User Account

All Pages

What is the accumulated depreciation of the old sifter

Assignment Help Financial Accounting
Reference no: EM132486263

Point 1: A flour mill is considering buying a new jumbo sifter, which would have an installed cost of $80,000. The new one would replace the existing sifter that was purchased 3 years ago at an installed cost of $60,000. If the company moves forward with the replacement, it could sell the old sifter for $19,000. Purchasing the new sifter would result in the company's current assets increasing by $10,000 and current liabilities increasing by $8,000. The company uses the 5-year MACRS table for depreciation and is taxed at 21%.

Question a) What is the accumulated depreciation of the old sifter?

Question b) What is the current book value of the old sifter?

Question c) What is the amount of depreciation recapture/recovery?

Question d) What is the tax on the sale of the old sifter?

Question e) What are the after-tax proceeds from the sale of the old sifter?

Question f) What is the change in Net Working Capital?

Question g) What is the initial investment for the project?

Reference no: EM132486263

Questions Cloud

Why is it important for you to enter transactions into cash : Why is it important for you to enter transactions into cash and credit journal system in accordance with organisational policy and procedures
What are some of the political considerations to acceptance : What organizational decisions might be made as a result of the information obtained in the audit? What are some of the political considerations to acceptance
Prove that the force exerted by a jet of water : Prove that the force exerted by a jet of water on a semicircular plate in the direction of the jet when the jet strikes at the centre of the semicircular plate
What value would place on the stock : Rate for two years, after which it is expected to grow at a 6% annual rate forever. If the required return is 10%, what value would you place on this stock?
What is the accumulated depreciation of the old sifter : What is the accumulated depreciation of the old sifter? What are the after-tax proceeds from the sale of the old sifter? What is the tax on the sale of the old?
Research methods for health and social care managers : Research Methods for Health and Social Care Managers - OTHM Level 7 Diploma in Health and Social Care Management - Understand research approaches in health care
Determine the optimal number of units to put in a package : Determine the optimal number of units to put in a package. How much should the firm charge for this package? A monopoly is considering selling several units
Determine what is the yield to maturity on the bond : Should you purchase the bond if the yield to maturity on a? comparable-risk bond is 8 ?percent? What is the yield to maturity on bond?
Determine the floating-rate loans : Determine the Floating-rate loans. The Bensington Glass Company entered into a loan agreement with the? firm's bank to finance

Reviews

Write a Review

Financial Accounting Questions & Answers

  Designated for the acquisition of computers

Discovery Barn, a not- for- pro?t science center for children, received a contribution of $30,000 explicitly designated for the acquisition of computers-During the year it acquired $21,000 of computers

  Prepare a common-size income statement and balance sheet

ACCT 212 - Prepare a common-size income statement and balance sheet for O'Hare Products. The first column of each statement should present O'Hare Products

  The creation of a new system of government

Three most important developments in the creation of a new system of government between 1775 and 1825.

  What amount will dominum company report for

Assume that Dominum Company had the following balances in its receivable accounts on December 31, 2011.

  Consider the time value of money when making decisions

Why it is important for analysis purposes to consider the time value of money when making decisions.

  The purchase of the investment-the dividends received

Banks Corporation purchased 400 shares of Herman Inc. common stock as an available-for-sale investment for $13,200. During the year, Herman paid a cash dividend of $3.25 per share. At year-end, Herman stock was selling for $34.50 per share. Prepare B..

  Weighted-average method in its process costing system

David Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work in process inventory that were 60% complete with resp..

  Important to evaluate the performance of government agencies

Though, it is important to evaluate the performance of government agencies. But, necessary adjustments to the balanced scorecard or other model needs to be done to make it more applicable to the agency. Can a balance scorecard be adjusted during the ..

  What is the selling price that maximizes revenue

Suppose that the price at which q thousand flash drives can be sold is given by the demand equation. Find the level of production (to the nearest flash drive) that maximizes revenue. What is the selling price (per flash drive) that maximizes revenue?..

  Determined that price elasticity of demand for lift tickets

As a manager of a ski resort, you want to increase the number of lift tickets sold by 8%. Your staff economist has determined that the price elasticity of demand for lift tickets is 2. To increase sales by the desired amounts, what should you decreas..

  Does the excerpt describe a loss contingency

The Dow Chemical Company provides chemical, plastic, and agricultural products and services to various consumer markets. The following excerpt is taken from the disclosure notes of Dow’s 2013 annual report: In total, the Company’s accrued liability f..

  Determine the return on sales ratio for each method

XYZ company made $210,000 in sales to customers of which $150,000 was collected in cash. XYZ company incurred 75,500 in expenses of which $40,200 was paid in cash. What is the Accrural Basis Net Income and the Cash Basis Net income? Determine the Ret..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd