What is the profit margin for this general accounting question? During 2022, Granville Industries reported the following:•Net Sales: $25,000,000•Net Income: $1,250,000.Depreciation Expense: $500,000Beginning Total Assets: $10,000,000••Ending Total Assets: $18,000,000.Property, Plant, and Equipment: $7,500,000Accumulated Depreciation: $1,800,000What is Granville Industries' profit margin?a. 5.0%b. 4.2%c. 6.3%d. 7.5%

Step 1: Define Profit MarginProfit margin is a financial ratio that measures the percentage of net…

Answered: During 2022, Granville Industries…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 29CE

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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?
The information that follows relates to equipment owned by Pearl Limited at December 31, 2023: Cost $8,280,000 Accumulated depreciation to date 920,000 Expected future net cash flows (undiscounted) 6,440,000 Expected future net cash flows (discounted, value in use) 5,842,000 Fair value 5,704,000 Costs to sell (costs of disposal) 46,000 At December 31, 2023, Pearl discontinues use of the equipment and intends to dispose of it in the coming year by selling it to a competitor. It is expected that the costs of disposal will total $46,000. (a1-a3) Your answer is partially correct. Assume that Pearl is a private company that follows ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) 1. Prepare the journal entry at December 31, 2023, to record asset impairment, if any. 2. Prepare the journal entry…
1. Wilkinson Company changed depreciation methods in 2023 from doubledeclining-balance to straight-line. The accumulated depreciation prior to 2023under double-declining-balance was $90,000, whereas the straight-lineaccumulated depreciation prior to 2023 would have been $50,000. Wilkinson’sdepreciable assets had a cost of $250,000, with a $40,000 residual value and an8-year remaining useful life at the beginning of 2023.Requirements:I. Discuss the appropriate accounting treatment for the above. II. Prepare the 2023 journal entry related to the depreciable assets , ifnecessary. Ignore income tax effects. Show workings
The gain or loss on disposal?
Net income for Inkaleb Inc. for 2020 includes the effect of the following transactions involving the sale of fixed assets. Asset Sales Price Cost Gain (Loss)X P20,000 P 80,000 P 10,000Y 25,000 150,000 (18,000)Purchases of fixed assets during 2020 amounted to P340,000. The Accumulated Depreciation account increased P40,000 during 2020. How much is the depreciation expense for 2020?
Presented below is information related to equipment owned by Novak Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value $11,250,000 1,250,000 8,750,000 Dec. 31 6,000,000 Novak intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $25,000. As of December 31, 2025, the equipment has a remaining useful life of 4 years. The asset was not sold by December 31, 2026. The fair value of the equipment on that date is $6,625,000. Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $25,000. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Date Account Titles and Explanation Debit Credit
The information that follows relates to equipment owned by Pearl Limited at December 31, 2020: Cost $9,810,000 Accumulated depreciation to date 1,090,000 Expected future net cash flows (undiscounted) 7,630,000 Expected future net cash flows (discounted, value in use) 6,921,500 Fair value 6,758,000 Costs to sell (costs of disposal) 54,500 At December 31, 2020, Pearl discontinues use of the equipment and intends to dispose of it in the coming year by selling it to a competitor. It is expected that the costs of disposal will total $54,500. Partially correct answer iconYour answer is partially correct. Assume that Pearl is a private company that follows ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 1. Prepare the journal entry at December 31, 2020, to record asset impairment, if any.…
Please solve this question
Mercury Inc. reported net income of $100,000 for 2020. In addition, the income statement reported $20,000 of depreciation expense and a $10,000 gain on the sale of land. The noncurrent assets from the company’s comparative balance sheet are as follows: 12/31/2020 12/31/2021 Increase(Decrease) Land $ 125,000 $ 225,000 $(100,000) Equipment 500,000 400,000 100,000 Accumulated depreciation—equipment (120,000) (100,000) 20,000 There were no disposals of equipment, and all purchases of equipment were for cash. Prepare the “Cash flows from investing activities” section of the statement of cash flows. (note: you are preparing only one section of the Statement of Cash Flows)
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In 2023, BayKing Company sold used equipment for $20,000. The equipment had an original cost of $90,000 and accumulated depreciation as of the date of sale was $69,000. BayKing also purchased held-to-maturity securities for $7,000. What is the gain or loss on the sale of the equipment? Group of answer choices $21,000 gain $1000 loss $14,000 loss $34,000 gain
VIEW PUncles Current Attempt in Progress On December 31, 2025, Vaughn Inc. has a machine with a book value of $1,222,000. The original cost and related accumulated depreciation at this date are as follows. Machine Less: Accumulated depreciation Book value (a) $1,690,000 Depreciation is computed at $78,000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. Date 468,000 Aug. 31, 2026 $1,222,000 A fire completely destroys the machine on August 31, 2026. An insurance settlement of $559,000 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the…

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