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ioda
3 years ago
13

Ithaca is considering a new $45,000 snowplow that will save the city $400 per day of use compared to the existing one. It should

last 12 years and have a resale value of $2500. (a)To obtain a 14% rate of return what is the minimum number of days per year on average it will have to be used. (b)Research the environmental impact of road salt. What are other options?
Business
1 answer:
Yuliya22 [10]3 years ago
5 0

Answer:

a/ 20 days per year on average

b/ The use of road salt to is an effective deicer method. However, it will eventually causes some harmful impact on the environment including but not limited to increasing in water/soild salinity, contamination of public drinking waters, destroy the soild structure and slowly killing of trees and plants. Luckily, there are some other options which are more environment-friendly such as Cheese brine, Sand, Urea, Beet molasses

Explanation:

a/ To evaluate the investment of the new snowplow, denote X is the average amount of saving per a year as the new snowplow is used.

    Consider the average amount of saving as an annuity for the next 12 years, with the discount rate of 14%. The present value (PV) = 45,000 - 2,500/1.14^(-12) =$44,481.1

   Thus, to obtain the rate of return of 14%, PV of the annuity should be equals to $44,481.1 meaning: 44,481.1= (X/14%) x [ 1 - 1.14^(-12)] <=> X = $7858.44

   As one day use would save Ithaca $400, to achieve the targeted saving of $7858.44, the city has to use the snowplow at least 20 days per year ( 7858.44/400)

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On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $740,000. Addition
yawa3891 [41]

Answer:

The answer is given below;

Explanation:

Land Account As at September 30,2022

                                                      Amount in $

Land Value                                    570,000

Broker Commission                        50,000

Legal Fees                                          8,000

Title Insurance                                  25,000

Cost of Razing                                  89,000

Total                                                742,000

Office Building-Total Cost            Amount in $

Contract price to barnett                  4,400,000

Plans and Blueprint                               26,000

Design and Supervision                        98,000

March-December 2021

Borrowing Costs 1,040,000*12%*9/12   93,600

January-September 2022

Borrowing Costs 3,000,000*12%*9/12   270,000

Total Cost                                                4,887,600          

             

4 0
3 years ago
A significant summer drought takes place in several states, including lowa, Nebraska, Illinois, Minnesota, Indiana, and others.
viva [34]
I wanna say the answer is D it sounds the safest
5 0
2 years ago
Read 2 more answers
Sid has decided to leave his $70,000-a-year landscape design job and open a new kayak business. His insurance cost is expected t
madreJ [45]

Answer:

The correct answer is $15,500.

Explanation:

According to the scenario, the computation of the given data are as follows:

Revenue = $100,000

Insurance cost = $2,000

Design job leave = $70,000

Rent = $10,000

Annual depreciation = 10% × $25,000 = $2,500

So, we can calculate the economic profit by using following formula:

Economic Profit = Total Revenue - (Explicit cost + Implicit costs)

By putting the value, we get

= $100,000-($70,000 + $2,000 + $10,000 + $2,500)

= $15,500

7 0
3 years ago
Sergio gets a haircut from Amelia and writes a check to pay for it. In this transaction, the drawee is: a. the bank on which the
Verizon [17]

Answer: the bank on which the check is drawn because it must pay the check. (A)

Explanation:

A Drawee is a banking and legal term that is used to describe the party which has been directed by the depositor to pay a certain amount of money to the person who is presenting the draft or check or draft.

A typical example is if when someone is cashing a paycheck. The drawer is the bank that cashes the person's check, the drawer is the employer or person who wrote the check, and the person cashing the check is the payee.

7 0
3 years ago
Mantle Company has been in business several years. At the end of the current year; the unadjusted trial balance shows:
maksim [4K]

Answer:

  • a. Bad debts are estimated to be 7% of RECEIVABLES  

Dr Bad Debt Expense $ 16.000

Cr Allowance for Uncollectible Accounts $ 16.000

Explanation:

December 31  

Cr Sales Revenue $ 2.200.000

Dr Accounts Receivable  $ 310.000

Cr Allowance for Doubtful Accounts $ 5.700

 

a. Bad debts are estimated to be 7% of RECEIVABLES  

Dr Bad Debt Expense $ 16.000

Cr Allowance for Uncollectible Accounts $ 16.000

 

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % estimated of accounts receivables as CREDIT.  

Because the company already has a CREDIT balance in the Allowance for Doubtful Accounts it's necessary to register an entry that complement the existing value and reflect the value as % of account receivable.  

 

Bad accounts are those credits granted by the company and there is no possibility of being charged.  

"When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible."  

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets  

 

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.  

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)  

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.  

8 0
3 years ago
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