Wardell Company purchased a mini computer on January 1, 2019, at a cost of $47,650. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $4,900. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $870.

Required:
1. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate, assuming that the company uses the sum-of-the-years'-digits method instead of the straight-line method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to nearest whole dollar.)

Delta Corp. produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 59,850 units per month is as follows:

The normal selling price of the product is $167.60 per unit.

An order has been received from an overseas customer for 9,300 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $4.00 less per unit on this order than on normal sales.
Direct labor is a variable cost in this company.

Questions

1. Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $131.70 per unit. By how much would this special order increase (decrease) the company's net operating income for the month?

My answer = $334,335

2. Suppose the company is already operating at capacity when the special order is received from the overseas customer. What would be the opportunity cost of each unit delivered to the overseas customer?

My answer = $67.85

3. Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 9,300 units for regular customers. What would be the minimum acceptable price per unit for the special order?

My answer = $163.60

4. What are the advantage(s) to Delta Corp. of foregoing manufacture of the product for sales by Delta and instead manufacturing for sales by other companies?

5. What are the dangers of the strategy mentioned in Question 3?

You may need to use the appropriate technology to answer this question.

Consider the following sample of production volumes and total cost data for a manufacturing operation.

This data was used to develop an estimated regression equation,

ŷ = 1,342.67 + 7.52x,

relating production volume and cost for a particular manufacturing operation. Use

α = 0.05

to test whether the production volume is significantly related to the total cost. (Use the F test.)

State the null and alternative hypotheses.

H₀: β₁ ≠ 0
H_a: β₁ = 0H₀: β₁ ≥ 0
H_a: β₁ < 0    H₀: β₀ ≠ 0
H_a: β₀ = 0H₀: β₀ = 0
H_a: β₀ ≠ 0H₀: β₁ = 0
H_a: β₁ ≠ 0

Set up the ANOVA table. (Round your p-value to three decimal places and all other values to two decimal places.)

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

What is your conclusion?

Do not reject H₀. We cannot conclude that the relationship between production volume and total cost is significant.

Reject H₀. We cannot conclude that the relationship between production volume and total cost is significant.     

Reject H₀. We conclude that the relationship between production volume and total cost is significant.

Do not reject H₀. We conclude that the relationship between production volume and total cost is significant.

The goal of this assignment is to estimate annual equivalent cost of car ownership.

General outline.

find a price quote for a new vehicle, resale price for the same model, annual maintenance cost and gas expenses;

assume annual mileage to obtain annual gas expense;

time of ownership of two vehicles should not be equal.

Some hints.

you can use www.edmunds.com, www.canadianblackbook.com or any other website of your choice to choose two cars you wish to compare. You can use the same website to obtain a used car quote (your resell price). You may ignore sales taxes in this assignment;

you can use www.edmunds.com/tco.html or www.internetautoguide.com/17-1/cost-of-ownership.html to estimate maintenance cost for year one – year five, but you will need to type in a valid US zip-code. You may use 02222 for Boston. You can take average over five-year period to assume annual maintenance expense, and assume that costs in year six and beyond will be equal to costs in year five;

you may use the following link to obtain a gas price quote: www.cbc.ca/ns/news/interactives/gasprices;

www.fueleconomy.gov can be used as a source of data on combined city/highway fuel economy. Any other source will do as well;

http://calculator-converter.com converts mile per gallon (MPG) into L/100 km metric;

note: if you choose a rare vehicle – eg, Aston Martin – you might have trouble finding resale price;

finally, if you find using websites above complicated, use any other sources of data for this assignment. If you find it difficult to obtain some data, make assumptions. This is not a data searching exercise, so do not invest more than 15-20 minutes on data acquisition.

Estimate annual equivalent cost for each vehicle at a discount rate of five percent. Your deliverable should be no longer than one page. Make sure you show all your sources of information, work and formulas.

