FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Question
The Goodwill is to be valued at two years’ purchase of last four years’ average profit. The profits were OMR 40,000, OMR 32,000, OMR 15,000 and OMR 13,000 respectively. Find out the value of goodwill
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 2 steps
Knowledge Booster
Similar questions
- if an asset costs $s0600 and is expected to have a $4900 salvage value at the end of its 9-year life, and generates annual net cash inflows of $9200 each year, the cash payback period is O6.0 years. O5.5 years O5.0 years. O9.0 yearsarrow_forwardA machine is purchased for P100,000. If the annual maintenance cost is P1,800, determine the capitalized cost of perpetual service with an interest rate of 8%. P325,000 P425,000 P525,000 P625,000arrow_forwardThe first cost of a certain piece of equipment is 40,000OMR. It will have an annual operating cost of 10,000 OMR and a 6,000 OMR salvage value (scrap value) after its 5-year life, at an interest rate of 12% per year. Find the capitalized cost of the equipment. a) 171,811.23 OMR b) 167,932.75 OMR c) 181,212.005 OMR d) 125,213.62 OMR C a b MacBook Proarrow_forward
- If the cost of the truck is OMR 30,000 and the annual depreciation expense OMR 2,000. How much will be the book value of the truck at the year end? a. OMR 32,000 b. OMR 30,000 c. OMR 2,000 d. OMR 28,000arrow_forwardA piece of equipment costs ₱351,000 including shipping, installation and taxes. The supplier assures a salvage value of ₱18,000 after 20 years. What is the book value at the end of the 5th year using the Sum-of-the-Years Digits method?arrow_forwardThe asset - vehicle worth £21,200 will be depreciated by 10% at the end of the year. Which nominal accounts should be debited and credited, respectively? a) Debit Depreciation A/c & Credit Non-Current Asset A/c b) Debit Inventory A/c & Credit Depreciation A/c c) Debit Balance Sheet A/c & Credit Profit or Loss A/carrow_forward
- A piece of equipment costs ₱354,000 including shipping, installation and taxes. The supplier assures a salvage value of ₱24,000 after 20 years. Using the Sum-of-the-Years Digits method, what is the depreciation charge during the 5th year?arrow_forwardAn equipment is bought for OMR 20,000 and its depreciation is charged at 10% per annum (p.a.) at written down value method. How much is the amount of depreciation at the end of the first year? a. OMR 2,000 b. OMR 20,000 c. OMR 10,000 d. OMR 1,000arrow_forwardA taxpayer wants to place in service a $10,000 asset that is assigned to the five-year class. Compute the MACRS percentages and the depreciation amounts for the asset. Given: Five-year asset, half-year convention, \alpha =40% and S=0 Find: MACRS depreciation percentages Dn for $10,000 asset.arrow_forward
- The company Alumnos Emprendedores S.A. has an investment for a total amountof $175,800.00, and annual net cash flows of $52,050.00, calculate the periodof recovery, detail your result in years, months and daysarrow_forwardEstimate the value of the property using the income approach based on the following facts: Net operating income annually for next 3 years is $400000 At end of three years, property is sold with an existing cap rate of 10% and a commission of 4% on sale The discount cap rate is the same as the existing cap rate and the operating income is assumed to be received at year endarrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education