A company purchased an asset for $2,850,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33%, 44.45%, and 14.81%, respectively. What is the book value of the equipment at the end of the project?
A) $211,185.B) $0.C) $633,270.D) $1,900,095.E) $2,638,815.

Answers

Answer 1

Answer:

A) $211,185

Explanation:

The computation of the book value of the equipment at the end of the project is as follows;

Depreciation in Year 1 is

= Asset Price × 33.33%

= $2,850,000 × 33.33%

= $949,905

Depreciation in Year 2 is

= Asset Price × 44.45%

= $2,850,000 × 44.45%

= $1,266,825

And, Depreciation in Year 3 is

= Asset Price × 14.81%

= $2,850,000 × 14.81%

= $422,085

Now

Total Accumulated Depreciation is

= $949,905 + $1,266,825 + $422,085

= $2,638,815

And, finally  

Book Value of the equipment is

= $2,850,000 - $2,638,815

= $211,185

Therefore the correct option is a.


Related Questions

Linda needs fresh fruits and vegetables so she decides to go grocery
shopping. According to Maslow's hierarchy of needs, which category of
needs does this fall under?
A. Physiological
B. Esteem
C. Affiliation
D. Safety

Answers

Answer:physiological

Explanation:

According to Maslow's hierarchy of needs, the Physiological category of needs is this condition. Thus, option A is correct.  

What is  Maslow's hierarchy of needs?

According to Maslow's theory, a model of motivation, a person's conduct is determined by 5 categories of basic human needs. These needs include that physiology, safety, belongingness, respect, and self-actualization.

The base of Maslow’s model of requirements is biological requirements for human survival. They seem to be the things a man needs the most in order to live. Linda chooses to go shopping since she needed fresh produce. shopping.

They encompass the requirements for food, clothing, comfort, rest, and healthcare. At about this level, a human's drive stems from their survival instinct. Therefore, option A is the correct option.

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If you decide not to spend $1,000 you earned at your summer job but instead intend to buy shares in a mutual fund, in terms of aggregate economic accounting you would be:_______.
A) consuming.
B) saving.
C) investing.
D) transferring.

Answers

Answer:

B)saving

Explanation:

Savings in accounting can be regarded as the amount that remains when the

individual's consumer spending is removed from disposable income that is earned by a consumer at a particular iperiod of time. For instance you decide not to spend $1,000 you earned at your summer job but instead intend to buy shares in a mutual fund, in terms of aggregate economic accounting you would be saving.

We opened the doors to Data Driven Donuts last year. What type of analysis tells us how we performed the first year?

Answers

Answer:

Descriptive

Explanation:

Any company,business or organization that want to know how well they performed in the first year of their business or first year of operation will have to make use of DESCRIPTIVE ANALYSIS reason been that this type of ANALYSIS will help to collect data, analysed and summarize the data in details in order to interprete and present the data in a more useful way.

Therefore the type of analysis tells us how we performed the first year is called DESCRIPTIVE ANALYSIS

A stock just paid an annual dividend of $1.8. The dividend is expected to grow by 8% per year for the next 3 years. The growth rate of dividends will then fall steadily (linearly) from 8% after 3 years to 5% in year 6. The required rate of return is 12%.
1. What is the current stock price if the dividend growth rate will stay 0.05 (5%) forever after 6 years?
2. In 6 years, the P/E ratio is expected to be 23 and the payout ratio to be 80%. What is the current stock price when using the P/E ratio?

Answers

Answer:

1.

The current stock price is $28.71

2.

The current stock price is $149.15

Explanation:

1.

We need to calculate the present value of the dividends with each growth

First calculate the dividend each year

Year _________________________ Dividend

1 _____( $1.8 x ( 1 + 8% )^1__________ $1.9440

2_____( $1.8 x ( 1 + 8% )^2__________ $1.1664

3_____( $1.8 x ( 1 + 8% )^3__________ $2.2675

4_____( $2.2675 x ( 1 + 7% )________ $2.4262

5_____( $2.4262 x ( 1 + 6% )________ $2.5718

6_____( $2.5718 x ( 1 + 5% )_________ $2.7004

Calculate  the present value of each years dividend

Year _________________________ present value

1 _____( $1.9440 / ( 1 + 12% )^1 __________ $2.1773

2_____$1.1664 / ( 1 + 12% )^2___________ $0.9298

3_____$2.2675 / ( 1 + 12% )^3___________$0.7118

4_____$2.4262 / ( 1 + 12% )^4___________$1.5419

5_____$2.5718 / ( 1 + 12% )^5___________ $1.4593

6_____$2.7004 / ( 12% - 5% ) / ( 1 + 12% )^5_$21.8897

Total _____________________________ $28.7098

Hence priec of the stock is $28.71

2.

