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3 years ago

Metro Company trades its used machine for a new model at Denver Solutions Inc.

Business

1 answer:

zalisa [80]3 years ago

4 0

Answer:

Cost of new machine:

= List price of new machine - Trade allowance + Fair value of old machine

= $16,000 - $9,000 + $6,000

= $13,000

Therefore, the journal entry is as follows:

Cost of new machine A/c Dr. $13,000

Accumulated depreciation (Book Value) A/c Dr. $4,000

Loss on exchange of machine A/c Dr. $2,000

To Old Machine (Book Value) $12,000

To Cash (16,000 - 9,000) $7,000

(To record the machine exchange)

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1. Assume a friend of a friend wants to borrow a moderate amount of money from you. List the information you would want to know

jeyben [28]

You would want to know the borrowers background history. U would also want to know if he can repay you. Ask your friend if his friend has borrowed money from him and been able to repay him. Hope this helps

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3 years ago

Tercer reports the following for one of its products. Direct materials standard (4 lbs. $2 per lb.) Actual direct materials used

Natalka [10]

Answer:

Results are below.

Explanation:

Giving the following information:

Direct materials standard (4 lbs. $2 per lb.)= $8 per finished unit

Actual direct materials used (AQ)= 300,000

Actual finished units produced= 60,000

Actual cost of direct materials used= $535,000

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2 - 1.783)*300,000

Direct material price variance= $65,100 favorable

Actual price= 535,000 / 300,000= $1.783

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (4*60,000 - 300,000)*2

Direct material quantity variance= $120,000 unfavorable

6 0

2 years ago

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.3 milli

laiz [17]

Answer:

MACRS 3 year depreciation schedule

33.33% x $2,300,000 = $766,590

44.45% x $2,300,000 = $1,022,350

14.81% x $2,300,000 = $340,630

carrying value at end of year 3 = $170,430

net after tax cash flow from salvage value = $210,000 - [($210,000 - $170,430) x 22%] = $201,294.60

cash flows:

year 0 = -$2,300,000 - $270,000 = -$2,570,000

year 1 = [($1,720,000 - $628,000 - $766,590) x 0.78] + $766,590 = $1,020,410

year 2 = [($1,720,000 - $628,000 - $1,022,350) x 0.78] + $1,022,350 = $1,076,677

year 3 = [($1,720,000 - $628,000 - $340,630) x 0.78] + $340,630 + $201,294.60 + $270,000 = $1,397,993

NPV = $297,794, and IRR = 16.12%

6 0

3 years ago

The Treaty of Paris gave __________ to the United States.

faltersainse [42]

It is A. i think...........

8 0

3 years ago

Read 2 more answers

In one year, Hitech Microdevices will pay a common stock dividend of $4.35. You predict that you will be able to sell your Hitec

Andre45 [30]

Answer:

Price to be paid now = $52.89

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

The stock would be held for just a period, hence we would use the single period return model. This is given as follows:

Price now = D/(1+r) + P×(1+r)

Dividend , r - rate of return, P -year-end price of stock

Dividend = 4.35, r-16%, P- 57

Price = 4.35/(1.16) + 57/(1.16)= $52.89

Price to be paid now = $52.89

7 0

2 years ago