Three different companies each purchased trucks on January 1, Year 1, for $76,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $6,000. All three trucks were driven 81,000 miles in Year 1, 55,000 miles in Year 2, 46,000 miles in Year 3, and 71,000 miles in Year 4. Each of the three companies earned $65,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double- declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. a-1. Calculate the net income for Year 1. a-2. Which company will report the highest amount of net income for Year 1? b-1. Calculate the net income for Year 4. b-2. Which company will report the lowest amount of net income for Year 4?
Q: what amount of taxes and/or early distribution penalties will Javier be required to pay on this…
A: The amount that must be paid by Javier will be (b)$3,000 income tax; $0 early distribution penalty
Q: Nevada Corporation has 67,450 shares of $22 par stock outstanding that has a current market value of…
A: calculation of number of share outstanding are as follows
Q: Construct a cost-volume-profit chart indicating the break-even sales for last year. Verify your…
A: INCOME FROM LAST YEAR SALES Per Unit No.of Units Total Sales $200 2000 $400,000 Less :…
Q: Assuming a 360-day year, proceeds of $47,444 were received from discounting a $48,147, 90-day note…
A: Promissory Notes :— It is a written document that contains promise to pay certain sum of money to…
Q: 2. yellow company purchased the following assets on dec 1,2021 and placed them in service on the…
A: Per our calculation above, the correct answer is $400,120. This is the cost recovery expense for…
Q: Employee Aaron Cobb Clemente DiMaggio Griffey, Jr. Mantle Robinson Williams Hours Worked 46 41 48 35…
A: Payroll - Payroll includes the payments that must be made in connection with the salaries and…
Q: Part 1. Problems. There are four problems. Each one is worth the score indicated next to the problem…
A: Preparation of cost of goods manufactured, cost of goods sold and income statement are as follows.
Q: Roni Lockard signed a $28,500 simple discount promissory note at a certain bank. The discount rate…
A: Simple interest is calculated by multiplying amount, rate and time. In calculations of due days we…
Q: Nakashima Gallery had the following petty cash transactions in February of the current year.…
A: Petty cash funds are established for the aim of supplying individual business units with adequate…
Q: Simple Company had the following balances on December 31, 2021, BEFORE preparing adjusting entries.…
A: Adjusting entries are made at the end of the year to record the accrued expenses and income along…
Q: *Adjusted Gross income is $18,000* Determine the tax liability if you are filing single using the…
A: Lets understand the basics. Taxable income is a income arrived by deducting either standard…
Q: At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the…
A: 1.Predetermined overhead rate = (Overhead costs/Estimated direct material cost) ×100 =…
Q: Problem no. 2 Fresh Seasons is a contract manufacturer for Delectable Dressing Company. Fresh Seas a…
A:
Q: 11 Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead…
A: JOB ORDER COSTING industries which manufacture products or render services against specific…
Q: Question: 1. What is the correct source documents for credit purchase by business. 2. what is the…
A: Source Documents - Source Document is the document of proof for the transactions takes place.…
Q: Wright trades as Shop Write Services. The trial balance of the business is attached Additional…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Consider the following information. 1. On September 1, 2022, a US firm contracts to buy equipment…
A:
Q: Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounting…
A: Prime Cost=Raw Materials Used+Direct Factory Labor Conversion Cost=Direct Factory Labor+Total…
Q: Frate Company was formed on December 1, 2018, and uses the periodic inventory system. The following…
A: Inventory valuation method includes: FIFO Method LIFO Method Weighted average cost method FIFO…
Q: The partner's drawing account is used: O To reduce the partner's capital account balances at the end…
A: Sometimes partners withdraw some of their funds that are into the business of personal purpose.…
Q: Calculate the ratios of Woolworths Group (Australian retail company) for the year 2021: Ratios to…
A: Ratio analysis is a financial analysis technique that is used to compare line items in financial…
Q: Which of the following entities is least likely to be included as a blended component unit in a…
A: Correct option is (a) County library, funded by general obligation bonds is likely to be included in…
Q: At the end of the year, before distributions, Bombay (an S corporation) has an accumulated…
A: Solution Dividend is the amount that is paid by the company to its shareholders out of its profit .…
Q: Mastery Able Baker Charlie Company Charles Maxwell is starting a cheesecake bakery, Able Baker…
A: 1. Primarily used for internal decision making – This feature is associated more with managerial…
Q: A Holly Company has the following information for December 1 to December 31. All direct materials…
A: EQUIVALENT UNITS OF PRODUCTION Equivalent units Describe how much work has been done on a…
Q: Russell Preston delivers parts for several local auto parts stores. He charges clients $0.75 per…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Knowledge Check 01 The company's bank reconciliation at June 30 included interest earned in the…
A: The bank reconciliation is prepared generally at the end of the month to know the difference between…
Q: Answer the following transactions that occurred during August 2022 for Renwick & Co. Aug 2 –…
A: Net Method - Under Net Method of recording Accounts Receivable company need to book the receivables…
