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3 years ago

Respas Corporation has provided the following data concerning an investment project that it is considering:

Business

1 answer:

Ber [7]3 years ago

4 0

Answer:

$462

Explanation:

The computation of the net present value is shown below:

= Present value of all year cash inflows by considering the salvage value - initial investment

where,

Present value of all year cash inflows by considering the salvage value is

= Annual cash flows × PVIFA factor for 4 years at 15% + Salvage value × discount rate at 4 year on 15%

= $54,000 × 2.855 + $11,000 × 0.572

= $154,170 + $6,292

= $160,462

And, the initial investment is $160,000

So, the net present value is

= $160,462 - $160,000

= $462

We simply applied the above formula to determine the net present value

Refer to the PVIFA table and discount factor table

This is the answer but the same is provided in the given option

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Presented below is information related to equipment owned by Porto Company on December 31, 2017. Cost $5,600,000 Accumulated dep

KATRIN_1 [288]

Answer:

Depreciation $ 1,000,000 (debit)

Accumulated Depreciation $ 1,000,000 (credit)

Explanation:

Step 1 Analyse whether there was an impairment

Impairment of an asset happens when its Carrying Amount is greater than its Recoverable Amount.

Carrying Amount

Carrying Amount = Cost - Accumulated depreciation

= $5,600,000 - $640,000

= $ 4,960,000

Recoverable Amount

Is the higher of :

Value in use : $4,000,000 and
Fair Value less Cost to sell $2,720,000

Therefore Recoverable Amount is $4,000,000

Impairment

Carrying Amount > Recoverable Amount, therefore the Equipment Was impaired

The impairement loss is $ 960,000

Step 2 Calculate the depreciation 2018.

Depreciation Charge = Cost / Useful life

= ($5,600,000 - $640,000 - $ 960,000) / 4

= $ 1,000,000

Journal

Depreciation $ 1,000,000 (debit)

Accumulated Depreciation $ 1,000,000 (credit)

7 0

3 years ago

Marc and Michelle are married and earned salaries this year of $69,200 and $13,950 respectively. In addition to their salaries,

Nikitich [7]

Answer:

The answer is below

Explanation:

Gross income = Marc salary + Michelle salary + corporate bond interest = $69200 + $13950 + $1150 = $84300

AGI deductions = contribution + alimony = $3150 + $2150 = $5300

Adjusted gross income = Gross income - AGI deductions = $84300 - $5300 =$79000

Let us assume married filing jointly = $24000

Itemized deductions = $7300

Greater of married filing jointly and Itemized deductions = married filing jointly = $24000

personal and dependency exemptions = $4050 per person

Therefore personal and dependency exemptions for Marc, Michelle and their child = 3 * $4050 = $12150

total amount of Marc and Michelle's deductions from AGI = Greater of married filing jointly and Itemized deductions + personal and dependency exemptions = $24000 + $12150 = $36150

b) Adjusted gross income = Gross income - AGI deductions = $84300 - $5300 =$79000

4 0

2 years ago

Calculate Producer Surplus if Reservation Price=20, Price=8, & Quantity=10.

Pavel [41]

C. 60
Explanation:
Producer's Surplus means the value producer derives from selling goods. For example, if producer is willing to sell the product for a price 8 but consumers are willing to pay a higher price, let's say 20, then producer achieves a surplus of 12 per unit. Let's calculate the producer's surplus -
As per question, Reservation Price (RP) =20, Price (P) =8, & Quantity (Q) =10
The formula for Producer Surplus (PS) is as follow:
PS = 1/2 (RP - P) x Q
= 1/2 (20-8) x 10 = 60

4 0

3 years ago

Sammy says, “I don’t think it’s fair that I have to pay for car insurance when I’m a super safe driver.” Explain why this logic

Anvisha [2.4K]

Answer:

Car insurance isn't in place for people who are bad drivers, although I'm sure it helps them too. It's in place for situations you can never predict. Just because you're a good driver doesn't mean the people around you aren't. You have no control of other people's actions, so you might actually need that insurance Sammy.

Explanation:

im smart

6 0

2 years ago

Beginning Work in Process Inventory was 10,000 units that were 20% complete and 40,000 units started, with ending Work in Proces

lesya692 [45]

Answer:

Material EUP = 5000

Conversion Costs EUP = 51,200

Explanation:

Under weighted average method

Beginning Work in Process Inventory 10,000

Units Started = 40,000

Units to account for 50,000

In the Work In Process for Conversion Costs

Beginning Work In Process (10,000*20 %) = 2000 were complete

Work done on beginning inventory = 10,000- 2,000= 8,000

Units Started = 40,000

Add Ending Inventory (8000*40%) 3200

Units to account for = 51,200

5 0

3 years ago