1.1 12 13 14 A mine buys mining machinery that costs R3.6 million. It depreciates at a rate of 12.5% [a on a reducing the balance. The cost to replace the machinery is expected to escalate at a rate of 7.5% pa. A sinking fund earning 9% p.a compounded monthly, is set up to pay for new machinery in 6 years' time. Find, at the time of the purchase of the machinery: The book value of the old machinery The expected cost of the new machinery The value of the sinking fund needed in order to replace the machinery. The monthly payments that were to be made into the sinking fund. Payments resume one month after the current machinery was purchased and will continue until the new machinery is bought.
Q: A 180-day promissory note was issued by FDNACCT Co. on November 1, 2021 in exchange of goods bought…
A: Interest income is the amount of money received as an interest either from an investment, bonds, or…
Q: a) What are the tax consequences to the trust and the grantor of the retained power to distribute…
A: Answer (A) : A "grantor trust" is one in which the grantor (or another person) maintains control…
Q: A Toyota Crown motor car was purchased for $2,750,000 (the exchange rate was $100 JMD to one United…
A: Answer d. $1,031,250
Q: 21. Which of the following are generally true about wealth gains or losses to stockholders following…
A: Merger could make the companies or business more stronger through expanding the base of customer,…
Q: Given the following data, what is the cost of goods sold? Sales revenue $950,000 Beginning inventory…
A: Cost of Goods Sold - Cost of Goods Sold is the cost incurred by the company to earned sales for the…
Q: Commando Corp. agrees to sell 100 of its products to M&H Co. for P30,000 in August 2021. (P300 per…
A: The original sale price of the products before alteration will not be modified. As previously…
Q: An asset's cost minus accumulated depreciation is its Multiple Choice OO O market salvage residual…
A: Fixed Assets - Fixed assets are the resources of the Company. Depreciated at the end of every year.…
Q: Siegel Company spent $14,000 on direct supplies and $19,000 on compensation for manufacturing…
A: The income earned by an entity after deducting all expense whether manufacturing or selling from the…
Q: low statement based on your suggestions and reccomendations. n recommending changes, you must keep…
A: Income Statement: It is the statement which is prepared to know about the income or profit during an…
Q: Identify each of the following costs as either a variable, a fixed, or a quasi-fixed cost and give…
A: Fixed cost – Which cost do not directly change with increase or decrease of product. It means the…
Q: The end-of-year pretax financial income for UMPI in 2018 was $720,000. It included $40,000 in…
A: Net income is the amount earned by an individual or corporation after subtracting costs, deductions,…
Q: What is the difference between an imposed budget and a participatory budget? Define and explain a…
A: Introduction A budget is a financial statement that the management develops to evaluate the…
Q: Records from FDNACCT Co. revealed the following data: Inventory, January 1 = P340,000 Physical…
A: Using periodic inventory system, the inventory and cost of goods sold is valued at end of accounting…
Q: rall Company recently had a computer malfunction and lost a portion of its accounting records. The…
A: calculation of above requirement are as follows
Q: Bank Reconciliation REQUIRED: A. Based on the application of the necessary procedures and…
A: The bank reconciliation of Franc Company on July 31 is given to us. The data for the month ending…
Q: How many students does the school need to enroll in the first year to break even? b. If the school…
A: Given in the question: Initial Start-Up Costs 350000 Tuition Charges by School 18000…
Q: The following information is available for Advanced Micro Devices (AMD) for the current year:…
A: Stockholders' Equity = Total Assets – Total Liabilities Working note : Assets at the beginning…
Q: . The following information relates to a retail company for the year ending 31 December Budgeted…
A: Margin of safety=Budgeted sales revenue-Breakeven sales revenue
Q: Question 3 a. Risk occurs where there are several possible outcomes which can be assigned the…
A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: A 180-day promissory note was issued by FDNACCT Co. on November 1, 2021 in exchange of goods bought…
A: Interest receivable=Face value of the note×Interest rate×Term of the note
Q: Crane Company reported net income of $148,500. For 2020, depreciation was $45,100, and the company…
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…
Q: Question 3 Tobermory Merchandising had the following transactions during May: May 5…
A: Introduction: A perpetual inventory system is a program that constantly assesses your inventory…
Q: The following data is for Atlantis Merchandising, which uses a periodic inventory system: Sales…
A: The cost of goods available for sale includes beginning inventory, net purchases, and freight…
Q: On January 1, 2015 P company acquired 80% interest in S Company for P2,000,000 cash. The…
A: Lets understand the basics. When acquisition made by one company to another company then non…
Q: What are five basic principles which, if followed, should improve the probability of preparing a…
