Computer equipment was acquired at the beginning of the year at a cost of $65,000 that has an estimated residual value of $3,800 and an estimated useful life of 8 years. (1)Determine the (a) depreciable cost for straight rate, (b) straight-line rate, and (c) annual depreciation for the straight line rate (d) double declining balance depreciation amount for 1st year (2) Journalize the sale of the equipment at the end of the 4th year for $20,000 cash, if using the straight line rate.

Answers

Answer 1

Answer:

a) Depreciable cost = $61,200

b) Straight-line rate = 12.5%

c) Annual depreciation for the straight-line rate is:

$7,650.

d) The double-declining balance depreciation amount for the 1st year is:

$15,300.

e) Journal Entry of sale of equipment at the end of the 4th year for $20,000, using the straight-line rate:

Debit Sale of Equipment $65,000

Credit Equipment $65,000

To record the transfer of the equipment account.

Debit Accumulated Depreciation $30,600

Credit Sale of Equipment $30,600

To record the transfer of accumulated depreciation to the account.

Debit Cash Account $20,000

Credit Sale of Equipment $20,000

To record the cash received from the sale.

Debit Profit and Loss Account $14,400

Credit Sales of Equipment $14,400

To record the loss on sale of equipment.

Explanation:

a) Data and Calculations:

Cost of computer equipment = $65,000

Estimated residual value =             3,800

Depreciable value =                   $61,200

Estimated useful life = 8 years

Annual depreciation expense = $7,650 ($61,200/8) or $61,200 * 12.5%

Depreciable cost = $61,200 ($65,000 - $3,800)

Straight-line rate = 12.5% (100%/8)

Double-declining rate = 12.5% x 2 = 25%

Depreciation amount for the 1st year = $15,300 ($61,200 * 25%)

Book value of asset at the end of the 4th year, straight-line method:

Cost of equipment = $65,000

Accumulated Depreciation = $30,600 ($7,650 * 4)

Book value = $34,400

Sales proceed = $20,000

Loss on sale of asset = $14,400 ($34,400 - $20,000)


Related Questions

ou decide to invest in a portfolio consisting of 17 percent Stock X, 38 percent Stock Y, and the remainder in Stock Z. Based on the following information, what is the standard deviation of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock X Stock Y Stock Z Normal .75 9.20% 2.60% 11.60% Boom .25 16.50% 24.50% 16.00%

Answers

Answer:

5.00%

Explanation:

The computation of the standard deviation is as follows;

Stock return for Normal state of the economy

= 0.17 × 9.20 + 0.38 × 2.60 + 0.45 × 11.60

= 1.564% + 0.988% + 5.22%

= 7.78%

Now

Stock return for Boom state of the economy

= 0.17 × 16.50 + 0.38 × 24.50 + 0.45 × 16

=  2.805% + 9.31% + 7.2%

= 19.32%

Now Weighted average return

= 0.75 × 7.78 + 0.25 × 19.32

= 5.835% + 4.83%

= 10.67%

Standard deviation = Normal probability  × (Stock return for Normal state of the economy - Weighted average return)^number of years + Boom probability × (Stock return for Boom state of the economy - Weighted average return)^number of years)^percentage

= 0.75 × (7.78 - 10.67)^2 + 0.25 × (19.32 - 10.67)^2)^0.5

= 5.00%

A present value of $2600 is invested in an account with an annual interest rate of 4.1% . Determine the minimum amount of time required for the present value to triple, assuming the interest is compounded monthly. The minimum amount of time required is:

Answers

Answer:

The minimum amount of time required is:

26.82 years.

Explanation:

Present value = $2,600

Future value = $7,800 ($2,600 * 3)

Annual interest rate = 4.1%

Monthly interest rate = 4.1%/12 = 0.342%

$2,600 will need to be invested for 321.781 (26.82 years) periods to reach the future value of $7,800.00.

