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A machine was purchased for $30,000. Shipping charges were $600 and install was $400. It has a useful life of 8 years. At the end of 8 years it will require $900 of dismantling charges to be sold for $6,000. What is the depreciation charge for the first year and what is the Book Value at the end of the first year using a) straight line b)declining balance.
Adria Lopez created Success Systems on October 1, 2013. The company has been successful, and Adria plans to expand her business. She believes that an additional $86,000 is needed and is investigating three funding sources. Prepare the journal entry t..
Actual overhead costs incurred in May amounted to $172,500. Job Nos. 306 and 307 were completed and transferred out in May. Overhead is applied using a predetermined overhead rate. From the above data compute
(Issuance of Bonds with Warrants) MagTech Inc. requires funding to build a new factory and has decided to raise the additional capital by issuing $850,000 face value of bonds with a coupon rate of 10%. In discussions with investment bankers, it was d..
Birdie Co. makes three products, A, B and C. They have a constrained resource - machine hours
The Nirmal Chemical Company is planning to invest in a new plant. The team of analysts responsible for investment appraisal has arrived at the following information: Find the present value of all cash flows. How would your answer change if cash flow..
What characteristics of expenditures distinguish them from expenses in the financial accounting sense?
Ira Cook is planning to make a charitable contribution to the Boy Scouts of Crystal, Inc. stocks worth $20000. The stock has an adjusted basis of $Write letters to Ira regarding wither in (a) he should sell the stock and contribute the cash or contri..
Randy's reported rent revenue for 2014 of $64,200.- How much cash did Randy's collect from its tenants during 2014?
calculation of revenues and explanation about how cash receipts cans be different from revenues.cash receipts versus
Prepare a production cost worksheet using the FIFO method. What is the difference between a weighted-average method of process costing and a first- in, first-out method of process costing?
calculate the Gross Profit, which is equal to the Gross Sales minus the Cost of Sales. Calculate the Total Operating Expenses, which is equal to the sum of the operating expenses. Calculate the Total Operating Profit/Loss.
Why is determination of earnings quality and persistence important? Explain recasting of the income statement and give three examples of items that are recasted.
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