Please tell me which website you use and which you choose

Upper Division of Lower Company acquired an asset with a cost of $580,000 and a four-year life. The cash flows from the asset, considering the effects of inflation, were scheduled as follows:

The cost of the asset is expected to increase at a rate of 20 percent per year, compounded each year. Performance measures are based on beginning-of-year gross book values for the investment base. Ignore taxes. Required: a. What is the ROI for each year of the asset's life, using a historical cost approach? (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).)

b. What is the ROI for each year of the asset's life if both the investment base and depreciation are determined by the current cost of the asset at the start of each year? (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).)

3. A personal property asset has a purchase price of $50,000 and an installation cost of $10,000. Book depreciation method is the sum-of-years-digits method with a 6-year depreciable life and a $3,000 salvage value. Which one of the following values is correct (rounded to the nearest integer)?

(a) D3 = $11,429 (b) B4 = $8,571 (c) B5 = $5,429 (d) D6 = $2,714

4. On January 1st 2009, a company purchased a machine for $14,000, which is a 7-year MACRS property. The company also paid $6,000 for the transportation and installation of the machine. The machine was sold for $7,000 on December 31st 2013. If gains tax rate was 34%, how much gains taxes did the company owe?

(a) $73 (b) $1,318 (c) $559 (d) $863

Above are two multiple choice questions and answers (a) through (d). please tell me which answer is correct

Sunland Ltd. purchased a new machine on April 4, 2014, at a cost of $187,360. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,200 working hours during its four-year life. Actual machine usage was 1,400 hours in 2014; 2,000 hours in 2015; 2,400 hours in 2016; 2,300 hours in 2017; and 2,100 hours in 2018. Sunland has a December 31 year end.

Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to 0 decimal places, e.g. 5,275.)

(1) Straight-line for 2014 through to 2018.

(2) Diminishing-balance using double the straight-line rate for 2014 through to 2018.

(3) Units-of-production for 2014 through to 2018.

Which method results in the highest depreciation expense over the life of the asset? Highest net income? Highest cash flow?

select a method that results in the highest depreciation expense over the life of the asset

Straight-line method or Diminishing-balance methods or Units-of-production method or All three methods are the same or No Impact   

Which method results in the highest net income?

select a method that results in the highest net income   

Straight-line method or Diminishing-balance methods or Units-of-production method or All three methods are the same or No Impact

Which method results in the highest cash flow?

select a method that results in the highest cash flow                                                                     

Straight-line method or Diminishing-balance methods or Units-of-production method or All three methods are the same or No Impact

The following transactions occurred:

1. Purchased equipment at a cost of $10,200 on May. 1, signing a nine month 6.6% note payable for that amount.

2. Recorded a week’s sales of $36,000 on Feb. 14, two thirds on credit and one-third for cash. Sales are subject to 6 ½% sales tax.

3. Accrued monthly warranty expense, which is estimated at 1.2% on sales in #2.

4. Sent last week’s sales tax to the state, Feb. 19.

5. Sold 2 year service contracts on copiers for $70,000 on Feb. 28. Each month the company services the copiers. Give the journal entry for the sale of the service copiers and any adjustment journal entry on Dec. 31. (Ignore cost to service copiers).

6. Paid the nine month note, plus interest, at maturity, Nov. 1. See #1.

7. Mar. 1, the company is a party to a patent infringement lawsuit of $230,000. Their attorney is certain that the company will lose the lawsuit. Estimated cost will be $200,000.

8. Mar. 15, the company is party to a lawsuit for company violations of $90,000. The company attorney advises that it is a remote possibility that the company will lose this lawsuit. The attorney estimates the amount at $80,000, if they do.

9. Dec. 31, oil is spilled in the parking lot and is an environmental hazard which will need to be cleaned by a Hazmat team. It is certain this will need to be remediated. The company does not know how much it will cost.

Journalize the required transactions. If no journal entry is required, say “no journal entry.”

A company has beginning inventory of 17 units at a cost of $17 each on February 1. On February 3, it purchases 27 units at $19 each. 21 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 21 units that are sold?