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Arlandria, Inc. has bought a new server and is having to decide what to do with the old one. The cost of the old server was originally $50,000 and has been depreciated by $40,000. The company has received two offers that it must consider. One offer was made to sell the equipment outright for $17,500 less a 5% sales commission. The other offer was to lease the equipment to a customer for $7,000/year for the next five years but the company will be required to provide maintenance and insurance totaling $3,000 per year. What offer should Arlandria, Inc. accept?
assume the same information as e14-6b.instructionsset up a schedule of interest expense and premium amortization under
What are the chances that a company will have 20 years of losses to actually use a loss carryforward (and still be in business)? How do accounting principles support holding an asset on the balance for this long?
mccool corporation wholesales repair products to equipment manufacturers. on april 1 2012 mccool corporation issued
Kentucky Enterprises purchased a machine on January 2, 2010, at a cost of $120,000. An additional $50,000 was spent for installation, but this amount was charged erroneously to repairs expense. The machine has a useful life of five years and a sal..
When a parent uses the equity method throughout the year to account for investment in a subsidiary, which of the following statements is false?
On January 1, 2013, Phantom Company acquires $312,100 of Spiderman Products, Inc., 9% bonds at a price of $296,847. The interest is payable each December 31, and the bonds mature December 31, 2015. The investment will provide Phantom Company a ..
The controller of Ruiz Co. believes that the yearly allowance for doubtful accounts for Ruiz Co. should be 2% of net credit sales.
In July the company purchased and used 22,500 pounds of direct material at an actual cost of $53,000; the materials quantity variance was $1,875 Unfavorable; and the standard quantity of materials allwed for July production was 21,750 pounds. What..
the following transactions apply to baker co. for 2010 its first year of operations.1. issued 170000 of common stock
On December 1, 2008, ABC Linens sold merchandise which costs $400 on account to the Green Hotel Co. for $600 with terms of 3/10, n/30. ABC Linens uses a perpetual inventory system. The journal entry to record this transaction on ABC Linens' books ..
heaters inc. provided the following budgeted information for march through julymarchaprilmayjunejulyprojected
abc inc. has a 6-month 10000 note receivable bearing 12 apr interest. the note received on november 1 and the companys
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