A machine at a cost of $5,000 was purchased 3 years ago. It can be sold now for $3,000. If the machine is kept, the annual operating and maintenance costs will be $1,500. If it is kept and operated for next five years, determine the amount at time 0 (now) equivalent to the cost of owning and operating the machine for the next five-year period. It is anticipated that the machine can be sold for $1,000 at the end of the five-year period. Use an interest rate of 10%

Answer:

$10,065.26

Explanation:

First, we need to calculate the present value of machine operating cost using the following formula

PV of operating cost = Yearly Operating cost x ( 1 - ( 1 + Interest rate )^-numbers of years ) / Interest rate

Where

Yearly operating cost = $1,500

Interest rate = 10%

Numbers of years = 5 years

Placing values in the formula

PV of operating cost = $1500 x ( 1 - ( 1 + 10% )^-5 ) / 10%

PV of operating cost  = $5,686.18

Now calculate the present vlaue of salvahge value

PV of SAlvage value = Slavage value / ( 1 + Interest rate )^Numbers of years

where

Salvage Value = $1,000

Interest rate = 10%

Numbers of years = 5 years

PLacing values in the formula

PV of SAlvage value = $1,000 / ( 1 + 10% )^5

PV of SAlvage value = $620.92

Net cost at time 0 = Initial purchase cost + PV of operating cost - Present value of salvage value = $5,000 + $5,686.18 - $620.92 = $10,065.26

The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $61,000. The machine would replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use could be sold now for a salvage value of $20,000. The new machine would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense associated with the new bottling machine

A distribution channel member that makes goods convenient for businesses
to buy is called a
A. wholesaler
B. warehouse
C. logistics manager
D. retailer

Tyler Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January 1, 2014, Tyler entered into a 3-year service contract with Walleye Tech. Walleye promises to pay $10,500 at the beginning of each year, which at contract inception is the standalone selling price for these services. At the end of the second year, the contract is modified and the fee for the third year of services is reduced to $9,800. In addition, Walleye agrees to pay an additional $20,600 at the beginning of the third year to cover the contract for 3 additional years (i.e., 4 years remain after the modification). The extended contract services are similar to those provided in the first 2 years of the contract.
1. Prepare the journal entries for Tyler in 2014 and 2015 related to this service contract. (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 the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan 1, 2014
Dec 31, 2014
Jan 1, 2015
Dec 31, 2015
2. Prepare the journal entries for Tyler in 2016 related to the modified service contract, assuming a prospective approach. (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 the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan 1, 2016
Dec 31, 206
3. Repeat the requirements for part (b), assuming Tyler and Walleye agree on a revised set of services (fewer bookkeeping services but more tax services) in the extended contract period and the modification results in a separate performance obligation. (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 the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan 1, 2016
Dec 31, 2016

Calculating Earnings per Share Little, Inc., reported earnings of $162,000 for 2013, and at the end of the year, had the following securities outstanding: 60,000 shares of common stock. (The year-end share price was $25 per share). Employee stock options for the purchase of 8,000 common shares at an exercise price of $22 per share. (The options are fully vested).
(a) Calculate the basic earnings per share for Little, Inc. for 2013. Round to two decimal places.
(b) Calculate the diluted earnings per share for Little, Inc. for 2013. Round to two decimal places.

Bedrock Company reported a December 31 ending inventory balance of $414,500. The following additional information is also available: The ending inventory balance of $414,500 included $72,500 of consigned inventory for which Bedrock was the consignor. The ending inventory balance of $414,500 included $23,000 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. Based on this information, the correct balance for ending inventory on December 31 is:

BSW Corporation has a bond issue outstanding with an annual coupon rate of 5.4 percent paid quarterly and four years remaining until maturity. The par value of the bond is $1,000. Determine the fair present value of the bond if market conditions justify a 11 percent, compounded quarterly, required rate of return. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Dodie Company completed its first year of operations on December 31. All of the year's entries have been recorded except for the following:

a. At year-end, employees earned wages of $4,000, which will be paid on the next payroll date in January of next year.
b. At year-end, the company had earned interest revenue of $1,500. The cash will be collected March 1 of the next year.

Required:
a. What is the annual reporting period for this company?
b. Identify whether each transaction results in adjusting a deferred or an accrued account. Using the process illustrated in the chapter, prepare the required adjusting entry for transactions ( a ) and ( b Include appropriate dates and write a brief explanation of each entry.
c. Why are these adjustments made?

Thoughts about how eren is acting in attack on titan? Is he the villain or the hero? Also if he touches hangi again I am gonna scream !!!!

Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.Statement Consumer Surplus Producer Surplus Neither
I sold a jersey sweater for $25, even though I was willing to go as low as $20 in order to sell it.
Even though I was willing to pay up to $32 for a used laptop and even though the seller was willing to go as low as $27 in order to sell it, we couldn't reach a deal because the government imposed a price ceiling of $17 on the sale of laptops.
Even though I was willing to pay up to $48 for a used textbook, I bought a used textbook for only $39.

difference between a public limited liability and private limited liability company
​

Stan and Dwight were playing in a golf tournament and came to a hole where there was a hill that required a blind shot to the green. Dwight asked Stan to drive ahead in the golf cart to see if they could hit their shots. Stan drove the cart over the hill, saw the green was clear, and started driving back to the tee box. Dwight never saw Stan heading back in the cart, became impatient and without warning hit his shot. The shot conked Stan on the head, knocking him out and resulting in a long term disability. Stan sued Dwight for negligence. What is the likely result? a) Dwight is liable for negligence because a tortfeasor is always liable for whatever damages their behavior causes. b) Dwight is liable for negligence because Stan did not knowingly assume the risk that Dwight would hit a shot in his direction. c) Dwight is not liable for negligence but is liable for assault and battery because he committed an intentional tort. d) Dwight is not liable for negligence because Stan knowingly assumed the risk that Dwight would hit a shot in his direction.

Financial Statements of a Manufacturing Firm The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: Purchased $250,000 of materials. Used $180,000 of direct materials in production. Incurred $450,000 of direct labor wages. Incurred $180,000 of factory overhead. Transferred $760,000 of work in process to finished goods. Sold goods for $1,200,000. Sold goods with a cost of $675,000. Incurred $215,000 of selling expense. Incurred $125,000 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. Sorensen Manufacturing Company Income Statement For the Month Ended January 31 $fill in the blank b5f0e3f6afbdf9c_2 fill in the blank b5f0e3f6afbdf9c_4 $fill in the blank b5f0e3f6afbdf9c_6 Operating expenses: $fill in the blank b5f0e3f6afbdf9c_8 fill in the blank b5f0e3f6afbdf9c_10 Total operating expenses fill in the blank b5f0e3f6afbdf9c_11 $fill in the blank b5f0e3f6afbdf9c_13 b. Determine the inventory balances at the end of the first month of operations. Sorensen Manufacturing Company Inventory Balances For the Month Ended January 31 Inventory balances on January 31: Materials $fill in the blank d1d32afb2ff9fae_1 Work in process fill in the blank d1d32afb2ff9fae_2 Finished goods fill in the blank d1d32afb2ff9fae_3

How can we avoid water pollution​

look at the screenshot
a,b, or c

Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to compete with Burger King. The contract spans eight months. Burger Boy promises to pay $87,000 at the end of each month. At the end of the contract, Velocity either will give Burger Boy a refund of $29,000 or will be entitled to an additional $29,000 bonus, depending on whether sales at Burger Boy at year-end have increased to a target level. At the inception of the contract, Velocity estimates an 80% chance that it will earn the $29,000 bonus and calculates the contract price based on the expected value of future payments to be received. At the start of the fifth month, circumstances change, and Velocity revises to 60% its estimate of the probability that it will earn the bonus. At the end of the contract, Velocity receives the additional consideration of $29,000.
Required:
1) Prepare the journal entry to record revenue each month for the first four months of the contract.
2) Prepare the journal entry that the Velocity Company would record after four months to recognize the change in estimate associated with the reduced likelihood that the bonus will be received.
3) Prepare the journal entry to record the revenue each month for the second four months of the contract.
4) Prepare the journal entry after eight months to record receipt of the cash bonus.

Below are transactions for Wolverine Company during 2021.

a. On December 1, 2021, Wolverine receives $3,100 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue.
b. Wolverine purchases a one-year property insurance policy on July 1, 2021, for $12,120. The payment is debited to Prepaid Insurance for the entire amount.
c. Employee salaries of $2,100 for the month of December will be paid in early January 2022.
d. On November 1, 2021, the company borrows $10,500 from a bank. The loan requires principal and interest at 10% to be paid on October 30, 2022.
e. Office supplies at the beginning of 2021 total $910. On August 15, Wolverine purchases an additional $2,500 of office supplies, debiting the Supplies account. By the end of the year, $410 of office supplies remains.

Required:
Record the necessary adjusting entries at December 31, 2018, for Wolverine Company.

The following
expenditures are
allowable deductions for
business purposes except
A advertisement in the print
media
B. cost of stationery
Closs on disposal of assets
D. provisional tax paid

Manufacturing overhead was estimated to be $249,600 for the year along with 20,800 direct labor hours. Actual manufacturing overhead was $219,000, and actual labor hours were 21,900. The amount debited to the Manufacturing Overhead account would be: Multiple Choice $219,000. $249,600. $233,000. $262,800.

Which of the following events would cause a bank to reduce a depositor's account?

The depositor orders new checks through the bank at a cost of $50.


The bank collects a note receivable and related interest on the depositor's behalf.


There are outstanding checks drawn on the account at month-end.


There are deposits in transit on the account at month-end.


