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melamori03 [73]
3 years ago
13

ACME labs bought a new inspection device for $182,730. The accounting department has estimated that the device will have an annu

alized capital cost of $42,442 per year for its 7-year service life. What salvage value was assumed in calculating the capital cost
Business
1 answer:
oksian1 [2.3K]3 years ago
7 0

Answer:

The salvage value taken is $16,368.34

Explanation:

ANSWER:

initial cost = $182,730

rate = 15%

n = 7 years

annualized capital cost = $42,442

salvage value = ?

first we will find the present worth.

annual worth = r * present worth / ( 1 - ( 1+ r) ^ - n)

42,442 = 15% * pw / ( 1 - (1+15%) ^ - 7)

42,442 = 0.15pw / ( 1 - (1.15) ^ -7)

42,442 = 0.15 pw / ( 1 - 0.37593)

42,442 = 0.15 pw / 0.6240

42,442 * 0.6240 = 0.15 pw

$26,486.48 = 0.15 pw

pw = $26,486.48 / 0.15

pw = $176,576.5343

pw also equals the initial investment + salvage value.

pw = initial investment + salvage value(p/f,i,n)

i = 15% , n = 7 years and pw will be taken negative here

-176,576.5343 = -182,730 + salvage value(p/f,15%,7)

-176,576.5343 +182,730 = salvage value(p/f,15%,7)

6,153.465 = salvage value * 0.3759

salvage value = 6,153.465 / 0.3759

salvage value = 16,368.34

so , the salvage value taken is $16,368.34

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On January 1, 2020, Hage Corporation granted incentive stock options to purchase 26,000 of its common shares at $7 each. The opt
malfutka [58]

Answer:

223,250 shares

Explanation:

proceeds from the exercise of options

= 26000 × 7 =                                                                                 182,000

used to repurchase common stock at market price

182,000 ÷ 8 =                                                                                   22,750

shares outstanding march 31, 2021          

                                                                                                      220,000

shares to be used in cal diluted EPS;

(26,000 - 22750) + 220,000                                                       223,250‬

       

No. of Shares for computing Diluted Earning per share = 223,250 shares

5 0
3 years ago
6 . How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students with an
Tresset [83]

Answer:

Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school.

  • This will shift the demand curve to the right, increasing the total demand at all price levels.

Moreover, the price of ink, an important input in pen production, has increased considerably.

  • This will shift the supply curve to the left, increasing the price of pens at every demand level.

What is sure is that the price of pens will increase. It is likely that the quantity demanded increases, but the extent by which the quantity demanded will increase is unknown.

5 0
3 years ago
Joe sold gold coins for $1,000 that he bought a year ago for $1,000. He says, "At least I didn't lose any money on my financial
sergejj [24]

Answer:

B) opportunity costs.

Explanation:

Opportunity cost is the fortified benefits when a choice is made. It is the sacrificed option from a  variety of possible choices. The value of opportunity cost is expressed as the cost of the next best alternative.

According to the economist, Joe made a loss because his opportunity cost would have yielded a better return. In evaluating the viability of a project, economists always consider the returns from the next best alternative. Joe would have made a profit if the returns from the sales of gold were higher than the 3 percent from a certificate of deposit.  Because Joe opted for the gold, he missed the chance to earn from the certificate of deposit. In economics, he made a loss.

3 0
3 years ago
If you sold 17 units this week out of 153 units in inventory what percent of your inventory did you sell?
storchak [24]

Answer:

26%

Explanation:

5 0
3 years ago
N june 30, 2018, the esquire company sold some merchandise to a customer for $45,000 and agreed to accept as payment a nonintere
iVinArrow [24]

Answer:

1)

June 30, 2018 merchandise sold on account

Dr Notes receivable 42,452.83

    Cr Sales revenue 42,452.83

December 31, 2018 accrued interest

Dr Accrued interest receivable 1,698.11

    Cr Interest revenue 1,698.11

March 31, 2019 notes receivable collected

Dr Cash 45,000

    Cr Notes receivable 42,452.83

    Cr Interest revenue 849.06

2) since this note receivable was a current note receivable due within 9 months, I did my calculations using the 8% annual rate as the effective interest rate. The time is too short to use compound interest which would have increased the effective interest rate, usually compound interest is used for non-current notes (more than 1 year).

r = (1 + i/n)ⁿ - 1

r = (1 + 8%/1)¹ - 1 = 8%

Explanation:

first we must calculate the present value of the note receivable:

present value = future value / (1 + r)ⁿ

  • future value = $45,000
  • r = 8% annual x 9/12 months = 6%
  • n = 1

present value = $45,000 / 1.06 = $42,452.83

accrued interest Dec. 31 = $42,452.83 x 4% = $1,698.11

3 month interest = $42,452.83 x 2% = $849.06

effective interest formula:

r = (1 + i/n)ⁿ - 1

r = (1 + 8%/1)¹ - 1 = 8%

5 0
3 years ago
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