Reference no: EM131159969
1)Vilas Company is considering a capital investment of $191,200 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $14,670 and $49,520, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment. Part A please.
Required :
- Cash payback period
- Annual rate of Return
2)Geraths Windows manufactures and sells custom storm windows for three-season porches. Geraths also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Geraths enters into the following contract on July 1, 2014, with a local homeowner. The customer purchases windows for a price of $3,500 and chooses Geraths to do the installation. Geraths charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Geraths $1,600 (which equals the fair value of the windows, which have a cost of $1,900) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2014, Geraths completes installation on October 15, 2014, and the customer pays the balance due.
Prepare the journal entries for Geraths in 2014, assuming Geraths estimates the standalone value of the installation based on an estimated cost of $470 plus a margin of 20% on cost. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
3)Jessica is a one-third owner in Bikes-R-Us, an S corporation that experienced a $45,000 loss this year (year 1). Assume her stock basis is $10,000 at the beginning of the year and that at the beginning of year 1 Jessica loaned Bikes-R-Us $3,000. In year 2, Bikes-R-Us, reported ordinary income of $12,000.
What amount is Jessica allowed to deduct in year 1?
What are her stock and debt bases in the corporation at the end of year 1? (Leave no answer blank. Enter zero if applicable.)
What are her stock and debt bases in the corporation at the end of year 2? (Leave no answer blank. Enter zero if applicable.)
|
Determine the least possible value of p
: Plot the forcePrequired to begin moving the 100-kg crate up the 10° incline starting from rest at vari- ous values ofxfrom zero to 10 m. Determine the least possible value ofPand the corresponding value ofx.
|
|
Briefly describe the research methods used by the authors
: Discuss the purpose or intent of the journal article - Identify and briefly describe the research methods used by the authors
|
|
How might the theme resonate in professional life
: How might the theme resonate in your professional life? - How might the theme apply to your degree path? - How might the theme reflect your own personal ideals and values?
|
|
Determine company''s futa and suta tax on norman''s earnings
: Aaron Norman earned $24,900 for the year from Marcus Company. The company is subject to a SUTA tax of 4.7% on the first $9,900 of earnings. Determine the company's FUTA and SUTA tax on Norman's earnings.
|
|
Depreciation is by the straight line method
: Vilas Company is considering a capital investment of $191,200 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of t..
|
|
Rule versus discretion-monetary policy
: This question addresses the issue of whether monetary policy should be made by discretionary policy or be implemented according to a set of rules. Which of the following statements reflect arguments against policy by rule? Monetary rules reduce the f..
|
|
What current marketing tools do you use
: This paper is a group work, and my part is Market Reaserch- SWOT analysis & Summary. The company name is Mad Greeks. I will upload the interview response with Mad Greeks' owner, and also plz do more reasserch about this company and analyze. Total..
|
|
What is the basis for the managed care backlash
: What is the basis for the managed care ''backlash'' in the United States, and why has enrollment in PPOs grown while enrollment in HMOs has declined?
|
|
Owners of an otherwise identical proprietorship
: Shareholders in a regular corporation (not an S corporation) pay higher taxes than owners of an otherwise identical proprietorship.
|