Spherical Manufacturing
Q: Accounts receivable, net of allowances of $411 and $380 $ 29,224 $ 26,381 Net sales revenue 66,169…
A: The gross accounts receivables are calculated as sum of net accounts receivables and allowance for…
Q: Early in 2020, Carla Equipment Company sold 500 Rollomatics at $6,100 each. During 2020, Carla spent…
A: >Warranty is a kind of assurance given to customers that the product being purchased by them will…
Q: Kray Inc., which produces a single product, has provided the following data for its most recent…
A: Variable costs are costs that vary with the change in the level of output.Total product cost is the…
Q: Selected information from the Iowa Instruments accounting records for April follows: Materials…
A: The cost incurred in a factory for the completion of jobs into finished goods is termed as…
Q: Required information [The following information applies to the questions displayed below.] Annin…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: Andrew Industries purchased $165.000 of raw materials on account during the month of March. The…
A: The Raw material consists of Directt material and the indirect material both.Raw material = Direct…
Q: Here are incomplete Financial statements for Sunland Company: Calculate the missing amounta Cash…
A: Balance sheet is a financial statement that shows list of final ending balances of assets,…
Q: Gardner Company expects sales for October of $252.000. Experience suggests that 40% of sales are for…
A: The cash budget schedule is prepared to estimate the cash collection from the customers during the…
Q: George and Kenneth borrowed $30,000 on a 7-month, 5% note from Gem State Bank to open their…
A: Journal entry is the first stage of the accounting process.Journal entry is used to record business…
Q: Required information [The following information applies to the questions displayed below.] On…
A: The bonds are the financial instruments that are issued to raise money from the market. The bonds…
Q: Crane Company sells its product for $5600 per unit. Variable costs per unit are: manufacturing,…
A: The variable costs are the costs that change with change in production level. The contribution…
Q: Bandar Industries manufactures sporting equipment. One of the company's products is a football…
A: Direct material variance is the difference between standard direct material cost for actual…
Q: Required information Use the following information for the Exercises below. (Algo) [The following…
A: The variance is the difference between the actual and standard production data. The variance can be…
Q: -On January 1, 2020, La Petite Macaron, a local French bakery, borrowed $84,000 from the bank.…
A: Notes payable, also known as promissory notes, are a type of debt that a business or individual…
Q: Propose two methods in which the time value of money can help corporate managers in general.
A: The time value of money (TVM) is a fundamental concept in finance that describes the idea that money…
Q: Blossom Inc. mistakenly recorded an EFT payment as $455 that was written for $527 in payment of an…
A: It is a statement drawn up by the business to verify the cash book balance with the bank statement…
Q: Metlock Company began construction of a new building during 2025. The building is expected to be…
A: When interest is added to the main amount of a loan or investment instead of being paid out in cash,…
Q: Jan. 1 June 30 Dec. 31 Retired a piece of machinery that was purchased on January 1, 2012. The…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: Fuschia Company's contribution margin per unit is $15. Total fixed costs are $90,300. What is…
A: Break even point is the level of sales at which the company incurs no profit and no loss. At break…
Q: Based on past experience, Maas Corp. (a U.S. -based company) expects to purchase raw materials from…
A: The rate at which one country’s currency can be converted into another country’s currency referred…
Q: Walgreens Boots Alliance, Inc., reported inventories of $2,280 million and $2,362 million in its…
A: Answer:- Adjustment needs to be made in the cost of goods sold for changes in inventory valuation of…
Q: Prepare a horizontal analysis of Nebraska Technologies's income statements. For decreases or…
A: The Statement of Comprehensive Income-The statement of comprehensive income is the profit earned and…
Q: LIFO was designed to protect cash flow in industries where prices increase rapidly. It has been used…
A: Lets understand the basics.Cost of goods sold and ending inventory can be calculated using,(1)…
Q: In January, Carla Vista Company requisitions raw materials for production as follows: Job 1 $1.100,…
A: Lets understand the basics.The journal entries are prepared to record the transactions on regular…
Q: Zeke's Bikes uses a standard cost system and provides the following information: Standards: 3 lbs…
A: The variance is the difference between the actual and standard cost production data. The variance…
Q: A flexible budget variance for November 2023 is the difference between the actual expense incurred…
A: The objective of the question is to understand what a flexible budget variance is and how it is…
Q: Whispering Ltd. is constructing a building. Construction began on February 1 and was completed on…
A: Lets understand the basics.Borrowing costs incurred behind qualifying assets needs to…
Q: Flapper Jack's Pancake Restaurants Inc. sells franchises for an initial fee of $38,000 plus…
A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…
Q: If diluted earnings per share is reported for at least one period, it shall be reported for all…
A: A financial indicator called earnings per share( EPS) is used to estimate a company's profitability…
Q: Before any adjustments, Snow Company had an end of the year accounts receivable balance of $225,000…
A: The allowance for uncollectible accounts has normal credit balance. Using aging or account…
Q: Production costs (including $40,000 of fixed cost) are budgeted at $150,000 for an expected output…
A: Flexible budget variance is the difference between actual results and flexible budget. Flexible…
Q: For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used…