FV (Future Value) $7,800.00

PV (Present Value) $2,600.00

N (Number of Periods) 321.781

I/Y (Interest Rate) 0.342%

PMT (Periodic Payment) $0.00

Starting Investment $2,600.00

Total Principal $2,600.00

Total Interest $5,200.00

Accounts Payable are: Multiple Choice Long-term liabilities Estimated liabilities Always payable within 30 days Amounts owed to suppliers for products and/or services purchased on credit

Answers

Answer:

Amounts owed to suppliers for products and/or services purchased on credit

Explanation:

Accounts payable in domain of finance can be regarded as money that is been owed the supplier by the business, and this reflect on the balance sheet of the company as a liability, this is different from notes payable liabilities. It should be noted that accounts Payable are Amounts owed to suppliers for products and/or services purchased on credit

Suppose a stock will have a return of -10% during a recession, and a return of 20% with normal market condition. If over the next year, the chance of recession is 40%, and the chance of normal condition is 60%. The stock's expected return next year is ______ %.

Answers

Answer: 8%

Explanation:

Expected return is a weighted average of the different returns that a stock will have in different economic conditions.

This stock's expected return is;

= (Probability Economic state * Return given economic state) + (Probability Economic state b * Return given economic state b)

= ( 40% * -10%) + (20% * 60%)

= 8%

Warren Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost is $820,000. The estimated residual value of the building is $52,000 and it has an expected useful life of 25 years. Assuming the first year's depreciation expense was recorded properly, what would be the amount of depreciation expense for the second year

Answers

Answer:

The depreciation expense for the second year would be $60,352.

Explanation:

Double-declining-balance can be described as a method of depreciation method that depreciates an assets at twice the rate of the straight line depreciation method.

The depreciation expense for the second year can then be calculated as follows:

Straight line depreciation rate = 1 / Number expected useful life = 1 / 25 = 0.04, or 4%

Double-declining depreciation rate = Straight line depreciation rate * 2

= 4% * 2 = 8%

Year 1 depreciation expense = Building cost * Double-declining depreciation rate = $820,000 * 8% = $65,600

Year 2 depreciation expense = (Building cost - Year 1 depreciation expense) * Double-declining depreciation rate = ($820,000 - $65,600) * 8% = $754,400 * 8% = $60,352

Therefore, the depreciation expense for the second year would be $60,352.

One benefit of price discrimination is that: __________

a. it exists only in theory, not in the real world.
b. firms are able to provide goods to consumers at a consistent price.
c. all consumers are able to gain monopsony power.
d. some consumers are able to buy the product at a lower price than would otherwise exist.
e. most firms minimize revenue.

Answers

Answer:

d. some consumers are able to buy the product at a lower price than would otherwise exist.

Explanation:

Price discrimination means the company charged different prices to different persons for the similar product. Also the seller thinks that they can agree to the customer for paying it.

So as per the given situation, the option d is correct as it defines the price discrimination

Therefore the other options are incorrect

Assume the Atlas Corporation is expected to pay a $5 cash dividend next year. Dividends are expected to shrink at a rate of 3% per year. The expected return from the market portfolio is 13% and riskless interest rate is 6%. Use the constant-growth dividend discount model (DDM) to determine the intrinsic value of Atlas stock if the company has a beta of .5.

Answers

Answer: $40

Explanation:

First find the required return using CAPM;

Required return = Riskfree rate + beta * (Market return - riskfree rate)

= 6% + 0.5 * (13% - 6%)

= 9.5%

Then use DDM to determine intrinsic value;

= Next dividend / (Required return - growth rate)

= 5 / (9.5% - (-3%))

= $40

Environmental Designs issues 10,000 shares of its $1 par value common stock at $25 per share. (1) Record the issuance of the stock. (2) Record the issuance of stock assuming it is no-par stock.

Answers

Answer:

1. Dr Cash 250,000

Cr Common Stock 10,000

Cr Additional Paid-in Capital 240,000

2. Dr Cash 250,000

Cr Common Stock250,000

Explanation:

(1) Preparation of the journal entry toRecord the issuance of the stock

Dr Cash 250,000

(10,000 shares × $25)

Cr Common Stock 10,000

(10,000 shares × $1)

Cr Additional Paid-in Capital

240,000

(250,000-10,000)

( Being to record the Issue of common stock above par)

(2) Preparation of the journal entry to Record the issuance of the stock assuming it is no-par value stock.

