REQUIRED: Prepare the journal entries relating to the reversal of the impairment loss in the 2021 year of assessment

Q: A project has the following net profit after tax set out below. The average book value of the assets…

A: ARR is one of the capital budgeting tools that can be used by an investor to evaluate a proposed…

Q: EE printing is in the evaluation process for the acquisition of a new computer system. The total…

A: Payback period is a financial metric used to evaluate the length of time it takes to recoup the…

Q: Based upon the information below, what is the value of the company as of 1/1/2021 (use the APV…

A: Here,…

Q: Lab Uni Berhad has the following development costs in the last 2 years: 2019: RM2,500,000 2020:…

A: Lets understand the IAS 38 "Intangible asset". As per IAS 38, all cost incurred on the research…

Q: after tax cash flow

A: Depreciation = Cost of the asset * Rate of recovery Cost of the asset $500,000 Rate of recovery…

Q: An equipment's with 5 years useful life is with initial cost of $5,000. After 5 years, the…

A: Cost = $5,000Salvage Value after 5 years = 0Useful life = 5 yearsCapital gains tax rate = 30%Sale…

Q: The Fleming Manufacturing Company is considering a new investment. Financial projections for the…

A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…

Q: Initial equipment cost=$100,000 Market value at the end of 6 years = $6,000 Use MACRS…

A: Cashflow:Cashflow is a financial metric that represents the movement of money in and out of a…

Q: A property is for sale with an asking price of $2.75 million. The property is assumed to increase in…

A: Debt coverage ratio refers to the ratio which states the amount of operating income available for…

Q: Required information Complete the last four columns of the table below using an effective tax rate…

A: Macrs stands for modified accelerate cost recovery system. Is a depreciation method for tax purposes…

Q: Suppose you sell a fixed asset for $85,000 when it's book value is $100,000. If your company's…

A: Calculation of After-tax Cash Flow:The after-tax cash flow is $88,150.Excel Spreadsheet:

Q: A company that decides to value a project in which it wants to enter, presents the information in…

A: NPV means PV of net benefits which will arise from the project in coming years. It is equal to the…

Q: Equipment with a book value of $11,000 will be sold at the end of a project for a salvage value of…

A: The objective of the question is to calculate the tax effect resulting from the profit or loss from…

Q: Compare the alternatives below on the basis of their capitalized costs with adjustments made for…

A: Capitalized cost is the cost which is the incurred while making purchase of fixed assets. It…

Q: Pertinent information for two alternatives A and B is shown below. If i=10%/year and income tax rate…

A: Companies invest money in projects in the hope there will be cash flows from the project in the…

Q: Suppose you sell a fixed asset for $99,000 when its book value is $75,000. If your company's…

A: The fixed assets are reflective of all such assets which are helpful for company in the deriving the…

Q: A flatbed truck is to be purchased by HaulCo for $70,000. The truck is a Class 16 asset. HaulCo's…

A: Capital cost allowance (CCA) is one of the methods of charging depreciation expense. This method is…

Q: ch year for the next 5 years. The asset effective tax rate of 20%, and an aft is economically…

A:

Q: Compare the alternatives below on the basis of their capitalized costs with adjustments made for…

A: Capitalized cost Capitalized cost refers to expenses that are summed to the cost basis of a fixed…

Q: after tax WACC: 10.10%   investment related cash flows: invoice price of machinery: $500,000…

A: Here, WACC is 10.10% Selling Price per unit is $250 with 2.5% inflation Cost per unit is $185 with…

Q: Suppose you sell a fixed asset for $112,000 when its book value is $112,000. If your company's…

A: Cash flow is the movement of money in and out of a company.

Q: Stuart Rentals can purchase a van that costs $105,000; it has an expected useful life of three years…

A: Payback Period: The payback period is the amount of time it will take for you to recoup the cost of…

Q: An asset costing £20,000 is expected to last three years when it can be sold for £16,000. The tax…

A: Capital allowance on assets is also known as Depreciation expenses which is charged on assets every…

Q: Using the following information, calculate the operating profit margin ratio for the Sleepy Z Ranch…

A: The operating profit margin is calculated by subtracting the cost of goods sold and selling, general…

Q: Besh Company had an investment which cost $260,000 and had a salvage value at the end of its useful…

A: To calculate the average investment value, we need to divide the initial investment cost by 2 since…

Q: MARCS life will be purchased for $10,000 years then it It produces $2,000 per year for 6 will be…

A:

Q: Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective…

A: Since the MACRS recovery is 5 years the depreciation rates will be seen in the MACRS table which are…

Q: 0,000 and the firm spent $20,000 for shipping, at the end of its life the machine could be sell for…

A: Depreciation reduce the quantity of tax a corporation or organisation pays by tracking the reduction…

Q: 7. Complete the last four columns of the table below using an effective tax rate of 40% for an asset…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Harper Corporation recently sold a used machine for $50,000. The machine had a book value of $75,000…

A: The Loss or Gain on a machine is computed by comparing the purchase price to its Netbook value. A…

Q: A machine could be purchased for £800,000; it would be used for 3 years and then sold for £580,000.…

A: NPV(Net present value) is a capital budgeting technique which is used when the company wants to…

Q: Consider an asset that you purchase for $183.836. Its nominal resale value after 3 years of…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: The table below shows a condensed income statement and bal- ance sheet for a plant. Calculate the…

A: EVA is economic value added, which is the additional operating profit after tax earned based on…

Q: An asset with 5-year MACRS life will be purchased for $12,000. It will produce net annual benefits…

A: Rate of return refers to the income from the investment annually expressed in a form of a…

Q: Should the company replace an old machine based on this information? Accurately calculate the Net…

A:

Q: Maymay & James purchased an item valued at $147,000. They paid $22,050 down and financed the rest at…

A: Loans are paid by the equal annual payments and these payments carry payment for interest and…

Q: What is the present worth of the after-tax cash flows?

A: We have to use Modified Accelerated Cost Recovery SystemDepreciation will be as follows:Here…

Q: 289,000. The asset will be placed in a 20% CCA asset class and qualify for the Accelerated…

A: As per the accelerated investment incentive measure,the qualifying asset is eligible for…

Q: The following present value factors are provided for use in this problem.   Periods Present Value…

A: Net present value method is used to evaluate the investment projects. We can evaluate the project by…

Q: Baird Rentals can purchase a van that costs $110,000; it has an expected useful life of five years…

A: Payback period= Purchase cost / Expected revenue per year

Q: fe (economic life)                 5 Tax rate…

A: Operating margin can be calculated from the operating profit and total assets used for that.

Q: AZA Ltd is considering the purchase of a machine for R2 750 000, which would be sold after seven…

A: In accountancy, machine is a form of asset and is reported under the asset side of the balance…

Q: A firm buys a piece of equipment for $115,866.00 and will straight-line depreciate it to zero over…

A: Annual depreciation=(Cost-Residual value)/Useful life=(115866/5)=$23173.2/yearAnnual tax…

Q: A person plans to purchase a model A equipment for Rp. 31,000,000. Another alternative is a model B…

A: Here, To Find: NPV =? IRR =? Tool to choose =?