1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vazorg [7]
3 years ago
8

Flannery Corporation owns machinery with a book value of $520,000. It is estimated that the machinery will generate future cash

flows of $465,000. The machinery has a fair value of $415,000. Florence should recognize a loss on impairment of...(a)$0.(b)$50,000.(c)$55,000.(d)$105,000.
Business
1 answer:
Aleonysh [2.5K]3 years ago
5 0

Answer:

(d)$105,000.

Explanation:

Since the book value is more than the generated future cash flows so book value cannot be recovered. In this case, the generated future cash flows are ignored  

In this scenario, we compare the values between book value and the fair value of machinery, the difference would be the loss on impairment of the asset

In mathematically,  

= Book value of machinery - fair value of machinery

= $520,000 - $415,000

= $105,000

You might be interested in
A share of preferred stock for Marshall Manufacturing currently sells for $120. It offers the investor a dividend rate of 8%, on
Komok [63]

Answer:

Po = $120

D = 8% x $100 = $8

Kp = D/Po

Kp = 8/120

Kp = 0.0667 = 6.67%

Explanation:

The question requires the computation of cost of preferred stock. In this case, we will calculate the current dividend paid based on the par value of the stock. Then, we need to divide the current dividend paid by the current market price of the stock. This gives cost of preferred stock.

5 0
3 years ago
A copy machine acquired with a cost of $1,410 has an estimated useful life of 4 years. It is also expected to have a useful oper
mafiozo [28]

Answer:

a. Straight-line method

Depreciation Expense for the first year: $333.75

b. Double-declining-balance method

Depreciation Expense for the first year: $667.5

c. Units-of-output method

Depreciation Expense for the first year: $450

Explanation:

a. Straight-line method

Depreciation Expense each year is calculated by following formula

Annual Depreciation Expense = (Cost of machine − Residual Value)/Useful Life = ($1,410 - $75)/4 = $333.75

Depreciation Expense for the first year: $333.75

b. Double-declining-balance method

Under the straight-line method, useful life is 4 years, so the asset's annual depreciation will be 25% of the Depreciable cost.

Depreciable cost = Total cost of machine - Residual value =  $1,410-$75 = $1.335

Under the double-declining-balance method the 25% straight line rate is doubled to 50% - multiplied times

Depreciation Expense for the first year = $1.335 x 50% = $667.5

c. Units-of-output method

Depreciation Expense per copy = (Cost of machine − Residual Value)/Life in Number of Units  = ($1,410 - $75)/13,350 = $0.1

Depreciation Expense for the first year = Depreciation Expense per copy x number of copies were made the first year = $0.1 x 4,500 = $450

3 0
3 years ago
Some checking accounts require a minimum amount of money in the account or they charge point monthly fees?
QveST [7]

Answer:

True

Explanation:

4 0
2 years ago
Our last four periods had sales, from oldest to most recent, of 100, 200, 130, and 300. what is the three-period ma
masya89 [10]
<span>Sales during the last four periods are in the order from older to recent as 100, 200, 130, and 300. Moving average is a successive average calculated from the successive segments. So the third month moving average MA3 = (200 + 130 + 300) / 3 = 630 / 3 = 210 So the answer is 210.</span>
6 0
2 years ago
Parks Corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. The
Lady_Fox [76]
I think is the answer c
5 0
3 years ago
Other questions:
  • Suppose that a worker in Radioland can produce either 4 radios or 1 television per year, and a worker in Teeveeland can produce
    8·1 answer
  • Danielle has $127.02 in her account before making any transactions. Over the course of a week, Danielle makes the following tran
    5·2 answers
  • A project called the _____________ is digitizing some of the 7,000 human embryos lost in miscarriages, which have been kept by t
    6·1 answer
  • The marginal revenue product of capital is _______.
    10·1 answer
  • Consider a market where production of a good generates a negative externality. In the market equilibrium:_________.a. there is n
    7·1 answer
  • Franklin corporation is comparing two different capital structures, an all equity plan (plan 1) and a levered plan (plan 2). Und
    5·1 answer
  • The table shows a schedule of Igor's payment plan for a used car.
    9·1 answer
  • An actuary is a person who assesses various forms of risk. Based on past data, the holder of an automobile insurance policy pays
    8·1 answer
  • Which type of line advertisements are considered a multi advertising method?
    6·1 answer
  • What is the economic order quantity if annual demand is 100 units, the order placement cost is $25, and the holding cost per uni
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!