Which of the following costs relating to non-current assets should not be capitalized? replacement of a building’s roof every 15 years cost of site preparation installation and assembly costs replacement of small spare parts annually
Q: Fixed cost = AED 3000 Variable cost= AED 500 Quantity= 100 units price= AED 10 What is the…
A: Total cost is the cost involved in making in product, which involves fixed cost that remains same…
Q: On January 1, 2020, ABC Company issued P50,000,000, 3-year convertible bonds at par with the…
A: Valuation of Bond Journal Entries
Q: An example of "piece rate" compensation is: executive compensation. fee for service compensation.…
A: Compensation : Compensation is paid to employees for services received. Generally compensation is…
Q: Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has…
A: Formula: Return on investment (ROI) = Net income / Average assets Residual income = Net income -…
Q: A company sells small motors as a component part to automobiles. The Model 101 motor sells for $850…
A: Formula: Contribution margin ratio = ( Contribution margin / Sales ) x 100
Q: red corp. declare and pay a dividend on July 1, 2018, amount of $45,000; if the Refundable Dividend…
A: correct option with proper explanation are as follows.
Q: lease answer in details, also explain why other options are wrong . Please answer within 30 minutes.…
A: Tax documents are the sets of records to be kept regarding tax collected, tax paid, tax payable and…
Q: Anne Murray is planning to buy a rental property, in addition to the family home she and Henry own.…
A: Answer: As Given, Anne Murray intends to purchase a rental property in addition to her and Henry's…
Q: Problem 20-13 (AICPA Adapted) Remington Company iued 10,000 ordinary shares P200 par valoe and…
A: Issuance of Share Capital: Issuance of share capital means issue of Ordinary Share Capital or issue…
Q: ABC Company data: Sales 9s0000 Variable and fixed costs both 468000 Beginning retained earnings…
A: Formula: Ending Retained Earnings = Beginning retained Earnings + net income - Dividends paid
Q: Excerpts from Hulkster Company's December 31, 2021 and 2020, financial statements are presented…
A: Profit margin is a ratio which indicated that how much profit has been generated for each dollar of…
Q: Corporation specializes in the sale of printing
A: Purchase discount is also called as cash discount which is given by the saler for…
Q: 25. Calculate the amount of corporate income tax due and the net income after taxes (in $) for the…
A: Formula: Net income after taxes = Taxable income - Tax liability
Q: A bond that has a face value of $1,500 and coupon rate of 3.10% payable semi- annually was…
A: Interest = 3.10/2 = 1.55% Yield = 3.60/2 = 1.80% Time = 13 Issue price = Present value of lump-sum+…
Q: Discuss internal control consideration.
A: ANSWER internal control consideration is
Q: P Company acquired an 80% interest in S Company on January 1, 2011, for an amount equal to book…
A: The parent company is the company that has acquired a controlling interest in another company which…
Q: The shape of the "age-earnings" profiles reflect all of the following, except that:
A: The above question is related to the age earnings profiles. By going through all the above options…
Q: Andrea's Trouble With Plagiarism As you recad this passage and answer the questions. head of her…
A: in the world of information that is available it is important to understand that writing article or…
Q: 2. The company began its operation in 20X1. At the end of 20X1, the cost of inventory was…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Cala Manufacturing purchases land for $459,000 as part of its plans to build a new plant. The…
A: The cost incurred to tear the old building on land and fill and level the lot at the time of…
Q: Problem On January 1. 2021, Lilianne Company issued mandatorily redeemable preference shares in…
A: Company means the form of business where management is separately from owner and have perpetual…
Q: 2. On October 1, 2011, Sammy Company issued 8,000,000 of its 10-year 8% term bonds dated October 1,…
A: c. 112,471.65 Balance of Discount on Bonds Payable on December 31,2020
Q: Which of the following is a rationale against mandatory retirement? It is a form of age…
A: Mandatory retirement refers to when an employee has to compulsorily leave a organization after…
Q: Perform a horizontal analysis providing both the amount and percentage change. (Round your…
A: Horizontal analysis is the way to calculate the variance from the different year by year to show an…
Q: 34. Dissolution is always followed by liquidation. . 0 The amount of asset revaluation when a new…
A: partnership between partners to share profit and loss and contribute capital in the aggred ratio .…
Q: emts You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks…
A: Following is the correct answer
Q: . Given the information, determine the annual cost of hiring the outside accountant.
