A wood products company has decided to purchase new logging equipment for $104,000. The new equipment will be kept for 12 years before being sold for an estimated SV of $3,000. Using MACRS depreciation (7 year recovery period), the depreciation charge permissible at year 6 is equal to?
Answers
Answer: $9,276.80
Explanation:
The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method used by the United States for depreciation of fixed assets for tax purposes. There are different recovery period term types and the 7 year recovery period is attached here.
The depreciation charge for year 6 is: 8.92%
Depreciation charge is therefore:
= 104,000 * 8.92%
= $9,276.80
Related Questions
Henry has a $10,000 car insurance policy with a $400 per claim deductible. Henry is involved in an accident, and his car sustains $7,000 worth of damage. How
much will Henry's insurance company pay?
Answers
Answer:
The answer is $6,600
Explanation:
I know this because i got it right when i answered it
If you were originally a lender, remain a lender even after a decline in interest rates. Will you get better or worse after the interest rate change? Analyze consumer behavior in the above situation.
Answers
Answer:
If the lender rate decline he will be worst of due to consumer buying behavior.
Explanation:
Lenders are creditors and not all creditors are leanders. During a decline in the interest rates goes down and borrowing gets cheaper. The leander will be worse after the interest rates decline. If the interest rate rises or changes the lender may get higher rates.Other things the same , as the price level rises, the real value of money a. falls and the exchange rate rises. b. and the exchange rate fall. c. rises and the exchange rate falls. d. and the exchange rate rise.
Answers
Answer:
falls and the exchange rate fall.
Explanation:
Increase in general price level is referred to an inflation.
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
When price level rises, the real value of money decreases
For example, imagine that price of an apple is $5. If you have $100, you can by 20 apples. If price level increases by 100%, $100 would only buy 10 apples. thus, the real value of money decreases
Also exchange rate falls. exchange rate is the rate at which one currency is exchanged for another currency
If price level increases, domestic currency would become cheaper. As a result, exchange rate falls
Cash Acme Company Balance Sheet As of January 5, 2021 (amounts in thousands) 13,700 Accounts Payable 3,200 Debt 5,100 Other Liabilities 15,400 Total Liabilities 2,000 Accounts Receivable 3,600 Inventory 900 6,500 Property Plant & Equipment Other Assets 800 Paid-In Capital Retained Earnings Total Equity 7,200 24,500 31,700 38,200 Total Assets 38,200 Total Liabilities & Equity
Update the balance sheet above to reflect the transactions below, which occur on January 6, 2021
1. Receive payment of $12,000 owed by a customer
2. Purchase equipment for $45,000 in cash
3. Issue $85,000 in stock
4. Borrow $67,000 from a bank
What is the final amount in Accounts Payable?
Note: Transaction amounts are provided in dollars but the balance sheet units are thousands of dollars.
Please specify your answer in the same units as the balance sheet (i.e., enter the number from your updated balance sheet).
Answers
Answer:
Acme Company
1. Acme Company
Balance Sheet
As of January 6, 2021 (amounts in thousands)
Cash 13,819
Accounts Receivable 3,188
Inventory 5,100
Property Plant & Equipment 15,445
Other Assets 800
Total Assets 38,352
Liabilities and Equity:
Accounts Payable 2,000
Bank Payable 67
Debt 3,600
Other Liabilities 900
Total Liabilities 6,567
Equity:
