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A corporation acquired a truck on July 1, 2012, at a cost of $162,000. The truck has a six-year useful life and an estimated salvage value of $18,000. The straight-line method of depreciation was used. On January 1, 2015, the truck was overhauled at a cost of $15,000, which extended the useful life of the truck for an additional two years beyond that originally estimated (salvage value is still estimated at $18,000). In computing depreciation, the corporation uses the nearest full month assumption to calculate depreciation.Calculate the depreciable base of the truck, before and after the overhaul on January 1, 2015.Prepare the appropriate entries for January 1, 2015 and December 31, 2015
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: selling price $140 units in begining in
Ordering cost is incurred whenever the inventory is replenished. It includes costs associated with the processing and chasing of the purchase order transportation, inspec
Introduction of Internal Rate of Return The traditional internal rate of return (IRR) method of project selection has been shown to be inferior to the NPV method due to vario
A process in the industry where a wholesaler needs an amount that is the difference among the manufacturer's price to the wholesaler and the contract price to the resale customer.
Questions What are your recommendations to Ted Lapres? What aspects should he keep, what should he change, and in what sequence should he make the changes? • Do you think the D
Idea behind Activity-Based Costing The most important ideas behind activity-based costing are as given as: Activities cause costs; activities involve ordering, ma
The controller for U.S. Route 66 Truck Parts is comparing traditional overhead allocationwith ABC. After studying both approaches, the controller prepared the following list of fea
Types of Standard Costs The standard cost set could be ideal, basic, attainable or current. i. Basic Standards: These are long term standards that would keep unchanged ov
Commodities to Stock Employ Material Requirement Planning From the Master Production Schedule the manager has determined such the products to be produced. A
Computation of mark up and Target selling price in cost-minus pricin
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