The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing having a four-year expected life, after which the assets can be salvaged for $9.6 million. In addition, the division has assets that are not depreciable. After four years, the division will have $48.0 million available from these nondeprecia means that the division has invested $96.0 million in assets with a salvage value of $57.6 million. Annual depreciation Annual operating cash flows are $20.6 million. In computing ROI, this division uses end-of-year asset values in the de Depreciation is computed on a straight-line basis, recognizing the salvage values noted. Ignore taxes. Required: a. & b. Compute ROI, using net book value and gross book value for each year. (Enter your answers as a percentage decimal place (i.e., 32.1).) Answer is complete but not entirely correct. Year 1 Year 2 ROI Net Book Value 12.8% 14.3 % Gross Book Value 10.9% 10.9%

​Intella Manufacturing, Inc. has only one plant asset used in production. The asset had a cost of $535,000 and has been depreciated for 2 full years since the date of acquisition. This accounting resulted in a total accumulated depreciation of $220,000. The firm expects the asset to be productive for an additional 3 years and projects the​ asset's future cash flows to be $132,000 per year. Information about the​ company's products indicates that the asset might be impaired. Should the firm record an impairment loss for the current​ year? (Provide supporting​ computations.) ​First, calculate the carrying value of the asset using the table below.       Less:     Carrying value of asset   Part 2 ​Next, conduct an impairment test for the asset using the table below.   Step 1: Asset         Impairment indicated

The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $36.9 million and having a four-year expected life, after which the assets can be salvaged for $7.38 million. In addition, the division has $36.9 million in assets that are not depreciable. After four years, the division will have $36.9 million available from these nondepreciable assets. This means that the division has invested $73.8 million in assets with a salvage value of $44.28 million. Annual operating cash flows are $12.9 million. In computing ROI, this division uses end-of-year asset values in the denominator. Depreciation is computed on a straight-line basis, recognizing the salvage values noted. Ignore taxes. In computing ROI, this division uses end-of-year asset values. Assume that all cash flows increase 10 percent at the end of each year. This has the following effect on the assets’ replacement cost and annual cash flows: End of Year    Replacement Cost    Annual Cash…

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Widget Industries erected a facility costing $1.56 million on land bought for $1 million. The firm used straight-line depreciation over a 39-year period; it installed $2.5 million worth of plant and office equipment (all classified as MACRS 7-year property). Gross income from the first year of operations (excluding capital expenditures) was $8.2 million, and $5.8 million was spent on labor and materials. How much did Widget pay in federal income taxes for the first year of operation?                                                                                       (a) $680,935 (b) $1,002,750 (c) $1,321,815 (d) $2,788,000

Most Company has an opportunity to invest in one of two new projects. Project Y requires a $320,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $320,000 investment for new machinery with a five-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year.     Project Y Project Z Sales   $ 385,000     $ 308,000   Expenses                 Direct materials     53,900       38,500   Direct labor     77,000       46,200   Overhead including depreciation     138,600       138,600   Selling and administrative expenses     28,000       27,000   Total expenses     297,500       250,300   Pretax income     87,500       57,700   Income taxes (38%)     33,250       21,926   Net income   $ 54,250     $ 35,774     Compute each project’s accounting rate of return.

B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $144,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows.   Sales of new product $ 90,000 Expenses   Materials, labor, and overhead (except depreciation) 48,000 Depreciation—Equipment 12,000 Selling, general, and administrative expenses 9,000 Income $ 21,000  (a) Compute the annual net cash flow.(b) Compute the payback period.(c) Compute the accounting rate of return for this equipment. I could not include an image for "C" please answer seperately

Rahul