Dr Cash 250,000

(10,000 shares × $25)

Cr Common Stock250,000

(Being to record the Issue of no-par value common stock)

Axel wants to punish a subordinate that he personally dislikes. However, the subordinate fulfils all his job duties and produces excellent work. Both Axel and the subordinate are governed by very comprehensive policies and rules negotiated by a union in a collective agreement. Which contingency does Axel lack that prevents him from arbitrarily punishing the subordinate

Answers

Answer: Discretion

Explanation:

Discretion simply means having the freedom to make judgment and take decisions without the person having to get permission form someone else or referring to certain rules.

Based on the question, we can see that Alex lack the discretion contingency as he can't decide and make decisions on his own and therefore cannot punish the subordinate.

Marigold Corporation's December 31, 2020 balance sheet showed the following: 6% preferred stock, $20 par value, cumulative, 40000 shares authorized; 21000 shares issued $ 420000 Common stock, $10 par value, 3,000,000 shares authorized; 1,950,000 shares issued, 1,920,000 shares outstanding 20000000 Paid-in capital in excess of par value - preferred stock 69000 Paid-in capital in excess of par value - common stock 27500000 Retained earnings 9050000 Treasury stock (30,000 shares) 704000 Marigold's total paid-in capital was

Answers

Answer: $‭47,989,000‬

Explanation:

Total Paid-in capital = Preferred stock + Paid-in capital in excess of par value - preferred stock + Common stock +  Paid-in capital in excess of par value - common stock

= 420,000 + 69,000 + 20,000,000 + 27,500,000

= $‭47,989,000‬

On June 1, 2021, Emmet Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2021. Under the terms of the contract, Emmet will be paid a fixed fee of $54,000 per year and will receive an additional 10% of the fixed fee at the end of each year provided that building occupancy exceeds 80%. Emmet estimates a 20% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract. Assume Emmet estimates variable consideration as the most likely amount. How much revenue should Emmet recognize on this contract in 2021? Multiple Choice $27,540 $54,000 $30,750 $27,000

Answers

Answer:

$27,540

Explanation:

Expected amount = Possible amount into probability

Expected amount = ($54,000*80%) + ($54,000+10%)*20%

Expected amount = $43,200 + ($54,000+$5,400)*20%

Expected amount = $43,200 + $59,400*20%

Expected amount = $43,200 + $11,880

Expected amount = $55,080

Revenue to be recognized on this contract in 2021 = $55,080 * 6/12 = $27,540.

A company reported total stockholders' equity of $540,000 on its balance sheet dated December 31, 2016. During the year ended December 31, 2017, the company reported net income of $60,000, declared and paid a cash dividend of $18,000, declared and distributed a 10% stock dividend with a $15,000 total market value, issued additional common stock for $70,000, and resold treasury stock for $15,000 that it had purchased in 2016 for $12,000. What is total stockholders' equity as of December 31, 2017

Answers

Answer:

$667,000

Explanation:

stockholders' equity December 31, 2016 = $540,000

plus net income = $60,000

minus cash dividends = ($18,000)

plus issuance of common stock = $70,000

plus sale of treasury stock = $15,000

stockholders' equity = $667,000

Stock dividends do not affect the value of stockholders' equity, that is why they are not included in this calculation.

An assembly line with 15 tasks is to be balanced. The longest task is 2.9 minutes, and the total time for all tasks is 17 minutes. The line will operate for 450 minutes per day. a. What are the minimum and maximum cycle times

Answers

Answer:

Minimum ⇒ 2.9 minutesMaximum ⇒ 17 minutes

Explanation:

Minimum cycle time ⇒ This is the time taken for the longest task to be completed. In this case that is 2.9 minutes.

