Bakery makes fat-free cookies that cost $1.60 each. Arley expects 20% of the cookies to fall…
A: Computation of the total quantity of fat-free cookies are saleable: Quantity produced 175…
Q: The Gym Company produces weights in different sizes and sells them to gym equipment distribution…
A: Product cost: The product cost is the cost that is incurred specifically in the manufacturing of the…
Q: A. Prepare a classified Balance Sheet for Mastermind. B. Calculate Mastermind’s Net Working…
A: In accounting we often make a classified balance sheet. A classified balance sheet is one in which…
Q: 6. Selected transactions for Rosewood Industries are presented below: The fiscal year end for the…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Answer the two questions please 1- You are planning to withdraw $100 in Year 1, $150in Year 3, and…
A: Hi student Since there are multiple questions, we will answer only first question. Present value…
Q: EXERCISE 5: PREPARING THE STATEMENT OF FINANCIAL POSITION At the end of December 31, 2012, Cougar…
A: The statement of financial position shows the performance of the company for a specific time period.…
Q: S Exercise 4-37 (Algo) Special Orders (LO 4-1, 2) Alpine Luggage has a capacity to produce 370,000…
A: Under decision making concept we need to consider incremental cost only. Sunk cost such as fixed…
Q: Provide journal entry
A: Adjusting entries turn out to be extremely important before closing the books of accounts. They let…
Q: You are buying and reselling items found at your local thrift shop. You found an antique pitcher for…
A: MARKUP Markup % is the ratio between the gross profit & total sales. Markup = {(Sales - Cost)…
Q: Bailey Company manufacturers and sells one product for $39 per unit. The company maintains no…
A: Total product is Total sum of cost incurred for a particular product
Q: 1. Calculate Computron’s market value ratios—that is, its price/earnings ratio and its market/book…
A: Analysis of Financial Performance The practice of assessing a company's financial statements and…
Q: Blossom Inc. is a calendar-year corporation. Its financial statements for the years 2022 and 2021…
A: The question is based on the concept of Financial Accounting. When ending inventory is overstated it…
Q: Karen’s Diner has provided the following financial information: cash and marketable securities =…
A: The current assets are the assets which can be converted into cash within one year. The current…
Q: I need help with the practive problem. Vinnie’s Drive-In Theater Inc., was recently formed…
A: Journal Entries -Journal Entries are used to record transactions entered into by the company. It is…
Q: How much are total expenses for January? $2362360 $2735240 $2341120 None of the answer choices are…
A: Retained earnings are the cumulative net earnings of a company. It should be noted that retained…
Q: A Accounts Payable AA Losses due to fire B Accounts Receivable BB Merchandise Inventory E…
A: Straight line method of Depreciation: Depreciation and amortisation, often known as the process of…
Q: The two cash flow transactions shown in the accompanying cash flow diagram are said to be equivalent…
A: Cash Flow: A company should disclose the total cash flow generated by them by classifying it into…
Q: Prepare a projected contribution margin income statement for Markham Farm assuming it purchases the…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: Current Attempt in Progress On January 1, 2025, Flounder Company purchased 8% bonds having a…
A: The bond purchase is recorded as an asset in the books. The bonds can be purchased at a premium or…
Q: The ABC Partnership has assets with book value of P240,000 and a market value of P195,000, outside…
A: Total External liabilities are 70,000 and partner's loan is 20,000. Out of realization of 100,000,…
Q: Kirit Devi’s employer receives a creditor garnishment order to withhold $100 from Devi’s paycheck…
A: Disposable Earnings The income remains after adjusting the applicable deductions under the federal…
Q: (b) Using the cost-recovery method, compute the estimated gross profit that would be recognized…
A: Cost recovery method is one of the method used in construction contracts. Under this method, first…
Q: The following account balances were included in the trial balance of Bramble Corporation at June 30,…
A: INCOME STATEMENT Income Statement is one of the important financial statement of the company.…
Q: On December 31, the capital balances and income ratios in Suniland Company are as follows. Partner…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a…
A: Stockholders equity - is an item on the balance sheet reflected on the Equity and liabilities head.…
Q: DD Company reported the following liability balances on December 31, 2020: 12% note payable issued…
A: Lets understand the basics. Current liability is a liability which is expected to be paid within 12…
Q: Luis has $170,000 in his retirement account at his present company. Because he is assuming a…
A: Time value of money is a concept where interest component considered for time. Here we have to…
Q: At the beginning of Year 1. Copeland Drugstore purchased a new computer system for $210,000. It is…
A: Depreciation is the decrease in the value of assets or a method of calculating the current worth of…
Q: Zoolander Inc. manufacturers high end fashion accessories and has provided the following data for…
A: The profit an organization makes after deducting its expenses for producing and selling its goods or…
Q: Melo Company reports the following transactions relating to its stock accounts in the current year.…
A: A business transaction seems to be a commercial transaction involving the exchanging of products,…
Q: Sprint Shoes Inc. had a beginning inventory of 9,550 units on January 1, 20X1. The costs associated…
A: LIFO (last in first out) is one of the methods used in the valuation of the inventory of company. As…
Q: An investor bought 720 shares of a stock for Php 108.26 per share. If the broker's commission was…
A: Issue of shares is one of the important source of finance being used in business. Commission may…
Q: Journalize the transactions.