A: Outsourcing cost is the costs which have to be paid person or the employee to which the said work…
Q: Which is an essential characteristic of Property, Plant, and Equipment? Property, Plant, and…
A: The assets can be classified as tangible or intangible assets. The assets can be classified as…
Q: 1. Which of the following statements is true about an intemational business? An international…
A: Here, Any Organization starts it's international business which have - trade barriers - Tariff…
Q: Rizio Company purchases a machine for $14,000, terms 2/10, n/60, FOB shipping point. Rizio paid…
A: Cost of assets: As per the generally accepted accounting principles, the cost of assets includes all…
Q: selling price $40 per unit Variable cost $25 per unit Fixed…
A: Solution... Contribution margin per unit = Selling price per unit - variable cost per unit =…
Q: Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current…
A: Keon Aaron Deanne a) Basis in contributed - land 56,000 - - b) Cash contributed - 124,000…
Q: Vhat are the alternative forms of financial nflows?
A: Generally the concept of alternative finance is defined as the financing from external sources other…
Q: Farouk bought an electric appliance through an instalment plan which he paid RM200 down payment. He…
A: Interest means the amount charged for the loan extended by one party to another party. It is an…
Q: On January 1, 2024, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable…
A: Formula: Premium on Bonds = Issue value of the bonds - Face value of the bonds Interest payment =…
Q: ABC company projected sales of 100,000 books for 2021. The estimated January 1, 2021, finished goods…
A: Budgeted production = Projected sales + Ending inventory - Beginning inventory
Q: Homework created question Save You want to purchase a new car for a price of $31,250. Your finance…
A: The question is based on the concept of Financial Management.
Q: Diving Wear Ltd makes neoprene wetsuits. The company’s projected income statement for the coming…
A: Income statement is a part of the financial statements of a company. It shows the revenues earned…
Q: Using the following information: a. Beginning cash balance on March 1, $80,000. b. Cash receipts…
A: Cash budget is prepared to estimate the total cash received and total cash disbursement. It is…
Q: I own a bike that I value at $1,000. I list it for sale on Craigslist. Barney sees the bike and…
A: Expectation Damages: It is the damage compensation paid by one of the party in an agreement or…
Q: Donald Electronics an electronics repair shop, prepared the unadjusted trial balance at the end of…
A: The statement of changes in equity is prepared to record changes in capital of the owners, including…
Q: Capstone Inc. collects 40% of its sales on account in the month of the sale and 60% in the month…
A: Cash receipts for October = 60% of September Sales + 40% of October Sales
Q: Oki Company pays $285,200 for equipment expected to last four years and have a $30,000 salvage…
A: The minor expenses related to fixed assets are recorded as repairs and maintenance expenses. The…
Q: Donald Electronics an electronics repair shop, prepared the unadjusted trial balance at the end of…
A: The statement of equity is prepared to find the ending balance in capital of owner of the business…
Q: The following financial information is taken from the balance sheets of the Peter Company and the…
A: Formula: Current ratio = Current Assets / Current liabilities. Division of current liabilities with…
Q: On December 31, 20X1, the company reported a debit balance of $200,000 in accounts receivable and a…
A: Journal book: Journal book is an accounting book of an entity which creates a way for beginning of…
Q: The following transactions occurred during February, affecting your A/R ledger account for Johnny…
A: When a customer purchases the goods on credit, he or she owes an amount to the firm. Accounts…
Q: 7. Cost Flow (Single Transaction). VRL Enterprises uses the moving' average method to determine the…
A: Moving average is the method for valuing cost of goods sold and ending inventory in which ending…
Q: onding correct answer. permanent in character. This requires a- Personal withdrawal by a partner in…
A: As per the guidelines, only one question is allowed to be solved. Please resubmit the question. A…
Q: Question 42 When the Fed purchases government securities, it Question 42 options: a)…
A: Government securities are government borrowing financings that are used to fund everyday activities…
Which of the following costs relating to non-current assets should not be capitalized?
