New equipments for pay-back period

Assignment Help Accounting Basics
Reference no: EM13137600

The Higston Company has just purchased a piece of equipment at a cost of $500,000. This equipment will reduce operating costs by $100,000 each year for the next eight years. This equipment replaces old equipment that was sold for $10,000 cash. Ignoring income taxes, the new equipments has a pay-back period of:

A. 4.9 years.

B. 5 years.

C. 5.1 years.

D. 4.8 years.

Reference no: EM13137600

Questions Cloud

Calculate the final volume of the balloon : A gas-filled balloon having a volume of 6.00 L at 1.2 atm and 25°C is allowed to rise to the stratosphere (about 30 km above the surface of Earth), where the temperature and pressure are -23°C and 3.00 10-3 atm, respectively. Calculate the final v..
Determine the final velocity : Determine the Final Velocity, An object whose mass is 1 lb has a velocity of 100 ft/s. How would I determine the final velocity, in ft/s, if the kinetic energy of the object decreases
What is amount of write-down required using us gaap : What is the amount of write-down (if any) required using US GAAP? Calculate the write-down on both an individual and a total inventory basis.
Show the computation of expenses on the accrual basis : Expenses paid during 2008 were $80,000. Expenses paid in advance were $4,000 as at December 31, 2007, and the balance of expenses paid in advance was $8,000 as at December 31, 2008.
New equipments for pay-back period : This equipment replaces old equipment that was sold for $10,000 cash. Ignoring income taxes, the new equipments has a pay-back period of:
Find null hypothesis if repair cost has a normal curve : The sample average is $97, and the SD is $17. Assume that the repair cost has a normal curve. What is the null hypothesis?
How did insistence of regulators of depository institute : How did the insistence of regulators of depository institutions to raise their capital ratios ultimately impact their degree of operating and financial leverage?
Determine the amount of the adjustment : If the estimate of loss from uncollectible accounts is based on sales, any existing balance in Allowance for Doubtful Accounts is added to the percentage of sales to determine the amount of the adjustment.
Determined to be other than temporary : The unrealized loss of $61,650 previously recognized as other comprehensive income and as a separate component of stockholders' equity is now determined to be other than temporary. That is, the company believes that impairment accounting is now a..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  What are the ethical implications of overemphasizing

Executive officers within an organization will often feel compelled and tempted to emphasize short-term results-net income for the current year-over long-term success and company survival.

  Problem associated to sole proprietorship

Olga's sole proprietorship earned a net profit of $95,000 during the year and she withdrew $70,000 of this profit. Olga must report $70,000 net income from the sole proprietorship on her individual income tax return (form 1040).

  Adjusting journal entry to record securities at fair value

Cost and fair value data for the trading securities of Clifford Company at December 31, 2010, are $100,000 and $74,000, respectively. Which of the following correctly presents the adjusting journal entry to record the securities at fair value?

  Gain and net reduction in retained earnings

Pierson Corporation owned 10,000 shares of Hunter Corporation. These shares were purchased in 2007 for $90,000. On November 15, 2011, Pierson declared a property dividend of one share of Hunter for every 10 shares of Pierson held by a stockholder.

  Total income tax expense on financial statements

Assuming the U.S. tax rate is 35% and no valuation allowance is required, what is North's total income tax expense reported on its financial statements for 2010?

  Future taxable amount

At the December 31, 2010 balance sheet date, Unruh Corporation reports an accrued receivable for financial reporting purposes but not for tax purposes. When this asset is recovered in 2011, a future taxable amount will occur and

  Total cash dividends to shareholders

Hamilton Company owns 51,000 of Hennie Company's 100,000 outstanding shares of common stock. Hennie Company pays $25,000 in total cash dividends to its shareholders. Hamilton's entry to record this transaction should include a:

  Pension expense-journal entries

Compute pension expense and prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2010.

  Method of accounting for uncollectible accounts

Robb Corporation uses the allowance method of accounting for uncollectible accounts. During 2010, Robb had charged $80,000 to bad debt Expense, and wrote off accounts receivable of $90,000 as uncollectible.

  Bond issue and interest accrued on bonds due adjustment

Show the journal entries in 2006. (Please be reminded the year-end for ABC Corporate is Dec 31, adjusting is required)

  Long-run demand curve for labour

What happens to the long-run demand curve for labour if the demand for the firm's output increases and what happens to the long-run demand curve for labour if the price of capital increases?

  Understanding the clients business

It is necessary for the auditor to understand the client's business. Why is that the case? How does classifying the client into a safe or risky client affect the audit?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd