alvage value of $5,000. These estimates are still good. The property has been depreciated at a declining balance CCA rate of 30%. Now (at the end of year 5 from pur chase) you are considering selling the machine for $10,000. What UCC sho
Q: Hello, please i need help with number 2 (a, b and c). Charts are in the screenshot Amortization ...
A: Note: The answer provided by you for part b is $5750 but the correct answer for part b is 57500. The...
Q: Problem 5. Angel Con cost analyst has colla actual to budget for current year show:
A: Variance is the difference in the cost or profits of the actual from the budgeted which helps in the...
Q: The trade off between efficiency and equity is major concern for government redistribution objective...
A: Answer
Q: Several accounts are listed below a. Purchases Returns and Allowances b. Sales Discounts c. Wages Ex...
A:
Q: An investor company purchased 180,000 shares of common stock of the investee company on January 2, 2...
A: If an investor in a firm has considerable control over the company's operations and practices, the e...
Q: Leo's Corp has sales of $ 684,000, operating expenses of $ 437,000, interest expense of $ 13,800, to...
A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise. ...
Q: Discuss the process of accounting for long term bonds from issuance to sale or retirement
A: The company would collect funds by issuing common stock, equity, debentures, and other assets to the...
Q: Rally Baling Sdn Bhd (RBSB) makes custom made kitchen cabinet. The company uses a job-order costing ...
A: The predetermined overhead rate is calculated as total cost divided by number of units.
Q: S1: Consolidated net income is equal to the parent’s income from its net income under its Income Sta...
A: The correct option is :- Both statements are correct
Q: Equivalent Units of Production; Cost per Equivalent Unit; Assigning Costs-FIFO Method.
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: Compare Two Depreciation Methods Bayside Coatings Company purchased waterproofing equipment on Janua...
A: Under straight line method, the depreciation expense remains constant for every year and under decli...
Q: Rizza Co. has an average age of inventory equal to 25 days. If its end of year inventory level is P8...
A: Average age of the inventory is described as the number of days the company requires to sell the inv...
Q: Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allo...
A: Indirect cost = $357,000 Total direct labor hours = 15,000 + 6,000 = 21,000 Overhead allocated rat...
Q: For the second mortgage application, calculate the percentage of appraised value and the potential c...
A: Please find the answer to the above question below:
Q: 9. Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small...
A: The determination of Contribution margin and Operating income for the budgeted units of production a...
Q: Problem 6. Highland Coffee Company is concerned with its gross profit negating the increase o its sa...
A: Variance analysis is an analysis used to recognize the difference between actual behavior and planne...
Q: + // Save & Exit diaH Banc Corp. Trust is considering either a bankwide overhead rate or department ...
A:
Q: Which of the following is not typical of the journal entries prepared by a parentcompany to account ...
A: A company is known as parent company when it has acquired more than 50% of stocks in another company...
Q: Accounting Question
A: The question is related to Depreciation Accounting. The information regarding Cost of Machine and De...
Q: gross profit variance
A: Gross profit variance is the difference between gross profits of two different periods.
Q: On January 2, 2021. PABC corporation acquired 75% of the outstanding ordinaryshares of SDEF Company ...
A: Assets: Assets are resources (property) presented in the balance sheet because for it an organizatio...
Q: Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allo...
A: Overheads are considered as fixed and common expenses that should be allocated to the products based...
Q: December 31, 20XX, The Boone Realty Company's worksheet has the following account balances: Cash $3,...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: A microbrewery purchases malt for production. The supplier charges $35 for delivery (no matter how ...
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want ...
Q: 6. Which depreciation method calculates annual depreciation expense based on the book value of an as...
A: The regular fall in the worth of an asset due to its usage is known as depreciation.
Q: If the cost of an inventory is P8 while its net realizable value is P6, the amount of write down is ...
A: Each effort is made in preparing and presenting unbiased financial information, but there is a certa...
Q: Asset utilization ratios: A. Are most important to stockholders.B. Measures the company's ability to...
A: Asset Turnover ratios are: Fixed Asset Turnover Ratio= SalesFixed Assets Total Asset Turnover Ratio=...
Q: Parent-Sub-NCI
A: NCI stands Non- Controlling interest which is defined as the situation which happen when the firm do...
Q: In 2020, Fred (55, head of household) has taxable income of $79,120. Fred had federal income taxes o...
A: The following calculations are done for Fred.
Q: S1: The balance in the “allowance for mark-up” account represents the homeoffice’s realized mark-up ...
