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[ | Question 36 3/3pts On January 1, 2017, Henri's World's Famous Commercial Chicken purchased a new AN-109 industrial fryer used in the preparation of fried chicken. The purchase cost for the fryer was $250,000. Shipping costs was an additional $5,000, and the cost to install the industrial fryer added another $19,000 to its costs. Annual maintenance costs for the new industrial fryer was estimated be about $2,500 per year. In May 2022 the owner, Henri Polloberger, became aware of a new technology that offered many advantages over the AN-109 fryer and decided to replace it. On June 30, 2022 the AN-109 was un-installed and sold to Chicos, Inc. for $70,000. The AN-109 had been depreciated on a straight-line basis assuming a useful life of 10 years and an estimated $10,000 salvage value. Based on the information provided, what was the amount of the Gain or Loss that Henri's World's Famous Commercial Chicken recognized on the sale of this asset? Note that Henri's World's Famous Commercial Chicken uses the calendar year as its fiscal year. Problem Counts 3 Points $64,000 loss $48,000 gain * $58,800 loss $83,125 loss $64,000 gain Downloaded by Shubh kh (shubhkhose.sk@gmail.com) Question 37 0/4pts Vineyard Wines Financial Problems Counts 4 Points Each The next five questions are all based on the following 2021 fiscal year end account information for Vineyard Wines, national distributor of lower quality wines and Sangria. The financial data below can be used to develop a set of Financial Statements (Income Statement, Balance Sheet, and Owner's Equity calculation) for fiscal 2021. HOWEVER, the individual questions can be answered simply by classifying the appropriate accounts and adding (or subtracting) the accounts together. How you approach this problem is up to you. Note that Vineyard Wines has three product lines: Sangria, Chardonnay, and Pinot. Sales returns and small discounts are allowed for all product lines. Accounts Payable $257,600 $27,000 $338,000 Dividends Payable Bonds Payable Salaries Payable $62,500 Accounts Receivable $588,300 Advertising Expense $54,000 Cash $193,917 Downloaded by Shubh kh (shubhkhose.sk@gmail.com)
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On June 30, 2024, Prego Equipment purchased a precision laser-guided steel punch that has an expected capacity of 300,000 units and no residual value. The cost of the machine was $450,000 and is to be depreciated using the units-of-production method. During the six months of 2024, 24,000 units of product were produced. At the beginning of 2025, engineers estimated that the machine can realistically be used to produce only another 230,000 units. During 2025, 70,000 units were produced.
The company would report depreciation in 2024 of:
$36,000.
$43,900.
$18,000.
$21,950.
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GKD Construction purchased a truck 6 years ago at a cost of $71600. Because the old truck required an overhaul of $4100 last year,
and repairs of $2500 are needed in the current year, the company is now planning to purchase a new truck to replace the old one. The
old truck has a trade-in value of $5400. The cost of the new truck is $82400.
What amount of these costs represent sunk costs?
$83600
O $71600
$81100
O $75700
SUP
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P10-7 Self-Construction Olson Machine Company manufactures small and large milling machines. Selling prices of these machines range from $35,000 to $200,000. During the 5-month period from August 1, 2019, through December 31, 2019, Olson manufactured a milling machine for its own use. This machine was built as part of the regular production activities. The project required a large amount of time from planning and supervisory person-nel, as well as that of some of the company’s officers, because it was a more sophisticated type of machine than the regular production models.
Throughout the 5-month period, Olson charged all costs directly associated with the construction of the machine to a special account entitled “Asset Construction Account.” An analysis of the charges to this account as of December 31, 2019, follows:
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im Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $75,200, the accumulated depreciation is $30,100, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $156,400. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations:
Present Operations
Proposed Operations
Sales
$238,400
$238,400
Direct materials
$81,200
$81,200
Direct labor
56,400
—
Power and maintenance
5,300
27,800
Taxes, insurance, etc.
1,900
6,200
Selling and administrative expenses
56,400
56,400
Total expenses
$201,200…
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Required information
Skip to question
[The following information applies to the questions displayed below.]
Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered that the entire batch was finished improperly. Fancy can sell the tables as seconds for $305,000 or spend an additional $315,000 to refinish them and sell them for $605,000.
In deciding whether to rework the tables or sell them as is, management should:
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Pigs-R-Us is trying to decide whether or not to automate their meat packing process. The machine costs $200,000, has a useful life of 10 years and a salvage value of $10,000. It will require a $60,000 overhaul after 5 years of use. The machine costs $9,000 per year to operate and maintain, but it will save the company $50,000 per year in labor costs. Pigs-R-Us has asked you to evaluate the economics of this purchase and tell them what do to. If their MARR is 14%, what would you recommend? Use External Rate of Return Method.
