A copy machine cost $95,000 when new and has accumulated depreciation of $83,000. Suppose Pinnacle Office Supplies sold the machine for $14,000. What is the result of this disposal transaction? A. No gain or loss B. Gain of $2,000 C. Loss of $1,000 D. Loss of $44,000
Q: What is the per unit product cost for this job?
A: Explanation of Job Costing System: A job costing system is a cost accounting method used to track…
Q: I need the correct answer to this general accounting problem using the standard accounting approach.
A: Step 1: Definition Concept of Contribution Margin Ratio:The contribution margin ratio shows the…
Q: I need help finding the accurate solution to this general accounting problem with valid methods.
A: Step 1: Detailed Explanation of Accounting EquationThe accounting equation states:Assets =…
Q: Please explain how to solve this financial accounting question with valid financial principles.
A: Concept of Earnings Per Share (EPS)Earnings Per Share (EPS) is a financial metric that indicates the…
Q: Can you solve this financial accounting problem using accurate calculation methods?
A: Step 1: Detailed Explanation of Final Selling PriceThe final selling price is the amount a consumer…
Q: Provide Answer
A: Provided Data:Inventory on March 1 = $420,000Raw materials purchased in March = $790,000Raw…
Q: Production is 800 units , variable overhead rate 7 per machine hour
A: Step 1: Definition of Variable Overhead Spending VarianceThe Variable Overhead Spending Variance…
Q: Provide answer
A: To determine the cost of common equity, we can use the Dividend Discount Model (DDM), specifically…
Q: Can you explain the process for solving this financial accounting problem using valid standards?
A: Concept of Price-Earnings (P/E) Ratio:The Price-Earnings (P/E) ratio is a financial metric used to…
Q: Can you explain the process for solving this financial accounting question accurately?
A: Step 1: Detailed Explanation of Profit Margin RateProfit margin rate measures the percentage of net…
Q: Solve
A: To calculate Westview Corporation's Return on Assets (ROA), we will use the following formula:ROA =…
Q: I am trying to find the accurate solution to this financial accounting problem with the correct…
A: Concept of Gross Margin:Gross margin represents the amount a company retains from sales revenue…
Q: Can you help me solve this general accounting question using the correct accounting procedures?
A: Step 1: Definitions Concept of Book Value of Equity:The book value of equity represents the net…
Q: Can you show me the correct approach to solve this financial accounting problem using suitable…
A: Step 1: Detailed Explanation of After-Tax Cash Flow from Sale of AssetAfter-Tax Cash Flow from the…
Q: Direct materials:35600, Direct labor:42700
A: Step 1: Definition of Cost of Goods Manufactured (COGM)Cost of Goods Manufactured (COGM) refers to…
Q: Kanye Ridge Industries has a beginning finished goods inventory of $24,300, raw material purchases…
A: Concept of Cost of Goods Sold (COGS):Cost of Goods Sold refers to the direct costs attributable to…
Q: need this accounting subject solution
A: Step 1: Definition of Cost of Raw Materials UsedThe Cost of Raw Materials Used represents the total…
Q: Thompson, Inc. had accounts receivable of $580,000 and an allowance for doubtful accounts of $23,400…
A: Concept of Net Realizable Value (NRV):Net realizable value is the estimated amount a company expects…
Q: I need guidance with this financial accounting problem using the right financial principles.
A: Concept of Dividend Yield:Dividend Yield is a financial ratio that shows how much a company pays out…
Q: Accounting solution and correct
A: Step 1: Detailed Explanation of Sales Units to Realize Operating IncomeTo determine the number of…
Q: Give me Answer
A: For financial reporting, product costs typically include:Direct materialsDirect laborManufacturing…
Q: I want to this question answer for General accounting question not need ai solution
A: Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) is a financial performance ratio…
Q: Please provide the answer to this general accounting question using the right approach.
A: To estimate the Profitability Index (PI), we use the formula:Profitability Index (PI) = Present…
Q: Suppose that $12,000 is borrowed now at 12% interest per year. A partial repayment of $4,000 is made…
A: To answer this, we will:Explain the compound‐interest mechanism.Write down the future‐value…
Q: Please explain the correct approach for solving this general accounting question.
A: Step 1: Detailed explanation of Gross PayGross pay refers to the total amount earned by an employee…
Q: Financial Accounting Question please answer
A: Step 1: Detailed Explanation of Traditional CostingTraditional costing allocates overhead using a…
Q: I am trying to find the accurate solution to this general accounting problem with the correct…
A: Step 1: Detailed Explanation of Percentage Increase in Net IncomeTo determine how much net income…
Q: Provide correct solution and accounting question
A: To calculate turnover, use the formula:Turnover = Sales ÷ Average Operating AssetsStep 1: Calculate…
Q: What is the gross profit?
A: Explanation of Gross Profit:Gross profit is the amount remaining from sales revenue after…
Q: I need help finding the accurate solution to this general accounting problem with valid methods.
A: Step 1: Detailed Explanation of Total Cost to Be Accounted For (Weighted-Average Method)The total…
Q: How much is the owner's equity?