A: Introduction A budget is a financial statement that the management develops to evaluate the…
Q: Question 4 a. Business decisions rely on certain characteristics which are based on intelligent and…
A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…
Q: During March 2020, Polaro Corporation recorded P40,200 of costs related to factory overhead.…
A: Overheads which was estimated=P40,900 Estimated direct labor hours=5,000 hours Actual hours worked…
Q: yable P50,000, Accrued liabilities P9,000, Cash P40,000, Intangible assets P45,000, Inventory 3,000,…
A: Working Capital : It is the capital which is required to meet out day to day business operations.…
Q: Analyze current and long-term liabilities; evaluate debt-paying ability) EnviroFriend Structures,…
A: Long-term liabilities:Long-term liabilities is an obligation that a company must pay after at least…
Q: ) IDENTIFY THE REPORTING FINANCIAL STATEMENT (IS Income Stmt) OR S Balance Sheet). ) IDENTIFY…
A: Nature of Accounts : According to Traditional Approach there are three types of accounts that are:…
Q: Required information [The following information applies to the questions displayed below] Doyle…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: On January 1, 2019, Brazeau Transport purchased a $165,000 truck for hauling cattle across the…
A: Amortization expense is the one which is recorded to report the regular usage of the asset in the…
Q: E9.22 (LO 2) Caan Corporation produces industrial robots for high-precision manufacturing. The…
A: Cost per unit is the amount of cost incurred on the making or selling of a unit of product. If the…
Q: The annual report for Sneer Corporation disclosed that the company declared and paid preferred…
A: Dividend is the amount of return paid to the shareholders in the form of return. The dividend…
Q: u are conducting an audit on your client's revenue cycle for the 2019 financial year. Your client is…
A: Auditing : It is the check of the business financial transactions and the accounts book, on the…
Q: rate of 12%, find whether it is worth replacing the present machine with the new machine.
A: When we have to evaluate two or more alternatives financially, we compare their cost of acquisition,…
Q: Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows…
A: The note payable is the liability for the business and has credit balance. The interest which is due…
Q: B. PROPERTY, PLANT AND EQUIPMENT Gabaldon Company's property, plant and equipment and accumulated…
A: Depreciation expense is the amount used to depreciate a company's assets for a certain period of…
Q: Journalize the following, assuming a 360-day year is used for interest computations: Apr. 30 Aug. 30…
A: The accounts payable is reduced with issuance of note payable to creditors. The accounts payable…
Q: Inearned Delivery Fees of FDNACCT Co. before adjustments 40,000. % of the unearned delivery fees…
A: Unearned revenue is not a revenue. It is an amount received for the goods or service supplied in the…
Q: Nissan Inc. is using the percentage of receivables method, set at 5% of ending Accounts Receivable.…
A: The account receivables have the debit balance and allowance for doubtful accounts have credit…
Q: a. Journalize the entry to record the acquisition of the patent. If an amount box does not require…
A: This question belongs to the patents and the goodwill. The patent was acquired on 1st April for…
Q: ou are auditing Hawthorne Industries. The preliminary risk assessment resulted in a high potential…
A: Here discuss the details of the main assertion which are related with the Travel expenses audit by…
Q: A corporation is being formed with a P40, 000 authorized share capital. How much of the P40, 000…
A: According to corporate law, the minimum subscribed capital at the moment of incorporation must be at…
Q: Farrow Co. expects to sell 500,000 units of its product in the next period with the following…
A: Lets understand the basics. When special order situation arise then management choose to accept…
Q: Chapter 9 Receivables The following accounts were unintentionally omitted from the aging schedule:…
A: Allowance Method - Under the allowance, the method company makes provision of uncollectible accounts…
Q: What are the differences between a product cost and a period cost
A: In accounting we say that costs are often product costs or period costs. The difference between the…
Q: Anna desires to purchase a 1/4 capital and profit and loss interest in the partnership of A, B, and…
A: Partnership- A partnership is a business that employs two or more people who share equal…
Q: explain the specific identification approach
A: Introduction: Inventory valuation is an accounting practice used by businesses to determine the…
Q: ABC Ltd. Incurred the following costs related to the purchase of a machine: Invoice price Insurance…
A: The costs that are incurred to acquire the assets and further to install the assets, and other cost…
Answer only first two sub parts
1.1
1.2
Step by step
Solved in 3 steps with 2 images
