117. Bates Company purchased equipment on January 1, 2008, at a total invoice cost of $600,000. The equipment has an estimated salvage value of $15,000 and an estimated useful life of 5 years. What is the amount of accumulated depreciation at December 31, 2009, if the straight-line method of depreciation is used?
a. $120,000
b. $240,000
c. $117,000
d. $234,000
118. On January 1, a machine with a useful life of five years and a residual value of $15,000 was purchased for $45,000. What is the depreciation expense for year 2 under the double-declining-balance method of depreciation?
a. $10,800
b. $18,000
c. $14,400
d. $8,640
119. A machine with a cost of $160,000 has an estimated salvage value of $10,000 and an estimated useful life of 5 years or 15,000 hours. It is to be depreciated using the units-of-activity method of depreciation. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?
120. Equipment with a cost of $240,000 has an estimated salvage value of $15,000 and an estimated life of 4 years or 15,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?
a. $60,000
b. $67,800
c. $49,500
d. $56,250
121. Larime Company purchased equipment for $40,000 on January 1, 2007, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 5-year life and a $2,000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2009 will be
a. $5,760.
b. $9,120.
c. $9,600.
d. $5,472.
122. Interline Trucking purchased a tractor trailer for $98,000. Interline uses the units-of-activity method for depreciating its trucks and expects to drive the truck 1,000,000 miles over its 12-year useful life. Salvage value is estimated to be $14,000. If the truck is driven 90,000 miles in its first year, how much depreciation expense should Interline record?
a. $7,000
b. $8,820
c. $7,560
d. $8,167
In: Accounting
In an article in the Journal of Marketing, Bayus
studied the differences between "early replacement buyers” and
"late replacement buyers” in making consumer durable good
replacement purchases. Early replacement buyers are consumers who
replace a product during the early part of its lifetime, while late
replacement buyers make replacement purchases late in the product’s
lifetime. In particular, Bayus studied automobile replacement
purchases. Consumers who traded in cars with ages of zero to three
years and mileages of no more than 35,000 miles were classified as
early replacement buyers. Consumers who traded in cars with ages of
seven or more years and mileages of more than 73,000 miles were
classified as late replacement buyers. Bayus compared the two
groups of buyers with respect to demographic variables such as
income, education, age, and so forth. He also compared the two
groups with respect to the amount of search activity in the
replacement purchase process. Variables compared included the
number of dealers visited, the time spent gathering information,
and the time spent visiting dealers.
(a) Suppose that a random sample of 796 early replacement buyers yields a mean number of dealers visited of x¯x¯ = 3.1, and assume that σ equals .77. Calculate a 99 percent confidence interval for the population mean number of dealers visited by early replacement buyers. (Round your answers to 3 decimal places.)
The 99 percent confidence interval is
[,
].
(b) Suppose that a random sample of 496 late
replacement buyers yields a mean number of dealers visited of x¯x¯
= 4.8, and assume that σ equals .64. Calculate a 99
percent confidence interval for the population mean number of
dealers visited by late replacement buyers. (Round your
answers to 3 decimal places.)
The 99 percent confidence interval is
[,
].
(c) Use the confidence intervals you computed
in parts a and b to compare the mean number of
dealers visited by early replacement buyers with the mean number of
dealers visited by late replacement buyers. How do the means
compare?
In: Math
In an article in the Journal of Marketing, Bayus
studied the differences between "early replacement buyers” and
"late replacement buyers” in making consumer durable good
replacement purchases. Early replacement buyers are consumers who
replace a product during the early part of its lifetime, while late
replacement buyers make replacement purchases late in the product’s
lifetime. In particular, Bayus studied automobile replacement
purchases. Consumers who traded in cars with ages of zero to three
years and mileages of no more than 35,000 miles were classified as
early replacement buyers. Consumers who traded in cars with ages of
seven or more years and mileages of more than 73,000 miles were
classified as late replacement buyers. Bayus compared the two
groups of buyers with respect to demographic variables such as
income, education, age, and so forth. He also compared the two
groups with respect to the amount of search activity in the
replacement purchase process. Variables compared included the
number of dealers visited, the time spent gathering information,
and the time spent visiting dealers.
(a) Suppose that a random sample of 803 early replacement buyers yields a mean number of dealers visited of x¯x¯ = 3.9, and assume that σ equals .75. Calculate a 99 percent confidence interval for the population mean number of dealers visited by early replacement buyers. (Round your answers to 3 decimal places.)
The 99 percent confidence interval is
[,
].
(b) Suppose that a random sample of 506 late
replacement buyers yields a mean number of dealers visited of x¯x¯
= 4.4, and assume that σ equals .69. Calculate a 99
percent confidence interval for the population mean number of
dealers visited by late replacement buyers. (Round your
answers to 3 decimal places.)