First calculate dividend of Year 6

Dividend = EPS x Payout ratio = 23 x 80% = $18.40

Present value = $18.4 / ( 12% - 5% ) / ( 1 + 12% )^5 = $149.15

Burke tires just paid a dividend of $2.42. analysts expect the company's dividend to grow by 30% this year, 20% next year (year 2), 10% the following year (year 3), and then 5% in each subsequent year. if the required return to the stock is 8.3%, what is the best estimate of the stock's current market value (please enter the value to the penny)?
a. $60.34.
b. $59.48.
c. $59.91.
d. $58.62.
e. $59.05.

Answers

Answer:

There is no correct answer is these options. But the correct answer is $113.41

Explanation:

The formula to solve this is:

Po = D1/r - g

Po is the Current price of the common stock

D1 is the future dividend payment

r is the rate of return

g is the growth rate.

This is quite different from the usual(single stage). This is Two-stage Dividend Discount Model. To solve this;

D1(Dividend in year 1) is $3.15( $2.42 x 1.3)

D2(Dividend in year 2) is $3.78(3.15 x 1.2)

D3(Dividend in year 3) is $4.15($3.78 x 1.1)

D in subsequent years is $4.36(4.15 x 1.05)

P3(price of stock in year 3) = $4.36/0.083 - 0.05

=$132.12

Now the stock's current market value is

$3.15/1.08 + $3.78/1.08^2 + $4.15/1.08^3 + $132.12^3

The price of the stock is $113.41

1. Park Co. is considering an investment that requires immediate payment of $31,500 and provides expected cash inflows of $12,000 annually for four years. What is the investment's payback period?
2. Park Co. is considering an investment that requires immediate payment of $21,530 and provides expected cash inflows of $6,500 annually for four years. If Park Co. requires a 7% return on its investments. What is the internal rate of return?
3. Peng Company is considering an investment expected to generate an average net income after taxes of $3,400 for three years. The investment costs $50,400 and has an estimated $10,200 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation.

Answers

Answer:

1. Park Co. is considering an investment that requires immediate payment of $31,500 and provides expected cash inflows of $12,000 annually for four years. What is the investment's payback period?

payback period = $31,500 / $12,000 = 2.625 years

2. Park Co. is considering an investment that requires immediate payment of $21,530 and provides expected cash inflows of $6,500 annually for four years. If Park Co. requires a 7% return on its investments. What is the internal rate of return?

using a financial calculator, the IRR = 8%

the IRR is the discount rate that makes a project's NPV = 0

3. Peng Company is considering an investment expected to generate an average net income after taxes of $3,400 for three years. The investment costs $50,400 and has an estimated $10,200 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation.

depreciation per year = ($50,400 - $10,200) / 3 = $13,400

net cash flows:

year 0 = -$50,400cash flow year 1 = $3,400 + $13,400 = $16,800cash flow year 2 = $3,400 + $13,400 = $16,800cash flow year 3 = $3,400 + $13,400 + $10,200 = $27,000

NPV = -$50,400 + $16,800/1.1 + $16,800/1.1² + $27,000/1.1³ = -$50,400 + $49,442.52  = -$957.48

If an economy experiences deflation, then the overall price level is increasing. the aggregate price level is declining. the aggregate price level is rising, but not as quickly as it did in the previous year. the prices of all goods in the economy are decreasing. the prices of consumer goods are decreasing while the prices of raw materials are increasing.

Answers

Answer:

If an economy experiences deflation, then

the prices of all goods in the economy are decreasing.

Explanation:

Generally, deflation is an economic condition whereby there is a decrease in the general price level of goods and services.  As the opposite of inflation, deflation occurs when the inflation rate falls below 0%.  During deflation, consumers spend less money on goods and services because of the decreasing demand.  This demand drop with increasing supply leads to a general decline in prices, with organizations trying to sell off their inventory.

Answer:

C. An aggregate price level is declining.

Explanation:

literally doing this same assignment right now in ECON2301, C was the right answer on mine

An early 1970s government study ("Work in America") identified three chief sources of worker dissatisfaction. Which of the following is one of those sources?

Answers

Answer:

The right approach is "The rigidity of rules and regulations".

Explanation:

Laws, as well as regulations throughout the red tape, are also rigid as well as unyielding. Clear, simple to comprehend. Because once we speak about administrative management, there have been many disadvantages to something like the mere implementation of that kind of principle to administer any organization.