Paid-In Capital 7,285
Retained Earnings 24,500
Total Equity 31,785
Total Liabilities & Equity 38,352
2. The final amount in Accounts Payable remains $2,000,000, but the Bank Payable increased from zero to $67,000.
Explanation:
a) Data and Calculations:
Acme Company
Balance Sheet
As of January 5, 2021 (amounts in thousands)
Cash 13,700
Accounts Receivable 3,200
Inventory 5,100
Property Plant & Equipment 15,400
Other Assets 800
Total Assets 38,200
Liabilities and Equity:
Accounts Payable 2,000
Debt 3,600
Other Liabilities 900
Total Liabilities 6,500
Equity:
Paid-In Capital 7,200
Retained Earnings 24,500
Total Equity 31,700
Total Liabilities & Equity 38,200
Transaction Analysis:
1. Cash $12 Accounts receivable $12
2. Equipment $45 Cash $45
3. Cash $85 Paid-in Capital $85
4. Cash $67 Bank payable $67
Cash
Beginning balance 13,700
Accounts receivable 12
2. Equipment (45)
3. Paid-in Capital 85
4. Bank payable 67
Ending balance 13,819
The U.S. government could reduce its budget deficit by expanding the income assistance programs. raising the eligible retirement age to receive Social Security benefits. increasing discretionary spending. borrowing funds from abroad.
Answers
Answer:
raising the eligible retirement age to receive Social
Explanation:
We can agree that there is a budget deficit in an economy if the government expenditures in the economy are greater than its revenue. The remedy in the face of such an economic problem is either to raise taxes or to decrease the expenditures of the government.
In this question, the way that the US government can reduce the budget deficit is by raising the eligible retirement age of those who are to receive the social security benefits. When this age is increased, it means that less people would be receiving this benefit. Less people would meet the required age for the benefit. By so doing, the government is cutting its expenditures.
the rest of the options in the question would increase the deficit.
Davis Supply maintains an average inventory of 2,000 dinosaur skulls for sale to filmmakers. The carrying cost per skull per year is estimated to be $150.00 and the fixed order cost is $37. What is the economic order quantity (EOQ)
Answers
Answer: 31
Explanation:
Based on the information given, the economic order quantity will be:
Annual requirement = 2000
Buying cost per order = 37
Carrying cost = 150
Economic order quantity will be:
= ✓(2 × 2000 × 37/150)
= ✓986.7
= 31.4
= 31
Therefore, economic order quantity is 31 units
Al owned a family high-deductible health policy as part of his MSA for the entire year. What is his maximum permitted contribution to the MSA in 2020 if his deductible is $5,000?
Answers
g One of the main differences between an oligopolistic firm and a monopolistically competitive firm is that a monopolistically competitive firm Group of answer choices Faces a horizontal demand curve; an oligopoly does not Is relatively independent; an oligopoly is interdependent Has high barriers to entry; an oligopoly does not Has no market power; an oligopoly has some market power
Answers
Answer:
Is relatively independent; an oligopoly is interdependent.
Explanation:
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.
The characteristics of an oligopolistic market structure are;
I. Mutual interdependence between the firms.
II. Market control by many small firms.
III. Difficult entry to new firms.
One of the main differences between an oligopolistic firm and a monopolistically competitive firm is that a monopolistically competitive firm is relatively independent; an oligopoly is interdependent.
Which of the following is an important consideration in setting up the proper environment to complete tasks on time?
Answers
In general, setting choosing the appropriate atmosphere to execute assignments in time is critical.
Following are the knowing step in which we define how to develop these priorities:
If you want to ensure sure activities are finished on schedule, it is the most crucial factor.This ability to manage one's time is essential for all types of leaders, especially leaders, managers, and coaches. These corporate leaders must have a sound plan, set clear goals, and also be effective.For something like that to happen, people should define goals, focus on the work at hand, create an environment favorable to the activities which need to be done, and eliminate distractions to develop the necessary habits that lead to production.Learn more:
sociocultural environment: brainly.com/question/24244964
Management process with proper coordination & cooperation is important to set up proper environment to complete tasks on time
Task completion on time (effectively) & in best optimum way (efficiently) is inherent goal of process of management.
These proper steps of management should be followed for it :
Planning - Analysing future prospectus Organising - Designing layout Staffing - Choosing personnel Directing - Guiding, motivating, supervising personnel Controlling - Comparing performance with goal at various milestones.Coordination & cooperation imbibed in this process is likely ensure decided tasks completion, effectively & efficiently
The journal entry to record direct labor used in process costing is a(n): Multiple choice question. increase in assets and an increase in equity. decrease in assets and a decrease in liabilities. decrease in assets and a decrease in equity. increase in assets and an increase in liabilities.