A: The question is multiple choice question and related with Branch Accounting. Required Choose the ...
Q: Question 3 A Lighting industry manufactures and sells a single product, heavy-duty battery operated ...
A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a ne...
Q: Justine Company has current assets of P400,000 and current liabilities of P500,000. Justine Company'...
A: The current ratio increases by an increase in current assets and a decrease in current liabilities. ...
Q: S1: The preparation of consolidated financial statements after acquisition ismaterially different co...
A: The question is multiple choice question and related with Consolidated Financial Statements. Require...
Q: Thornton Manufacturing Company reported the following data regarding a product it manufactures and s...
A:
Q: The simple interest rate per year required to accumulate the same amount of money in 2 years at 20%...
A: Interest is the amount earned on an investment for the invested period of time. The interest can be ...
Q: In 2021, a company performed service for the customers. It will receive payments from the customers ...
A: Deferred tax refers to the tax on the timing difference arrives due to difference in carrying amount...
Q: A company had pretax financial income of $612,000 in 2021. During 2021, the following items cause ta...
A: The following computations are done to show the changes in the taxable income in 2021.
Q: During 2021, a company started a construction job with a contract price of $296,100. The job was com...
A: The percentage of completion method is a method where all the revenues generated and expenses incurr...
Q: Determine the factory overhead cost per unit for the LCD TV, tablet, and smartphone under activity-b...
A: Activity Based Costing It is the allocation of the factory overheads when there are various products...
Q: Nathalie Inc. could improve its current ratio of 2 by: A. Writing off an uncollectible receivable.B....
A: The current ratio is the ratio that tests the willingness of a corporation to pay or pay short-term ...
Q: Division A manufactures electronic circuit boards. The boards can be sold either to Division B of th...
A: Divisional income statement: It is an income statement which shows the performance of a particular d...
Q: How is Impairment Testing applicable to accounting?
A: A process under which financial transactions are recorded, summarized, interpreted, and presented in...
Q: Warner Company’s year-end unadjusted trial balance shows accounts receivable of $100,000, allowance ...
A: Estimated uncollectible amount =1% of sales = $290,000 x 1% = $2,900
Q: Accounting Question
A: Statement of liquidation is the statement by the partnership firm at the time of winding up of the f...
Q: I need correct answer and correct computation. Thank you!
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Ms. Salma is an Accountant. the business incurred electricity expense of RO 512 was entered by her ...
A: Since cash was credited by $152 instead of $512, hence it further needs to be credited with $360
Q: On October 2, 2020, a company enters into a contract to transfer a product to the customer. It is ag...
A: COGS is starting inventory and purchases throughout the amount, minus your ending inventory. You may...
Q: Co. s statement of financial position shows the following account balances before liquidation: Cash ...
A: The statement of partnership liquidation is prepared to find the net cash to be distributed among pa...
Q: A company provide equipment, installation services as well as training to its customers. Customers c...
A: Every company's aim will be to increase the profits for the company. The profits will be determined ...
Q: Depreciation of an asset based on the number of hours of usage is a(n): a. Time-based method b. Acce...
A: Depreciation is a non cash expenses which is charged for reduction in value of asset over the useful...
You purchased a box-making machine that cost $50,000 five years ago At that time, the system was estimated to have a service life of five years with salvage value of $5,000. These estimates are still good. The property has been depreciated at a declining balance CCA rate of 30%. Now (at the end of year 5 from pur chase) you are considering selling the machine for $10,000. What UCC should you use in determining the disposal tax effect?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Dauten is offered a replacement machine which has a cost of 8,000, an estimated useful life of 6 years, and an estimated salvage value of 800. The replacement machine is eligible for 100% bonus depreciation at the time of purchase- The replacement machine would permit an output expansion, so sales would rise by 1,000 per year; even so, the new machines much greater efficiency would cause operating expenses to decline by 1,500 per year The new machine would require that inventories be increased by 2,000, but accounts payable would simultaneously increase by 500. Dautens marginal federal-plus-state tax rate is 25%, and its WACC is 11%. Should it replace the old machine?You purchased a stamping machine that cost $60,000 five years ago. At thattime, the machine was estimated to have a service life of five years with salvagevalue of $5,000. These estimates are still good. The property has been depreciatedaccording to a seven-year MACRS property class. Now (at the end of year5 from purchase) you are considering selling the machine at $10,000. What book value should you use in determining the taxable gains?(a) $10,000(b) $13,386(c) $16,065(d) $17,520PROBLEMS Note: Unless otherwise specified, use current tax rates for corporate taxes. Check the IRS website for the most current tax rates for corporations.Depreciation Concept 9.1 Identify which of the following expenditures is considered as a capital expenditurethat must be capitalized (depreciated):(a) Purchase land to build a warehouse at $300,000.(b) Purchased a copy machine at $15,000.(c) Installed a conveyor system at a cost of $55,000 to automate some part of production processes.(d) Painted the office…A machine now in use, which was bought five years ago for $4,000, has been fully depreciated. It can be sold for $2,500 but could be used for three more years (remaining useful life), at the end of which time it would have no salvage value. The annual operating and maintenance costs for the old machine amount to $10,000. If you decide to retain the old machine for now, what will be the opportunity cost for gains taxed at 25%?