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can you please help me answer this problem...
Fleet Sports purchased a production machine with a cost of $180,000 at the beginning of 2019. Transportation costs to get the machine ready were $5,000. An additional $15,000 of labor costs were incurred to assemble the machine.
The equipment has an estimated life of 10 years or 100,000 snowboards (units of product). The estimated residual value is $20,000. During 2019, 17,000 snowboards (units of product) were produced with this machinery.
Determine the following, and show your work:
What is the depreciation expense per unit of production using the units-of-production depreciation?
What is the total depreciation expense at December 31, 2019, using units-of-production depreciation?
What journal entry is needed at the end of 2019 to record depreciation expense using straight-line depreciation?
What is the book value of the equipment at the end of 2020 using straight-line depreciation?
What is depreciation expense for the equipment…
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Required information
[The following information applies to the questions displayed
below.]
University Car Wash purchased new soap dispensing equipment
that cost $249,000 including installation. The company estimates
that the equipment will have a residual value of $25,500. University
Car Wash also estimates it will use the machine for six years or
about 12,500 total hours. Actual use per year was as follows:
Year
1
2
Year
1
2
3
4
5
6
Total
23456
3
4
5
6
Hours
Used
2,900
1,800
1,900
2,100
1,900
1,900
2. Prepare a depreciation schedule for six years using the double-declining-
balance method. (Do not round your intermediate calculations.)
UNIVERSITY CAR WASH
Depreciation Schedule-Double-Declining-Balance
End of Year Amounts
Depreciation Accumulated
Expense
Depreciation
Book Value
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A machine that cost $504,000, with a four-year life and an estimated $48,000 residual value, was installed in Haley Company's factory
on September 1, 2023. The factory manager estimated that the machine would produce 475,000 units of product during its life. It
actually produced the following units: 2023, 21,400; 2024, 122,400; 2025, 119,600; 2026, 118,200; and 2027, 102,000. The company's
year-end is December 31.
Required:
Show the depreciation for each year and the total depreciation for the machine under each depreciation method calculated to the
nearest whole month. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
Year
2023
2024
2025
2026
2027
Totals
Straight-line
$
Units-of-
production
Double-Declining
Balance
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shobha
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Kim Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $80,700, the accumulated depreciation is $32,300, its remaining useful life is 5 years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $167,900. The automatic machine has an estimated useful life of 5 years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations:
PresentOperations
ProposedOperations
Sales
$255,800
$255,800
Direct materials
$87,200
$87,200
Direct labor
60,500
—
Power and maintenance
5,600
29,900
Taxes, insurance, etc.
2,000
6,700
Selling and administrative expenses
60,500
60,500
Total expenses
$215,800
$184,300…
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Manshukh
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i need the answer quickly
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C16Q3
Need help
The studs are sold as rough-cut lumber after emerging from the sawmill operation without further processing by
Hoover
Sawmill. Also, the posts require no further processing beyond the splitoff point. The decorative pieces must be planed and further sized after emerging from the sawmill. This additional processing costs
$120,000
per month and normally results in a loss of 10% of the units entering the process. Without this planing and sizing process, there is still an active intermediate market for the unfinished decorative pieces in which the selling price averages
$60
per unit.
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6
Franklin Moran manages the cutting department of Greene Gibson Company. He purchased a tree-cutting machine on January 1, year
2, for $430,000. The machine had an estimated useful life of 5 years and zero salvage value, and the cost to operate it is $90,000 per
year. Technological developments resulted in the development of a more advanced machine available for purchase on January 1, year
3, that would allow a 35 percent reduction in operating costs. The new machine would cost $270,000 and have a 4-year useful life and
zero salvage value. The current market value of the old machine on January 1, year 3, is $210,000, and its book value is $344,000 on
that date. Straight-line depreciation is used for both machines. The company expects to generate $233,000 of revenue per year from
the use of either machine.
Required
a. Recommend whether to replace the old machine on January 1, year 3.
b. Prepare income statements for four years (year 3 through year 6) assuming that the old machine is…
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A business purchased a delivery truck 5 years ago at a cost of $45,000. It is now planning to replace that truck with a newer one, which would cost $60,000. The old truck has a trade-in value of approximately $12,500.(a1) How much of these truck costs represent sunk costs?