Q: Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc.…
A: As per the absorption costing method, the product cost includes fixed and variable manufacturing…
Q: he GAAP hierarchy lists which source of authoritative accounting guidance as highest in priority?…
A: GAAP refers to the Generally Accepted Accounting Principles, this is classified in four level…
Q: Mart is a Ds. DVD Mart purchases tapes from Digital Good kages of 25. Digital Goods pays all…
A: Economic Order Quantity - It refers to the ideal quantity of inventory that a business should buy in…
Q: Tremaine would like to organize UTA as either an S Corporation or a C corporation in either form,…
A: Tax Tax is the term used to describe the requirement that any government agency must impose on a…
Q: * Enter the opening balances in the ledger accounts as at Oct 1, Write "Balance" in the expla-…
A: Negative sign in balance column indicates credit balance and positve sign indicates debit balance…
Q: Required information Acoma Co. has identified one of its cost pools to be quality control and has…
A: Calculation of the quality control cost to be assigned are as follows
Q: 391,500
A: The weighted average no. of shares outstanding for the year 2) 391,500 shares. This has been…
Q: What is the amount of their tax refund or taxes due?
A: Child tax credit is available $2000 Prepayments of tax to be deducted during calculation of net…
Q: Required: Prepare the journal entries in the records of Yasmina Ltd to record the transactions and…
A:
Q: Determine the direct materials price variance, direct materials quantity variance, and total direct…
A: Variance is difference between the budgeted and actual cost. It is calculated by management for…
Q: ccording to Cheffers and Pakaluk, ethical accou elow] for the markeplace. Pain Punishment Watchdog…
A: Cheffers and Pakaluk has given their view about accounting. Accounting should be ethical and it…
Q: A product passes through three processes A, B and C for its completion. As finished goods 6,000…
A: Process costing is used in an organization where a similar kind of product is produced and goods are…
Q: Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.
A: Total debts include both current liabilities and long term liabilities. Total assets include all…
Q: Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.80 hours of…
A: Direct labour cost variance is the difference between the standard cost for actual production and…
Q: Dayton Corporation began the current year with a retained earnings balance of $16,873. During the…
A: Calculation of year end retained earnings Retained earnings at beginning $16,873 Less:…
Q: You are retained by Columbia Corporation to audit its financial statements for the fiscal year ended…
A: The financial statement seems to be a statement that focuses on identifying the operations and the…
Q: every year, a college basketball tournament is held in Janet's city. Janet is not a basketball fan,…
A: Income refers to the amount or sum of money or property which is received over the time period in…
Q: Kindly answer #7 -10 will surely given an upvote show complete solution.
A: Liabilities refers to the obligations which the business need to pay and it states current…
Q: Sales revenue Cost of goods sold Salaries and wages expense (sales) Sales commission expense…
A: Solution Income statement is the financial statement that shows you the company's Revenue and…
Q: $357,000. Tires for this machine cost $27,000. The company believes it can sell the loader after 7…
A:
Q: enses> select Expenses tab n menu, select Pay down credit card select 2100 VISA Credit Card 00.00 23…
A: Credit card is the loan facility provided by the banking institutions. The payment done through…
Q: Part 1 Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The…
A: Raw Materials Used=Beginning Raw Materials Inventory+Raw Materials Purchased-Ending Raw Materials…
Step by step
Solved in 2 steps
- Three different companies each purchased trucks on January 1, Year 1, for $82,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $7,000. All three trucks were driven 79,000 miles in Year 1, 56,000 miles in Year 2, 51,000 miles in Year 3, and 71,000 miles in Year 4. Each of the three companies earned $71,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. Required a-1. Calculate the net income for Year 1 a-2. Which company will report the highest amount of net income for Year 1? b-1. Calculate the net income for Year 4. b-2. Which company will report the lowest amount of net income for Year 4? c-1. Calculate the book value on the December 31, Year 3, balance sheet c-2. Which company will report the highest book value…Three different companies each purchased trucks on January 1, Year 1, for $54,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 76,000 miles in Year 1, 65,000 miles in Year 2, 42,000 miles in Year 3, and 71,000 miles in Year 4. Each of the three companies earned $43,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. Required a-1. Calculate the net income for Year 1. a-2. Which company will report the highest amount of net income for Year 1? b-1. Calculate the net income for Year 4. b-2. Which company will report the lowest amount of net income for Year 4? c-1. Calculate the book value on the December 31, Year 3, balance sheet. c-2. Which company will report the…ABC Company purchases equipment with a cost of $100,000. In addition, it pays $20,000 to install the equipment. The company expects to use the equipment for 10 years or 230,000 hours. At the end of its useful life, the equipment is expected to have a salvage value of $5,000. During the first year the equipment runs 25,000 hours and during the second year, the equipment is used for 23,500 hours. Determine the amount of depreciation for the first two years using Units of Production Depreciation method.