- The Sumitomo Chemical Corporation is considering replacing a 5-year-old machine that originally cost $50,000 and can be sold for $60,000. This machine is totally depreciated. The replacement machine would cost $125,000 and have a 5-year expected life over which it would be depreciated down using the straight-line method and have no salvage value at the end of five years. The new machine would produce savings before depreciation and taxes of $45,000 per year. Assuming a 34 percent marginal tax rate and a required return of 10%, calculate The internal rate of return and the net present value. Please show work in Excel.The great tech company is considering replacing one of its machines with a more efficient one. The old machine has a book value of $60,000 and a remaining useful life of 5 years. It can sell the old machine now for $ 265,000. The old machine is being depreciated by 120,000 per year straight line. The new machine has a purchase price of $ 1,175,000 an estimated useful life and 5 years MACRS class life and salvage value of $145,000. Annual economic savings is $255,000 if new machine is installed. Taxes 35% and WACC is 12. Calculate the NPV and IRR of the project and make a decision on accepting the project and why? If expected life of existing machine decreased what effect does this have on the cash flow, discuss only? No calculations needed, just discuss.The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $47,000. The machine would replace an old piece of equipment that costs $13,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $22,000. The new machine would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense associated with the new bottling machine? 2. What is the annual incremental net operating income provided by the new bottling machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? 4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.)
- The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $59,000. The machine would replace an old plece of equipment that costs $15,000 per year to operate. The new machine would cost S7,000 per year to operate. The old machine currently In use could be sold now for a salvage value of $25,000. The new machine would have a useful life of 10 years with no salvage value. Requlred: 1. What Is the annual depreclation expense associated with the new bottling machine? 2. What Is the annual Incremental net operating Income provided by the new bottling machine? 3. What is the amount of the Initial investment associated with this project that should be used for calculating the simple rate of return? 4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place I.e. 0.123 should be consldered as 12.3%.) 1. Depreciation expense 2. Incremental net operating income Initial investment 4. Simple rate of return %The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $50,000. The machine would replace an old piece of equipment that costs $13,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $21,000. The new machine would have a useful life of 10 years with no salvage value? What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.)The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $55,000. The machine would replace an old piece of equipment that costs $14,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $21,000. The new machine would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense associated with the new bottling machine? 2. What is the annual incremental net operating income provided by the new bottling machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? 4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.) ces 1. Depreciation expense 2. Incremental net operating income 3 Initial investment…
- The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $61,000. The machine would replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $20,000. The new machine would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense associated with the new bottling machine? 2. What is the annual incremental net operating income provided by the new bottling machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? 4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.) 1. Depreciation expense 2. Incremental net operating income 3. Initial investment 4.…International Soup Company is considering replacing a canning machine. The old machine is being depreciated by the straight-line method over a 10-year recovery period from a depreciable cost basis of $120,000. The old machine has 5 years of remaining usable life, at which time its salvage value is expected to be zero, and it can be sold now for $40,000. This machine has a current book value of $60,000. The purchase price of the new machine is $250,000. Employees were sent to a training course last year on how to use the new machine; this training cost $5,000. The new machine has a 5-year life and an expected salvage value of $25,000. Annual savings of electricity, labor, and materials from use of the new machine are estimated at $40,000. The company is in a 40 percent tax bracket and its cost of capital is 16 percent. The MACRS depreciation method will be used and the recovery percentages for assets with a 5-year class life are given below What is the initial cash outlay for the new…The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $55,000. The machine would replace an old piece of equipment that costs $14,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use could be sold now for a salvage value of $20,000. The new machine would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense associated with the new bottling machine? 2. What is the annual incremental net operating income provided by the new bottling machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? 4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.)
