Mega corp. Bougt a realestate, land and machinery at a aution that belonged to a competitor that went under. Sale price (on sale) was 75000000. The real estate profit, land and machinery was bought at that pric Fixing and installation costs at Mega corp. were 7500000 to get everything up and running. Estimated fixed cost market value that Mega

Mega corp. Bougt a realestate, land and machinery at a aution that belonged to a competitor that went under. Sale price (on sale) was 75000000. The real estate profit, land and machinery was bought at that pric Fixing and installation costs at Mega corp. were 7500000 to get everything up and running. Estimated fixed cost market value that Mega

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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DELIBIRD Company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the unit: List price P152,000 Trade discounts and rebates taken 56,000 Installation and assembly cost 3,200 Initial delivery and handling cost 6,400 Purchase discount 2% What is the acquisition cost of the new computer? O94.080 O 105.680 O 103,680 O160.600
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Al Meedaniyah Company business purchased a machine for RO 25,000. The manager estimates the value of the machine to be RO 26000 in the market. If the Business follows Historical Cost concept, the amount to be recorded for Machine is a. RO 5000 b. RO 25,000 c. RO 26,000 d. RO 1,000
Concord Corporation is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Purchase price Accumulated depreciation Annual operating costs O $66000 Old Equipment New Equipment $225000 $500000 $(91000) $94000* O $(26000) 94000 316000 -0- If the old equipment is replaced now, it can be sold for $66000. Both the old equipment's remaining useful life and the new equipment's useful life is 6 years. The net advantage (disadvantage) of replacing the old equipment with the new equipment is 248000
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REVIEW PROBLEM: SALE OF PROPERTY, PLANT AND EQUIPMENT The 1. M. Stoned Company acquired a machine from the Mickey Lobe Corporation on January 1, 20A0. The purchase price of the machine was $100,000, which did not include the 6% sales tax. Installation and delivery charges amounted to $4,000. One of the employees, Bad Wiser, damaged some parts while installing the machine. It cost $500 to repair the damage. The machine has a projected useful life or 10 years. The estimated salvage for the machine is $5,000. REQUIRED: 1. Compute the initial cost of the machine on January 1, 20X6: 100000 +1,000 +6% 6000 110,000 2. Compute the yearly depreciation expense under the straight-line method: 110,000 5,000 10,500 10 3. Show what this machine would look like on the Balance Sheet at the end of 20X9. 4. Assume the machine is sold on December 31, 20X9 for $60,000. Compute the gain or loss on the sale. Show all work clearly!!! (110,000- 60,000)x. 50,000 5. Record the sale.
Q/ A contractor purchase an equipment with a delivered price of (750000$) to operate it in one of his projects. He estimate the cost of this equipment according to the following justification - Total interest rate (including bank interest, storage, insurance, .) =15 % Consumption of (oil, fuel, and grease) =(8.25 S/hr) - Cost of maintenance and repair = 60% of the annual straight line depreciation - salvage value = 150000 S Useful life = (10 years) with (1400 hours used per year). a- Determine the probable cost per hour according to the previous justification. b- After (7 years) of operating the equipment, the contractor recorded all the costs of the equipment as shown in the table blow. He notice the increment in the average consumption and maintenance in the last two years (the 6", and 7th years). Calculate the average cost per hour of the equipment for the first five years, according to the salvage value of the equipment at the end of the 5th year = (200000$). Fuel oil Grease…
A firm bought a used machine 2 years ago for $1500. When new, the machine cost $8000. Today it could be sold for $500. Which of the following statements is true? (a) The fixed cost for operating the machine can be ignored in any analysis. (b) The $8000 purchase price is not included in the analysis. (c) The $1500 paid 2 years ago is included in the analysis. (d) The variable cost of ownership is the difference between what was paid and what the machine is now worth ($1500 – $500 = $1000).
Penrith European Car Sales plc sells a new car with “free” 5,000km and 20,000km maintenance services for a combined price of £41,500. The cost of the car from the manufacturer is £30,000. The two maintenance services normally cost £400 and £600 to do and are charged to casual customers at the rate of £800 and £1,200 respectively. Record all the transactions associated with the sale. Supporting information: The freehold land has a market value of £960,000 if it is to be continued in use as a warehouse. There is a possibility that planning permission could be obtained for a change of use allowing the warehouse to be converted into apartments. If planning permission were to be obtained the company has been advised that the land would have a market value of £2,500,000. The net realisable values on liquidation of the other assets are: • Plant and equipment • Inventory• Trade receivables £1,200,000 £450,000 £1,050,000 An analysis of the payables indicated that…
Amount Descriptions Costs Income (loss) Revenues
A cash gent unit has these net assets: - goodwill: - $10 mProperty: - $15 mPlant Eper:- = $ 25 mThe company is ceviewing Cal for impairment. we Enor the flig information: - selling Price $ 30 mYou are res: - to calculate the recoverable $50 mselling costss $5 mValue in use amount of CaU galloc the impasment loss to the net assets of the company = =