- replacement of a building’s roof every 15 years
- cost of site preparation
- installation and assembly costs
- replacement of small spare parts annually
Step by step
Solved in 2 steps
- 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?During 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?An electronics corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of the service life necessary of the depreciation used is the sum-of-the-year's digit method
- Identify the following expenditures as capital expenditures or revenue expenditures. (a) Replacement of worn out gears on factory machinery. (b) Construction of a new wing on an office building. (c) Painting the exterior of a building. (d) Oil change on a company truck. (e) Replacing an old computer chip with a faster chip, which increases productive capacity. No extension of useful life expected. (f) Overhaul of a truck motor. One year extension in useful life is expected. (g) Purchased a wastebasket at a cost of $10. (h) Painting and lettering of a used truck upon acquisition of the truck.Assume that a drill press is rebuilt during its sixth year of use so that its useful life is extended 5 years beyond the original estimate of 10 years. If the asset recognition criteria are met, the cost of rebuilding the drill press should be charged to the appropriate: expense account asset account accumulated depreciation account liability account The carrying amount of an item of property, plant and equipment that is subsequently accounted for under the cost model is equal to the historical cost less any accumulated depreciation. the fair value less any accumulated depreciation. the historical cost less any accumulated depreciation and any accumulated impairment loss. the fair value less any accumulated depreciation and any accumulated impairment loss.ZYK company makes its policy that for every new equipment purchased, the annual depreciation should not exceed 10% of the first cost at any time without salvage value. Determine the length of service if depreciation used is the SYD Method.
- Which one of the following costs is not directly attributable to the cost of anon-current asset, per IAS 16?a) Installation of a new machineb) Delivery cost of a new machinec) 2-year maintenance contract for new machined) Preparation of site for new machineAn existing asset that cost $16,000 twoyears ago has a market value of $12,000 today, anexpected salvage value of $2,000 at the end of itsremaining useful life of six more years, and annualoperating costs of $4,000. A new asset under consideration as a replacement has an initial cost of$10,000, an expected salvage value of $4,000 at theend of its economic life of three years, and annualoperating costs of $2,000. It is assumed that thisnew asset could be replaced by another one identical in every respect after three years at a salvagevalue of $4,000, if desired. Use a MARR of 11%,a six-year study period, and PW calculations todecide whether the existing asset should be replacedby the new oneWhich of the following would be considered capital expenditures (debit to an asset)? Sales tax on the purchase of equipment Purchase of cleaning supplies to clean the company's microwave A special concrete foundation that was poured specifically for a new piece of equipment Installation costs for installing a new piece of equipment General maintenance costs for a piece of equipment that has been in service for ten years Routine oil change for a van Repair of damage incurred on a new piece of equipment while the new equipment was being brought into the company's office Attorney's fees incurred to review the purchase agreement for a new piece of equipment Installation of a parking lot around a retail buildling Freight costs for the delivery of a purchased used printing press
- A new barcode reading device has an installed cost basis of $22,820 and an estimated service life of nine years. It will have a zero salvage value at that time. The 150% declining balance method is used to depreciate this asset. What is the gain (or loss) on the disposal of the device if it is sold for $3,200 after eight years?Power to a remote transmitting station is provided by a Diesel-generator unit. The original cost of the unit is 65,000. It costs 2,000 to ship the unit to the job site. An additional cost of 3,000 was incurred for installation. (a) Determine the annual depreciation cost by the sinking fund method, if the unit has an expected life of 10 years. The salvage value of the unit at the end of its life was estimated at 5000. (b) Determine the annual depreciation cost by the sinking fund method. Assume that the annual charge for depreciation was deposited in a fund drawing compound interest at the rate of 5%.A building with a cost of $843,750 has an estimated residual value of $168,750, has an estimated useful life of 27 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation? Do not round intermediate calculations.$fill in the blank 1 b. What is the book value at the end of the fifteenth year of use?$fill in the blank 2 c. If at the start of the sixteenth year it is estimated that the remaining life is 15 years and that the residual value is $33,750, what is the depreciation expense for each of the remaining 15 years?
