A machine with a book vale of $305,000 has an estimated 6-year life. A proposal is offered to sell the old machine for $390,000 and
Q: Distinguish partnership vs. joint venture
A: Joint venture is the combination of business of two separate companies for the purpose of doing busi...
Q: Total of direct cost of a company that owned by Mr. Kim Kaphwan are $3,000,000, manufacturing overhe...
A: Total direct cost includes: Direct material cost Direct labor cost Direct manufacturing cost Indir...
Q: connection of audit quality on reducing business risk
A: Firm Performance firm performances dependent on variable aspects. 1) internal performance, 2) extern...
Q: 35.The shareholders’ equity of Ceda Corporation is presented below: 10% Preference Share, 2,000 shar...
A: Issue price is the value of share at which the same has been issued by the entity.
Q: n January 1, Puckett Company paid $1.28 million for 64,000 shares of Harrison’s voting common stock,...
A: Solution:- Calculation of the balance in the Investment in Harrison account found in Puckett’s fina...
Q: CPA Ellen Stout performs the audit of the local symphony society. Because of her good work, she was ...
A: An auditor should perform his duties with great skill care and caution.
Q: Proper solution of both the questions
A: Note: Since you have asked multiple question, we will solve the first question for you. If you want ...
Q: A tract of land valued at $50,000 has been given to a corporation in exchange for 1,000 preferred sh...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: ered into a construction agreement in 2018 inal contract price was P20,000,000 but a cl by P2,000,00...
A: Given: Profit or loss of construction contract: the foreseeable loss on the construction contract is...
Q: E7-10 Discounts Nelson Company bought inventory for $50,000 on terms of 2/15, n/60. It pays for the ...
A:
Q: Distinguish Joint venture from joint consortium and joint arrangement?
A: There are many types of business organisation which can be formed to run a business. However, there ...
Q: Fast solve plz
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost rem...
Q: Please help me by showing your solution in good accounting form. Thank you! How much is the Gross ...
A: A company has to recognize revenue and expenses in the year they are earned and incurred, respective...
Q: On January 4, 2018, Watts Co. purchased 40,000 shares (40%) of the common stock of Adams Corp., payi...
A: The calculation of investment value per share has been made as follows:
Q: 33.The shareholders’ equity of Seven Corporation is presented below: 10% Preference Share, 2,000 sh...
A: The shareholders equity section includes all the money related to shareholders.
Q: Show the solution in good accounting form How much is the Gross Profit/Loss Realized in 2019??
A: Percentage of Completion Method: Revenue from performance obligations is recognized over a period o...
Q: Problem 9: You are engaged to perfom an audit of the accounts of the Magpakatatag Corporation for th...
A: Goods are sent to buyer on either one of the FOB basis. It can FOB destination or FOB shipping point...
Q: An accountancy firm had an overhead budget of $51,070 for a period. Actual overheadexpenditure in th...
A: Budgeted overhead absorption rate per hour is calculated by considering budgeted overhead cost...
Q: Revo, Inc. is considering changing its sales price of Product A which is presently P15. Increases an...
A: The decision related to sales price is taken by comparing the profits under all the options, and the...
Q: Martinez Corporation shipped $21,900 of merchandise on consignment to Gooch Company. Martinez paid f...
A: Cost of goods sold = $21900+ 2100)×(65-10%) = $24,000×55% =$13200
Q: Racton Pte Ltd (Racton), is a foreign company incorporated in America. Racton is attracted to the ta...
A: A) Both Branch and subsidiary setting in Malaysia is a good choice, but the choice may depend on the...
Q: The two characteristics of the appropriateness of evidence are a. relevance and reliability. ...
A: The management of the company is the main responsible for preparing the financial statements which m...
Q: Product F is producted for $98 per pound. Product F can be sold without additional processing for $1...
A: Contribution = sales - variable cost
Q: Determine the type of evidence we can get from this audit procedure. Calculate the ratio of cost of ...
A: Audit evidence is information obtained by auditor while performing audit
Q: In 2018, SM Residences entered into a 3-year agreement in to construct a condominium project for a c...
A: A company has to recognize revenue and expenses in the year they are earned and incurred, respective...
Q: A2 1 g Use the following information for Delta Corporation to answer question 1: Year 20X1 2...
A: Given, The firm assumes that the cost of goods sold, all assets (current and fixed), and accounts p...
Q: a) X (30 years) transferred jewellery on May 12,2020 (Sale consideration: Rs. 75,00,000,indexed cost...
A: Assessment year 2021-22: exemption u/s 54F = cost of new house * ( capital gain/net consideration) ...
Q: Coronado Corporation began operations on December 1, 2019. The only inventory transaction in 2019 wa...
A: .Average cost : Cost of Goods available for sale Number of units Purchased
Q: 6. The sufficiency and competency of evidential matter ultimately is based on the: Select one:a. Gen...
