The total increase or decrease in net income

Assignment Help Accounting Basics
Reference no: EM131022238

32] Granfield Company has a piece of manufacturing equipment with a book value of $37,000 and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $21,400. Granfield can purchase a new machine for $114,000 and receive $21,400 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,400 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:

$19,000 increase
$73,600 decrease
$15,600 decrease
$49,900 increase
$19,000 decrease 

Reference no: EM131022238

Questions Cloud

Alfarsi industries uses the net present value method : Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments.
Where do the two fields aid : Draw a diagram showing two conductors conneting a battery to a load resistance through a closed switch. Show the magnetic field of the current in the negative side of the line and in the positive side.
Find any values outside the range and remove them : Obviously, this data is useless, now you'll need to fix it. Find any values outside this range, remove them, and plot the data again. Be sure to include appropriate labels.
Draw diagrams representing the bond market : Draw diagrams representing the bond market and the loanable funds market in equilibrium. On your diagram, explain what would happen to the price of bonds, the interest rate, the quantity of bonds and the quantity of loanable funds in a business cy..
The total increase or decrease in net income : The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:$19,000 increase$73,600 decrease$15,600 decrease$49,900 increase$19,000 decrease
Which periods did they do a poor job : Plot both series on the same graph. During which periods did consumers do a good job of forecasting the inflation rate? During which periods did they do a poor job? Do consumers' expectations of the inflation rate tend to be more volatile or less ..
What were the topic or research questions being investigated : How does this article fit in with your paper? How did it influence your own ideas about your paper?Based on your reading of the literature, what do you expect to find?
If bluebird accepts this additional business : Which includes $2.50 variable cost and $1.75 fixed cost. If Bluebird accepts this additional business, the effect on net income will be:$52,500 increase.$15,000 increase.$37,500 increase.$11,250 decrease.$37,500 decrease.
What does lucas mean by - the monetary theory we have : Robert Lucas said: "In practice, it is much more painful to put a modern economy through a deflation than the monetary theory we have would lead us to expect. I take this to mean that we have ‘price stickiness.' " What does Lucas mean by "the mone..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Berry company sold goods with a total selling price of

berry company sold goods with a total selling price of 800000 during the year. it purchased goods for 380000 and had

  Show the september badjusting entries that spc would make

Prepaid Insurance shows a balance of zero at September 30, but Insurance Expense shows a debit balance of $ 2,340, representing the cost of a three- year fire insurance policy that was purchased on September 1 of the current year. On August 31 of thi..

  If you had been an accountant for this company how would

summarizes your ideas about the following bull what was the nature of the controversy regarding this companys

  Describe the types of bonds

Describe the types of bonds and how their sales price is determined:

  What is an extraordinary item per gaap rules

The rules are specific. How are extraordinary items different from some other irregular items that you occasionally see on a corporate income statement?

  The estimates of useful life and residual value

What is depreciation on the building for 2013?

  A and b form the equal ab partnership a contributes

a and b form the equal ab partnership. a contributes property fmv 100000 basis 60000 and b contributes 100000 cash.

  History to reduce the usefulness of direct labor

Discuss the current events in recent industrial history to reduce the usefulness of direct labor as the primary basis for allocating overhead to products. What is your view of this practice?

  Delta mowers has a debt-equity ratio of 12 its wacc is 101

delta mowers has a debt-equity ratio of 1.2. its wacc is 10.1 percent and its cost of debt is 7.5 percent. there is no

  What types of compliance is required

I suspect that most of us can view and appreciate most sports such as baseball, football, and basketball. What if you were to view a Cricket World Cup game? If you didn't know the rules you probably would not have much fun. The same happens in bus..

  Analyze the need for unbiased financial reporting

Analyze the need for unbiased financial reporting. Based on your analysis, determine at least two (2) drivers that may cause financial reporting to be biased. Provide a rationale to support your response. Analyze the audit opinion formulation process..

  How does that affect the accounting equation

When the owner takes supplies for personal use, how does that affect the accounting equation like which accounts will it affect and by increasing, decreasing etc?

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