Mercury Inc. purchased equipment in 2019 at a cost of $138,000. The equipment was expected to produce 500,000 units over the next five years and have a residual value of $38,000. The equipment was sold for $78,200 part way through 2021. Actual production in each year was: 2019 = 70,000 units; 2020 = 112,000 units; 2021 = 57,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date.

Required:
1. Calculate the gain or loss on the sale.
2. Prepare the journal entry to record the sale.
3. Assuming that the equipment was instead sold for $105,200, calculate the gain or loss on the sale.
4. Prepare the journal entry to record the sale in requirement 3.

A: A new operating system for an existing machine is expected to cost $580,000 and have a useful life of six years. The system yields an incremental after-tax income of $280,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $24,600.

B: A machine costs $410,000, has a $33,500 salvage value, is expected to last eight years, and will generate an after-tax income of $86,000 per year after straight-line depreciation.

Assume the company requires a 12% rate of return on its investments. Compute the net present value of each potential investment.

Required A: A new operating system for an existing machine is expected to cost $580,000 and have a useful life of six years. The system yields an incremental after-tax income of $280,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $24,600. (Round your answers to the nearest whole dollar.)

Required B: A machine costs $410,000, has a $33,500 salvage value, is expected to last eight years, and will generate an after-tax income of $86,000 per year after straight-line depreciation.

A company is considering purchasing a backhoe that will cost $110,000. It will last 6 years with a salvage value of $20,000 and will reduce maintenance and operating costs by $30,000 per year. The after-tax MARR of the company is 9% and the tax rate is 55%.

a) What is the exact after-tax IRR (%) for this investment?!

b) What is the approximate after-tax IRR (%)?1

M. Stewart is analyzing a project and has determined that the initial cost will be $615,000 and the required rate of return needs to be 13 percent. The project has a 65 percent chance of success and a 35 percent chance of failure. If the project fails, it will generate an annual after-tax cash flow of $130,000. If the project succeeds, the annual after-tax cash flow will be $290,000. She has further determined that if the project fails, she will shut it down after the first year and sell the equipment for the after-tax salvage value of $250,000. If however, the project is a success, she can expand it with no additional investment and increase the after-tax cash flow to $310,000 a year for Years 2-5. At the end of Year 5, the project would be terminated and have no salvage value. What is the expected net present value of this project at Time 0?

Sandra M. is analyzing a project and has determined that the initial cost will be $615,000 and the required rate of return needs to be 14 percent. The project has a 65 percent chance of success and a 35 percent chance of failure. If the project fails, it will generate an annual after-tax cash flow of $130,000. If the project succeeds, the annual after-tax cash flow will be $290,000. She has further determined that if the project fails, she will shut it down after the first year and sell the equipment for the after-tax salvage value of $250,000. If however, the project is a success, she can expand it with no additional investment and increase the after-tax cash flow to $310,000 a year for Years 2-5. At the end of Year 5, the project would be terminated and have no salvage value. What is the expected net present value of this project at Time 0?

for§ $ 5 we sell put option with an Execution Cost of $ 80
What a total gain (loss) we will have if the share price is $ 65?

A company is considering an investment proposal to install new milling controls at a cost of GHC 50,000. The facility has a life expectancy of 5 years and no salvage value. The tax rate is 35% . assume the firm uses straight line depreciation and the same is allowed for tax purposes. The estimated cash flows before depreciation and tax( CFBT) from the investment proposal are as follows:

Compute the following:

Pay back period

Average rate of return

Internal rate of return

Net present value at 10% discount rate

Profitability index at 10% discount rate.

Find the book value of an asset that has an installed cost of $150,000, a recovery period of 5 years and an elapsed time since purchase of 3 years.
Select one:
a. $43,000
b. $116,000
c. $87,000
d. $58,000

Please Solve As soon as
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Abdul-Rahim Taysir

Find the book value of an asset that has an installed cost of $150,000, a recovery period of 5 years and an elapsed time since purchase of 3 years.
Select one:
a. $43,000
b. $116,000
c. $87,000
d. $58,000

Please Solve As soon as
Solve quickly I get you two UPVOTE directly
Thank's
Abdul-Rahim Taysir