Maximum cycle time ⇒ This is the time taken for all the tasks to be completed. In this case that is 17 minutes.

a U.S. corporation, receives $500,000 of foreign-source taxable income. Foreign taxes of $270,000 are paid. Peanut’s worldwide taxable income is $900,000, and its U.S. Federal income tax liability before any foreign tax credit (FTC) is $170,000. What is Peanut’s FTC carryforward

Answers

Answer: $94,444.44

Explanation:

Peanut's FTC can be calculated as;

= US Federal tax liability * Foreign-source taxable income/Worldwide taxable income including US

= 170,000 * 500,000/900,000

= $94,444.44

When both supply and demand shift to the left, the equilibrium Group of answer choices quantity is indeterminate. price always falls. quantity always falls. price always rises. quantity always rises.

Answers

Answer:

quantity always falls

Explanation:

In the case when the supply and the demand shifted to the left so the equilibrium would price would not be determined also the equilibrium quantity would decline or fall

So according to the given situation, the third option is correct as it shows the quantity fall situation i.e. considered and relevant too

in constructing the official unemployment rate (U-3), which of the following does the bureau of labor statistics take into account? choose as many as are correct.
a)survey of firms reporting how many workers they laid off or fired
b)initial unemployment claimed field
c)the average unemployment rate over the last 12 months
d)The change in job posting from one year ago
e) survey of individuals reporting wheater they have job or active looked for work in the last 4 week

Answers

Answer:

e) survey of individuals reporting whether they have job or active looked for work in the last 4 week

Explanation:

The unemployment rate (U-3) reports on the number of jobless people that are actively seeking employment. The bureau of labor statistics considers individuals who have sought employment in the past four weeks. The bureau defines an unemployed person as one that is jobless but has actively sought work in the last four weeks.

This unemployment rate (U3) is the most reported and followed. The report is released monthly. The U3 unemployment rate is criticized for not being inclusive of all jobless people. For instance, it does not include discouraged job seekers or those not looking for work due to other factors such as caring for the sick and elderly at home.

According to the Taylor rule, if inflation is 9% and the GDP gap is 4%, what is the recommendation for the federal funds rate target?

Answers

Answer: 16.5%

Explanation:

The Taylor Rule suggests that the Federal reserve should raise the fed funds rate if inflation rates are above the targeted rates and/ or if GDP is growing at a higher rate than it potentially should.

The rate is calculated as;

Federal funds rate target = (1.5 * Inflation rate) + (0.5 * GDP gap) + 1

= (1.5 * 9%) + (0.5 * 4%) + 1%

= 13.5% + 2% + 1

= 16.5%

The following information for Cooper Enterprises is given below:December 31, 2018Assets and obligations Plan assets (at fair value) $600,000Accumulated benefit obligation 1,110,000Projected benefit obligation 1,200,000Other Items Pension asset / liability, January 1, 2018 30,000Contributions 360,000Accumulated other comprehensive loss 503,700There were no actuarial gains or losses at January 1, 2018. The average remaining service life of employees is 10 years. What is the amount that Cooper Enterprises should report as its pension liability on its balance sheet as of December 31, 2018?a. $600,000b. $90,000c. $1,110,000d. $1,200,000

Answers

Answer:

a. $600,000

Explanation:

The computation of the amount reported as a pension liability on the balance sheet is as follows:

= Projected benefit obligation - plant asset at fair value

= $1,200,000 - $600,000

= $600,000

Hence, the amount reported as a pension liability on the balance sheet is $600,000

Therefore the correct option is a.

Chang Industries has 1,300 defective units of product that already cost $48 each to produce. A salvage company will purchase the defective units as is for $22 each. Chang's production manager reports that the defects can be corrected for $40 per unit, enabling them to be sold at their regular market price of $38. The $48 per unit is a:

Answers

Answer: Sunk Cost

Explanation:

A sunk cost is an expense which a company or entity has already incurred and which cannot be recovered and so should not be considered when making decisions regarding incremental benefits or costs to an investment.

The $48 had already been incurred to produce the defective units and cannot be recovered so it is a sunk cost that should not be considered moving forward.