A: Auditor is the process of checking and verifying the books of account and financial information of t...
Q: Bank Reconciliation and Adjusting Entries (Appendix 6.1) Odum Corporation’s cash account showed a ba...
A: The question is based on the concept of Bank Reconciliation and Journal Entry.
Q: Blackpink Company purchased land with a building on it, for P2,280,000. It was reliably determined t...
A: Here while analyzing the data it is understand that there is the purchase of land and building and r...
Q: ABC Company provides the following information about its product: Targeted operating income ...
A: We should first understand about the contribution margin ratio to solve this question. Contribution ...
Q: Detailed answer
A: The income tax assessment is guided by the Income Tax Act, 1961, tax rulings by court a...
Q: Percentage of Completion is favored to be used under the following circumstances, except: ...
A: The percentage of completion method reports revenues and expenses in terms of the work completed to ...
Q: bad debt expense is relevant into the followings cycles: a. capital acquisition and payments O b. In...
A: The bad debt expense is the expense created due to non payment from customers.
Q: How much is the Gross Profit/Loss Realized in 2019?
A: Gross Profit: Gross Profit is the difference between the net sales, and the cost of goods sold. Gros...
Q: Problem 2CONSTRUCTION COMPANY is executing a construction project, which is expectedto take three ye...
A: Marketing and selling costs are not included in the cost of construction because they cannot be char...
Q: 29. Unable to arrive at an opinion due to a very significant scope limitation is example of Adverse ...
A: If the financial statement is misstated or the auditor is unable to collect the audit evidence for f...
Q: Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales ...
A: Contribution margin ratio = Total contribution margin/Sales
Q: When the auditor uses supporting evidence for amounts posted to account balances with documentary ev...
A: Auditor uses various confirmation processes to form an opinion on the financial statements. In order...
Q: When the auditor uses supporting evidence for amounts posted to account balances with documentary ev...
A: The term "audit" refers to the process of determining the information's trustworthiness and validity...
Q: Hello please see attached for the question... thank you.
A: The question is based on the concept of accounting ratios. As per Bartleby guidelines we are allowed...
Q: Process Re engineering What is the step by step solution on this exercise?
A: Valuation Assertion in Auditing In a simple word valuation of assertion in auditing which states tha...
Q: 14. . To test for unsupported entries in the journals, the direction of audit testing should be to t...
A: Audit is the process of checking and verifying the authenticity of books of account and it is ensure...
Q: The following information relates to the costs of Carox Limited for November 2021. N$'000 ...
A: Costs are majorly classified into : (1) Direct Costs - Costs that are directly associated with the P...
Q: Morgan Inc. predicts sales of 4,000 frames in May & 14,000 units in June. Target end of month fi...
A: Note : As per the policy, we are supposed to solve first three subparts at a time. Kindly repost the...
Q: Fast solve plz
A: First calculate predetermined overhead = Estimated manufacturing overhead /estimated machine ...
Q: How I have to do the entry for June 30 2021
A: Since, you have asked for specific journal entry, so we will solve the same for you.
Q: Each finished unit of merchandise Haw contains 1.25 cm of Material H. Budgeted sales of merchandise ...
A: Inventory refers to the stock that a company holds for resale purposes or the inventory that has not...
Q: Jan K Jang. Inc entered into a lease contract on January 1, 2017 with Jude Jar Co. for a 6 year leas...
A: “Since you have asked multiple sub-parts, we will solve the first three sub-part for you. If you wa...
A machine with a book vale of $305,000 has an estimated 6-year life. A proposal is offered to sell the old machine for $390,000 and replace it with a new machine at a cost of $473,000. The new machine has a 6-year life with no residual value. The new machine would reduce annual direct labor costs from $91,000 to $74,000. Prepare a differential analysis dated October 3 on whether to Continue with Old Machine (Alternative 1) or Replace Old Machine (Alternative 2).
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Dauten is offered a replacement machine which has a cost of 8,000, an estimated useful life of 6 years, and an estimated salvage value of 800. The replacement machine is eligible for 100% bonus depreciation at the time of purchase- The replacement machine would permit an output expansion, so sales would rise by 1,000 per year; even so, the new machines much greater efficiency would cause operating expenses to decline by 1,500 per year The new machine would require that inventories be increased by 2,000, but accounts payable would simultaneously increase by 500. Dautens marginal federal-plus-state tax rate is 25%, and its WACC is 11%. Should it replace the old machine?A machine with a book value of $246,000 has an estimated six-year life. A proposal is offered to sell the old machine for $217,100 and replace it with a new machine at a cost of $280,000. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $49,800 to $39,800. Prepare a differential analysis dated October 3 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) October 3 Continue withOld Machine(Alternative 1) Replace OldMachine(Alternative 2) Differential Effecton Income(Alternative 2) Revenues: Proceeds from sale of old machine $fill in the blank 8104d10e9fd9003_1 $fill in the blank 8104d10e9fd9003_2 $fill in the blank…A machine with a book value of $250,000 has an estimated six-year life. A proposal is offered to sell the old machine for $320,000 and replace it with a new machine at a cost of $390,000. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $75,000 to $61,000. Prepare a differential analysis dated October 3 on whether to continue with the old machine or replace the old machine. Explain the results.