A: Journal entry recording is to be termed as initial step in accounting cycle process. Under this…
Q: Home Demo reports the following: Total liabilities = $38,633 million and Total assets = $42,966…
A: Debt Ratio :— It is the ratio between total debt and total assets. Levered Company :— Company…
Q: The following cost data relate to the manufacturing activities of Chang Company during the just…
A: Please fallow the answer below: Total 20900 Machine hours Predetermined overhead rate $21 1)…
Q: Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD).…
A: Income Tax and Tax Rate: The term "income tax" refers to the category of tax that the government…
Q: rim Inc., which owes Habib Co. SAR 900,000 in notes payable, is in financial difficulty. To…
A: Troubled Debt restructuring:- A debt restructuring is a concept where the lender / Creditor allows…
Q: Required a. Record the events in a statements model shown below. b. Prepare an income statement, a…
A: Financial statements are the documents of a company that shows its activities and the financial…
Q: beth bought 15 tickets to a movie. where adult tickets cost $6.00 and senior citizen tickets cost…
A: The total tickets purchased includes both the number of tickets purchased for adults and the number…
Q: of P. Lucas for the year ended 30 September 2007. Stocks of raw materials, at cost Work in progress…
A: Manufacturing Account. Direct Material Closing Stock Opening Stock Raw Material…
Q: Stellar Inc., is currently under protection of the U.S. bankruptcy court. As a "debtor in…
A: A journal entry is the initial process of entering a commercial transaction into the books of…
Q: Given the following trial balance, create the Income Statement, Statement of Changes in Equity, and…
A: The financial statement shows the company's performance profitability and position of the company…
Q: Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions,…
A: Lets understand the basics. In direct cost allocation, cost are directly allocated from the service…
Q: a. The loss on the cash sale of equipment was $5125(details in b). b.Sold equipment costing…
A: In accounting, the statement of cash flows is a financial statement that summarizes the cash inflows…
Q: Cougar Tree Services reports the following amounts on December 31, 2024. Cash Supplies Prepaid…
A: BALANCE SHEET Balance sheet is one of the Important Financial Statement of the Company. Balance…
Q: You work as a freelance accounting professional and have been recently engaged by the auditors of…
A: An income statement, also known as a profit and loss statement or P&L, is a financial statement…
Q: S Use the May 31 fiscal year-end information from the following ledger accounts (assume that all…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Elijah and Anastasia are married and have five married children and nine minor grandchildren. For…
A: Donor and Donee A donor is referring to an individual who provides or gives a gift in terms of money…
Q: Problem 15-20 1B. Can the calculation for alocation 2 be explained
A: So reciprocal methods are methods that are used to allocate service department cost to the other…
3. Answer the given question. Do not round off answers while solving, instead just the final answer will be rounded off to two decimal places.
Step by step
Solved in 4 steps
- To 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.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.Differential analysis for machine replacement Boyer Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is 60,000, the accumulated depreciation is 24,000, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of 180,000. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations: a. Prepare a differential analysis dated May 4 to determine whether to continue with ( Alternative 1) or replace (Alternative 2) the old machine. Prepare the analysis over the useful life of the new machine. b. Based only on the data presented, should the proposal be accepted? c. What are some of the other factors that should be considered before a final decision is made?
- A truck was recently purchased for 75,000 with a salvage value of 5,000 and an estimated useful life of eight years or 150,000 miles (24,000 miles per year for the first five years and 10,000 miles per year after that). Enter the new information in the Data Section of the worksheet. Again, make sure the totals for all three methods are in agreement. Print the worksheet. Save this new data as DEPREC5.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.St. Johns River Shipyards welding machine is 15 years old, fully depreciated, and has no salvage value. However, even though it is old, it is still functional as originally designed and can be used for quite a while longer. A new welder will cost 182,500 and have an estimated life of 8 years with no salvage value. The new welder will be much more efficient, however, and this enhanced efficiency will increase earnings before depreciation from 27,000 to 74,000 per year. The new machine will be depreciated over its 5-year MACRS recovery period, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The applicable corporate tax rate is 25%, and the project cost of capital is 12%. What is the NPV if the firm replaces the old welder with the new one?
- 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).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.Newmarge Products Inc. is evaluating a new design for one of its manufacturing processes. The new design will eliminate the production of a toxic solid residue. The initial cost of the system is estimated at 860,000 and includes computerized equipment, software, and installation. There is no expected salvage value. The new system has a useful life of 8 years and is projected to produce cash operating savings of 225,000 per year over the old system (reducing labor costs and costs of processing and disposing of toxic waste). The cost of capital is 16%. Required: 1. Compute the NPV of the new system. 2. One year after implementation, the internal audit staff noted the following about the new system: (1) the cost of acquiring the system was 60,000 more than expected due to higher installation costs, and (2) the annual cost savings were 20,000 less than expected because more labor cost was needed than anticipated. Using the changes in expected costs and benefits, compute the NPV as if this information had been available one year ago. Did the company make the right decision? 3. CONCEPTUAL CONNECTION Upon reporting the results mentioned in the postaudit, the marketing manager responded in a memo to the internal audit department indicating that cash inflows also had increased by a net of 60,000 per year because of increased purchases by environmentally sensitive customers. Describe the effect that this has on the analysis in Requirement 2. 4. CONCEPTUAL CONNECTION Why is a postaudit beneficial to a firm?
- 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.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.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.