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valentinak56 [21]
3 years ago
12

Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is

estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines' first year depreciation under the units-of-production method.
Business
1 answer:
sasho [114]3 years ago
6 0

Answer:

$25,800

Explanation:

The units-of-production deprecation method depreciates an asset based on the total units produced each year.

Unit of production depreciation expense = (units produced / total expected units of production) × (cost of asset - salvage value)

(64,500 / 300,000) x ($135,000 - $15,000)

0.215 x $120,000 = $25,800

I hope my answer helps you

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On December 31, 2017, Extreme Fitness has adjusted balances of $980,000 in Accounts Receivable and $91,000 in Allowance for Doub
m_a_m_a [10]

Answer:

Account receivable = $889,000

Explanation:

The company would record as net receivables, the total amount on accounts receivable less total amount on the allowance for uncollectible account.

The above means that the balance would represent the amount of credit that has gone bad hence the value represent balance on net receivable account.

Therefore,

Accounts receivable

= Adjusted balance in accounts receivable - Allowance for doubtful account

= $980,000 - $91,000

= $889,000

3 0
3 years ago
Banco Macro is expected to generate $150 million in free cash flow next year, and the free cash flow is expected to grow at a co
nirvana33 [79]

Answer:

Stock value per share = $136.8

Explanation:

The value of a firm can be determined using the free cash flow  and the Discount cash flow model.

The discounted cash flow model values a firm as the the sum of the present values of the future cash flows generated by the assets of the firm  discounted at an appropriate  required rate of return. This rate of return (discount rate)is called Weighted average cost of capital (WACC)

The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.

Free cash flow to the Firm ( FCFF) is the cash flow from operations minus capital expenditures. It is the cash flow available to all providers of capital after all investments in non-current assets and working capital have been made.

Value of a firm = FCFF (1+g)/(WACC-g)

g- growth rate

Value of Banco = 150 × (1+0.04)/(0.0685- 0.04)

                         =5473.684211

Value per stock = (Value of the firm - Value of Debt)/ No of stock units

                           = <u>5473.68 - 0</u>

                             40 million units

Stock value per share = $136.8

3 0
3 years ago
Gianna and Nadia want to create a cash flow statement. What will this process MOST likely include?
zimovet [89]

Answer:

c

Explanation:

3 0
2 years ago
What is accounting receivable?<br>​
tankabanditka [31]

Answer:

Is the balance of money due to a firm for goods or service delivered or not yet paid

Explanation:

Account are recorded on balance sheet on current account

5 0
2 years ago
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2018, that permit executive
Stella [2.4K]

Answer:

Total Compensation is $60 million

On December 31, 2018, 2019 and 2020

Dr. Compensation Expense               $20 million

Cr. Paid-in Capital – stock options    $20  million

April 3, 2021

Dr. Paid-in Capital – stock options    $20  million

Cr. Common Stock (12 million x $1)   $12 million

Cr. Paid-in Capital – stock options    $8  million

Explanation:

Stock option is a type compensation which is given to the employees and executives of the company. It requires some some obligation to be performed by the employee to exercise.

Fair value at grant date = $5

Number of option granted = 12 million

Total Compensation = Fair value at grant date x Number of option granted = $5 x 12 million = $60 million

This compensation will be expensed over vesting period of 3 years.

Expense each year = $60 million / 3 = $20 million per year.

No Entry is required on grant date. Fair market value of the option is calculated on this date.

On December 31, 2018, 2019 and 2020 The expense will be recorded.

5 0
3 years ago
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