Mary Richardo has performed $520 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must Mary make

Answers

Answer: d. Debit Accounts Receivable and credit Service Revenue

Explanation:

The client is yet to pay for the service so they owe Mary. This makes them an Accounts receivable and so Mary should debit Accounts receivables to reflect this.

Mary should also credit Service revenue because the services were for work done in the current accounting period and according to the Revenue Recognition principle, have to be recognized as revenue in the period.

During January 2020, the company had the following transactions: Example: Made payments of $4,000 on outstanding accounts payable 1. Sold $2,000 of inventory to customers for $3,000 in cash. 2. Purchased $2,500 of new inventory for cash 3. Sold $3,500 of inventory to customers on account for $5,500. 4. During the month, received $3,500 from customers as payments on their accounts 5. Borrowed $20,000 from the bank and issued stock for $5,000 to purchase land for $25,000 for a future warehouse 6. Paid employees $2,000 for payroll Required: 1. Record the January 2020 transactions by adding and subtracting amounts in the rows of the following table in a way that the row totals represent the end of the month balances in the financial statements. (fill in the shaded area as needed) 2. Explain the main characteristics of the balance sheet and the income statement and the relationship between those two statements.

Answers

Answer:

Journal Entries:

Example:

Debit Accounts Payable $4,000

Credit Cash Account $4,000

To record the payment to suppliers.

1. Debit Cash Account $3,000

Credit Sales Revenue $3,000

To record the cash sales to customers.

Debit Cost of Goods Sold $2,000

Credit Inventory $2,000

To record the cost of goods sold.

2. Debit Inventory $2,500

Credit Cash Account $2,500

To record the purchase of inventory for cash.

3. Debit Accounts Receivable $5,500

Credit Sales Revenue $5,500

To record the sale of goods on account.

Debit Cost of Goods Sold $3,500

Credit Inventory $3,500

To record the cost of goods sold.

4. Debit Cash Account $3,500

Credit Accounts Receivable $3,500

To record the cash receipt from customers.

5. Debit Land $25,000

Credit Bank Loan Payable $20,000

Credit Common Stock $5,000

To record the purchase of land.

6. Debit Salaries and Wages $2,000

Credit Cash Account $2,000

To record the payment of payroll.

2. The main characteristics of the balance sheet and the income statement and the relationship between the two statements:

The balance sheet is a financial statement that records the outstanding balances of assets, liabilities, and equity at the end of a period.  It states the closing balances that are permanent and transferrable to the next accounting period.  The income statement is a financial statement that records the revenue, expenses, and income for the period.  The temporary closing balances are taken to this statement in order to determine the net income.

The relationship between the two statements is that the net income or loss that is extracted from the income statement is taken to the balance sheet.  The two statements are end-of-period financial statements that determine the financial profitability and the financial position (assets, liabilities, and equity) of the business.

Explanation:

In this instance, the template for adding and subtracting amounts in the rows is not available.  So the transactions have been recorded using the journal.  Most importantly, note that, each transaction increases or reduces the assets, the liabilities, and the equity, as the case may be.

Irrespective of whether a firm produces or shuts down in the short run, fixed cost is equal to its _____

a. average variable cost.
b. total cost.
c. sunk cost.
d. total revenue.
e. marginal cost.

Answers

Answer:

c. sunk cost.

Explanation:

Because in short run, fixed cost doesn't changes with output, that is whether we produce or not, we have to pay for it, so it is considered as Sunk cost. Also like Sunk cost, we don't make decisions with fixed costs.

At the end of 20X4, Sherpa Lighting Ltd. has a large stock of incandescent lighting fixtures that are becoming obsolete due to a new trend to low-energy fluorescent and LED lighting fixtures. The current inventory of incandescent fixtures has a cost of $170,000. The sales manager of Sherpa estimates that the inventory can be sold through the normal course of business over the next several reporting quarters for approximately $150,000. Sales personnel are given a 10% commission on sales. In addition, Sherpa will grant an additional 5% sales commission for sales of these almost-obsolete fixtures, intended to make up for the reduced sales prices as well as an additional incentive to sell them. In early 20X5, Sherpa's production manager decided that the fixtures can be adapted to not only accept the new LED lighting but also compete quite effectively with new products coming on the market. During 2005, the fixtures are converted at a cost of $25,000. The sales manager estimates that after the conversion, the newly adapted inventory can be repriced to fetch $185,000 (before 10% sales commission) in the market. Required: Using the valuation allowance method, prepare the appropriate journal entries to record inventory adjustments at the end of each of 20X4 and 20X5.

