Sheridan Company purchases a new delivery truck for $53,000. The sales taxes are $4,200. The logo of the company is painted on the side of the truck for $1,000. The truck's annual license is $180. The truck undergoes safety testing for $300. What does Sheridan record as the cost of the new truck?
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The cost of new truck!
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- Cullumber, Inc. is considering the purchase of a warehouse directly across the street from its manufacturing plant. Cullumber currently warehouses its inventory in a public warehouse across town. Rent on the warehouse and delivering and picking up inventory cost Cullumber $50880 per year. The building will cost Cullumber $477000. Cullumber will depreciate the building for 20 years. At the end of 20 years, the building will have a $132500 salvage value. Cullumber's required rate of return is 12%. Click here to view the factor table. Using the present value tables, the building's net present value is (round to the nearest dollar) O $1017600. O $46077. O $393783. O $-83217.The Luna Corporation is trying to decide if they should purchase a Truck for hauling material which costs $625,400. The Truck will require $30,600 of working capital and major maintenance in years 3, year 5, and year 7. The major maintenance will cost $50,000 in years 3 and 5 and $65,000 in years 7. The truck will increase the net income by $185,750 in years 1 through 4, and $91,250 in years 5 through 7. At the end of year 7, the company expects to sell the truck for 5% of the cost that they paid for it. Calculate the net present value of the Truck using a 10% rate of return. Show your work and indicate if the Luna Corporation should purchase the Truck. (Round to the nearest dollar)Denger
- A sports car dealership owns several Mustang cars that are not selling as expected. The cars were purchased 3 years ago, each for $ 800,000. Currently, the agency plans to keep the cars for 3 more years. The FMV for a 3-year-old car is $ 890,000 and for a 5-year-old non-car is $ 700,000. Annual costs for fuel, maintenance, taxes, etc. they are $ 120,000. The replacement option is to change them for the new model. The annual cost of change is $ 240,000 with annual operating costs of $ 900,000. Should the agency sell Mustangs and change the model if the MARR is 15%?A Rolls-Royce cost $233,000 when you bought it 4 years ago. Due to the enhancements you have made to the vehicle, it was recently appraised at $255,000. If you sell the car, you will pay a $20,400 luxury tax. Currently, you are leasing your Rolls-Royce for $1,450/month to a limousine company and paying average service fees on the car of $270/month. The car’s annual registration with the Pennsylvania Department of Motor Vehicles costs $3,200. You are deciding whether to sell the Rolls or use it as your full-time family car. What value should you place on your Roll-Royce when analyzing the option of driving the car full time? a. $255,000 b. $234,600 c. $229,680 d. $233,000 e. $0Munoz Freight Company owns a truck that cost $47,000. Currently, the truck's book value is $ 22,000, and its expected remaining useful life is four years. Munoz has the opportunity to purchase for $29,000 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $6,500 per year more than fuel cost for the new truck. The old truck is paid for but, in spite of being in good condition, can be sold for
- Can you answer this general accounting question?Perez Freight Company owns a truck that cost $46,000. Currently, the truck's book value is $23,000, and its expected remaining useful life is four years. Perez has the opportunity to purchase for $31,300 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $5,700 per year more than fuel cost for the new truck. The old truck is paid for but, in spite of being in good condition, can be sold for only $15,000. Required Calculate the total relevant costs. Should Perez replace the old truck with the new fuel-efficient model, or should it continue to use the old truck until it wears out? Replace With Keep Old New Total relevant costs Should Perez replace or continue the old truck?Zachary Freight Company owns a truck that cost $36,000. Currently, the truck's book value is $23,000, and its expected remaining useful life is four years. Zachary has the opportunity to purchase for $26,000 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $6,600 per year more than fuel cost for the new truck. The old truck is paid for but, in spite of being in good condition, can be sold for only $17,000. Required Calculate the total relevant costs. Should Zachary replace the old truck with the new fuel-efficient model, or should it continue to use the old truck until it wears out? Total relevant costs Should Zachary replace or continue the old truck? Keep Old Replace the old truck. Replace With Now
- The list price of a secondhand van was P300,000 at a local car dealership. However, a customer convinced the dealer to sell the van for P250,000 (the van had cost the dealer P200,000). The amount of revenue that would be recognized as a result of the sale is:Roadrunner Freight Company owns a truck that cost $42,000. Currently, the truck’s book value is $24,000, and its expected remaining useful life is four years. Roadrunner has the opportunity to purchase for $31,200 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $6,000 per year more than fuel cost for the new truck. The old truck is paid for but, in spite of being in good condition, can be sold for only $14,400.Calculate the total relevant costs. Should Roadrunner replace the old truck with the new fuel-efficientmodel, or should it continue to use the old truck until it wears out? Keep Old Replace with New Total Relevant CostRoadrunner Freight Company owns a truck that cost $42,000. Currently, the truck’s book value is $24,000, and its expected remaining useful life is four years. Roadrunner has the opportunity to purchase for $31,200 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $6,000 per year more than fuel cost for the new truck. The old truck is paid for but, in spite of being in good condition, can be sold for only $14,400.RequiredCalculate the total relevant costs. Should Roadrunner replace the old truck with the new fuel-efficient model, or should it continue to use the old truck until it wears out?