A: Explanation of Assets: Assets are economic resources owned or controlled by a business that are…
Q: I am looking for help with this financial accounting question using proper accounting standards.
A: Step 1: Definition of Stockholders' EquityStockholders' equity, also known as shareholders' equity…
Q: Help me with this
A: To determine the annual future cash flow from this investment, we need to adjust net income by…
Q: I am looking for the most effective method for solving this financial accounting problem.
A: Concept of Return on Investment (ROI):Return on Investment (ROI) is a financial performance metric…
Q: I am trying to find the accurate solution to this general accounting problem with the correct…
A: Step 1: Detailed Explanation of Current and Quick RatiosThe Current Ratio measures a company's…
Q: Subject : Financial accounting
A: Step 1: Detailed Explanation of Cost of Merchandise SoldCost of Merchandise Sold (COGS) is the total…
Q: Can you help me solve this general accounting question using valid accounting techniques?
A: Step 1: Detailed explanation of Gross Profit MarginGross Profit Margin: This is the percentage of…
Q: I need the correct answer to this general accounting problem using the standard accounting approach.
A: To find the total assets of a company, you use the basic accounting equation:Assets = Liabilities +…
Q: What is the Degree of operating leverage for Coretel ?
A: Degree of Operating Leverage (DOL) Calculation for Coretel SystemsGiven Data:Sales = $65…
Q: provide correct option
A: Step 1: Definition of Net SalesNet Sales refer to a company's revenue from sales after deducting…
Q: Compute the variable overhead spending variance
A: Explanation of Variable Overhead: Variable overhead refers to the indirect production costs that…
Q: I want to this question answer for General accounting question not need ai solution
A: Step 1: Detailed Explanation of Net Sales, Gross Profit, and Net IncomeNet Sales refers to total…
Q: Cooper Industries disposed of an asset at the end of the sixth year of its estimated life for…
A: Step 1: Definition of Gain or Loss on Asset DisposalA gain or loss on asset disposal arises when a…
Q: Can you explain the correct approach to solve this general accounting question?
A: Step 1: Definition of High-Low MethodThe High-Low Method is a cost estimation technique used in…
Q: TOSHIBA ended the year with an inventory of $842,000. During the year, the firm purchased $5,467,000…
A: Explanation of Beginning Inventory:Beginning inventory is the value of the inventory a company has…
Q: Solve with accounting
A: Step 1: Detailed Explanation of Return on Assets (ROA)Return on Assets (ROA) measures how…
Q: None
A: Step 1: Detailed Explanation of GoodwillGoodwill is an intangible asset that arises when a company…
Q: I need help with this general accounting question using the proper accounting approach.
A: Step 1: DefinitionsConcept of Gross Profit:Gross profit represents the difference between a…
Q: The contribution margin per unit was?
A: Explanation of Contribution Margin Per Unit: Contribution margin per unit represents the amount each…
Q: The balance in the printing supplies account on September 1 was $8,750, supplies purchased during…
A: Explanation of Supplies Expense:Supplies expense refers to the cost of supplies that have been used…
A copy machine cost $95,000 when new and has accumulated depreciation of $83,000. Suppose Pinnacle Office Supplies sold the machine for $14,000. What is the result of this disposal transaction? A. No gain or loss B. Gain of $2,000 C. Loss of $1,000 D. Loss of $44,000
Step by step
Solved in 2 steps
- Effect of depreciation on net income Einstein Construction Co. specializes in building replicas of historic houses. Bree Andrus. president of Einstein Construction, is considering the purchase of various items of equipment on July 1. 20Y2. for $300,000. The equipment would have a useful life of five years and no residual value. In the past, all equipment has been leased. For tax purposes, Bee is considenng depreciating the equipment by the straight-line method. She discussed the matter with her CPA and learned that although the straight-line method could be elected, it was to her advantage to use the Modified Accelerated Cost Recovery System (MACRS) for tax purposes. She asked for your advice as to which method to use for tax purposes. What factors would you present for Bree’s consideration in the selection of a depreciation method?Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
- Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?Which of the following is not true about the MACRS depreciation system: A salvage value must be determined before depreciation percentages are applied to depreciable real estate. Residential rental buildings are depreciated over 27.5 years straight-line. Commercial real estate buildings are depreciated over 39 years straight-line. No matter when during the month depreciable real estate is purchased, it is considered to have been placed in service at mid-month for MACRS depreciation purposes.
- Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $90,000 cash B. $85,000 cash C. $80,000 cashMontello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans Demolition purchased two jackhammers for 2,500 each with a salvage value of 100 each and estimated useful lives of four years. On January 1, 20-2, a stronger blade to improve performance was installed in Jackhammer A for 800 cash and the compressor was replaced in Jackhammer B for 200 cash. The compressor is expected to extend the life of Jackhammer B one year beyond the original estimate. REQUIRED 1. Using the straight-line method, prepare general journal entries for depreciation on December 31, 20-1, for Jackhammers A and B. 2. Enter the transactions for January 20-2 in a general journal. 3. Assuming no other additions, improvements, or replacements, calculate the depreciation expense for each jackhammer for 20-2 through 20-4.
- Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