Answers

Answer:

Sherpa Lighting Ltd.

Journal Entries, using the valuation allowance method:

December 31, 20X4:

Debit Inventory Write-down Expense $20,000

Credit Inventory $20,000

To write down inventory because of obsolescence.

December 31, 20X5:

Debit Inventory $25,000

Credit Cash Account $25,000

To record the cost of converting the fixtures.

Explanation:

a) Data and Calculations:

December 31, 20X4:

Cost of Inventory of incandescent fixtures = $170,000

Estimated sales value of the inventory = $150,000

Obsolete inventory Expense = $20,000 ($170,000 - $150,000)

December 31, 20X5:

Balance of Inventory of incandescent fixtures = $150,000

Add conversion cost =                                              25,000

Ending balance of inventory =                              $175,000

The costs of organizing a corporation include legal fees, fees paid to the state of incorporation, fees paid to promoters, and the costs of meetings for organizing the promoters. These costs are said to benefit the corporation for the entity's entire life. These costs should be:_______

Answers

Answer:

expensed as incurred

Explanation:

In accrual method of accounting, it is known that revenues are known when earned and expenses are known when incurred.

Expenses are simply said to be amounts incurred to bring about or generate revenue for an organization or firm, they include cost of goods sold, operating expenses, interest, and taxes.companies has different types of expenses incurred e. g overhead expenses.

Vijay Inc. purchased a three-acre tract of land for a building site for $260,000. On the land was a building with an appraised value of $128,000. The company demolished the old building at a cost of $11,300, but was able to sell scrap from the building for $1,670. The cost of title insurance was $830 and attorney fees for reviewing the contract were $420. Property taxes paid were $3,300, of which $170 covered the period subsequent to the purchase date. The capitalized cost of the land is:

Answers

Answer:

$273,840

Explanation:

The Cost of of an item of Property, Plant and Equipment according to IAS 16 include the purchase price and any directly related costs incurred in bringing the asset in the condition and location for operation as intended by management.

Calculation of the Cost of Land

Purchase Price                                                                                $260,000

Cost after proceeds to demolish old building($11,300 - $1,670)      $9,630

Insurance                                                                                                $830

Legal Fees                                                                                              $420

Property taxes  ( $3,300 - $170)                                                          $3,130

Capitalized Cost                                                                              $273,840

An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, 0.8% on the first $7,000.
Required:
Prepare the journal entries to record the salaries expense and the employer payroll tax expense. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places.
CHART OF ACCOUNTS
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Merchandise Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
213 Interest Payable
214 Notes Payable
221 Salaries Payable
222 Social Security Taxes Payable
223 Medicare Taxes Payable
224 Federal Withholding Taxes Payable
225 State Withholding Taxes Payable
226 Federal Unemployment Comp. Taxes Payable
227 State Unemployment Comp. Taxes Payable
228 State Disability Insurance
231 Medical Insurance Payable
232 Retirement Savings Deductions Payable
233 Union Dues Payable
234 Vacation Pay Payable
241 Product Warranty Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary

Answers

Answer:

Explanation:

Regular earnings = 40*$15 = $600

Overtime earnings  = (46-40)*15*1.5 = $135

Gross earnings = Regular earnings + Overtime earnings = $600 + $135 = $735

Date         Description                                Debit          Credit  

Dec. 31     Salary Expense                             $735

                       Federal Withholding Taxes Payable        $120

                       Social Security Taxes Payable (735*6%)  $44.10

                       Medicare Taxes Payable (735*1.5%)        $11.03

                       Salaries Payable                                        $559.87

Dec 31     Payroll Tax Expense                       $86

                        Social Security Taxes Payable                  $44.10  

                         Medicare Taxes Payable                          $11.03  

                         State Unemployment Comp.                    $24.99

                         -Taxes Payable (735*3.4%)

