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vredina [299]
3 years ago
11

Ichor Co. reported equipment with an original cost of $379,000 and $344,000 and accumulated depreciation of $153,000 and $128,00

0, respectively, in its comparative financial statements for the years ended December 31, 20X5 and 20X4. During 20X5, Ichor purchased equipment costing $50,000 and sold equipment with a carrying value of $9,000. What amount should Ichor report as depreciation expense for 20X5?A. $19,000
B. $25,000
C. $31,000
D. $34,000
Business
1 answer:
mezya [45]3 years ago
7 0

Answer:

C. $31,000

Explanation:

The computation of the depreciation expense is shown below:

Net balance of the equipment on the year 20X5

= Original cost - accumulated depreciation

= $379,000 - $153,000

= $226,000

Net balance of the equipment on the year 20X4

= Original cost - accumulated depreciation

= $344,000 - $128,000

= $216,000

So, the difference is $10,000

And, in 20X5, the loss on sale of equipment is

= $50,000 - $9,000

= $41,000

Now the depreciation expense is

= $41,000 - $10,000

= $31,000

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Journal Entries (Note Received, Discounted, Dishonored, and Collected)
Sholpan [36]

Answer:

Journal Entries:

Apr. 6 Debit 6% Notes receivable $2,700

Credit Accounts receivable $2,700

To record the receipt of a 120-day, 6% note for accounts receivable balance.

Apr. 26 Debit Cash $2,511

Debit Finance expense $189

Credit 6% Notes receivable $2,700

To record the discounted note at a rate of 7%.

May 3 Debit 7% Notes receivable $1,000

Credit Accounts receivable $1,000

To record the receipt of a 30-day, 7% note in payment for accounts receivable

June 2 Debit Accounts receivable $1,005.83

Credit 7% Notes receivable $1,000

Credit Interest revenue $5.83

To record the 30-day, 7% note is dishonored.

June 5 Debit Cash $1,005.83

Credit Accounts receivable $1,005.83

To record the receipt of cash and interest of 7% on the maturity value.

Explanation:

a) Data and Analysis:

Apr. 6 6% Notes receivable $2,700 Accounts receivable $2,700

Received a 120-day, 6% note

Apr. 26 Cash $2,511 Finance expense $189 6% Notes receivable $2,700 Discounted the note at a rate of 7%.

May 3 7% Notes receivable $1,000 Accounts receivable $1,000

Received a 30-day, 7% note in payment for accounts receivable

June 2 Accounts receivable $1,005.83 7% Notes receivable $1,000 Interest revenue $5.83 ($1,000 * 30/360) 30-day, 7% note is dishonored.

June 5 Cash $1,005.83 Accounts receivable $1,005.83

7% on the maturity value.

5 0
3 years ago
marketing research helps managers gauge the perceived value of their goods and services, as well as the level of customer satisf
natima [27]

The statement "marketing research helps managers gauge the perceived value of their goods and services, as well as the level of customer satisfaction." is True

This is further explained below.

<h3>What are goods and services?</h3>

The output of an economic system includes things such as the production of commodities and provision of services.

Goods are tangible items that are offered for purchase by customers, in contrast to services, which are defined as any actions that are carried out for the purpose of benefiting the receivers.

Goods include a wide variety of products, including automobiles, home appliances, and clothing, amongst others.

To name only a few instances of services, there is the provision of legal counsel, the cleaning of homes, and the delivery ofconsulting services.

In conclusion, The assertion that "marketing research assists managers in determining the level of customer satisfaction in addition to the perceived worth of their goods and services" is accurate.

Read more about goods and services

brainly.com/question/342628

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4 0
1 year ago
Adjusting entries are made before preparing _____ reports.
loris [4]

Answer:

D

Explanation:

All choices are correct!

Hope this helps! :)

4 0
2 years ago
Aspen Integrated Marketing used to have a strict hierarchical structure, with the information given only to those who required i
Dennis_Churaev [7]

Answer: d. open-book management.

Explanation:

OPEN-BOOK MANAGEMENT is a style of management where employees are given financial information on the company to help them perform better.

The concept is rooted in a theory that workers tend to have more motivation and be more productive when they feel as though they are being treated like Business partners who are usually the ones with access to such data as opposed to employees who usually do not.

5 0
3 years ago
The Karns Oil Company is deciding whether to drill for oil on a tract of land that the company owns. The company estimates the p
Vika [28.1K]

Answer:

Investing today is a better option because it has a better NPV of $2.3398 million

Explanation:

Given data :

<u>For Today's Investment </u>

Initial capital investment = $4 million

positive cash flow = $2 million

period of cash flow = 4 years

project cost of capital = 10%

To get the value of This option we have to determine the NPV of this option

NPV = PMT * [\frac{1-(1+r)^-4}{r} ] - initial cash flow   ----------- (1)

PMT = $2 million

r = 10%

initial cash flow = $4 million

Equation 1 becomes

NPV = (2 * 3.1699 ) - 4

        = $6.3398 - $4 =  $2.3398 million

<u>For later investment ( 2 years )</u>

initial capital investment = $5 million

90% chance of positive cash flow = $2.1 million

10% chance of positive cash flow = $1.1 million

project cost of capital = 10%

NPV value for a cash flow of $1.1 million

NPV = PMT * [\frac{1-(1+r)^-4}{r} ] - initial cash flow

PMT = $1.1 million

initial cash flow = $5 million

r = 10%

Hence NPV = ($1.1 * 3.1699 ) - $5 million

                    = $3.48689 - $5 million

                    = - $1.51311  

therefore the present NPV =   - $1.51311 / 1.21 =  -$1.25 million  ( therefore no investment will be made )

NPV value for a cash flow of $2.1 million

NPV = PMT * [\frac{1-(1+r)^-4}{r} ] - initial cash flow

PMT = $2.1 million

initial cash flow = $5 million

r = 10%

hence NPV = ($2.1 * 3.1699 ) - $5 million

                   = $6.65679 - $5

                   = $1.65679

therefore the present NPV = $ 1.65679 / 1.21 = $1.369 million

The Expected NPV value of later investment ( after 2 years )

= $0 * 10% + $1.369 * 90%

= $1.2321 million

4 0
3 years ago
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