Answers
Answer:
Increase In Assets and an increase in liabilities
Explanation:
DIRECT LABOUR can be seen or defined as the labour a person or an individual put in the production of goods and services in which they are been paid for as wages.
Therefore The journal entry to record DIRECT LABOR USED IN PROCESS COSTING is a(n):
INCREASE IN ASSETS and AN INCREASE IN LIABILITIES reason been that in direct labour used in process costing an increase in Asset will as well lead to Increase in Liabilities.
Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon. Once Sherry starts running the marathon, Alan, legally, ________. Group of answer choices can revoke the contract as informal verbal agreements are not binding. can reduce the amount of money offered from $5,000 to $4,500, but only if Sherry doesn't place in the Boston Marathon. cannot revoke the contract. can sue for equitable damages only.
Answers
Answer:
can revoke the contract as informal verbal agreements are not binding
Explanation:
Since in the question it is mentioned that sherry would pay her $5,000 in the case when she runs marathon now once she starts running so here alan can revoke the contract legally as there is only verbal agreements not the written agreement also they are not binding to each other
So as per the given situation, the above statement should be considered
For the month of September, Florida, Inc., incurs a direct materials cost of $12,000 for 7,500 gallons of strawberry lemonade produced in its Mixing Department. It also incurs conversion costs of $6,000 with 80% completed. If the conversion cost per equivalent unit was $1.15 per gallon in August, what is the difference in the conversion cost per equivalent unit between the two months
Answers
Answer:
Florida, Inc.
The difference in the conversion cost per equivalent unit between the two months is:
= $0.15.
Explanation:
a) Data and Calculations:
Direct materials cost = $12,000
Production units (gallons of strawberry lemonade) = 7,500
Conversion costs = $6,000
Degree of completion of conversion = 80%
Equivalent units of conversion = 6,000 (7,500 * 80%)
Therefore, the conversion cost per equivalent unit = $1.00 ($6,000/6,000)
The difference in the conversion cost per equivalent unit between the two months is $0.15 ($1.15 - $1.00)
The following is TRUE about Inventory: A. Firms increase inventory because there is an opportunity cost to holding inventory B. Firms increase inventory because more inventory sitting for longer periods of time present more opportunities for damage, errors, rework, theft, and obsolescence C. Firms increase inventory because more inventory means more movement of materials D. Firms increase inventory because there is a risk of significant and unpredictable fluctuations in downstream demand E. Firms increase inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures
Answers
Answer:
I don't know how it is possible
If a nail salon hires an additional worker, that worker can service 8 additional customers per day. The average nail service fee is $30. The most the salon would be willing to pay that groomer is
Answers
Answer:
Therefore, the salon will pay = $240
Explanation:
Below is the given values:
Service additional worker per day = 8 customers per day
Average fee = $30
The firm would like to pay the groomer up to the amount that is generated by them so the amount generated 30 x 8 = $240
Therefore, the salon will pay = $240
Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $370 and has a unit contribution margin of $140; the Adult model sells for $920 and has a unit contribution margin of $485; and the Recreational model sells for $1,070 and has a unit contribution margin of $535. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,570,000, calculate the firm's break-even point in composite units (rounded to the nearest whole unit). Multiple Choice 16,550 composite units. 794 composite units. 1,430 composite units. 397 composite units. 8,275 composite units.
Answers
Answer:
794 composite units.
