Buch Company acquired a piece of equipment in Year 1 at a cost of $100,000. The equipment has a 10-year estimated life, zero salvage value, and is depreciated on a straight-line basis. Technological innovations take place in the industry in which the company operates in Year 3. Buch gathers the following information for this piece of equipment at the end of Year 3: Expected future undiscounted cash flows - $75,000 Present value of expected future cash flows - $55,000 Net selling price - $63,000 What is the impairment loss under U.S. GAAP? Question 8 options: $0.
$15,000.
$7,000.
$9,000.
In: Accounting
A project has an initial cost of $148,400 and is expected to produce cash inflows of $56,500, $69,540, and $97,867 over the next three years, respectively. What is the discounted payback period if the required rate of return is 10 percent?
A. 2.12 years B. 2.54 years C. 2.91 years D. 1.88 years
In: Finance
With cost and adaptation pressures and their
Implications for International Strategies in mind, discuss the
approach Mcdonald might take when entering a North American market
versus Middle Eastern market.
With cost and adaptation pressures and their
Implications for International Strategies in mind, discuss the
approach Mcdonald might take when entering a North American market
versus Middle Eastern market.
In: Operations Management
What is a major corporate cost decision that has been discussed in the media in the past 6-12 months?
In: Accounting
A company wants to buy a new management information system. The cost of the system is $10 million, with an additional $1,000,000 for delivery/installation. Immediate net working capital of $500,000 and an additional net working capital investment of $250,000 at the end of year one. The system has a life of 10 years. It will be depreciated as a 7-year asset under MACRS rules. Salvage value is $1,000,000 at end of 10 years. Tax rate is 24 percent. Rate of return is 16%.
New system will save $2,400,000 per year. Costs are $500,000 during the first year, and will increase by 6% per year for the ten year period. Sales price is $15 per unit of computer time and sales are expected to be 170,000 units. After the first year, demand for computer time will decline by 5% per year. An additional $400,000 per year in computer operating costs will be charged and will increase by 6% annully over the ten years.
Calculate the NPV.
In: Finance
Bonita Co. is building a new hockey arena at a cost of $2,620,000. It received a downpayment of $450,000 from local businesses to support the project, and now needs to borrow $2,170,000 to complete the project. It therefore decides to issue $2,170,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 10%.
Assume that on July 1, 2019, Bonita Co. redeems half of the bonds at a cost of $1,139,500 plus accrued interest. Prepare the journal entry to record this redemption. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
In: Accounting
Summit Systems has an equity cost of capital of 11.5 % , will pay a dividend of $1.00 in one year, and its dividends had been expected to grow by 7.0 % per year. You read in the paper that Summit Systems has revised its growth prospects and now expects its dividends to grow at a rate of 2.5 % per year forever
a. What is the drop in value of a share of Summit Systems stock based on this information?
b. If you tried to sell your Summit Systems stock after reading this news, what price would you be likely to get? Why?
In: Finance
why legislative attempt to address only the cost of health care and not the quality and access to healthcare
In: Nursing
Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process—Assembly Department Bal., 6,000 units, 75% completed 25,500 To Finished Goods, 138,000 units ? Direct materials, 141,000 units @ $1.7 239,700 Direct labor 372,400 Factory overhead 144,860 Bal. ? units, 70% completed ? a. Based on the above data, determine the different costs listed below. If required, round your interim calculations to two decimal places. 1. Cost of beginning work in process inventory completed this period. $ 2. Cost of units transferred to finished goods during the period. $ 3. Cost of ending work in process inventory. $ 4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent. $
In: Accounting
2. The Cost, $C, of hiring a repairman for H hours is given by C = 50 + 25h.
A. What does the repairman charge to walk in the door? B. What is his hourly rate?
3. The population a town, t years after it is founded, is given by P(t) = 5000 + 350t.
A. What is the population when it is founded? B. What is the population of the town two years after it is founded?
4. Find the slope and Y-intercept for each of the following:
a. -2y= -5x+9
b. Y = -16 - 4(-5 -3x)
c. 4x + 3y =-12
d. 5y - 3x - 10 = 0 5.
Find the equation of a line that passes through (6,7) and (6,1)
6.Find an equation of a line that is parallel to 3x + 5y = 6 and passes through (0, 5)
7. The total cost C of a yellow cab call lasting N minutes is $4.75 plus an additional charge of $2.50/mile.
A. Use a linear equation to describe the scenario B. How long was the cab ride if the total cost of the fare was $38.50?
Solve the following system of equations algebraically and check
a. 7x + 5y = -1
11x + 8y = -1
b. 5x + 2y = 1
2x - 3y = 27
8. Solve the following system of equationss graphically.
Y = -2X + 7
Y = 4X + 11
In: Math