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Required information
[The following information applies to the questions displayed below.]
University Car Wash purchased new soap dispensing equipment that cost $240,000 including installation. The company
estimates that the equipment will have a residual value of $30,000. University Car Wash also estimates it will use the
machine for six years or about 12,000 total hours. Actual use per year was as follows:
Year
123456
Hours Used
2,600
2,100
2,200
1,800
1,600
1,700
2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate
calculations.)
UNIVERSITY CAR WASH
Depreciation Schedule-Double-Declining-Balance
End of Year Amounts
Depreciation
Year
Expense
1
2
3
4
5
6
Total
Accumulated
Depreciation
Book Value
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Related Questions
- barrow_forwardq On June 30, 2024, Prego Equipment purchased a precision laser-guided steel punch that has an expected capacity of 300,000 units and no residual value. The cost of the machine was $450,000 and is to be depreciated using the units-of-production method. During the six months of 2024, 24,000 units of product were produced. At the beginning of 2025, engineers estimated that the machine can realistically be used to produce only another 230,000 units. During 2025, 70,000 units were produced. The company would report depreciation in 2024 of: $36,000. $43,900. $18,000. $21,950.arrow_forwardGKD Construction purchased a truck 6 years ago at a cost of $71600. Because the old truck required an overhaul of $4100 last year, and repairs of $2500 are needed in the current year, the company is now planning to purchase a new truck to replace the old one. The old truck has a trade-in value of $5400. The cost of the new truck is $82400. What amount of these costs represent sunk costs? $83600 O $71600 $81100 O $75700 SUParrow_forward
- P10-7 Self-Construction Olson Machine Company manufactures small and large milling machines. Selling prices of these machines range from $35,000 to $200,000. During the 5-month period from August 1, 2019, through December 31, 2019, Olson manufactured a milling machine for its own use. This machine was built as part of the regular production activities. The project required a large amount of time from planning and supervisory person-nel, as well as that of some of the company’s officers, because it was a more sophisticated type of machine than the regular production models. Throughout the 5-month period, Olson charged all costs directly associated with the construction of the machine to a special account entitled “Asset Construction Account.” An analysis of the charges to this account as of December 31, 2019, follows:arrow_forwardim Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $75,200, the accumulated depreciation is $30,100, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $156,400. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations: Present Operations Proposed Operations Sales $238,400 $238,400 Direct materials $81,200 $81,200 Direct labor 56,400 — Power and maintenance 5,300 27,800 Taxes, insurance, etc. 1,900 6,200 Selling and administrative expenses 56,400 56,400 Total expenses $201,200…arrow_forwardRequired information Skip to question [The following information applies to the questions displayed below.] Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered that the entire batch was finished improperly. Fancy can sell the tables as seconds for $305,000 or spend an additional $315,000 to refinish them and sell them for $605,000. In deciding whether to rework the tables or sell them as is, management should:arrow_forward
- Pigs-R-Us is trying to decide whether or not to automate their meat packing process. The machine costs $200,000, has a useful life of 10 years and a salvage value of $10,000. It will require a $60,000 overhaul after 5 years of use. The machine costs $9,000 per year to operate and maintain, but it will save the company $50,000 per year in labor costs. Pigs-R-Us has asked you to evaluate the economics of this purchase and tell them what do to. If their MARR is 14%, what would you recommend? Use External Rate of Return Method.arrow_forwardcan you please help me answer this problem... Fleet Sports purchased a production machine with a cost of $180,000 at the beginning of 2019. Transportation costs to get the machine ready were $5,000. An additional $15,000 of labor costs were incurred to assemble the machine. The equipment has an estimated life of 10 years or 100,000 snowboards (units of product). The estimated residual value is $20,000. During 2019, 17,000 snowboards (units of product) were produced with this machinery. Determine the following, and show your work: What is the depreciation expense per unit of production using the units-of-production depreciation? What is the total depreciation expense at December 31, 2019, using units-of-production depreciation? What journal entry is needed at the end of 2019 to record depreciation expense using straight-line depreciation? What is the book value of the equipment at the end of 2020 using straight-line depreciation? What is depreciation expense for the equipment…arrow_forwardRequired information [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $249,000 including installation. The company estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 2 Year 1 2 3 4 5 6 Total 23456 3 4 5 6 Hours Used 2,900 1,800 1,900 2,100 1,900 1,900 2. Prepare a depreciation schedule for six years using the double-declining- balance method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Accumulated Expense Depreciation Book Valuearrow_forward
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ISBN:9781305970663
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