Answer: Management will not look at this investment in equipment favorably, as the net present value of the project is negative, which will decrease shareholder's wealth.
Explanation:
0 1 2 3 4
Net Cashflows -370,000 160000 140000 80000 80000
Discount factor 12% 1 0.893 0.797 0.712 0.636
PV of cashflows -370000 142857 111607 56942 50841
NPV -7752
Answer:
$339
Explanation:
Computation of the given data are as follows:
Income before tax in FIFO = $15,730
Tax rate = 30%
So, the Tax amount for FIFO = $15,730 × 30%
= $4,719
And, Income before tax in LIFO = $14,600
Tax rate = 30%
So, the Tax amount for LIFO = $14,600 × 30%
= $4,380
So, the difference in tax amount = Tax amount for FIFO - Tax amount for LIFO
= $4,719 - $4,380
= $339
Answer:
the last part of the question is missing, so I looked for it:
a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.
b. Randy had no investment income this year, and his AGI is $75,000.
a) Randy can deduct $31,575:
- the mortgage interest is deductible
- the car loan interest is not deductible
- he can deduct $4,725 - $2,200 = $2,525 as investment interest expense
b) Randy can deduct $29,050
- the mortgage interest is deductible
- the car loan interest is not deductible
- since he had no investment revenue, he cannot deduct any investment interest expense
The amount of accounts payable appearing on the March 31 pro forma balance sheet is $31,200.
<h3>Account payable</h3>
Using this formula
Account payable=Required purchases× Remaining percentage
Where:
Required purchases=$39,000
Remaining percentage=80%
Let plug in the formula
Account payable=$39,000×80%
Account payable=$31,200
Therefore the amount of accounts payable appearing on the March 31 pro forma balance sheet is $31,200.
Learn more about Account payable here:brainly.com/question/19829656
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Answer:
Cost variance is $6,400 unfavorable
Explanation:
Cost variance shows that how much under/over valued is the budget. It measures the difference of the actual cost incurred and the budgeted cost.
Earned value is the value of budgeted cost which is calculated using actual activity. It is the cost that should be incur on budgeted units.
Earned value can be calculated as follow:
Earned value = Actual Activity x Budgeted rate = $27,500 x $6 = $165,000
Formula for cost variance is as follow
Cost Variance = Earned Value - Actual Value
Cost Variance = $165,000 - $171,400
Cost Variance = -$6,400
It is an unfavorable variance because company incurred more cost than it should be.
