The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $125,000 at the beginning of the year was expected to deliver 208,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site: Construction Sites: Multiple Choice $20,246 Tons Delivered: How much truck depreciation should be allocated to Site A? Note: Do not round Intermediate calculations. Round your answer to the nearest dollar. $1,683 $1,250 A 2,800 None of the answers are correct. B 4,300 D 2,300 4,800

The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $125,000 at the beginning of the year was expected to deliver 208,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site: Construction Sites: Multiple Choice $20,246 Tons Delivered: How much truck depreciation should be allocated to Site A? Note: Do not round Intermediate calculations. Round your answer to the nearest dollar. $1,683 $1,250 A 2,800 None of the answers are correct. B 4,300 D 2,300 4,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Follow the instructions. Typewritten for an upvote. No upvote for handwritten. PLEASE SKIP IF YOU HAVE ALREADY DONE THIS. Thank you SHOW SOLUTIONS, NO SOLUTIONS NO UPVOTE
You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck. The truck's basic price is $60,000. The truck will be fully depreciated to 0 using straight line depreciation and it will be sold after three years for $20,000. Use of the truck will require an increase in net working capital (spare parts inventory) of $2,000. The truck will have no effect on revenues, but it is expected to save the firm $19,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 40 percent. What is the initial investment outlay for the truck? (That is, what is the Year 0 net cash flow?) What is the incremental operating cash flow in Year 1? What is the terminal (nonoperating) cash flow at the end of Year 3? The truck's required rate of return is 10 percent. What is its NPV?
please answer both questions fully.
PLEASE PROVIDE COMPLETE SOLUTION AND FINAL ANSWER ASAP
The owners of a new planned unit development have installed a package sewage treatment plant that will be paid for by rates charged to the users. package sewage treatment plant cost new = $1,000,000 life of the plant = 240 months %3D salvage value at EOM 240 = 50 O & M cost = gradient in O & M = $400/month/month $40,000/month %3D periodic overhaul every 10 months (first at EOM 4, last at EOM 234) = $100,000/cach gradient in periodic overhaul = $5,000each/10 months number of customers = 6,000 charge per customer = $16.00/month %3D The owners borrowed money at 1 percent per month interest in order to construct the plant, so while they do not expect to make a big profit, they do want the plant to earm a rate of return of at least 1 percent. Is the rate shown above sufficient to carn 1 percent rate of return? (Ans. At a trial i= 1%, the NAW=+$930/month, so the plant earns more than 1% rate of return.)
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] On April 1, Cyclone Company purchases a trencher for $320,000. The machine is expected to last five years and have a salvage value of $60,000. Exercise 10-12 (Algo) Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double- declining-balance method. Note: Enter all amounts as positive values. Year 1 Year 2 Annual Period Beginning of Period Book Value Depreciation for the Periodi Depreciation Partial Rate Year Depreciation Expense End of Period Accumulated Depreciation $ $ Book Value 05 0 $ 0 0
Full Cost versus Successful Efforts Method. During the current year, The Calgary Oil & Gas Company began an exploration project in Montana. The company had paid $1,500,000 for the drilling rights on a tract of 500 acres of land. The company then spent another $180,000 building roads and containment ponds. The project called for eight exploratory wells to be drilled at an expected cost of $130,000 per well. The ﬁrst eight wells drilled were found to be "dry" (lacking commercially viable quantities of oil or gas); however, both the ninth and tenth wells drilled contained commercially viable quantities of oil condensate. Consequently, two additional development wells were drilled at a cost of $140,000 per well. For income tax reporting purposes, should the company use the full cost method or the successful efforts method? which method should the company use when reporting its financial results to its shareholders? why?
Listen The Georgia DOT has purchased equipment for the new road construction around Kenesaw State University, costing $600,000. Estimated salvage value at the end of year 4 is $65,000. Use straight line depreciation, 125% DB, and DDB methods to calculate the depreciation in year 2. Write your formulas and identify al variables. Explain your answers and compare and contrast the concept of the various depreciation methods as it applies to your answer. SHOW ALL WORK
In connection with surfacing a new highway, a contractor has a choice of two sites on which to set up the asphalt- mixing plant equipment. The contractor estimates that it will cost $1.25 per cubic yard mile (yd³ -mile) to haul the asphalt-paving material from the mixing plant to the job location. Factors relating to the two mixing sites are as follows: Cost Factor Average hauling distance Monthly rental of site Cost to set to and remove equipment Hauling expense Flagperson Site A 6 miles $1,200 $17,000 $1.25 / yd³ -mile Not required Site B 4.3 miles $5,500 $25,000 $1.25 / yd³ -mile $96 / day The job requires 50,000 cubic yards of mixed-asphalt-paving material. It is estimated that four months (17 weeks of five working days per week) will be required for the job. Compare the two sites in terms of their total costs. Assume that the cost of the return trip is negligible. A) Which is the better site? B) For the selected site, how many cubic yards of paving material does the contractor…
The following schedule reflects the incremental costs and revenues for acapital project. The company uses straight-line depreciation. The interestexpense reflects an allocation of interest on the amount of this investment,based on the company’s weighted average cost capital:Revenues $650,000Direct costs $270,000Variable overhead 50,000Fixed overhead 20,000Depreciation 70,000General & administrative 40,000Interest expense 8,000458,000Net profit before taxes $192,000══════The annual cash flow from this investment, before tax considerations, would be:
Danube, Toggle, and ConnectOn rely on various intangible assets to operate their businesses. These companies amortize the cost of these assets using the straight-line method over the following average estimated useful lives (in years), as reported in their annual reports. Type of Intangible Asset Developed Technology Danube 5.4 Trade Names 5.9 Toggle 5.6 10.1 ConnectOn 3.5 11.5 Customer Relationships 5.1 5.5 7.5 Required: 1. Based on these estimates, identify the company that uses the longest periods for amortizing most of its classes of intangible assets. Toggle Danube ConnectOn 2. Will these estimates increase or decrease that company's net income relative to its competitors? Increase Decrease
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly