Essay about quiz 8

Even though Mr. Fordham mentions that he in his “Statement of Cost of Goods Manufactured for Year Ended Dec. 31 1956” that he depreciated $24,000 of Plant and Equipment, I decided to change the depreciation schedule so that PP&E would be fully depreciated by the end of the 5 year period. Thus, I used a straight-line depreciation schedule that accumulated $40,000 worth of depreciation per year, which was spread evenly across the 12 months of this Balance Sheet (or $3,333.33 per month).

One states six steps in which the counselor and child work through the problem, collect data, and set goals. This method is which of the following

The highlighted red answers are the ones that are correct. The simplest way of navigating through this

4. Identify all costs, other than variable costs, for the sales representatives’ distribution strategy. Categorize these costs as investments and fixed costs (per sales representative and for fiscal 2005).

Based on the above income statement data (assume interest income is zero), the company's interest coverage ratio is

f) Yes, Jane can depreciate the vehicle and her jewelry making machine. The equipment can be depreciated with MACRS or

These costs were charged to cost of goods sold. It also was estimated that warranty costs applicable to 20X7 sales amounted to $146,362. Pam found out from Linda Durkee that warranty costs are deductible for tax purposes only as make-good costs are incurred.

1. The first step to evaluating the cash flows is to conduct the depreciation tax flow analysis. Depreciation is not a cash flow, but the depreciation expense lows the taxes payable for the company. As a result, the tax effect of deprecation needs to be calculated as a cash flow. There are two depreciable items on the company's balance sheet the building and the equipment. The equipment is known to have a seven year depreciable life, which will be assumed to be straight line. The building is also assumed to be subject to straight line depreciation, this time of forty years. The tax saving reflects the depreciation expense multiplied by the tax rate, which in this case is assumed to be 28%. The following table illustrates the tax effect in future dollars of the depreciation expense:

The ad has already been produced at a cost of $1,000,000. You capitalized the $2,000,000 cost of showing the ad on television rather than expensing it.

Use the following information for questions 13-16. You are looking at purchasing a widget producing machine that will cost $11 million which will be salvageable in 9 years for $3 million. The machine will increase revenues by $7.5 million per year and will fall into the 30% CCA bracket. You can lease the machine for $2.75 million per year. Your pre-tax cost of debt is 8.5%. Your corporate tax rate is 35%.

f. The midpoint range for straight-line depreciation of transmission equipment is 22 years. The $771 million capitalized in the first quarter would be depreciated for a full year ($35,045,455). The $610 million in the second quarter would be depreciated for 9/12 of the year ($20,795,455). The $743 million

Additional sales dollars to cover the advertising expense = Total Sales Dollars – Unit Price = $3.33 - $2.00 = $1.33

3. Assuming the average value of flight equipment that Delta had in 1993, how much of a difference do the depreciation assumptions it adopted on April 1, 1993 make? How much more or less will its annual depreciation expense be compared to what it would be were it using Singapore’s depreciation assumptions?

ii. Using double- declining method, the first year ending balance of $6,404 is subtracted form the proceeds of the sale netting in a gain of $1,096 on the disposal. Once this is subtracted form the previous years depreciation $4,269, you get a total income statement impact of $3,173.

b) Determine the carrying amount and tax base of the plant at year end. Prepare the