Answer:
$250,000
Explanation:
Since the purchase cost of an old equipment is already incurred and it does not have any kind of impact in decision making so this cost would be considered as the sunk cost i.e. $250,000
The operating cost of old & new equipment would be relevant for calculating the annual cost savings and the current selling value of the old equipment would also be relevant as salvage value
Therefore $250,000 would be considered
Answer:
The yearly depreciation on the asset is $56,111.11
Explanation:
In calculating the right-of-use asset on a lease,the present of value of future cash payments,that is lease liability amount is added to any lease payments paid on or before commencement of lease agreement,direct initial costs,as well as with any likely amount to be incurred in restoring asset's site or dismantling the asset after usage.
In this case,only present value of future cash flows is available,hence that is the amount of right-of-use to depreciated over nine year period.
Depreciation=$505000/9years
=$56111.11
Answer:
We have to find the value of Larry's investement before and after the issue of new shares, to see if Larry's worries are justified.
The current value of Larry's investment is:
2,000 x $41.00 = $82,000
To find the value of Larry's investment if the new shares are issued, we use the following formula:
Investment = ¨[[(Oustanding shares x price per share) + (New issue of shares x price per share)]/ Outsanding shares + new issue] x No. of shares held
Investment = [[(20,000 x 41.00) + (5,000 x 32.80)] / 20,000 + 50,000] x 2,000
Investment = 39.36 x 2,000
Investment = $78,720
Thus, if the new shares were issued, Larry's investment value in the company would fall from $82,000 to $78,720, confirming his reasons to be worried.
Answer:
a. 9,030 units.
Explanation:
The computation of the weighted average equivalent units produced is
= Beginning units f product in a department + additional started and completed units + ending work in process units after considering the one-fourth completion
= 880 units + 8,000 units + 150 units
= 9,030 units
The ending work in process units come
= 600 units ÷ 4
= 150 units