- A machine with a book value of $250,800 has an estimated 6-year life. A proposal is offered to sell the old machine for $217,300 and replace it with a new machine at a cost of $284,000. The new machine has a 6-year life with no residual value. The new machine would reduce annual direct labor costs from $49,700 to $39,800. Prepare a differential analysis dated October 3 on whether to Continue with Old Machine (Alternative 1) or Replace Old Machine (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) April 11 Continue with Replace Old Differential Old Machine Machine Effect (Alternative 1) (Alternative 2) (Alternative 2) Revenues: Proceeds from sale of old machine Costs: Purchase price Direct labor (6 years) Profit (loss) Should the company continue with the old machine (Alternative 1) or replace the old machine…offered to sell the old machine for $50,500 and replace it with a new machine at a cost of $75,000. The new machine has a five-year life with no residual value. The new machine would reduce annual direct labor costs from $11,200 to $7,400. a. Prepare a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) April 11 Continuewith OldMachine(Alternative 1) ReplaceOldMachine(Alternative 2) DifferentialEffects(Alternative 2) Revenues: Proceeds from sale of old machine $ $ $ Costs: Purchase price Direct labor (5 years) Profit (Loss) $ $ (Can you please explaine how you got this number) $ b. Should the company continue with the old machine (Alternative 1) or replace the old…Nighthawk Inc. is considering disposing of an old machine with a book value of $22,500 and an estimated remaining life of three years. The old machine can be sold for $6,250. A new machine with a purchase price of $68,750 is being considered a replacement. It will have a useful life of three years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $43,750 to $20,000 if the new machine is purchased. The three-year differential effect on profit from replacing the machine is a(n)
- A commercial oven with a book value of $56,160 has an estimated remaining five-year life. A proposal is offered to sell the oven for $17,550 and replace it with a new oven costing $100,320. The new machine has a five-year life with no residual value. The new machine would reduce annual maintenance costs by $19,290. Provide a differential analysis on the proposal to replace the commercial oven. Annual maintenance cost reduction $fill in the blank 1 Number of years applicable fill in the blank 2 Total differential decrease in cost $fill in the blank 3 Proceeds from sale of equipment fill in the blank 4 $fill in the blank 5 Cost of new equipment fill in the blank 6 Net differential decrease in cost from replacing equipment $fill in the blank 7A commercial oven with a book value of $47,460 has an estimated remaining 5 year life. A proposal is offered to sell the oven for $14,830 and replace it with a new oven costing $84,770. The new machine has a 5-year life with no residual value. The new machine would reduce annual maintenance costs by $16,300. Provide a differential analysis on the proposal to replace the commercial oven. Annual maintenance cost reduction $fill in the blank 1 Number of years applicable fill in the blank 2 Total differential decrease in cost $fill in the blank 3 Proceeds from sale of equipment fill in the blank 4 $fill in the blank 5 Cost of new equipment fill in the blank 6 Net differential decrease in cost from replacing equipment $fill in the blank 7A commercial oven with a book value of $87,000 has an estimated remaining 5-year life. A proposal is offered to sell the oven for $8,500 and replace it with a new oven costing $110,000. The new machine has a 5-year life with no residual value. The new machine would reduce annual maintenance costs by $23,000. Provide a differential analysis, in good form, on the proposal to replace the commercial oven.
- Starling Co. is considering disposing of a machine with a book value of $21,200 and estimated remaining life of five years. The old machine can be sold for $5,100. A new high-speed machine can be purchased at a cost of 69,500. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $22,600 to $19,100 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is a(n) a. decrease of $60,970 Ob. increase of $60,970 O c. increase of $46,900 Od. decrease of $46,900Starling Co. is considering disposing of a machine with a book value of $21,600 and estimated remaining life of five years. The old machine can be sold for $5,600. A new high-speed machine can be purchased at a cost of 73,800. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $22,800 to $20,700 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is a(n)Starling Co. is considering disposing of a machine with a book value of $24,500 and estimated remaining life of five years. The old machine can be sold for $5,200. A new high-speed machine can be purchased at a cost of 72,700. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $22,500 to $19,900 if the new machine is purchased. The differential effect on income for the new machine for the entire five years is a.decrease of $54,500 b.increase of $70,850 c.increase of $54,500 d.decrease of $70,850
