nix Wednesday TAX-4: Hanks Company The Hanks Company has the following income statement for the year ended December 31, 2016: Subscription revenue Interest revenue on municipal bonds Total revenues $250,000 4.500 254,500 Expenses: Subscription costs Wages Rent expense Depreciation on equipment Insurance expense Total expenses Income before tax 120,000 30.000 15,000 45,000 8,000 218.000 36,500 Hanks Company has the following...
this question is already posted, but the answer is wrong. The answer is NOT $8290 and 1843 units please show ALL calculations Pacific Inc. is considering adding a new production line. The additional fixed cost investment is $82,900 and the variable cost is $31.50 per unit. The expected life is 10 years and MARR= 10%. If the product can be...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $49,000, and Machine B costs $70,000. Estimated annual cash flows with the two machines are as follows: Year Machine A $-6,000 -8,000 -8,000 -8,000 -6,000 -5,000 -4,000 Machine B $-7,000 -4,000 -3,000...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $50,000, and Machine B costs $58,000. Estimated annual cash flows with the two machines are as follows: Year von AWN- Machine A $-6,000 -8,000 -8,000 -8,000 -6,000 -5,000 -4,000 Machine B $-7,000...
BE9.6 (L02) Depreciation information for Corales Company is given in BE9.4. Assuming the declining- balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method. BE9.4 (LO 2) Corales Company acquires a delivery truck at a cost of $38,000. The truck is expected to have a salvage value of $6,000...
LESSEE ACCOUNTING – PROBLEM 1 ABC Company (ABC), on January 1, 2019, enters into a 10-year noncancelable lease for equipment having an estimated useful life of 10 years. XYZ Corp.’s implicit interest rate is 8%. ABC uses the straight-line method to depreciate its assets. The lease contains the following provisions: 1. Rental payments of $200,000 at the beginning of each...
th) e MDC Company Lid is investigatin four dillerent investinent opportunities. in ivu Lisur Sturly 1 . TOHUWSIisns in millinn Project Project 2 Project Project 4 Investment Required (Tshs) V T 480 160 270 450 PV of cash flows (Tshs) 567.27T133. 4 336.14 522.97 NPV (Tshs! 87.2? ?3. 1 6 6.14 72.97 Life of Project (Ycars! The conjuny's required rate...
thorough and no excel solutions please:) need answers for parts a-c A firm is considering the following projects. Its opportunity cost of capital is 10%. Cash Flows, $ Project Time: 2 +1,825 +4,300 +1,825 3 +4,650 +3,650 -8,300 -4,300 -8,300 +1,825 В +4,650 +8,300 +1,825 +4,650 a. What is the payback period on each project? Project A | years Project...
You have been asked to prepare the financial statements for Neema Corp. a private Canadian corporation, for the year ended December 31, 20X4. The company began operations in early 20X4. The following information is available about its business activities during the year. a. On 2 January, Neema issued no par common shares for $300,000 b. On 3 January, machinery was...
QUESTION TWO Salvador Ryan is an accountant and the Director of his accounting practice, Darwin Taxation Services Pty Ltd. The following figures do not include GST. The company receipts ard payments for the year ended 30 June 2017 are as follows: Receipts 600,000 25,000 17,000 Professional accounting fees Sales of Do-It-Yourself Superannuation guides Dividend received from an Australian company franked...