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Selecting possibility 2, what would the journal entry look
like?
1-You are o Impair goodwrll on...
Exercise 2-10 On January 1, 2013, Porsche Company acquired the net assets of Saab Company for...
Exercise 2-10
On January 1, 2013, Porsche Company acquired the net assets of Saab
Company for $449,660 cash. The fair value of Saab’s identifiable
net assets was $375,570 on this date. Porsche Company decided to
measure goodwill impairment using the present value of future cash
flows to estimate the fair value of the reporting unit (Saab). The
information for these subsequent years is as follows:
Year
Present Value
of Future Cash Flows
Carrying Value of
Saab’s Identifiable
Net Assets*
Fair...
Problem 1 The Faris Corporation has determined that there may be indicators of impairment for one...
Problem 1 The Faris Corporation has determined that there may be indicators of impairment for one of their assets - an office building that is currently leased out and a cash generating unit (CGU) representing a business unit. Data for the building and CGU follow. The year end is December 31, 20x4. Building Carrying value (20 years remaining, $500,000 residual value) Fair value Costs to sell Future cash flows generated by building (each year to the end of its useful...
1.What constant payment for the next 10 years (starting 1 year from now, 10 payments) would...
1.What constant payment for the next 10 years (starting 1 year from now, 10 payments) would be equivalent to receiving $350 every other year starting 10 years from now. Assume the annual cost of capital is 13%. 2.Suppose you own two assets with the following payouts. (1) $250 at the end of every year starting 1 year from now. The annual cost of capital for these cash flows is 9%. (2) $650 one year from now and a cash flow...
Problem 1 Evergreen Corporation, a calendar year, accrual basis taxpayer, requires a new piece of equipment...
Problem 1 Evergreen Corporation, a calendar year, accrual basis taxpayer, requires a new piece of equipment for use in its manufacturing business. The company would like to determine whether it would be cost beneficial to invest in the equipment and has asked you to determine the present value of the after-tax cost of purchasing the equipment. The equipment will cost $80,000 and qualifies as a 3 year asset under the MACRS classification. Evergreen would use the equipment for 3 years....
please answer all and show all work. 6. You have just started working and would like...
please answer all and show all work.
6. You have just started working and would like to start saving for your retirement. If you would like to accumulate 53 million dollars when you retire in 40 years, how much do you need to save each month in cual amounts of the interest rate is 6% to reach this goal? Assume you start saving one month from today. Use the table of cash flows given below for problems 7 and 8....
16) You are offered an investment that will pay the following cash flows at the end...
16) You are offered an investment that will pay the following cash flows at the end of each of the next five years at a cost of $800. What is the Net Present Value (NPV) if the required rate of return is 12% per year? Period Cash Flow 0 $0 1 $100 2 $200 3 $300 4 $400 5 $500 Remember that Excel’s NPV function doesn't really calculate the net present value. Instead, it simply calculates the present value of...
How would you calculate the journal entry for #13 and what would the exact journal entry...
How would you calculate the journal entry for #13 and what
would the exact journal entry be? note that #8 effects it
lame 9) Accrued wages payable at year-end should be $75,000. 10) On October 1, 2011, $600,000 was paid for a 24-month operating lease for the building. The lease will be expensed evenly over the lease period. 11 on June 1, 2011, a check for $360,000 was issued for a one-year insurance policy to be expensed evenly over the...
1.You and a partner are considering the purchase of a convenience store. The store has annual...
1.You and a partner are considering the purchase of a convenience store. The store has annual sales of $500,000 and is paying annual payroll of $100,000. The cost of goods sold every year is $150,000. The firm has miscellaneous expenses (taxes, insurance, garbage, electricity, natural gas, security, maintenance, property taxes, training, advertising, accounting fees, bank charges, etc.) of roughly $68,000 per year. If depreciation is equal to $16,054 per year what is the Earnings before taxes? 2.Suppose you conduct a...
