Answer:
Using the straight-line method, the book value at December 31, 2018 would be $53.760
Explanation:
2018 2019 2020 2021 2022
Cost 67200 53.760 40.320 26.880 13.440
Dep-Acu 13.440 13.440 13.440 13.440 13.440
Book Value53.760 40.320 26.880 13.440 0
Answer:
Journal entries for the transactions are given below
Explanation:
1. Development of new product
DEBIT CREDIT
Research and development $24,000
Cash $24,000
2. Paid the plaintiff for losing patent
DEBIT CREDIT
Legal fee (expense) $8,000
Cash $8,000
3. Bought Equipment and signed non-interest bearing note
DEBIT CREDIT
Equipment Cash price $37,000
Discount on note payable $5,000
Cash paid $18,000
Note payable $24,000
4. Installed sprinkler system
DEBIT CREDIT
Sprinkler system $40,000
Cash $40,000
5. Plaintiff paid for successful infringement suit on its patent
DEBIT CREDIT
Patent $24,000
Cash $24,000
6. Bought New equipment and traded old one
DEBIT CREDIT
New Equipment $13,600
Accumulated depreciation $6,800
Loss on sale $3,400
Old Equipment $13,400
Cash $10,400
Working:
Accumulated depreciation = Original Cost - book value
Accumulated depreciation = $13,400 - $6,600
Accumulated depreciation = $6,800
Answer:
c. $74,450
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor + salvage value - initial investment
where,
The Initial investment is $120,000
All yearly cash flows would be
= Annual net operating cash inflows × PVIFA for 6 years at 14%
= $50,000 × 3.8887
= $194,435
Refer to the PVIFA table
Now put these values to the above formula
So, the value would equal to
= $194,435 - $120,000
= $74,435 approx
Answer:
Direct material purchases in May = 21,670× $10= $216,700
Explanation:
Material purchase budget is determined by adding the closing inventory of material to the material usage budget less the opening inventory.
Material budgets for May will be prepared as follows:
Materials needed for May production = 5,500 × 3 = 16,500
Materials needed for June production = 4,400× 3= 13,200
Closing inventory of raw material in May =60% × June requirement = 60% × 13,200 =7,920
Material purchase budget for February = Usage budget + closing inventory - opening inventory
= 16,500 + 7,920- 2,750=21,670
Direct material purchases in May = 21,670× $10= $216,700
Answer:
The answer is: As they are generally defined, money market transactions involve debt securities with maturities of less than one year.
Explanation:
Money market transactions involve financial instruments with high liquidity and short-term maturities. Usually the securities have a one year or less maturity date.
A few examples of commonly traded securities are:
- Banker’s Acceptance
- Treasury Bills
- Repurchase Agreements
- Certificate of Deposits
- Commercial Papers