Explanation:
Calculation to determine the firm's break-even point in composite units
First step
Contribution Margin per Composite Unit:
Youth model $700
($140× sales mix of 5 )
Adult model model $4,365
($485× sales mix of 9)
Recreational model $3,210
( $535 × sales mix of 6 )
Contribution Margin per Composite Unit=8,275
($700+$4,365+$3,210)
Now let determine the Break-even Sales in Composite Units using this formula
Break-even Sales in Composite Units = Total Fixed Costs/Contribution Margin per Composite Unit
Let plug in the formula
Break-even Sales in Composite Units = $6,570,000/$8,275
Break-even Sales in Composite Units = $793.9
Break-even Sales in Composite Units = 794 composite units
Therefore the firm's break-even point in composite units is 794 composite units.
Ted, a used car dealer, entered into a written agreement to sell a car to Debra, a sixteen year old high school junior. The agreement provided that Ted would replace any defective parts for one year. Debra agreed to pay Ted $200 per month for three years (which she has done). The age of majority for the jurisdiction is eighteen. After six months, Debra's transmission fails but Ted refuses to replace it. If Debra (or a representative on her behalf) brings a lawsuit against Ted, it is more likely than not that the court will rule:_____.
A. Ted will prevail because Debra was a minor when the contract was formed.
B. The contract is illegal.
C. The contract is void.
D. Debra will prevail, as Ted is bound to the contract.
Answers
Answer:
D. Debra will prevail, as Ted is bound to the contract.
Explanation:
A minor can enter a contract that is not prohibited by law for minors. For example sale of alcohol or tobacco is prohibited.
When a minor enters a contract they can either honor it or void it before they come of age.
This is different for adults that cannot disaffirm a contract.
So in this scenario where the agreement provided that Ted would replace any defective parts for one year, failure to do so will see Debra prevailing in court. Since she did not void the contract
causes of wage rigidity
Answers
Answer:
According to the Efficiency-wage theories: High wages paid to the workers' make them more productive, therefore, the firms are reluctant or fail to decrease wages despite of an excess supply of labour.
The Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid for months of advertising. How much advertising expense should Law Firm record for the two months ending February 28 under the
a. cash basis
b. accrual basis?
Answers
Answer and Explanation:
The computation of the advertising expense that should be record for the two month under following basis is
a. For cash basis
It should be recorded at $2,000
b. For accrual basis
= $2,000 ×2 ÷5
= $800
In this way, it should be determined
And, the same should be relevant
Select all the statements that are true about Secondary Markets only.
Answers
Answer:
The secondary market is the market in which securities are traded. This market no longer accumulates new financial resources for the issuer, but only reallocates resources among subsequent investors.
As a resale mechanism, it allows investors to freely buy and sell securities. In the absence of a secondary market or its weak organization, the subsequent resale of securities would be impossible or difficult, which would discourage investors from buying all or part of the securities. As a result, society would be left on the losing side, since many, especially the newest, undertakings would not receive the necessary financial support.
When many members of the project team disagree, then delaying the decision, gathering more data, or agreeing to let person make the decision may be in order
Answers
Answer:
Leadership within a project team should be demonstrated only by the project manager. ... When many members of the project team disagree, then it may be best to delay the decision, gather more data, or agree to let one or two team members investigate and recommend a strategy for the whole team
2018
Feb. 1 Loaned $12,000 cash to Candace Smith on a one-year, 6% note.
Apr. 6 Sold goods to Park Pro, receiving a 90-day, 12% note for $6,000. Ignore Cost of Goods Sold.
Apr. 30 Made a single entry to accrue interest revenue on both notes.
Required:
Journalize the entires.
Answers
Answer:
Journal Entries
2018
Feb. 1 Debit 6% Note Receivable (Candace Smith) $12,000
Credit Cash $12,000
To record receipt of a one-year, 6% note.
Apr. 6 Debit 12% Note Receivable (Park Pro) $6,000
Credit Sales Revenue $6,000
To record receiving a 90-day, 12% note.
Apr. 30 Debit Interest Receivable $230
Credit Interest Revenue $230
To accrue interest revenue for both notes.
Explanation:
a) Data and Analysis:
2018
Feb. 1 6% Note Receivable (Candace Smith) $12,000 Cash $12,000
a one-year, 6% note.
