Reference no: EM132007106
Question - The cost of equipment purchased by Charleston, Inc., on June 1, 2014, is $199,360. It is estimated that the machine will have a $11,200 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 94,080, and its total production is estimated at 1,176,000 units. During 2014, the machine was operated 13,440 hours and produced 123,200 units. During 2015, the machine was operated 12,320 hours and produced 107,520 units.
Compute depreciation expense on the machine for the year ending December 31, 2014, and the year ending December 31, 2015, using the following methods.
(a) Straight-line
(b) Units-of-output
(c) Working hours
(d) Sum-of-the-years'-digits
(e) Double-declining-balance (twice the straight-line rate)
|
How should the equipment purchased for help be reported
: How should the equipment purchased for Help be reported in Blue's income statements and statements of financial position
|
|
Are retained earnings risk-free why or why not
: Suppose your firm is going to finance a new project 100% with retained earnings. Is this appropriate? Are retained earnings risk-free? Why or why not?
|
|
Prepare journal entries for market research
: Assuming Market Research Syndicate owns 10% of Catskill Tools, prepare journal entries for Market Research Syndicate for the following events:
|
|
Should it be accepted or rejected
: Use the PI decision rule to evaluate this project. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
|
|
Compute depreciation expense on the machine for year ending
: Compute depreciation expense on the machine for the year ending December 31, 2014, and the year ending December 31, 2015
|
|
What''s the change in the firms eps from this change
: The change in the capital structure won't have any effect on the firm's operations, thus EBIT will remain at $1,400,000.
|
|
Trading securities consisting of common-preferred stocks
: On September 1, 2X12, Yelter Oil purchased trading securities consisting of common and preferred stocks. The portfolio consists of:
|
|
Use the pi decision rule to evaluate this project
: Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class.
|
|
Determine the three years rate of return for each fund
: Obtain a random sample of at least 15 mutual funds from each investment category. Determine the three years rate of return for each fund
|