• Q : What is the simple rate of return on the investment....
    Accounting Basics :

    The initial investment would be for equipment that would cost $196,000 and have a 7 year life with no salvage value. The annual depreciation on the equipment would be $28,000. what is the simple rat

  • Q : Compensating balance required....
    Accounting Basics :

    If Analog computers can borrow at 9.5% for 3 years, what is the effective rate of interest on a $800,000 loan where a 15% compensating balance is required?

  • Q : What is the simple rate of return on the investment....
    Accounting Basics :

    The equipment would cost $430,000 and have a 5 year life with no salvage value. what is the simple rate of return on the investment ?

  • Q : What is the simple rate of return on the investment....
    Accounting Basics :

    The equipment would cost $747,000 and have a 9 year life with no salvage value. The annual depreciation would be $83,000. what is the simple rate of return on the investment ?

  • Q : Capitalized cost of the land....
    Accounting Basics :

    The cost of title insurance was $900 and attorney fees for reviewing the contract was $500. Property taxes paid were $3,000, of which $250 covered the period subsequent to the purchase date. The cap

  • Q : Quoted market prices of evans....
    Accounting Basics :

    On January 1, 2011, Evans Company granted Tim Telfer, an employee, an option to buy 1,000 shares of Evans Co. stock for $25 per share, the option exercisable for 5 years from date of grant. Using a

  • Q : What is the simple rate of return on the new machine....
    Accounting Basics :

    Unfortunately, the new machine would have no salvage value. The new machine would cost $20,000 per year to operate and maintain, but would save $100,000 per year in labor and other costs. The old ma

  • Q : Proportionate liquidating distribution consisting investment....
    Accounting Basics :

    William's basis in the WAM Partnership interest was $100,000 just before he received a proportionate liquidating distribution consisting of investment land (basis of $30,000, fair market value $40,0

  • Q : What is the payback period of the project....
    Accounting Basics :

    The scrap value of the project's assets at the end of the project would be $25,000. what is the payback period of the project ?

  • Q : What gain or loss does terri recognize....
    Accounting Basics :

    Terri receives $30,000 cash and accounts receivable with a $20,000 basis and a $22,000 fair market value to the partnership. What gain or loss does Terri recognize, and what is her basis in the acco

  • Q : What is the payback period of the project....
    Accounting Basics :

    The incremental annual revenues and expenses generated by the project during those 7 years would be as follows: The scrap value of the project's assets at the end of the project would be $28,000. w

  • Q : What is the payback period for the investment....
    Accounting Basics :

    The company has projected the following annual cash flows for the investment. Assuming that the cash inflows occur evenly over the year, what is the payback period for the investment ?  

  • Q : Remaining basis in the partnership interest....
    Accounting Basics :

    In addition, Sam's share of partnership liabilities was reduced by $20,000 during the year. How much gain or loss does Sam recognize; what is his basis in the property he received; and what is his r

  • Q : What is the payback period for this machine in years....
    Accounting Basics :

    A company with $800,000 in operating assets is considering the purchase of a machine that costs $75,000 and which is expected to reduce operating costs by $20,000 each year. what is the payback peri

  • Q : What is james gain or loss on the sale....
    Accounting Basics :

    James receives a gift of rare books valued at $10,000. The books have an adjusted basis of $6,000 to the donor. Several months later, James sells the books to a professional collector for $9,000. Wh

  • Q : What is the payback period for this project....
    Accounting Basics :

    Jarvey Company is studying a project that would have a ten-year life and would require a $450,000 investment in equipment which has no salvage value. The project would provide net operating income

  • Q : What is your estimate of the stocks current price....
    Accounting Basics :

    The company's stock has a beta equal to 1.2, the risk-free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stock's current price?

  • Q : What is the profitability index of the project....
    Accounting Basics :

    The management of Crail Corporation is considering a project that would require an initial investment of $51,000. No other cash outflows would be required. The present value of the cash inflows woul

  • Q : Statement regarding transactions....
    Accounting Basics :

    According to double-entry accounting, which of the following is a correct statement regarding transactions?

  • Q : Rank the projects according to the profitability index....
    Accounting Basics :

    The present value of the cash inflows would be $42,180 for Project O, $53,900 for Project P, and $91,910 for Project Q. Rank the projects according to the profitability index, from most profitable t

  • Q : What is the profitability index of the project....
    Accounting Basics :

    Glassett Corporation is considering a project that would require an investment of $62,000. No other cash outflows would be involved. The present value of the cash inflows would be $70,060. what is t

  • Q : Accrued receivable for financial reporting....
    Accounting Basics :

    At the December 31, 2010 balance sheet date, Unruh Corporation reports an accrued receivable for financial reporting purposes but not for tax purposes. When this asset is recovered in 2011, a future

  • Q : What amount of short-term debt....
    Accounting Basics :

    If the stock is sold for $20 per share subsequent to the balance sheet date, but before the balance sheet is issued, what amount of short-term debt could be excluded from current liabilities?

  • Q : Find out the amount of inventory....
    Accounting Basics :

    Based on the preceding information, will the company show finished goods inventory on its balance sheet? If so, what is the amount of this inventory? If not, explain why not.

  • Q : Starter model using abc costing....
    Accounting Basics :

    The company expects to incur $56,400 of total inspecting costs this year. How much of the inspecting costs should be allocated to the Starter model using ABC costing?

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