Question
In: Accounting
ShakerMaker, Inc. experienced a cyber loss estimated to be$160,000 on November 30, 2015. The company...
ShakerMaker, Inc. experienced a cyber loss estimated to be $160,000 on November 30, 2015. The company did not have any cyber insurance coverage. If the company would have had cyber insurance, the loss would have been reduced by a $100,000 recovery from the insurance company. The loss, after recovery of $100,000, is considered a cash outflow of $60,000 and the insurance policy (if it had been purchased) would have cost $2,500 per month paid at the beginning of every month. Using present values, determine the amount of the loss at January 2015 if the policy had been purchased at the beginning of the year: A. $7,698 B. $160,000 C. $25,919 D. None of the answers
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Impairment Loss On July 1, 2015, Karen Company purchased equipment for $325,000; the estimated useful life...
Impairment Loss
On July 1, 2015, Karen Company purchased equipment for $325,000;
the estimated useful life was 10 years and the expected salvage
value was $40,000. Straight-line depreciation is used. On July 1,
2019, economic factors cause the market value of the equipment to
decrease to $90,000. On this date, Karen evaluates if the equipment
is impaired and estimates future cash flows relating to the use and
disposal of the equipment to be $195,000.
a. Is the equipment impaired at...
The pretax financial income (or loss) figures for Jenny Spangler Company are as follows: 2012: $160,000...
The pretax financial income (or loss) figures for Jenny Spangler
Company are as follows:
2012: $160,000
2013: $250,000
2014: $80,000
2015: ($160,000)
2016: ($380,000)
2017: $120,000
2018: $100,000
Pretax financial income (or loss) and taxable income (loss) were
the same for all years involved. Assume a 45% tax rate for 2012 and
2013 and a 40% tax rate for the remaining years.
Question: Prepare the journal entries for the years 2014 to 2018
to record income tax expense and the...
1. Adana Company is considering a project with estimated annual unit sales of 160,000; sale price...
1. Adana Company is considering a project with estimated annual
unit sales of 160,000; sale price per unit of $34; variable costs
per unit of $19; and annual fixed costs of $310,000. The firm
expects that the true values for unit sales, price per unit,
variable costs per unit, and fixed costs will be within plus or
minus 15% of these estimates. The project requires a fixed asset
investment of $1,500,000 that will be depreciated straight-line to
zero over the...
Sheridan Inc. has an investment in available-for-sale securities of $64000. This investment experienced an unrealized loss...
Sheridan Inc. has an investment in available-for-sale securities
of $64000. This investment experienced an unrealized loss of $5700
during the current year. Assuming a 40% tax rate, the effect of
this loss on comprehensive income will be
Sheridan Inc. has an investment in available-for-sale securities of $64000. This investment experienced an unrealized loss...
Sheridan Inc. has an investment in available-for-sale securities
of $64000. This investment experienced an unrealized loss of $5700
during the current year. Assuming a 40% tax rate, the effect of
this loss on comprehensive income will be
Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $160,000. The residual...
Howarth Manufacturing Company purchased equipment on June 30,
2017, at a cost of $160,000. The residual value of the equipment
was estimated to be $10,000 at the end of a five-year life. The
equipment was sold on March 31, 2021, for $43,000. Howarth uses the
straight-line depreciation method for all of its plant and
equipment. Partial-year depreciation is calculated based on the
number of months the asset is in service.
Required:
1. Prepare the journal entry to record the
sale....
Mr. Smith, an Australian citizen, began working with a company in Oman in November 2015. As...
Mr. Smith, an Australian citizen, began working with a company
in Oman in November 2015. As part of his work arrangement, he was
required to work a 35 days on and 35 days off rotation. At the end
of each rotation, Mr Smith departed from Oman and, on several
occasions, returned to Australia to visit family and friends. While
he was working in Oman, he lived in a single room apartment with an
ensuite, bed, lounge area and a mini...
On November 1, 2015 Polo company purchased a truck that has a cost of $40,000 and...
On November 1, 2015 Polo company purchased a truck that has a cost
of $40,000 and a salvage value of $4,000. The truck is expected to
be driven during its 6 years of useful life as follows: 2015,
15,000 miles; 2016, 15,000 miles; 2017, 20,000 miles; 2018, 30,000
miles 2019, 10,000 miles and 2020, 10,000 miles. Polo Company uses
units of activity method of depreciation
.
1- What is the total units of activity?
a) $40,000
b) $4,000
c) $36,000...
1.Adana Company is considering a project with estimated annual unit sales of 160,000; sale price per...
1.Adana Company is considering a project with estimated annual
unit sales of 160,000; sale price per unit of $34; variable costs
per unit of $19; and annual fixed costs of $310,000. The firm
expects that the true values for unit sales, price per unit,
variable costs per unit, and fixed costs will be within plus or
minus 15% of these estimates. The project requires a fixed asset
investment of $1,500,000 that will be depreciated straight-line to
zero over the project’s...
The balances of the ledger accounts for a Company on November 30, 2020 are as follows:...
The balances of the ledger accounts for a Company on November
30, 2020 are as follows:
Account Name
Balance
Cash
$
21,000
Accounts Receivable
10,200
Supplies
4,000
Prepaid Insurance
10,800
Equipment
12,000
Accumulated Depreciation—Equipment
−
Accounts Payable
6,800
Alicia Santiago, Capital
48,000
Alicia Santiago, Drawing
4,600
Fees Income
35,000
Advertising Expense
4,400
Rent Expense
7,200
Salaries Expense
13,200
Supplies Expense
−
Insurance Expense
−
Utilities Expense
2,400
Depreciation Expense—Equipment
−
Adjustment information:
(a)
The supplies were purchased on...
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