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A company is considering the purchase of a new machine that will cost the company $30,000 and will be worth zero at the end of 3 years. Their current tax rate is 20% and they will depreciate the machine $10,000 over the next 3 years. The cost of capital is 4% for the company. What is the net present value of the investment of the machine?
With the company expanding into several new markets in the coming months, Cable & Moore was anticipating a large increase in sales revenue. The future looked bright for this provider of television, telephone, and Internet services. However, managemen..
How can a business earn large profits but have a small balance in Retained Earnings and how can a business lose money for many years and still have plenty cash?
Cooper Company had over applied factory overhead of $2000 last year. Assuming the amount was considered small enough not to materially distort net income, the entries needed to close factory overhead are:
Give the journal entry for the disposal of the truck, assuming that the truck sold and explain the effects of the disposal of an asset.
Evaluate Mr. Segovias minimum net employment income for the 2009 taxation year. Ignore PST and GST considerations.
In 2011, due to changes in technology, Nanki revised the useful life to a total of 4 years with no residual value. What depreciation would Nanki record for the year 2011 on this equipment?
Mason Company purchased a new machine on January 1, 1991 for $33,000. At the time of acquisition, the machine was estimated to have a service life of ten years and a salvage value of $6,000. Calculate the amount of the loss recorded on the sale.
The management of a private hospital is considering the installation of an automatic telephone switchboard, which would replace a manual switchboard and eliminate the attendant operator's position the class of service provided by the new equipment, i..
The partners agree that the merchandise inventory is to be priced at $60,000. Journalize entries to record in the partnership accounts (a) Barton’s investment and (b) Fallows’ investment.
It is now December 31, 2011, and Eager has provided legal services as planned. What adjusting entry should Eager make to account for the work performed from October 1 through December 31, 2011?
Which of the following represent audit quality guides that remain stable over time and are applicable for all audits?
How much of the premium should be reported as expense on the 2009 income statement and what is the amount of prepaid insurance which should be reported on the balance sheet at December 31, 2009?
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