3. On January 1, 2022, JPIA Company capitalized a new word processing software package that it had developed. The total cost recorded was P9, 000, 000 and the product is expected to generate revenue for three years. Revenue from the sale of software for 2022 was P24, 000, 000 and the total expected revenue for the three years is P80, 000, 000. The net realizable value of the software was P7, 200, 000 on December 31, 2022. What amount should be charged to software amortization expense for the year ended December 31, 2022?

3. On January 1, 2022, JPIA Company capitalized a new word processing software package that it had developed. The total cost recorded was P9, 000, 000 and the product is expected to generate revenue for three years. Revenue from the sale of software for 2022 was P24, 000, 000 and the total expected revenue for the three years is P80, 000, 000. The net realizable value of the software was P7, 200, 000 on December 31, 2022. What amount should be charged to software amortization expense for the year ended December 31, 2022?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question. Tradewinds Construction Company had 4 dump trucks, 2 excavators, and other construction machinery worth $950,000 on January 1, 2020. During the year 2020, Seabreeze Construction spent $120,000 on two new trucks. The market value of all of the company's vehicles and construction machinery was $1,020,000 on December 31, 2020. 1) In 2020, what was Seabreeze's gross investment? 2) What was the depreciation amount in 2020? 3) In 2020, what was the net investment?
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3. Solar Solutions has purchased new manufacturing equipment that cost $400,000. Calculate the yearly tax savings from the CCA tax shield for the next three years. Assume that the income tax rate is 30%, the CCA rate is 30%, and the weighted-average cost of capital (WACC) is 12%. Assume that CCA in the first year is subject to the accelerated depreciation method for the year of acquisition. (Hint. Use Microsoft Excel to calculate the discount factor(s).) (Do not round your intermediate calculations. Round your final answers to 2 decimal places.) X Answer is complete but not entirely correct. Year 1 2 3 $ $ $ PV of Tax Savings 91,071.43 x 56,919.64 X 35,574.78 X
Use the information provided below to calculate the Accounting Rate of Return on averageinvestment (expressed to two decimal places). INFORMATIONThe management of Unicorn Limited is presently appraising the production and sale of a new product. Thiswould involve the purchase of a new machine with a cost price of R500 000. The machine is expected to havea useful life of six years and a scrap value of R100 000.Annual sales of the product are estimated to be 3 000 units at a selling price of R120 per unit. Expenses(including depreciation) are expected to amount to R80 per unit
am. 120.
D1. Answer ASAP. Please complete all parts correctly.
On January 1, 2021, Gringo Company had capitalized cost of P5,000,000 for a new computer software product with an economic life of 5 years. Sales for 2021 amounted to P3,000,000. The total sales of software over its economic life are expected to be P10,000,000. The pattern of future sales cannot be measured reliably. On December 31, 2021, the software had a net realizable value of P4,500,000. What is the carrying amount of the computer software on December 31, 2021?
A company has established a joint venture with another company to build a toll road. The initial investment is paving equipment is 34 million. the equipment will be fully depreciated using the straight-line method over its economic life of five years. Earnings before interest, taxes and depreciation collected from the toll road are projected to be 4 million per annum for 27 years starting from the end of the first year. The corporate tax rate is 20%. The required rate of return for the project under all-equity financing is 15%. The pretax cost of debt for the joint partnership is 6%. To encourage investment in the country's infrastructure, the government will subsidize the project with an 13 million, 15-year loan at an interest rate of 5% per year. All principal will be repaid in one balloon payment at the end of year 15. The NPV of the project (rounded to a whole number) is: BY

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