The 99 percent confidence interval is
[,
].
(c) Use the confidence intervals you computed
in parts a and b to compare the mean number of
dealers visited by early replacement buyers with the mean number of
dealers visited by late replacement buyers. How do the means
compare?
Mean number of dealers visited by late replacement buyers appears to be (Click to select)higher/lower.
In: Finance
In: Finance
Pecan Theater Inc. owns and operates movie theaters throughout Florida and Ga. Pecan Theater has declared the following annual dividends over a six-year period ending December 31 of each year, the outstanding stock of the company was composed of 30,000 shares of cumulative, 4% preferred stock, $100 par, and 100,000 shares of common stock, $25 par.
1. Determine the total dividends and the per share
dividends declared on each class of stock for each of the six
years. There were no dividends in arrears at the beginning of Year
1. Summarize the data in tabular form. If required, round your
answers to two decimal places. If the amount is zero, please enter
"0".
Year. Total Dividends. Preferred/Common
1.
48,000
total? per share?
2.
144,000
3.
288,000
4.
276,000
5.
336,000
6.
420,000
2. Determine the average annual dividend per share for each class
of stock for the six-year period. If required, round your answers
to two decimal places.
Average annual dividend for preferred_____ per share
Average annual dividend for common_____per share
3. Assuming a market price per share of $253 for the preferred
stock and $31 for the common stock, determine the average annual
percentage return on initial shareholders' investment, based on the
average annual dividend per share for preferred stock and for
common stock.
Preferred stock______%
Common stock______%
In: Accounting
Consider a company subject to a corporate tax rate of 0.4. If the company has a debt ratio of 0.7, and an unleveraged beta of 0.7, what is the company's leveraged beta?
In: Finance
1. A real estate developer is assessing an area for future retail development. She believes it is only profitably to develop a retail outlet in this area if a medical facility or industrial facility is built in the general vicinity within the next 5 years. Typically industrial facilities precede the development of medical facilities. Using this knowledge and some market research, she has arrived at the following probabilities. The overall probability that an industrial facility will be built in the area in the next 5 years is 30%. If the industrial facility is built, she believe the probability that the medical facility is built is 40%. If the industrial facility is not built, she believes the probability that the medical facility will be built goes down to 20%. What is the probability of the following events?
a) neither am industrial facility or medical facility is built
b) only an industrial facility is built
c) only a medical facility is built
d) both an industrial facility and a medical facility is built
e) She also has arrived at the following net present values for her retail development project based on the 4 events above. Given these outcomes and the probabilities you calculated above, what is her expected NPV? Should she do the project?
| EVENT | NPV |
| neither a industrial facility or medical facility is built | -10 Million |
| only an industrial facility is built | 5 million |
| only a medical facility is built | 3 million |
| both an industrial facility and a medical facility is built | 20 million |
f. Our real estate developer has learned that the probability that an industrial facility is built in the next 5 years has risen from 30% to 90%. Based on this, rework the problem and provide the new expected NPV of the project. Should she do the project?
In: Statistics and Probability
Explain what Net Operating Income is and what is meant by Net Operating Loss. What factors arre associated when calculating the Net Operating Income percentage for a hotel? Why is this measure a good way of evaluating the hotel performance?
In: Accounting
Park is always willing to give up 5 tangerines for 1 orange. The price of one orange is $1 and the price of one tangerine is $0.25. Park's spending budget for orange and tangerine is $10.
(1) Park is currently consuming 16 tangerines and 6 oranges. Give a suggestion about the direction of substitution for Park to improve his satisfaction. Justify your suggestion using the economic meaning of the marginal rate of substitution and the market rate of substitution.
(2) To maximize his satisfaction, how many oranges and tangerines should Park purchase with $10 budget?
(3) Give a graph in which the optimal consumption point shown. Include both the budget line and an indifference curve related to the optimal consumption. Clearly label the axes and mark the coordinates of the optimal consumption point.
In: Economics
You are an intern at the health department of your city. An outbreak of coronavirus has been detected in a hotel in your city. 10 guests are infected. You must decide whether to quarantine the hotel or not. There are 1000 guests in the hotel. From previous experience, we know that at least half of them will be infected if the quarantine goes in to effect. If there is no quarantine the virus will spread more rapidly to the general population in the city. What would you do? Your city has 8 million population. The death rate of this virus is 2%, the cost of lock down of hotel is AED 1M per day. The length of the quarantine is 2 months. What would you do? Use the five step ethical decision making approach to resolve this case and indicate which approach you will be taken.
In: Economics