The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $55,000. The machine would replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $7,000 per year to operate. The old machine currently in use could be sold now for a salvage value of $26,000. The new machine would have a useful life of 10 years with no salvage value Required: 1 What is the annual depreciation expense associated with the new bottling machine? 2 What is the annual incremental net operating income provided by the new bottling machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? 4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place le. 0.123 should be considered as 12.3%.) 1 2. 3 Depreciation expense Incremental net operating income Initial Investment Simple rate of return
The management of ballard microbrew is considering the purchase of an automated bottling machine for $55,000. the machine would replace an old piece of equipment that costs $15,000 per year to operate. the new machine would cost $7,000 per year to operate. the old machine currently in use could be sold now for a salvage value of $26,000. the new machine would have a useful life of 10 years with no salvage value. required: 1. what is the annual depreciation expense associated with the new bottling machine? 2. what is the annual incremental net operating income provided by the new bottling machine? 3. what is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? 4. what is the simple rate of return on the new bottling machine? (round your answer to 1 decimal place i. e. 0.123 should be considered as 12.3%.)
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Answer:
Production in third quarter should be budgeted at $<u>245000</u>
Explanation:
10) Production in third quarter = Sales unit+Desired ending inventory-Beginning inventory
= 240000+(260000*25%)-(240000*25%)
Production in third quarter = 245000 Units
so answer is 245000
Answer:
A). The taxpayer's aunt.
Explanation:
Constructive ownership is demonstrated as the allocation of stock ownership from one to another taxpayer by the integrity of their relationship. For example, the parents own the stocks of their children constructively. As per the section (c) of constructive ownership under § 267, the party that cannot be a related part for constructive ownership purposes would be 'the aunt' of the taxpayer as she is not related to the taxpayer with blood either half or whole. Thus, she would not have any ownership right over the stock or shares and hence, <u>option C</u> is the correct answer.
Answer:
Since there is not enough room here, I prepared an excel spreadsheet
Explanation:
Answer:
Annual rate 0.017
Explanation:
Computation of the annual rate on the real bond.
Using this formula
Annual rate = Par Zero coupon inflation index/(1+r) ^Numbers of years =Inflation-indexed bond
Let plug in the formula
Annual rate=100 / (1 + r) ^10 = 84.49
Annual rate= (100 / 84.49)^1 /10 − 1
Annual rate=(1.18357)^0.1-1
Annual rate=1.016-1
Annual rate=0.017
Therefore the annual rate of return will be 0.017