- Three different companies each purchased trucks on January 1, Year 1, for $74,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $6,000. All three trucks were driven 78,000 miles in Year 1, 55,000 miles in Year 2, 50,000 miles in Year 3, and 70,000 miles in Year 4. Each of the three companies earned $69,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double- declining-balance depreciation, and company C uses units-of- production depreciation. Answer each of the following questions. Ignore the effects of income taxes. Required a-1. Calculate the net income for Year 1. a-2. Which company will report the highest amount of net income for Year 1? b-1. Calculate the net income for Year 4. b-2. Which company will report the lowest amount of net income for Year 4? c-1. Calculate the book value on the December 31, Year 3, balance sheet. c-2. Which company will report the highest book…ABC company pays $262,500 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment:1.During the second year of the equipment’s life, $21,000 cash is paid for for a new component expected to increase the equipment’s productivity by 10% a year.2. During the 3rd year ,$5,250 cash is paid for normal repairs necessary to keep the equipment in good working order.3. During the 4th year, $13,950 is paid for repairs expected to increase the useful life of the equipment from 4 to 5 years.Three different companies each purchased trucks on January 1, 2018, for $70,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in 2018, 41,000 miles in 2019, 39,000 miles in 2020, and 61,000 miles in 2021. Each of the three companies earned $59,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. given the info above, compute the net income
- Three different companies each purchased trucks on January 1, 2018, for $70,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in 2018, 41,000 miles in 2019, 39,000 miles in 2020, and 61,000 miles in 2021. Each of the three companies earned $59,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. calculate the net income using the given infoThree different companies each purchased trucks on January 1, 2018, for $70,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in 2018, 41,000 miles in 2019, 39,000 miles in 2020, and 61,000 miles in 2021. Each of the three companies earned $59,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. given the following information compute the net incomeThree different companies each purchased trucks on January 1, 2018, for $62,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $2,000. All three trucks were driven 75,000 miles in 2018, 60,000 miles in 2019, 50,000 miles in 2020, and 70,000 miles in 2021. Each of the three companies earned $51,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. Which company will report the lowest amount of cash flow from operating activities on the 2020 statement of cash flows? The cash flow from operating activities will beforif income tax is not considered.Depreciation expensea cash flow item.
- Three different companies each purchased trucks on January 1, 2018, for $62,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $2,000. All three trucks were driven 75,000 miles in 2018, 60,000 miles in 2019, 50,000 miles in 2020, and 70,000 miles in 2021. Each of the three companies earned $51,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. c-1. Calculate the book value on the December 31, 2020, balance sheet? (Round "Per Unit Cost" to 3 decimal places.) c-2. Which company will report the highest book value on the December 31, 2020, balance sheet? multiple choice Company A Company B Company C All of the choices[The following information applies to the questions displayed below.] Three different companies each purchased trucks on January 1, 2018, for $62,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $2,000. All three trucks were driven 75,000 miles in 2018, 60,000 miles in 2019, 50,000 miles in 2020, and 70,000 miles in 2021. Each of the three companies earned $51,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. b-1. Calculate the net income for 2021? (Round "Per Unit Cost" to 3 decimal places.) b-2. Which company will report the lowest amount of net income for 2021? multiple choice Company A Company B Company C All of the choicesFields Company purchased equipment on January 1 for $180,000. This system has a useful life of 8 years and a salvage value of $20,000. The company estimates that the equipment will produce 40,000 units over its 8-year useful life. Actual units produced are: Year 1 – 4,000 units; Year 2 – 6,000 units; Year 3 – 8,000 units; Year 4 – 5,000 units; Year 5 – 4,000 units; Year 6 – 5,000 units; Year 7 – 7,000 units; Year 8 – 3,000 units. What would be the depreciation expense for the final year of its useful life using the units-of-production method? Group of answer choices $24,000. $33,750. $12,000. $4,000. $164,000.