
Excellence in Business Communication (12th Edition)
12th Edition
ISBN: 9780134319056
Author: John V. Thill, Courtland L. Bovee
Publisher: PEARSON
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Chapter 8, Problem 7LOC
Summary Introduction
To determine:
Three message points of simple requests
Introduction:
The most common types of routine messages are asking for information or action, asking.
for recommendations and making claims and requesting adjustments. Most simple requests can be handled with three message points.
What you want to know or what you want your readers to do, why you are making the request (not required in all cases) and why it may be in your readers’ interests to help you (not applicable in all cases).
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Please explain the correct approach for solving this financial accounting question.
In 2026, Maple Leafs Co. sells its single machine, which cost $100,000 and has an undepreciated capital cost (UCC) of $25,000 for tax purposes. For financial reporting, the machine has carrying amount of $40,000. The sale price of the machine is $30,000. Aside from the sale of the machine, the company has other income (before taxes) of $600,000, which includes non-taxable dividends of $120,000 dollars received during the year. There are no other permanent or temporary differences. The company faces an income tax rate of 35%.
Required
Provide the journal entries for the company for 2026.
Blue Jays Corporation started operations on March 1, 2025. It needs to acquire a special piece of equipment for its manufacturing operations. It is evaluating two options as follows.
Option 1: Lease the equipment for 5 years. Lease payments would be $11,000 per year, due at the beginning of each fiscal year (March 1). Blue Jays incremental borrowing rate is 5%. There is not a bargain purchase or renewal option. Blue Jays is responsible for all non-lease costs of operating the equipment.
Option 2: Purchase the equipment for $50,000 by borrowing the full purchase amount at 5% over 5 years. This price is considered the fair value of the equipment. Payments are due at the end of each fiscal year (February 28).
The equipment has a useful life of 5 years and would be depreciated on a straight-line basis. No residual value is expected to exist at the end of 5 years.
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Chapter 8 Solutions
Excellence in Business Communication (12th Edition)
Ch. 8 - Prob. 1LOCCh. 8 - Prob. 2LOCCh. 8 - Prob. 3LOCCh. 8 - Prob. 4LOCCh. 8 - Prob. 5LOCCh. 8 - Prob. 6LOCCh. 8 - Prob. 7LOCCh. 8 - Prob. 8LOCCh. 8 - Prob. 9LOCCh. 8 - Prob. 10LOC
Ch. 8 - Prob. 11LOCCh. 8 - Prob. 12LOCCh. 8 - Prob. 14LOCCh. 8 - Prob. 15LOCCh. 8 - Prob. 16LOCCh. 8 - Prob. 17LOCCh. 8 - Prob. 18LOCCh. 8 - Prob. 8.1AYKCh. 8 - Prob. 8.2AYKCh. 8 - Prob. 8.3AYKCh. 8 - Prob. 8.4AYKCh. 8 - Prob. 8.5PYSMFACh. 8 - Prob. 8.6PYSMFACh. 8 - Prob. 8.7PYSMFACh. 8 - Prob. 8.8ECh. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Prob. 8.11ECh. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Prob. 8.16ECh. 8 - Prob. 8.17ECh. 8 - Prob. 8.18ECh. 8 - Prob. 8.19ECh. 8 - Prob. 8.20ECh. 8 - Prob. 8.21ECh. 8 - Prob. 1EYSCTPCh. 8 - Prob. 1SYCKO
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