** THE 6 JOURNAL ENTRIES** 1. Record entry merchandise inventory purchased for cash. 2. Record entry...
** THE 6 JOURNAL ENTRIES**
1. Record entry merchandise inventory purchased for cash.
2. Record entry merchandise inventory purchased for cash.
3. Record sale of inventory for cash.
4. Record entry for cost of goods sold.
5. Record entry for operating expenses paid.
6. Record entry for income tax expenses paid.
Required information [The following information applies to the questions displayed below.) The following information pertains to the inventory of Parvin Company during Year 2 Jan. 1 Apr. 1 Oct....
1. S175.000 is invested in a project at Time o. Over the next 5 years, the...
1. S175.000 is invested in a project at Time o. Over the next 5 years, the project produces $90.000 revenue and $8000 per year in expenses. Draw the gross and net cash flow diagram per year in s for this project. 2. A piece of equipment is purchased for $25.000 at Time 0. Its operating and maintenance (O& M) costs are $1000 in Year I. The O&M costs increase by an additional $500 each year for the next four years....
Exercise 2-10
On January 1, 2013, Porsche Company acquired the net assets of Saab
Company for $449,660 cash. The fair value of Saab’s identifiable
net assets was $375,570 on this date. Porsche Company decided to
measure goodwill impairment using the present value of future cash
flows to estimate the fair value of the reporting unit (Saab). The
information for these subsequent years is as follows:
Year
Present Value
of Future Cash Flows
Carrying Value of
Saab’s Identifiable
Net Assets*
Fair...
Problem 1 The Faris Corporation has determined that there may be indicators of impairment for one of their assets - an office building that is currently leased out and a cash generating unit (CGU) representing a business unit. Data for the building and CGU follow. The year end is December 31, 20x4. Building Carrying value (20 years remaining, $500,000 residual value) Fair value Costs to sell Future cash flows generated by building (each year to the end of its useful...
Problem 1 Evergreen Corporation, a calendar year, accrual basis taxpayer, requires a new piece of equipment for use in its manufacturing business. The company would like to determine whether it would be cost beneficial to invest in the equipment and has asked you to determine the present value of the after-tax cost of purchasing the equipment. The equipment will cost $80,000 and qualifies as a 3 year asset under the MACRS classification. Evergreen would use the equipment for 3 years....
please answer all and show all work.
6. You have just started working and would like to start saving for your retirement. If you would like to accumulate 53 million dollars when you retire in 40 years, how much do you need to save each month in cual amounts of the interest rate is 6% to reach this goal? Assume you start saving one month from today. Use the table of cash flows given below for problems 7 and 8....
How would you calculate the journal entry for #13 and what
would the exact journal entry be? note that #8 effects it
lame 9) Accrued wages payable at year-end should be $75,000. 10) On October 1, 2011, $600,000 was paid for a 24-month operating lease for the building. The lease will be expensed evenly over the lease period. 11 on June 1, 2011, a check for $360,000 was issued for a one-year insurance policy to be expensed evenly over the...
** THE 6 JOURNAL ENTRIES**
1. Record entry merchandise inventory purchased for cash.
2. Record entry merchandise inventory purchased for cash.
3. Record sale of inventory for cash.
4. Record entry for cost of goods sold.
5. Record entry for operating expenses paid.
6. Record entry for income tax expenses paid.
Required information [The following information applies to the questions displayed below.) The following information pertains to the inventory of Parvin Company during Year 2 Jan. 1 Apr. 1 Oct....
1. S175.000 is invested in a project at Time o. Over the next 5 years, the project produces $90.000 revenue and $8000 per year in expenses. Draw the gross and net cash flow diagram per year in s for this project. 2. A piece of equipment is purchased for $25.000 at Time 0. Its operating and maintenance (O& M) costs are $1000 in Year I. The O&M costs increase by an additional $500 each year for the next four years....
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