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Serggg [28]
2 years ago
7

2.A pump has failed in a facility that will be replaced in three years. A brass pump costing $6,000 will last three years. A use

d stainless-steel pump that should last three years has been sitting in the maintenance shop for a year. The pump cost $13,000 new. The pump is currently valued at $7,000. The maintenance supervisor says that it will cost an extra $500.00 to reconfigure the pump for the new use, and she has noted that it could be sold used (as is) for $4,000. a.How much cheaper or more expensive would it be to use the stainless-steel pump rather than a new brass pump
Business
1 answer:
lapo4ka [179]2 years ago
4 0

Answer:

-$1,500 more expensive

Explanation:

Calculation for How much cheaper or more expensive would it be to use the stainless-steel pump rather than a new brass pump

Using this formula

Cheaper or more expensive=Brass pump value-( Current pump value+Pump reconfigure extra amount spent)

Let plug in the formula

Cheaper or more expensive =$6,000-($7,000+$500)

Cheaper or more expensive =$6,000-$7,500

Cheaper or more expensive =-$1,500 more expensive

Therefore based on the information given the stainless steel pump will be $ 1500 more expensive than the brass pump.

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Lew just purchased $67,600 of equipment that is classified as 5-year MACRS property. The MACRS rates are 20 percent, 32 percent,
Nat2105 [25]

Answer:

The book value of this equipment at the end of four years if he ignores bonus depreciation $26,290.

Explanation:

Cost of property = $67,600

                           Balance    Depreciation

Year 1                  67,600         13520

Year 2                 54,080         17,306

Year 3                 36,774          7,061

Year 4                  29,713          3,423

Book vaue at the end of year 4 = 29,713 - 3423 = $26,290

6 0
2 years ago
A company is preparing its cash budget. Its cash balance on January 1 is $290,000 and it has a minimum cash requirement of $340,
adoni [48]

Answer:

$26,700 excess

Explanation:

The amount of deficiency or excess can be determined only when the ending cash balance is known. The ending cash balance is the addition of the net movement in cash to the opening cash balance.

The net movement is the difference between the total receipts and the total payments or disbursement.

Total receipts for January

= $1,061,200

Total payments

= $984,500

Net movement = $1,061,200   - $984,500  

= $76,700

Ending balance = $290,000 + $76,700

= $366,700

If the minimum cash requirement is $340,000

The amount of the (deficiency)/excess cash (after considering the minimum cash balance required) for January

= $366,700  - $340,000

= $26,700

3 0
3 years ago
Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production cost
slega [8]

Answer:

Under variable costing, the company's net operating income for the year would be $60,000 lower than under absorption costing.

Explanation:

The computation of the operating income under variable costing is shown below:

But before that following calculations need to be done

Fixed manufacturing overhead per unit is

= $240,000 ÷ 20,000 units

= $12 per unit

Ending Inventory units is

= 20,000 units - 15,000 units

= 5,000 units

Now Cost of ending Inventory deferred under absorption costing is

= 5,000 units × $12

= $60,000

So, the second option is correct

5 0
3 years ago
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