Question 6 of 8 Riverbed Corp's December 31, 2023 trial balance includes the following accounts: Inventory $124,000; Buildings $219,000; Accumulated Depreciation Equipment $20,100; Equipment $198,000; Land Held for Speculation $53,000; Accumulated Depreciation-Buildings $45,700; Land $72,000; Equipment Under Lease $233,000; and Accumulated Depreciation-Leased Equipment $103,400. Prepare the property, plant, and equipment section of the statement of financial position. Riverbed follows ASPE and includes Equipment under Lease as part of Property, Plant, and Equipment. (List Property, Plant, and Equipment in order of Land, Buildings, Equipment, and Equipment Under Lease.) Property, Plant, and Equipment -/12 Riverbed Corp. Statement of Financial Position (Partial) 5

Letang Tsipane started a business restaurant called Letang Coffee on 1 May 2023 The following balances and totals were in the General Ledger on 1 May 2023: Capital R 45 000 Trading stock R 38 744 Debtors control R 27 800 Bank R 2008 Sales R 30 586 Cost of sales R 20 389 The following balance occurred in the Debtors ledger on 1 May 2023: T. Jacobs P. Khumalo R 3 000 R 5700 REQUIRED: Record the given transactions in the following Journals: 1. Cash Receipts Journal, with Analysis columns for Analysis of receipts, Bank, Sale Cost of Sales, Debtors control and Sundry accounts; 2. Debtors Journal, with Analysis columns for Sales and Cost of sales 3. Post from the Journals to the following accounts in the General ledger: Capital, Bank, Trading Stock; Debtors Control; Sales, Cost of sales 4. Post to the applicable accounts in the Debtors ledger of Letang Coffee 5. Prepare the List of Debtors. TRANSACTION FOR MAY 2023: 1. Received EFT payment from the owner Letang Tladi for R250 000 as her…

You are building guest huts at a holiday resort, and you need to choose whether to build your huts out of straw, wood, or brick. Straw is the cheapest but depreciates the most quickly; brick is the most expensive but depreciates least; wood is intermediate. Assume that all types of huts are equally picturesque/functional. They differ only in terms of durability. The cost (and depreciation rates) of the different hut types is:  -  Brick: £3,500 (10% depreciation)  -  Wood: £3,000 (15% depreciation)  -  Straw: £2,500 (20% depreciation)  a) The interest rate is 5%, which type of hut should you buy?  b) The interest rate is 20%, which type of hut should you buy?  c) Intuitively, why were the answers for parts (a) and (b) different? Explain in words.

10.16 An asset in the five-year MACRS property class costs $150,000 and has a zero estimated salvage value after six years of use. The asset will generate annual revenues of $320,000 and will require $80,000 in annual labor and $50,000 in annual material expenses. There are no other revenues and expenses. Assume a tax rate of 25%. a. Compute the after-tax cash flows over the project life. b. Compute the NPW at MARR=12%. Is the investment acceptable?