On October 1, 2022, Abbott Inc. purchased equipment costing $700,000 by paying $150,000 cash and signing a $550,000, 10%, 1-year note for the remainder. The face value of the note plus interest is due when the note matures in one year. The equipment will be used in a variety of R&D activities. It is expected to have a useful life of 5-years and a residual value of $20,000. Abbott uses the DDB method for the equipment. Required: In the journal below, record the equipment purchase on October 1, and record depreciation and accrued interest for 2022. Round all calculations to the nearest whole month and whole dollar.

A company buys a solar panel unit for P105,000. The shipping and installation fees amount to P15,000. If the unit is expected to last for 15 years, with a salvage value of P3,000, what is the depreciation charge during the 12 th year, and the book value at the end of 14 years by the (c) sinking fund method given interest rate at 12.5 percent, and (d) Sum-of-the-Years Digit (SYD) Method.

The Hankin Corporation purchased new production equipment on September 1. 2017 for $14.000 and expects to use it for 8 years at which time it can be sold for an estimated $2.000. What net book value should appear for the equipment in the company's year-end financial statements for 2019? As needed, round your final answer to the nearest whole dollar.

Sheridan Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019, the company expends $323,000 on a research project, but by the end of 2019 it is impossible to determine whether any benefit will be derived from it. (b) The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $16,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Nuts & Bolts considers the purchase of a new machine at a cost of $1,070,000 at the end of the current year (year 0). The expected lifetime is 5 years. In addition, at the end of year 3, a major upgrade ($80,000) will be necessary to stay competitive (ATO depreciation schedule calls for 5 years as well). Over this period, the machine will be responsible for $500,000 additional sales per year and $150,000 in additional COGS. The corporate tax rate is flat at 30%. As part of day-to-day operations, it is expected that A/R increase by $30,000 in year 1 and another $40,000 in year 4. Inventory will increase by $20,000 in year 1 and another $10,000 in year 4. A/P will increase by $25,000 and $15,000, respectively. At the end of year 5, there are decommissioning costs of $50,000. The machine is assumed to be sold for $138,000. Working capital changes are assumed to be reversible at the end of the project without loss. Compute the new machine’s incremental cash flows for year 0 through…

On January 1, 2021, the company obtained a $3 million loan with a 11% interest rate. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 March 1, 2021 $1,200,000 660,000 520,000 620,000 360,000 675,000 1,080,000 June 30, 2021 October 1, 2021 January 31, 2022 April 30, 2022 August 31, 2022 On January 1, 2021, the company obtained a $3 million construction loan with a 11% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2021 and 2022. The company's other interest-bearing debt included two long-term notes of $4,200,000 and $6.200,000 with interest rates of 6% and 8%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The company's fiscal year-end is December 31. Required: 1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the weighted-average method. 2.…

8. ABC Company purchased a building on January 1, 2018 for P10, 000,000. The building has been depreciated using the straight-line method with a 25-year useful life with no residual value. On December 31, 2021, ABC is evaluating the building for possible impairment. The building has a remaining useful life of 15 years and is expected to generate cash inflows of P700,000 per year. The applicable discount rate is 8%. Round off present value factor to two decimal places. The fair value of the building on December 31, 2021 is P5, 300,000. What amount should be recognized as impairment loss on December 31, 2021?

On January 1, 2021, the company obtained a $3 million loan with a 10% interest rate. The building was completed on September 30, 2022. Expenditures on the project were as follows:         January 1, 2021 $ 1,080,000   March 1, 2021   900,000   June 30, 2021   320,000   October 1, 2021   700,000   January 31, 2022   720,000   April 30, 2022   1,035,000   August 31, 2022   1,800,000      On January 1, 2021, the company obtained a $3 million construction loan with a 10% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2021 and 2022. The company’s other interest-bearing debt included two long-term notes of $5,000,000 and $7,000,000 with interest rates of 5% and 8%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The company’s fiscal year-end is December 31. Required: Calculate the amount of interest that Mason should…

On January 1, 2021, the company obtained a $3 million loan with a 11% interest rate. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 March 1, 2021 June 30, 2021 October 1, 2021 January 31, 2022 April 30, 2022 August 31, 2022 On January 1, 2021, the company obtained a $3 million construction loan with a 11% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2021 and 2022. The company's other interest-bearing debt included two long-term notes of $5,100,000 and $7,100,000 with interest rates of 7% and 9%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The company's fiscal year-end is December 31. Required: 1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the weighted-average method. 2. What is the total cost of the building? 3. Calculate the…

LO, Inc., is considering an investment of $440,000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $279,500 and $88,000, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 2 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $60,000 in nominal terms at that time. The one-time net working capital investment of $17,500 is required immediately and will be recovered at the end of the project. The corporate tax rate is 25 percent. What is the project's total nominal cash flow from assets for each year? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Cash flow