Maybe that's why the aforementioned is indeed the easiest alternative.

Question 14
When a products selling price and variable expenses both decrease by 7% (assuming no change to fixed expenses)- what would be the effect on the CM per unit and the CM ratio?
Contribution marrin per unit
Decrease
Decrease
No change
No change
Contribution marrin ratio
Decrease
No change
Decrease
No change

Answers

Answer:

Decrease

No change

Explanation:

As we know that

Contribution margin ratio = [(Sales - Variable Costs) ÷ (Sales) ]

Now in the case when the selling price and the variable cost would decreased by 7% so the sales and variable cost would decreased by the similar amount so there is no change in the contribution margin ratio

Also

Contribution Margin per Unit = Sales revenue per Unit - Variable Expenses per unit

Now if the  selling price and the variable cost would decreased by 7% so the contribution margin would also decrease

A medical doctor is involved in a $1 million malpractice suit. He can either settle out of court for $250,000 or go to court. If he goes to court and loses, he must pay $825,000 plus $175,000 in court costs. If he wins in court the plaintiffs pay the court costs. Identify the actions of this decision-making problem. Remember, what an action is, something that the decision maker decides to do...

Answers

Answer:

there are two different actions in this decision making problem:

action 1: go to court and defend himselfaction 2: settle out of court and pay money to the plaintiff

Explanation:

When you are solving a problem and need to make to a decision, the actions are the result of what decision you finally decided to make. In this case, the doctor can decide to go to court or not. If he decides to go to court, he will have to defend himself in court. If he decides not to go to court, he will need to settle with the plaintiff without engaging in a court trial.

To prevent concurrent access of records, a transaction requires a ____ prior to data access. key grain timestamp lock

Answers

Answer:

Lock

Explanation:

Locks is a mechanism to avoid the access of records from interacting with one another either in the form of user objects for example tables and/or rows or system objects not cannot be seen by the user such as data shared in memory.

The system (Oracle) obtains all the required locks when executing the transaction request so as to avoid any hassle faced by the user and so that they don't require to be bothered by it. This way the system provides both highest degree of data monitoring with lowest restriction.

Moreover, a fail safe data integrity is provided by the system in case of any failure. This lock can also be done manually by the user.

Click this link to view O*NET’s Education section for Municipal Clerks. According to O*NET, what are the top two most common levels of education required for Municipal Clerks?

high school diploma or its equivalent
some college, no degree
associate degree
bachelor’s degree
master’s degree

Answers

Answer:

Explanation:

aa

Answer: A and D

Explanation:

i tried the answers on these comments and they were wrong.

A company sold equipment that originally cost $260,000 for $130,000 cash. The accumulated depreciation on the equipment was $130,000. The company should recognize a:__________
A. $130,000 loss.
B. $0 gain or loss.
C. $65,000 loss.
D. $130,000 gain.
E. $65,000 gain.

Answers

Answer:

B. $0 gain or loss.

Explanation:

The computation of the company recognized in the given situation is shown below:

Equipment cost $260,000

Less: Accumulated depreciation -$130,000

Book value $130,000

And, the sale value is $130,000

Since the book value and the sale value are equivalent to each other that means there is no gain or loss

hence, the correct option is B

And all the other options are incorrect

Zoom, Inc. makes a sale for $600. The company is required to collect sales taxes amounting to 7%. The journal entry to record the sale will include a: ___________.
a. credit to Cash for $642.
b. credit to Sales Revenue for $600.
c. debit to Cash for $600.
d. credit to Sales Revenue for $642.
e. debit to Sales Tax Payable for $42.

Answers

Answer:

b. credit to Sales Revenue for $600.

Explanation:

The sales tax is 7% of the sales price which is $600

Sales tax=7%*$600=$42

The journal entries for this transaction would have a debit of $642(sales price plus sales tax i.e $600+$42=$642) in the cash account and not credit as shown by option a.

Also, sales revenue would be credited with sales price of $600 while sales tax payable is credited with the amount of sales tax which is $42( not a debit as shown by option e)

The Chester Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,090,000. What will the book value of this purchase (exclude all other plant and equipment) be after its third year of use? (Use FASB GAAP
a) $32,720,000
b) $29,448,000
c) $35,446,667
d) $33,538,000

Answers

Answer: d) $33,538,000

Explanation:

Use straight line depreciation and find the annual depreciation.