The bank corrects an error from previous month by adding $75 to the depositor account

For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years Interest Rate Future Value $ 1,800 10 14 % $ 7,852 8 8 67,355 15 13 174,796 6 5

Vulcan Companyâs contribution format income statement for June is as follows:

Vulcan Company Income Statement For the Month Ended June 30

Sales $750,000
Variable expenses 336,000
Contribution margin 414,000
Fixed expenses 378,000
Net operating income $36,000

Management is disappointed with the companyâs performance and is wondering what can be done to improve profits. By examining sales and cost records, you have determined the following:

a. The company is divided into two sales territoriesâNorthern and Southern. The Northern territory recorded $300,000 in sales and $156,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern territory. Fixed expenses of $120,000 and $108,000 are traceable to the Northern and Southern territories, respectively. The rest of the fixed expenses are common to the two territories.

b. The company is the exclusive distributor for two productsâPaks and Tibs. Sales of Paks and Tibs totaled $50,000 and $250,000, respectively, in the Northern territory during June. Variable expenses are 22% of the selling price for Paks and 58% for Tibs. Cost records show that $30,000 of the Northern territoryâs fixed expenses are traceable to Paks and $40,000 to Tibs, with the remainder common to the two products.

Required:
Prepare contribution format segmented income statements.

Quantitative Problem: Jenna is a single taxpayer. During 2018, she earned wages of $113,000. She doesn't itemize deductions, so she will take the standard deduction to calculate 2018 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $5,200. How much does Jenna owe to the IRS for taxes

Last year Kruse Corp had $440,000 of assets (which is equal to its total invested capital), $403,000 of sales, $28,250 of net income, and a debt-to-total-capital ratio of 39%. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets and total invested capital to $252,500. The firm finances using only debt and common equity. Sales, costs, and net income would not be affected, and the firm would maintain the same capital structure (but with less total debt). By how much would the reduction in assets improve the ROE

Consider each of the transactions below. All of the expenditures were made in cash. The Edison Company spent $17,000 during the year for experimental purposes in connection with the development of a new product. In April, the Marshall Company lost a patent infringement suit and paid the plaintiff $10,000. In March, the Cleanway Laundromat bought equipment. Cleanway paid $11,000 down and signed a noninterest-bearing note requiring the payment of $20,500 in nine months. The cash price for this equipment was $28,000. On June 1, the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $33,000. The Mayer Company, plaintiff, paid $17,000 in legal fees in November, in connection with a successful infringement suit on its patent. The Johnson Company traded its old machine with an original cost of $9,900 and a book value of $4,500 plus cash of $9,000 for a new one that had a fair value of $11,500. The exchange has commercial substance. Required: Prepare journal entries to record each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Suppose that a project has a depreciable investment of $600,000 and falls under the following accelerated depreciation schedule for tax purposes (standard linear depreciation in the books): year 1: 20 percent; year 2: 32 percent; year 3: 19.2 percent; year 4: 11.5 percent; year 5: 11.5 percent; and year 6: 5.8 percent. Tax rate is 35%. Calculate the annual depreciation schedule and depreciation tax-shield.

On October 21, 2004, Abitibi-Consolidated Inc., a large Canadian-based newsprint and groundwood producer, reported net income for its third quarter, 2004, of $182 million. This compares with a net loss for the same quarter of 2003 of $70 million. Sales for the quarter were up, to $1528 million, and earnings excluding low persistence items, was a loss of $27 million. the low - persistence items included a gain of $239 million before tax from foreign exchange conversion. Much of the company's long term debt is denominated in US dollars. The foreign exchange gain arose because of the rising value of the Canadian dollar, relative to the US dollar, during the quarter. Comparable figures for the third quarter of 2003 were as follows: sales of $ 1,340 mil-lion, a loss before low- persistence items of $ 32 million, and foreign exchange conversion gain of $ 13 million. There is no mention of R& D costs in the company’s third quarter report. Its 2003 annual report mentions R& D only in passing, with reference to forest conservation. Presumably, R& D expenditures are relatively low. Abitibi- Consolidated’s share price rose $ 0.59 to $ 7.29 on the Toronto Stock Exchange on October 21, 2004. The S& P/ TSX Composite index gained 59 points to close at 8,847 on the same day. According to media reports, the increases were driven by a "red- hot" materials and energy sect

Public corporations:
a. are businesses where stock is not used as evidence of ownership.
b. are businesses whose stock is bought and sold privately.
c. are businesses owned by two or more people, each of whom is personally liable for the debts of the business.
d. None of other choices are correct.
e. are businesses whose stock is bought and sold on New York stock exchange only

Write a two-page business summary including the following sections:

a. Company introduction (general introduction about the company)
b. Business model (how does this business work and generate profit)
c. The current information systems configuration in this company if applicable
d. The potential opportunities using Information Technologies as a strategic tool for this company
e. The trend in this particular business or industry in terms of Information technologies

Hillman Corporation reported a decrease in accounts receivable of $391,216. This is best defined as a _________ of cash on the _______________ segment on the statement of cash flows. source of cash; investing activities use of cash; operating activities use of cash investing activities source of cash; operating activities source of cash financing activities use of cash financing activities

Match each of the options above to the items below.

a. Revenues, expenses. and dividends,
b. List of permanent accounts and their balances.
c. Transfer of temporary balances to retained earnings.
d. List of permanent and temporary accounts and thejr balances.
e. Assets, liabilities, and stockholders' equity

1. Adjusted Trjal balance
2. Post-closing trial balance
3. Permanent accounts
4. Temporary accounts
5. Closing entries