buring the first month of its current fiscal year, Green Co. Incurred repair costs of $21,000 on a machine that had 4 years of remaining depreciable life. The repair cost was inappropriately capitalized. Green Co. reported operating Income of $167,000 for the current year. Required: a. Assuming that Green Co. took a full year's straight-line depreciation expense in the current year, calculate the operating Income that should have been reported for the current year. Operating Income b. Assume that Green Co.'s total assets at the end of the prior year and at the end of the current year were $939,000 and $1,003,000, respectively. Calculate ROI (based on operating Income) for the current year using the originally reported data and then using corrected data. (Round your answers to 1 decimal place. (e.g.. 32.1)) Original data Corrected data ROI Indicate the effect on ROI of subsequent years if the error is not corrected. O ROI will be too low. O ROI will be too high. O ROI will remains the same.

Blue Co. purchased equipment on October 4, 20X1 at a cost of $63,000. The equipment has an estimated useful life of 4 years and an estimated salvage value of $3,000. Blue Co. uses the straight-line depreciation method. Blue Co.’s fiscal year-end is December 31. Assuming Blue Co. uses the half-year convention, what was the accumulated depreciation as of December 31, 20X2? (Round all results to the nearest whole dollar.)   a. $30,000   b. $22,500   c. $15,000   d. $7,500

> Computer equipment was acquired at the beginning of the year at a cost of $29,375 that has an estimated residual value of $1,800 and an estimated useful life of 5 years. a. Determine the depreciable cost. b. Determine the double-declining-balance rate. % c. Determine the double-declining-balance depreciation for the first year. LA ?

On January 1, Year 2, Webb Construction Company overhauled four cranes resulting in a slight increase in the life of the cranes. Such overhauls occur regularly at two-year intervals and have been treated as maintenance expense in the past. Management is considering whether to capitalize this year's $28,310 cash cost expense. Assume that the cranes have a remaining useful life of two years and no expected salvage value. Assume straight-line depreciation. the Cranes asset account or to expense it as a maintenance Required a. Determine the amount of additional depreciation expense Webb would recognize in Year 2 and Year 3 if the cost were capitalized in the Cranes account. b. Determine the amount of expense Webb would recognize in Year 2 and Year 3 if the cost were recognized as maintenance expense. c. Determine the effect of the overhaul on cash flow from operating activities for Year 2 and Year 3 if the cost were capitalized and expensed through depreciation charges. (Cash outflows…