= (40,900,000 - 4,090,000) / 15

= $‭2,454,000‬

In 3 years, the depreciation is;

= ‭2,454,000‬ * 3

= $‭7,362,000‬

Net book value = 40,900,000 - ‭7,362,000‬

= $‭33,538,000‬

Financial markets make the process of borrowing large amounts of money easier because they simplify the negotiation process between borrowers and lenders. This is an example of:

Answers

Answer:

Reducing risk

Explanation:

The two ways by which risk can be managed are;

✓ Risk avoidance

✓ risk reduction

risk reduction are activities needed to bring about lower likelihood of risk as well as severity of loss. We can reduce risk through reduction of allocation of our resources to risky situation. An example of reducing risk is in the instance of Financial markets that are making the process of borrowing large amounts of money easier because they simplify the negotiation process between borrowers and lenders.

Which method might allow a company to make significant inventory purchases at year end for the purpose of manipulating income?

Answers

Answer:

LIFO

Explanation:

LIFO is an abbreviation of “Last-In, First-Out”. It can be regarded as a method that is devices in cost flow assumption purposes which is used to calculate cost of goods sold , it works with assumption that latest product is added to Inventory of a company can be first sold out. It should be noted that LIFO method might allow a company to make significant inventory purchases at year end for the purpose of manipulating income.

A recipe for macaroni and cheese calls for 18 ounces of cheddar cheese to make 32 four-ounce portions. How much would cheddar would be needed to produce 40 eight-ounce portions?

Answers

Answer: 45 ounces of cheddar cheese is required to make 40 eight-ounce portions.

Explanation:

To find : Quantity of cheddar cheese required to make 40 eight-ounce portions.

Given: Quantity of cheddar cheese required to make 32 four-ounce portions. = 18 ounces

⇒  Quantity of cheddar cheese required to make 1 four-ounce portions. = [tex]\dfrac{18}{32}[/tex] ounces.

⇒  Quantity of cheddar cheese required to make 1 eight-ounce portions. = [tex]2\times \dfrac{18}{32}[/tex] ounces.

[tex]=\dfrac{18}{16}[/tex] ounces.

⇒  Quantity of cheddar cheese required to make 40 eight-ounce portions =

[tex]40\times\dfrac{18}{16}=45[/tex]

Hence, 45 ounces of cheddar cheese is required to make 40 eight-ounce portions.

the following is an example of _____ stop by our store this Saturday between 2 and 4 to get a free gift
A-a call to action
B-white space
c- a unique selling proposition
D- cultural sensitivity

Answers

Answer: a call to action

Explanation:

The following is an example of a call to action stop by our store this Saturday between 2 and 4 to get a free gift. The correct option is A. Your call to action is the section of your advertisement that instructs your target audience on what they should do after clicking on your PPC ad and arriving at your website or landing page.

What is the main goal of a call to action?

CTAs are used all across the web to entice potential leads or convert existing leads into customers. Their goal is to entice the visitor to do a specific activity.

A call-to-action is a short statement on your website, email, or another piece of content that encourages visitors to perform some desired action, which eventually continues their contact with your company.

Thus, the ideal selection is option A.

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On January 2, 2017, Hannah Company sold a machine for $1,000 that it had used for several years. The machine cost $12,000, and had accumulated depreciation of $8,000 at the time of sale. What gain or loss will be reported on the income statement for the sale of the machine?

Answers

Answer:

Loss= -$3,000

Explanation:

Giving the following information:

Selling price= $1,000

Purchase price= $12,000

Accumulated depreciation= $8,000

First, we need to calculate the book value:

Book value= 12,000 - 8,000= $4,000

If the book value is higher than the selling price, the company loses from the sale:

Gain/loss= selling price -  book value

Gain/loss= 1,000 - 4,000

Loss= -$3,000

PLEASE HELP ME IM STUCK ON THIS

Answers

C because it’s something you pay every month
It’s C because it’s a monthly thing. You pay for it every month until it’s canceled.

g Obligations to be paid within one year or the company's operating cycle, whichever is longer, are:

Answers

Answer:

Current liabilities

Explanation:

Liabilities are debts that a company owes to other parties. They are classified based on when payment is due.

Those due within a short period are called current liabilities while those due in the distant future are called long term liability.

Current liability payments falls within one year or the operating cycle of a business whichever is longer.

They occur as a result of purchases made on credit payable in a short period

As a discipline, Governance is most closely related to:

Answers

Answer:

control

Explanation:

governance is the action or manner of governing.

Mary's team is located in different countries. Because of the time zone differences, it is difficult for the team to meet all together so their meetings are conducted ________.

