Falcon Enterprises starts the year with $15,000 in its cashaccount, $12,500 in its equipment account, $3,000 inaccumulated depreciation, and $22,000 in its retainedearnings account. During the year, Falcon Enterprises sells theequipment for $9,200.After the sale of equipment is recorded, the retained earningsaccount will have a balance of $

Calculation of Book Value of the EquipmentBook Value of the Equipment = Equipment Cost - Accumulated…

Answered: Falcon Enterprises starts the year with…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

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Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EB: Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of...

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Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of $1,200, paid installation fees of $2,750, pays annual maintenance cost of $250, and received a 10% discount on sales price. Determine the acquisition cost of the equipment.
ory Enterprises pays $256,400 for equipment that will last five years and have a $45,400 salvage value. By using the equipment in its operations for five years, the company expects to earn $90,300 annually, after deducting all expenses except depreciation. Calculate annual depreciation expenses using double-declining-balance method.Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming double-declining-balance depreciation.
Tory Enterprises pays $238,400 for equipment that will last five years and have a $43,600 salvage value. By using the equipment in its operations for five years, the company expects to earn $88,500 annually, after deducting all expenses except depreciation. Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming double-declining-balance depreciation is used.
Delta Tech uses the straight line method.
Tory Enterprises pays $254,400 for equipment that will last five years and have a $45,200 salvage value. By using the equipment in its operations for five years, the company expects to earn $90,100 annually, after deducting all expenses except depreciation. Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming straight-line depreciation is used.
DeltaTech uses the straight-line method. Assets purchased between the 1st and 15th of the month are depreciated for the entire month; assets purchased after the 15th of the month are treated as though they were acquired the following month. On September 18, 20X3, DeltaTech purchases a scanner for $12,000, which it expects to last for 6 years. DeltaTech expects the scanner to have a residual value of $3,000. What is the 20X4 depreciation expense for the scanner? Help
DeltaTech uses the straight-line method. Assets purchased between the 1st and 15th of the month are depreciated for the entire month; assets purchased after the 15th of the month are treated as though they were acquired the following month. On September 18, 20X3, DeltaTech purchases a scanner for $12,000, which it expects to last for 6 years. DeltaTech expects the scanner to have a residual value of $3,000. What is the 20X4 depreciation expense for the scanner? Need help
A machine can be purchased for $80,000 and used for five years, yielding the following Income. This income computation Includes annual depreciation expense of $16,000. Income Year 1 $5,300 Year 2 $13,300 Year 3 Year 4 Year 5 $35,000 $19,900 $53,200 Compute the machine's payback period. Note: Round payback period answer to 2 decimal places. Year Net Income Depreciation Net Cash Flow Cumulative Net Cash Flow Initial invest $ (80,000) $ (80,000) Year 1 $ 5,300 Year 2 13,300 Year 3 35,000 Year 4 19,900 Year 5 53,200 Payback period=
Required information [The following information applies to the questions displayed below.] Tory Enterprises pays $256,400 for equipment that will last five years and have a $45,400 salvage value. By using the equipment in its operations for five years, the company expects to earn $90,300 annually, after deducting all expenses except depreciation. Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming straight-line depreciation is used. Year 1 Year 2 Year 3 Year 4 Year 5 Totals 8 O Income Before Depreciation $ reciation Expense 0 $ 6 delete home 10
George Company has the opportunity to purchase an asset that costs $40,000. The asset is expected to increase net income by $10,000 per year. Depreciation expense will be $5,000 per year. Based on this information the payback period is: A) 4 years. B) 2.5 years. C) 2.67 years. D) 8 years.
Daly Publishing Corporation recently purchased a truck for $30,000. Under MACRS, the first year’s depreciation was $6,000. The truck driver’s salary in the first year of operation was $32,000. The company’s tax rate is 30 percent. Required: 1-a. Calculate the after-tax cash outflow for the acquisition cost and the salary expense. 1-b. Calculate the reduced cash outflow for taxes in the first year due to the depreciation.
Southern inc. purchases an asset for 98,000. Thus asset qualifies as a 3 year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1= 33.33% year 2: 44.45% year 3= 14.81% and year 4 = 7.41%. Southern has a tax date of 25%. If the asset is sold at the end of 2 years for 29,000 what is the cash flow disposal ? 17,404 11,129 13,923 21,755 27,194

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