Apr. 6 12% Note Receivable (Park Pro) $6,000 Sales Revenue $6,000, receiving a 90-day, 12% note
Apr. 30 Interest Receivable $230 Interest Revenue $230
($12,000 * 6% * 3/12) + ($6,000 * 12% * 25/360)
= $180 + $50
= $230
Ruston Company Income Statement January 1 to December 31, 2017 (amounts in thousands) 7,800 1,560 6,240 780 700 500 4,260 70 4,190 1,676 2,514 Revenue Cost of Goods Sold (COGS) nl Gross Income Sales, General, & Administrative Expenses (SG&A) Depreciation Expense Other Expenses Earnings Before Interest & Taxes (EBIT) Interest Pre-Tax Income Income Taxes Net Income Between January 1 and December 31, 2017:
1. Accounts Receivable increase by $600,000
2. Accounts Payable increase by $300,000
3. Gross Property, Plant, & Equipment increase by $8,300,000
4. Long Term Debt increases by $700,000 Assume no other changes What is the Net Cash Flow?
Answers
Answer:
The Net Cash Flow is -$4,686,000.
Explanation:
Note: The data in this question are merged. The complete question with the sorted data are therefore provided before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answers is now provided as follows:
Net Cash Flow can be determined by preparing the cash flow statement as follows:
Ruston company
Cash Flow Statement
For the Year Ended December 31, 2017
Details $’000 $’000
Cash Flows from Operating Activity
Net Income 2,514
Adjustment to net income
Depreciation expense 700
Increase in accounts receivable (600)
Increase in accounts payable 300
Net Cash Flows from Operating Activity 2,914
Cash Flows from Investing Activity
Increase in Gross Property, Plant, & Eq. (8,300)
Net Cash Flows from Investing Activity (8,300)
Cash Flows from Financing Activity
Increase in Long Term Debt 700
Net Cash Flows from Financing Activity 700
Net Cash Flow (4,686)
Therefore, the Net Cash Flow is -$4,686,000.
Utica Company has offered to supply Kingston's entire annual requirements of the part for $53 each. If Kingston buys the part from Utica instead of making it, Kingston would have no other use for the facilities and 60 percent of the fixed manufacturing overhead would continue. In deciding whether to make or buy the part, the total relevant costs to make the part internally are
Answers
Answer:
$480,000
Explanation:
Calculation to determine what total relevant costs to make the part internally are
First step is to calculate Relevant cost per unit:
Relevant cost per unit:
Direct materials $6
Direct labor $24
Variable manufacturing overhead $12
Fixed manufacturing overhead ($15 × 0.40) $6
Relevant manufacturing cost $48
Now let determine the Total relevant costs to make the part internally
Total relevant costs to take the part internally=($48 × 10,000)
Total relevant costs to make the part internally = $480,000
Therefore total relevant costs to make the part internally are $480,000
Which of the following is an essential element of a valid real estate contract?
Duress
Legal purpose
Misrepresentation
Mutual mistake
Answers
Answer:
Legal purpose
Explanation:
The contract is approved when there is an agreement and agreement should be enforced i.e.
