Which of the following is not a benefit of contributing to a retirement

Sheffield Company owns equipment that cost $1,053,000 and has accumulated depreciation of $444,600. The expected future net cash

Pani-rosa [81]

Answer:

Explanation:

The journal entry is shown below:

Loss on impairment A/c Dr $140,400

To Accumulated impairment loss A/c $140,400

(being the impairment loss is recorded)

The computation is shown below:

= Carrying value of the equipment - fair value of the equipment

where,

Carrying value of the equipment would be

= Cost of the equipment - accumulated depreciation

= $1,053,000 - $444,600

= $608,400

So, the loss would be

= $608,400 - $468,000

= $140,400

7 0

3 years ago

A partial listing of costs incurred at Archut Corporation during September appears below: Direct materials $ 113,000 Utilities,

givi [52]

Answer:

Explanation:

Calculation for what The total of the product costs listed above for September is:

Direct materials $113,000

Add Utilities, factory $5,000

Add Indirect labor $25,000

Add Depreciation of production equipment $20,000

Add Direct labor $129,000

Total product costs $292,000

Therefore The total of the product costs listed above for September is: $292,000

8 0

3 years ago

In this fictional department stock record are being kept.

harkovskaia [24]

Answer:

I believe the answer is B have a great day!

7 0

3 years ago

A company has invested $60,000 in machinery with a 5-year useful life. The machinery will have no salvage value, as the cost to

Luda [366]

Answer:

19.7%

Explanation:

initial cost $60,000

depreciation expense:

5 + 4 + 3 + 2 + 1 = 15

Year 1: 5/15 = 33% = $19,800

Year 2: 4/15 = 27% = $16,200

Year 3: 3/15 = 20% = $12,000

Year 4: 2/15 = 13% = $7,800

Year 5: 1/15 = 7% = $4,200

yearly benefits:

Year 1 = ($15,000 - $19,800) x 45% tax credit = $2,160 deferred tax benefit

Year 2 = ($15,000 - $16,200) x 45% tax credit = $540 deferred tax benefit

Year 3 = $15,000 - $12,000 = $3,000 ⇒ $1,350 in taxes are offset by the previous deferred tax benefits x 45% tax = $2,160 - $1,350 = $810 remaining tax benefits

Year 4 = $15,000 - $7,800 = $7,200 - $3,240 in taxes + $810 in deferred tax benefits = $4,770

Year 5 = ($15,000 - $4,200) x (1 - 45%) = $5,940

this investment yields 3 positive benefits during years 3-5, if we discount them to find the present value = $3,000/1.07 + $4,770/1.07² + $5,940/1.07³ = $2,803.74 + $4,166.30 + $4,848.81 = $11,818.85

after-tax rate of return = $11,818.85 / $60,000 = 19.7%

3 0

4 years ago

Firm A has $1 million in operating income and pays $250,000 in interest. In addition, firm A has $7.50 EPS. Firm B has an operat

Vitek1552 [10]

Answer:

$10.00

Explanation:

Earning per share is the ratio of net Income of the business per outstanding share of the business after deducting the preferred dividend from net earning. It shows how much each stockholder earn against their each share in a specific period.

Earning Per share ( EPS ) of Firm A = $7.50 per share

Number of outstanding share can be calculated as follow

EPS = Net Income / Outstanding Numbers of share

Outstanding Numbers of shares = Net Income / EPS

Outstanding Numbers of shares = ($1,000,000 - $250,000) / $7.5 per share = 100,000 shares

Firm B

As Tax will be ignored, interest expense is also same as the Firm A and numbers of share is also sames.

Operating Income = $2.0 million = $2,000,000

Less: Interest expense $250,000

Net Income $175,000

EPS = $175,000 / 100,000 share = $17.5 per share

Difference = $17.5 - $7.5 = $10 per share

8 0

3 years ago