                         Federal Unemployment Comp.                $5.88

                         Taxes Payable (735*0.8%)

find median for the following terms is 72 76 64 80 68 61 85 91 62 82

Answers

Answer: 74 ? i think

Coronado Inc. has $520,640 to invest. The company is trying to decide between two alternative uses of the funds. One alternative provides $69,086 at the end of each year for 12 years, and the other is to receive a single lump-sum payment of $1,633,990 at the end of the 12 years. Which alternative should Coronado select

Answers

Answer:

None of the alternative should be selected by Coronado Inc.

Explanation:

This can be determined by comparing the net present value of the 2 alternative.

The fisrt thing to do is to calculate the simple interest to be used as follows:

Simple rate of return = Annual return / Investment cost = $69,086 / $520,640 = 0.1327, or 13.27%

Step 1: Calculation of the net present value of alternative that provides $69,086 at the end of each year for 12 years

We have to first calculate the present value using the formula for calculating the present of an ordinary annuity as follows:

PV$69,086 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV$69,086 = Present value of the annual cash flow of $69,086 = ?

P = Annual cash inflow = $69,086

r = Simple rate of return = 0.1327, or 13.27%

n = Number of years = 12

Substitute the values into equation (1) to have:

PV$69,086 = $69,086 * ((1 - (1 / (1 + 0.1327))^12) / 0.1327) = $403,899.27

The net present value can now be calculated as follows:

NPV$69,086 = PV$69,086 - Investment cost ............... (2)

Where;

NPV$69,086 = Net present value of alternative that provides $69,086 at the end of each year for 12 years = ?

PV$69,086 = Present value of the annual cash flow of $69,086 = $440,303.13

Substitute the values into equation (2) to have:

NPV$69,086 = $ 403,899.27 - $520,640

NPV$69,086 = -116,740.73

Step 2: Calculation of the net present value of alternative that  pays a single lump-sum payment of $1,633,990 at the end of the 12 years

We have to first calculate the present value using the present value formula as follows:

PV$1,633,990 = $1,633,990 / (1 + r)^n ............. (3)

Where;

PV$1,633,990 = present value of $1,633,990 = ?

r = Simple rate of return = 0.1327, or 13.27%

n = Number of years = 12

Substitute the values into equation (3) to have:

PV$1,633,990 = $1,633,990 / (1 + 0.1327)^12 = $366,328.40

The net present value can now be calculated as follows:

NPV$1,633,990 = PV$1,633,990 - Investment cost ............... (4)

Where;

NPV$1,633,990 = net present value of alternative that  pays a single lump-sum payment of $1,633,990 at the end of the 12 years = ?

Substitute the values into equation (4) to have:

NPV$1,633,990 = PV$1,633,990 - Investment cost = $366,328.40 - $520,640 = -$154,311.60

Conclusion

Since the NPVs of the two alternative are negative, none of the alternative should be selected by Coronado Inc.

Pharoah Corporation purchased a machine on January 2, 2020, for $3200000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation is being used for financial statement purposes and the following MACRS amounts will be deducted for tax purposes: 2020 $640000 2023 $368000 2021 1024000 2024368000 2022 614400 2025185600 Assuming an income tax rate of 20% for all years, the net deferred tax liability that should be reflected on Pharoah's balance sheet at December 31, 2021 be

Answers

Answer:

$76,800

Explanation:

The computation of the net deferred tax liability is as follows:

Straight line depreciation is

= $3,200,000 ÷ 5

= $640,000

Now

Deferred tax liability for 2021

= ($1,024,000 - $640,000) × 0.20

= $76,800

hence, the net deferred tax liability that should be reflected on Pharoah's balance sheet at December 31, 2021 be $76,800

The following information was taken from the 2021 financial statements of Waterway Industries: Bonds payable, January 1, 2021 $ 809000 Bonds payable, December 31, 2021 4830000 During 2021 • A $725000 payment was made to retire bonds payable with a face amount of $807000. • Bonds payable with a face amount of $319000 were issued in exchange for equipment. In its statement of cash flows for the year ended December 31, 2021, what amount should Waterway report as proceeds from issuance of bonds payable?

