Keira's Kar Company purchases a Machine and incurs the following costs: $250,000 $5,000 $1,500 $2,000 $500 Purchase Price Sales Tax Installation Cost Electricity Costs for the Year Deliver Costs Required: a. Calculate the Total Cost of the Machine and RECORD the purchase for CASH in the Journal. b. Keira estimates the MACHINE will have a $10,000 Salvage Value and a 5 Year useful life. Calculate the annual DEPRECIATION EXPENSE and RECORD it in the Journal. d. c. After Year 1... What is the Book Value or Carrying Value of the Machine? Assume that after 5 years, and the Machine is FULLY Depreciated (Accumulated Depreciation Balance = $257,000), Keira sells the Machine for $8,000 Cash. Calculate the Gain or Loss on Sale.....and Record the Sale of the Machine in the Journal.

Linda’s Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows:             Initial investment (2 limos) $ 1,080,000 Useful life   10 years Salvage value $ 120,000   Annual net income generated   95,040   LLT’s cost of capital   15 %   Assume straight line depreciation method is used.     Required:Help LLT evaluate this project by calculating each of the following:    1. Accounting rate of return. (Round your percentage answer to 1 decimal place.)   2. Payback period. (Round your answer to 2 decimal places.)    3. Net present value. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Cash Outflows and negative amounts should be indicated by a minus sign. Round your "Present Values" to the nearest whole dollar amount.)

During the year Gambler  acquired an iron ore mine at a cost of $6 million. In addition, when all the ore has been extracted (estimated ten years' time) the company will face estimated costs for landscaping the area affected by the mining that have a present value of $2 million. These costs would still have to be incurred even if no further ore was extracted. How should this $2 million future cost be recognised in the financial statements?   Select one alternative Provision $2 million and $2 million capitalized as part of cost of mine Should not be recognized as no cost has yet arisen Provision $2 million and $2 million charged to operating costs Accrual $200,000 per annum for next ten years

An energy production company has the following information regarding the acquisition of new gasturbine equipment. Purchase price = $780,000 Trans-oceanic shipping and delivery cost = $4300 Installation cost (1 technician at $1600 per day for 4 days) = $6400 Tax recovery period = 15 years Book depreciation recovery period = 10 years Salvage value = 10% of purchase price Operating cost (with technician) = $185,000 per year The manager of the department asked your friend in Accounting to enter the appropriate data into the tax-accounting program. What are the values of B, n, and S in depreciating the asset for tax purposes that he should enter?