Agreement + enforceability = contract
Now the element of the contract that become the contract to be valid is the legal purpose that means the contract that should be made should be legal in the court point of view i.e. feasible
Therefore the second option is correct
Alt Corp. issues 3,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to:
Answers
Answer:
Credits are made to Common Stock $30,000 and Paid in capital in excess of Par value $12,000
Explanation:
The journal entry is shown below;
Cash $42,000 (3,000 shares at $14)
To Common Stock $30,000 (3,000 shares at $10)
To Paid in capital in excess of par value $12,000 (3,000 shares at $4)
(Being issuance of the common stock is recorded)
Here cash is debited as it increased the assets and credited the common stock & paid in capital as it also increased the stockholder equity
You just sold 900 shares of Alcove stock at a price of $34.08 a share. Last year you paid $39.20 a share to buy this stock. You received dividends totaling $1.04 per share. What is your total capital gain on this investment?a. $5,544 44b. -$3,672c. -$5,544d. -$4,608e. $4,608
Answers
Answer:
d. -$4,608
Explanation:
The computation of the total capital gain is shown below:
Total capital gains is
= (End value - Beginning value) × 900 shares
= ($34.08 - $39.20) × 900 shares
= -$4,608
Hence, the total capital gain on this investment is -$4,608
Therefore the option d is correct
And, the same is to be relevant
Beer Corporation had net income of $216,000, and paid dividends to common stockholders of $43,000 in 2017. The weighted average number of shares outstanding in 2017 was 58,500 shares. Beer Corporation's common stock is selling for $79 per share on the New York Stock Exchange. Calculate Beer Corporation's price earnings ratio. Round answer to one decimal place.
Answers
Answer:
21 times
Explanation:
Calculation to determine Beer Corporation's price earnings ratio
First step is to get Calculate the Earning per share ( EPS)
EPS=$216,000 ÷ $58,500
EPS= $3.69
Now let calculate the price earnings ratio
Price earnings ratio= $79 ÷ $3.69
Price earnings ratio= 21 times
Therefore Beer Corporation's price earnings ratio is 21 times
Adam’s Computer Shop had the following transactions last week. Record the general journal below.
Oct. 1 – Bought supplies on account for $620.
Oct. 6 – Repaired computer for customer and received $350.
Oct. 7 – Bought equipment for $2,500. Paid $900 in cash now and pay the rest later.
Oct. 9 – Paid the bill for the supplies bought on Oct. 1
Answers
Answer:
Oct 1
Dr Supplies $620
Cr Accounts Payable $620
Oct 6
Dr Cash $350
Cr Fees Earned $350
Octd 7
Dr Equipment $2500
Cr Cash$900
Cr Accounts Payable $1400
Oct 9
Dr Accounts Payable $620
Cr Cash $620
Explanation:
Preparation of the journal entries
Oct 1
Dr Supplies $620
Cr Accounts Payable $620
Oct 6
Dr Cash $350
Cr Fees Earned $350
Octd 7
Dr Equipment $2500
Cr Cash$900
Cr Accounts Payable $1400
($2,500-$900)
Oct 9
Dr Accounts Payable $620
Cr Cash $620
In a job order cost system, it would be correct in recording the purchase of raw materials to debit Finished Goods Inventory. Raw Materials Inventory. Work in Process Inventory. Work in Process and Manufacturing Overhead.
Answers
Answer:
In a job order cost system, it would be correct in recording the purchase of raw materials to debit
Raw Materials Inventory.
Explanation:
When materials are initially purchased, the cost is debited to the Raw materials inventory account and credited to either Cash or Accounts Payable, depending on the trade terms. When the materials are assigned to work in process, it is debited to Work in Process Inventory and to Jobs and credited to Raw materials Inventory. Finished Goods Inventory is only debited for completed jobs. Manufacturing Overhead is debited for all indirect costs.
A 4-year project has an annual operating cash flow of $42,000. At the beginning of the project, $6,000 in net working capital was required, which will be recovered at the end of the project. The firm also spent $21,900 on equipment to start the project. This equipment will have a book value of $5,460 at the end of the project, but can be sold for $6,920. The tax rate is 21 percent. What is the Year 4 cash flow?
Answers
Answer:
Total cash flow $54,613
Explanation:
The computation of the year 4 cash flow is given below:
Selling price of equipment $6,920
Book value at year 4 end $5,460
Capital gain $1,460
Tax on capital gain at 21% $306.6
So, net cash flow from the sale of equipment
= $6,920 - $307
= $6,613
Now year 4 cash flow is
Annual operating cash flow $42,000
Release of working capital $6,000
Net cash flow form sale of equipment $6,613
Total cash flow $54,613