Answers

Answer:

the amount reported as proceeds from bond issuance is $4,509,000

Explanation:

The computation of the amount reported as proceeds from bond issuance is as follows

Total Bond Issued during 2021

= Bonds payable, December 31, 2021 - Bonds payable, January 1, 2021 + Bond Payable retired

= $4,830,000 - $809,000 + $807,000

= $4,828,000

Now

Bond issued for cash is

= Total bond issued - Bonds issued in exchange for Equipment

= $4,828,000 - $319,000

= $4,509,000

Hence, the amount reported as proceeds from bond issuance is $4,509,000

Other Questions
In fruit flies, curved wings are recessive to straight wings, and ebony body is recessive to gray body. A cross was made between flies (all true-breeding) with curved wings and gray bodies to flies with straight wings and ebony bodies. The F1 offspring were then testcrossed to produce an F2 generation. The following data were obtained: F2 generation: -104 curved wings, ebony body -106 curved wings, gray body -98 straight wings, gray body -92 straight wings, ebony body With a null hypothesis based on independent assortment, what are the expected values for each class of flies (400 total flies) water is the most powerful agent of a, erosion.b, corrosion.c, explosion. help please !! thank you so much A boat is moving due east in a region where the earth's magnetic field is 5.010 NA m due north and horizontal. The boat carries a vertical aerial 2 m long. If the speed of the boat is 1.50 ms , the magnitude of the induced emf in the wire of aerial is: Describe how to add 3 2/5 and 1 1/5 and how to subtract them. An important advance in the study of the physiology of stress came with the discovery that stress triggers the release of __________ which play a role in immune system functioning. Group of answer choices What is Zaroff armed with? Enter a positive common factor (other than 1) of the fraction's numerator anddenominator.9/21 It is thought that not as many Americans buy presents to celebrate Valentine's Day anymore. A random sample of 40 Americans yielded 22 who bought their significant other a present and celebrated Valentine's Day. Estimate the true proportion of all Americans who celebrate Valentine's Day using a 98% confidence interval. Express the answer in the form the point estimates /- the margin of error. Write a method called removeHighPrice that will go through a provided ArrayList called prices and removes the first price that is more than $5.00 and return the new ArrayList. If a price over $5 is not found, it returns the original ArrayList. The coastline of the Atlantic Coast is 2,069 mileslong. Approximately 10% of the coastline lies in New Hampshire. Abouthow many miles of the coastline lie in New Hampshire? Explain how youestimatedwith workkk The Newburg Conspiracy was when _____. aa new burger was infected with small pox, and sent to Washington, who almost ate it bWashington prevented his officers from rebelling against Congress cBenedict Arnold conspired to turn over the plans of West Point to the British dthe Culper Spy Ring's top spy was able to become a British officer and send secrets to the Americans I need help on this question and I don't really know where to start can somebody help me? a cinema has 240 seats. 144 seats were sold for the current movie. What percent of seats were empty? HELP ASAP PLS!!!p(x)=x^3 : m(x)= 4p(x-3)-5Describe the transformation(s) performed on p(x) that produced m(x).Then, write a specific equation for m(x). I think the answer is between 1 and 2 Question 51 ptsOur company gave their bonus checks to charity.The group of musicians played all of its instruments during the concert.The pod of whales surrounded their prey before attacking.The band set up all of their instruments before the concert.Which sentence is grammatically correct? what is 2 plus 2 I will mark brainlist Is this the right answer 6. Henry examined the table that represents values satisfying the function shownbelow.fax)0 -18124.34.-65 -86 07 248 70OlloBased on the information in the table, select all the key features that are correct.The y-intercept of the graph of the function is at (0, -18)The maximum value of the function is 4.A local minimum is located within the interval 3 sxs6A local maximum is located within the interval 1 The function is increasing within the interval 6 sxs8n