Answers

Answer:

Asynchronously

Explanation:

With regards to the above, the meeting would be conducted asynchronously due to the different time zone in each team member's country. What this means that the meeting will not be taken place at the same time or in a real time due to the differences in time zones.

Where a meeting is conducted asynchronously, such would be easy to schedule because attendees would have to adjust their own time unlike synchronous meeting where everyone would be expected to clear their schedule for a specific time to hold the meeting.

Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 1,000,000 shares of common stock with a par of $1. The following transactions affecting stockholders’ equity were completed during the first year of operations:

Issued 100,000 shares of stock at par to Paul Glenn for cash.

Issued 3,000 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and issued 45,000 shares of stock at par to Michele Kirby for cash.

Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $180,000 for 20 years at 6%, and there is accrued interest of $5,200 on the mortgage note at the time of the purchase. The corporation agreed to assume responsibility for paying the mortgage note and accrued interest. It is agreed that the land is to be valued at $60,000 and the building at $225,000 and that Gretchen Northway will be issued stock at par.

Journalize the entries to record the transactions.

Answers

I just needed some points to figure things out i don’t do anything else

n 2012, per capita spending on health care in the United States was about $9,000. If this amount increased by 7 percent a year, what would be the amount of per capita spending for health care in 8 years

Answers

Answer:

The amount of per capita spending for healthcare in 8 years, would be:

$15,460.

Explanation:

a) Data and Calculations:

Per capita spending on healthcare in the US in 2012 = $9,000

Rate of increase of per capita spending on healthcare = 7%

Period of years for the per capita spending on healthcare = 8 years

Future value can be determined using the Future Factor of 1.718 * $9,000 = $15,462

Using online finance calculator yields:

FV (Future Value) $15,463.68

PV (Present Value) $9,000.00

N (Number of Periods) 8.000

I/Y (Interest Rate) 7.000%

PMT (Periodic Payment) $0.00

Starting Investment $9,000.00

Total Principal $9,000.00

Total Interest $6,463.68

What is the present value of $6,000 to be received at the end of each of eight periods, assuming the first payment occurs at the end of the fourth year and an interest rate of 10%?
a. 36, 454
b. 24 049
c. 32010
d. 38970

Answers

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Annual payment= $6,000

Number of payments= 8

Total years to PV= 12

Interest rate= 10%

First, we need to calculate future value:

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {6,000*[(1.1^8) - 1]} / 0.06

FV= $114,358.88

Now, the present value:

PV= FV/(1+i)^n

PV= 114,358.88/1.1^12

PV= $36,438.26

If you are falling behind on your student loan payments, which of the following steps should you take to avoid default?

Answers

Answer:

These are the answer choices for the question:

A. Transfer your balance to a credit card

B. File for bankruptcy

C. Contact your lender

D. You cannot default on student loans

And this is the correct answer:

C. Contact your lender

Explanation:

If you are about to default on your student loans, the best alternative you have is to contact your lender in order to renegotiate the terms of the loan. This is because you cannot default on student's loan, so filing for bankruptcy is not an option, and transferring the debt to a credit card is not a good idea because credit card debt usually has higher interest.

Which activity does the IRS allow nonprofit organizations to engage in?

advertising tax deductions for donations
compensating business owners based on profits
selling pharmaceuticals if it is a healthcare organization
increasing the value of shareholder’s investments

Will give brainliest to correct answer!

Answers

Answer: advertising tax deductions for donations

Explanation:

The activity does the IRS allow nonprofit organizations to engage in is

advertising tax deductions for donations.

What is IRS?

It stands for Internal revenue service that administered the federal tax laws. In this, it contains the processing of tax return, tax payer service, and the enforcement.

So based on this, we can say that The activity does the IRS allow nonprofit organizations to engage in is advertising tax deductions for donations.

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Marginal revenue: A) is the slope of the average revenue curve. B) equals the market price in perfect competition. C) is the change in quantity divided by the change in total revenue.

Answers

Answer:

B) equals the market price in perfect competition.

Explanation:

Marginal revenue can be defined as the amount of money (revenue) generated from the sales of an additional unit of a product.

In a perfectly competitive market in long-run equilibrium, a long-run equilibrium avails firms the opportunity to adjust all inputs and all fixed costs are maximized. Also, it's characterized by free entry and exit, as such there isn't a fixed number of firms. This simply means that, since the number of firms in a long-run equilibrium can change, a firm must exit the market as a result of losses i.e when the firm is unable to cover its fixed costs in the long-run while new firms are allowed entry into the market when it anticipates potential profits or gains.

Hence, marginal revenue equals the market price in perfect competition.

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