Financial Accounting Question please answer A machine originally cost $80,000 and hasaccumulated depreciation of $60,000. RyanIndustries exchanges this machine for a new one thathas a fair market value of $65,000, and pays $40,000in cash as part of the exchange.Assume the exchange has commercial substance.What is the result of this exchange?

1: Calculate the book value of the old machineBook Value=Original Cost−Accumulated…

Answered: A machine originally cost $80,000 and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ZY Corporation exchanges its old equipment and USD100,000 cash for new equipment. The old equipment has a book value of USD70,000 and a fair value of USD50,000 on the date of the exchange. The cost of the new equipment would be then recorded at what?
What is the result of the exchange ?
What is the result of this exchange?
Question 2 Your firm would like to take over a manufacturing entity located in Accra, Stacy Ltd. The target company's financial position as of now is presented in the statement of financial position exhibited below. Statement of Financial Position on December 31, 2022 GH₂ ASSETS Current assets Cash Trade and other receivables Inventories Total current assets Noncurrent assets Long-term investments Property, plant, and equipment Total noncurrent assets Total assets LIABILITIES AND EQUITY Current liabilities Bank overdraft Trade payables Interest payable Current tax liability Total current liabilities Noncurrent liabilities Bank loan Obligations under finance lease Total noncurrent liabilities Total liabilities Equity Income surplus Share deals Capital surplus Stated capital Shareholders' fund Total liabilities and equity 35,650.00 380,020.00 89,762.00 505,432.00 20,500.00 1,889,510.00 1,910,010.00 2,415,442.00 14,350.00 480,912.00 11,400.00 28,569.00 535,231.00 90,000.00 75,865.00…
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6. Firm A invests £100m to build a relationship-specific asset, which is necessary to execute its deal with firm B. The asset has scrap value of £20m if the deal fails. The deal is expected to generate £300m in revenues, and economic profit of £200m for firm A, after the investment costs for the relationship-specific asset are taken into consideration. What is the potential maximum size of the hold-up problem, if firm B decides to negotiate aggressively for a better deal after the investment in the relationship-specific asset completes? a. £280m. b. £220m. c. £200m. d. £180m.
Moow Limited is a dairy company which is in the process of negotiating the acquisition of Barry Limited. The management estimates that the acquisition will result in economies of scale and the additional benefits will amount to R30 000 000. Moow (Ltd) is prepared to make a cash payment of R55 000 000 for Barry (Ltd).The following information is available for the two companies: 4.1 Calculate the value of the take-over. 4.2 Calculate the net present value of the proposed take-over. 4.3 Calculate the take-over premium. 4.4 Determine the market price per share after the proposed take-over. Assume that Moow (Ltd) propose to its shareholders that they are willing to peruse a hostile takeover of Barry (Ltd).4.5 Determine SIX (6) takeover defenses that Barry (Ltd) can utilize as a tactic to resist the takeover attempts of Moow (Ltd).
1.
In this question they say that lenders would need a promised payment of 80 million. How is this solved for in question d. How can i derive this mathmatically
Mining company can purchase a drilling machine for GH¢ 50,000. It also has the option to lease the drilling machine for GH¢12,200 a year for a 5-year period. The expected life of the machine is given as 5 years and expected to have a salvage value of GH¢5000 in 5 years’ time. The mining company intends to buy the drilling machine a fair market value at that time. If the mining company decides to buy the machine, it can acquire financing at 20%. The tax rate is 34%. Assume depreciation is on straight line basis and lease rentals are tax deductible. Would you advice the mining company to lease the asset? (Assume payment is made at the end of the year)
Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow -$589,000 0 1 219,000 2 162,000 3 227,000 4 206,000 All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these funds is 6 percent. Assume Anderson uses a required return of 12 percent on this project. อ a. What is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the IRR of the project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. NPV $ 28,171.96 x b. IRR 14.24 %
Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow 0 -$1,180,000 1 355,000 234 420,000 315,000 270,000 All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these funds is 4 percent. If Anderson uses a required return of 8 percent on this project, what are the NPV and IRR of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter your IRR as a percent.) NPV IRR %

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