A: Responsibility accounting is one of the branches of modern costing systems that majorly applies to…
Q: Newhard Company assigns overhead cost to jobs on the basis of 118% of direct labor cost. The job…
A: Total manufacturing cost is the total cost incurred during the production process of product. It is…
Q: Alexa owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in…
A: AGI deductions are those reductions or deductions that can be taken from the adjusted gross income…
Q: Penny's direct material cost is $3 per unit. The direct labor rate is $17 per hour and each units…
A: Cost of goods sold is calculated by multiplying product cost per unit by number of units sold.…
Q: What is the maximum total depreciation deduction that Chaz may deduct in 2023? (Use MACRS Table 1,…
A: Introduction:Depreciation allows a portion of a fixed asset's cost to the income generated by the…
Q: Logistics Solutions maintains warehouses that stock items carried by its dot.com clients. When a…
A: Variance is the difference between the budgeted values and actual values. Basically variances can be…
Q: The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who…
A: Partnership liquidation is the process of ending a partnership and distributing its assets.During…
Q: Exercise 18-10 (Algo) Retirement of shares [LO18-5] Borner Communications' articles of incorporation…
A: Since you have posted two different questions, we will do the first one for you. Please post the…
Q: Crane Toys Company has a balance in inventory of $634000 at the beginning of the month. During the…
A: Ending inventory is the amount of inventory that an entity has on hand at the end of the period. It…
Q: Cullumber Toys' management is considering eliminating product A, which has been showing a loss for…
A: Differential analysis is a management accounting technique in which we assess only the changes in…
Q: Sanchez & Company produces paints. On it had no work-in-process inventory. It sta production of…
A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…
Q: At the beginning of 2020, your company buys a $34,000 piece of equipment that it expects to use for…
A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and teat,…
Q: The Smith Family Trust earns $60,000 in eligible dividends during 2020. It allocates $20,000 of…
A: Trust income refers to the earnings, profits, or returns generated by assets and investments held…
Q: Juniper Design Limited of Manchester, England, is a company specializing in providing design…
A: The Residual Income for the period is the difference between the net operating income and the…
Q: Klp.3 Demeter is a single taxpayer. Her AGI during the tax year is $175,000. Demeter may claim a…
A: The Child Tax Credit is a duty benefit handed by theU.S. government to eligible taxpayers who have…
Q: Inman Construction Company is considering selling excess machinery with a book value of $280,500…
A: Differential analysis is the analysis which helps to decide whether the entity should lease a…
Q: Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or…
A: Variance arises when the actual costs differ from the standard costs. The results are favorable…
Q: Ilion Soy Products (ASP) buys soybeans and processes them into other soy products. Each ton of…
A: A split-off point is a point in a manufacturing process where goods that were previously made…
Q: [The following information applies to the questions displayed below.] Autumn Company began the…
A: Journal entries are an abecedarian account fashion used to record fiscal deals in a methodical…
Spherical Manufacturing recently spent $15 million to purchase some equipment used in the manufacture of disk drives. This equipment has a CCA rate of 25%, and Spherical's marginal corporate tax rate is 35% a What are the annual CCA deductions associated with this equipment for the first five years? b. What are the annual CCA tax shields for the first five years? c. What is the present value of the first five CCA tax shields if the appropriate discount rate is 10% per year? d. What is the present value of all the CCA tax shields, assuming the equipment is never sold and the appropriate discount rate is 10% per year? e. How might your answer to part (d) change if Spherical anticipates that its marginal corporate tax rate will increase substantially over the next five years?
Step by step
Solved in 6 steps
- Spherical Manufacturing recently spent $15 million to purchase some equipment used in the manufacture of disk drives. This equipment has a CCA rate of 25% and Spherical's marginal corporate tax rate is 32%. a. What are the annual CCA deductions associated with this equipment for the first five years? b. What are the annual CCA tax shields for the first five years? c. What is the present value of the first five CCA tax shields if the appropriate discount rate is 12% per year? d. What is the present value of all the CCA tax shields assuming the equiment is never sold and the appropriate discount rate is 12% per year? e. How might your answer to part (d) change if Spherical anticipates that its marginal corporate tax rate will increase substantially over the next five years?Spherical Manufacturing recently spent $16 million to purchase some equipment used in the manufacture of disk drives. This equipment has a CCA rate of 45% and Spherical's marginal corporate tax rate is 34% a. What are the annual CCA deductions associated with this equipment for the first five years? b. What are the annual CCA tax shields for the first five years? c. What is the present value of the first five CCA tax shields if the appropriate discount rate is 12% per year? d. What is the present value of all the CCA tax shields assuming the equiment is never sold and the appropriate discount rate is 12% per year? e. How might your answer to part (d) change if Spherical anticipates that its marginal corporate tax rate will increase substantially over the next five years? a. What are the annual CCA deductions associated with this equipment for the first five years? The CCA deduction for year 1 is $3600000 (Round to the nearest dollar) The CCA deduction for year 2 is $ (Round to the…Spherical Manufacturing recently spent $15 million to purchase some equipment used in the manufacture of disk drives. This equipment has a CCA rate of 30% and Spherical's marginal corporate tax rate is 36%. a. What are the annual CCA deductions associated with this equipment for the first five years? b. What are the annual CCA tax shields for the first five years? c. What is the present value of the first five CCA tax shields if the appropriate discount rate is 12% per year? d. What is the present value of all the CCA tax shields assuming the equiment is never sold and the appropriate discount rate is 12% per year? e. How might your answer to part (d) change if Spherical anticipates that its marginal corporate tax rate will increase substantially over the next five years? a. What are the annual CCA deductions associated with this equipment for the first five years? The CCA deduction for year 1 is $ (Round to the nearest dollar.) Question Viewer