- 7.1. How many years will it take for an investment to double in value, if it earns interest at a rate of 8.5 p.a., compounded quarterly? 7.2. A company purchased machinery for R500 000. After 5 years, the machinery was sold for R180 000 and new machinery was bought. 7.2.1. Calculate the rate depreciation of the old machinery over 5 years using the reducing-balance method. 7.2.2. The rate of inflation for the cost of the new machinery is 6.3% p.a./over the 5 years. What will the new machinery cost at the end of 5 years? 7.2.3. The company set up a sinking fund and made the first payment into this fund on the day the old machinery was bought. The last payment was made three months before the new machinery was purchased at the end of 5 years. The interest earned on the sinking fund was 10.25% p.a. compounded monthly, the money from the sinking fund and the R180 000 from the sale of the old machinery was used to pay for the new machinery. Calculate the monthly payment into the sinking…59. What is the depreciation factor per year of a hand tractor that is bought at P150, 000.00, if it has no more value at the end of the fifth year? a. 25,000 pesos/year b. 30,000 pesos/year c. 60,000 pesos/year d. 15,000 pesos/yearQ4. Al Dhahabi Mills Ltd. purchases a machinery which costs RO 20,000. The useful life of the machine is 10 years and the annual rate of depreciation is 8% per annum, depreciation being calculated on WDV method. After 10 years, the existing machine has to be replaced by a new one which will cost 250% more than the book value of the existing machine at that time. a) If company sells existing machine at scrap value, What is the extra amount the company will require at the end of 10th year to replace the existing machine by a new one? b) Do you agree with company's decision to sell the existing machine after 10 years and buy new one. Give reasons to your answer
- 2. A company determines that the maximum they should pay for a new machine is $46,679. The company estimates the machine will produce a net cash flow of $8,000 per year and will last for 7 years. The interest rate that is acceptable to the company is 5%. At the end of 7 years the company estimates it will be able to sell the machine for what amount? A. $980 B. $391 C. $1,186 D. $ 68 E. $550An investment in a certain project can be recovered in 10 years. The investment has no salvage value. If the net income before taxes from this investment is P10,000 annually and income taxes are 20% each year, how much is the cost of investment if depreciation charges are P10,000 annually? a. P100,000 b. P180,000 c. P150,000 d. P80,000This question is based on the following in formation: An investment is Machinery costing P 250,000 with a 4-year life and no salvage value is expected to produce the following net income after taxes of 30%: End of year 1 P 17,000 2 22,000 3 25,000 4 26,000 How much is the annual tax shield?How much is the annual tax shield?A. P 17,580B. P 17,850C. P 18,570D. P 18,750What is the ROI (using the cash income)? A. 6.3%B. 9%C. 31.3%D. 34%
- PS Builders Co purchases a new excavator costing £48,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £9450. If the reducing-balance method of depreciation is used, applying an annual depreciation rate of 15%, what is the annual depreciation charge in Year 2? O A. £4,000 B. £6,120 O C. £4,400 O D. £5,6103. The construction crane is badly needed by Cruz Esguerra construction for a certain project so as to shorten the time of completion of the project. The equipment cost of P1.2 M and has a life of 5 years with a salvage value of P 200, 000 at the end of its life. The machine can be bought with money borrowed at an interest rate of 20% per annum. Annual cost is P 10, 000. Determine the capitalized cost of the equipment. Draw the cashflow diagram.S7.37 Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table. He is told to assume that: 1. The life of each machine is 3 years. 2. The company thinks it knows how to make 12% on investments no more risky than this one. 3. Labor and maintenance are paid at the end of the year. MACHINE A MACHINE B $10,000 2,000 4,000 2,000 $20,000 Original cost Labor per year Maintenance per year Salvage value 4,000 1,000 7,000 Determine, via the present value method, which machine Tim should recommend.
- 16. A company purchases a piece of construction equipment. The expected income is SAR 3,100 annually for its useful life of 15 years. Expenses are estimated to be SAR 355 annually. If the purchase price is SAR 25,000 and there is no salvage value, what is the rate of return, neglecting taxes? (select the closest answer) a) 5.2% b) 6.4% c) 6.8% d) 7.0%Denver Company buys a machine for $65,000 that has an expected life of 4 years and no salvage value. The company uses straight-line depreciation. The company anticipates a yearly net income of $3,100 after taxes of 30%, with the cash flows to be received evenly throughout each year. What is the accounting rate of return? Multiple Choice 2.86%. 4.77%. 19.08%. 9.54%. 6.68%.Crane's Custom Construction Company is considering three new projects, each requiring an equipment investment of $27,280. Each project will last for 3 years and produce the following net annual cash flows. Year AA BB CC 1 $8,680 $12,400 $16,120 2 11,160 12,400 14,880 3 14,880 12,400 13,640 Total $34,720 $37,200 $44,640 The equipment's salvage value is zero, and Crane uses straight-line depreciation. Crane will not accept any project with a cash payback period over 2 years. Crane's required rate of return is 12%. Click here to view PV table. (a) Compute each project's payback period. (Round answers to 2 decimal places, e.g. 15.25.) AA BB BB years years CC years