A. 68,000B. 70,000C. 82,000D. 77,000 Jay & Kay partnership's balance sheet at December 31, 2003, reported the following:Total assets100,000Total liabilities20,000Jay, capitalКay, capital40,00040,000On January 2, 2004, Jay and Kay dissolved their partnership and transferred all the assets and liabilitiesto a newly formed corporation. At the date of incorporation, the fair value of the net assets was P12,000more than the carrying amount on the partnership's books. Jay and Kay were each issued 5,000 shares ofthe corporation's P1 par value common stock. Immediately following incorporation, additional paid-incapital in excess of par (share premium) should be credited for

The increase in net asset is to be considered in order to calculate purchase consideration. Total…

Answered: Jay & Kay partnership's balance sheet…

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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Question 23 5.25 pts Find the net present value (NPV) for a proposed project costing $19,534. Assume that the appropriate cost of capital for projects of this risk level, at this company is 13.42%, and the estimated cash flows for the life of the project are as follows: Year 1 $5,871 Year 2 $4,387 Year 3 $11,037 Year 4 Year 5 $6,496 $14,890
Exercise 24-5 Accounting rate of return P2 Information for two alternative projects involving machinery investments follows. Project 1 Project 2 $(90,000) 10,000 12,000 Initial investment..... $(120,000) Salvage value....... 0 Annual income... 15,000 a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred? page 951
D Question 16 A $60,000 outlay for a new machine with a usable life of 15 years is called O replacement expenditure operating expenditure O capital expenditure 4 pts O financing expenditure
3
Question number 37
Question Four Two plants (A) and (B) are suggested to be constructed. Plant (A) with an investment of 105,000$, and Plant (B) with an investment of 25,000 $. End of year 0 1234 Plant (A) (103) Plant (B) (103) 105 25 35 10 35 10 35 10 35 10 35 10 5 a. The net present value at rate of 20 % (2 marks) b. The discounted cash flow rate of return (initial guess 20%). c. Which project you will select and justify your selection.
7
Question 26 of 40 View Policies Show Attempt History Current Attempt in Progress Your answer is incorrect. 0/0.3 E You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your software into its systems and is offering to pay you $486,000 today, plus $486,000 at the end of each of the following six years, for permission to do this. If the appropriate interest rate is 6 percent, what is the present value of the cash flow stream that the company is offering you? (Round factor values to 4 decimal places, e.g. 1.5215 and final answer to 2 decimal places, e.g. 15.25.) Present value $ 2,389 613.89 eTextbook and Media Save for Later Using multiple attempts will impact your score. 20% score reduction after attempt 2 Search Attempts: 1 of 3 used Submit Answer
QUESTION 5Read the information below and answer the following questionsINFORMATIONThe management of Mastiff Enterprises has a choice between two projects viz. Project Cos and Project Tan, each ofwhich requires an initial investment of R2 500 000. The following information is presented to you:PROJECT COS PROJECT TANNet Profit Net ProfitYear R R1 130 000 80 0002 130 000 180 0003 130 000 120 0004 130 000 220 0005 130 000 50 000A scrap value of R100 000 is expected for Project Tan only. The required rate of return is 15%. Depreciation is calculated using the straight-line method.5.4 Benefit Cost Ratio of Project Cos (expressed to three decimal places). 5.5 Internal Rate of Return of Project Cos (expressed to two decimal places) USING INTERPOLATION.
*6 The Chester E Peters recreational center, in its current form, was completed in three phases. Phase 1 was completed in 1980 and cost $3.3M at that time. Phase 2, which cost $8.2M at the time, was completed in 1995. Phase 3 was completed in 2013 and cost $12.5M. How much would the entire project cost (in terms of today’s dollar) if built today (2021)? The BCI values are 6200, 4600, 3300, and 1650 in 2021, 2013, 1995, and 1980, respectively.

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