- Spherical Manufacturing recently spent $11 million to purchase some equipment used in the manufacture of disk drives. This equipment has a CCCA rate of 45% and Spherical's marginal corporate tax rate is 37%. a. What are the annual CCA deductions associated with this equipment for the first five years? b. What are the annual CCA tax shields for the first five years? c. What is the present value of the first five CCA tax shields if the appropriate discount rate is 8% per year? d. What is the present value of all the CCA tax shields assuming the equiment is never sold and the appropriate discount rate is 8% per year? e. How might your answer to part (d) change if Spherical anticipates that its marginal corporate tax rate will increase substantially over the next five years?Spherical Manufacturing recently spent $11 million to purchase some equipment used in the manufacture of disk drives. This equipment has a CCA rate of 45% and Spherical's marginal corporate tax rate is 37%. a. What are the annual CCA deductions associated with this equipment for the first five years? b. What are the annual CCA tax shields for the first five years? c. What is the present value of the first five CCA tax shields if the appropriate discount rate is 10% per year? d. What is the present value of all the CCA tax shields assuming the equiment is never sold and the appropriate discount rate is 10% per year? e. How might your answer to part (d) change if Spherical anticipates that its marginal corporate tax rate will increase substantially over the next five years? a. What are the annual CCA deductions associated with this equipment for the first five years? The CCA deduction for year 1 is $ (Round to the nearest dollar.) The CCA deduction for year 2 is $ The CCA deduction for…Spherical Manufacturing recently spent $18 million to purchase some equipment used in the manufacture of disk drives. This equipment has a CCA rate of 45% and Spherical's marginal corporate tax rate is 39%. a. What are the annual CCA deductions associated with this equipment for the first five years? b. What are the annual CCA tax shields for the first five years? c. What is the present value of the first five CCA tax shields if the appropriate discount rate is 12% per year? d. What is the present value of all the CCA tax shields assuming the equiment is never sold and the appropriate discount rate is 12% per year? e. How might your answer to part (d) change if Spherical anticipates that its marginal corporate tax rate will increase substantially over the next five years? CHOD a. What are the annual CCA deductions associated with this equipment for the first five years? The CCA deduction for year 1 is $ 4,050,000. (Round to the nearest dollar) The CCA deduction for year 2 is $. (Round…
- C Corp. faces a marginal tax rate of 35 percent. One project that is currently under evaluation has a cash flow in the fourth year of its life that has a present value of $10,000 (after-tax). C Corp. assumes that all cash flows occur at the end of the year and the company uses 11 percent as its discount rate. What is the pre-tax amount of the cash flow in year 4? (Round to the nearest dollar.) * A. $15,181 B. $23,356 C. $9,868 D. $43,375Genesis Corporation want to purchase a piece of machinery for $150,000 that will cost $20,000 to have it delivered and installed. Based on past information, they believe they can sell the machinery for $25,000 in 5 years. The company’s marginal tax rate is 34%. If the applicable CCA rate is 20% and the required return on this project is 15%, what is the present value of the CCA tax shield?Builtrite is considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over its five year life. At the end of five years it is believed that the machine could be sold for $15,000. The machine would increase EBDT by $42,000 annually. Builtrite’s marginal tax rate is 34%. What is the TCF associated with the purchase of this machine? $5,100 $7,500 $0 $9,900
- b) You purchase equipment for $50,000 and it costs $5,000 to have it delivered and installed. Based on past information, you believe that you can sell the equipment for $8,500 when you are done with it in 3 years. The company's marginal tax rate is 20%. If the applicable CCA rate is 10% and the required return on this project is 5%, what is the present value of the CCA tax shield by using the formula (10 Marks) IdTc 1+0.5r 1 PV tax shield on CCA Hea d+r 1+r d+r (1 + r)" redictions: On Ps video DELLC Corp. faces a marginal tax rate of 35 percent. One project that is currently under evaluation has a cash flow in the fourth year of its life that has a present value of P10,000 (after-tax). C Corp. assumes that all cash flows occur at the end of the year and the company uses 11 percent as its discount rate. What is the pre-tax amount of the cash flow in year 4? (Round final answer to the nearest dollar.)A company has purchased a new piece of machinery for $100,000. The estimate it will result in annual cost savings of $15,000 per year, this will increase every year by $500. The machinery will last for 8 years, at which time it will be sold for $7,000. What is the company's BEFORE tax rate of return? The company estimates a federal tax rate of 21%. What is their AFTER tax rate of return?
