Keating
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A: Answer: - Quality control policies and procedures should be implemented at both the level of the aud...
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A: Internal rate of return is the rate at which the present value of cash inflows will be equal to the ...
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A:
Q: plz solve it within 30-40 mins with explanation I'll give you multiple upvote
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A: Gross income: It implies to the income before deducting for any operating expenses incurred by the b...
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A: Accounting Elements:- Assets, Liabilities, Equity, Capital, Drawings, Revenue, and Expenses are the ...
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A: Total expenses for the month of January = utilities used for January + Amount paid to employees for...
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A: Answer) Calculation of Raw Materials purchased during the period Direct Materials Consumed during th...
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A: When a company accepts note payable, it is recorded as a liability and the cash is received. The adj...
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A: To close the income summary to retained earnings, the income summary account is debited, and retaine...
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A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to...
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A: Solution : Equivalent units of production for materials using FIFO = Units in beginning WIP * % comp...
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A: Answer: Any GST on purchases will be used as credit for payment to be made. Dealer is in Bihar and t...
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A: 1) The amount of lease liability to be reported is Present value of annual lease payments at inter...
Q: A local Sports Authority ordered 40 pairs of tennis shoes from Nike Corporation. The shoes were pric...
A: Lets understand the basics here. Sellers for the attracting early payment from the buyers gives the ...
Q: what is the importance of each assertion in the audit of inventories
A: Audit of inventory has the following assertions which are enumerated as below:
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A: Risk of assessing control risk means that internal controls will not able to prevent or detect the m...
Q: What is recalculated cost?
A: Cost: It implies to the amount that is paid or spent on a specified task or activity. It indicates t...
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A: Trial balance: It implies to a two column financial worksheet that shows all the assets, revenue, ex...
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A: Impairment refers to the decline in the value of an asset. It is a loss to the company and charged t...
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A: Solution... Net realizable value at split off point Wan Tu Tri Por total Unit...
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A: Explanation : The Philippines has adopted the IFRS Standards as Philippine Financial Reporting Stand...
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A: Overhead refers to the business costs as well as expenses that are not attributed directly in order ...
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A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: To obtain an understanding of the relevant policies and procedures of internal control, the auditor ...
A: INTERNAL CONTROLS ARE THE RISK MITIGATION STEPS TAKEN TO STRENGTHEN THE ORGANIZATION'S SYSTEMS AND P...
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A: >Planned Budget is the static budget prepared on the basis of budgeted level and budgeted rates.&...
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A: SOLUTION- NOTE= IN THAT QUESTION SUBSCRIPTION FOR PREFERENCE SHARES NOT CLEAR SO WE ASSUME 2000 S...
Q: revaluation or restatement of assets and liabilitie:
A: Equity is calculated by deducting total liabilities from total assets. It can be more clearly identi...
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A: Loss on Disposal = P5,000
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A: Answer: solution concept when taxable income is greater than accounting income it results in deferre...
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A: Solution 1: True, A profit center manager often also supervise revenue and cost center manager becau...
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A: *As per Bartleby guideline, if questions are interlinked then answer first three only. Fixed asset i...
Q: Lace Specialties manufactures, among other things, woolen blankets for the athletic teams of the t...
A: Budget refers to the statement that is prepared based on the estimations for the revenue and expendi...
Q: FALSE
A: False Explaination: If financial information is used to predict future outcome then we can say finan...
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A: Transaction current assets current liabilities Income - Increase (Decrease) P3,900,0...
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A: Since we answer only one subpart, we will answer the first subpart. Please resubmit the question and...
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A: Contribution is the amount which is computed by deducting variable costs from the sales amount.
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A: No. of shares issued = Value of Land / Issue price per share = 450000/120 = 3750 shares
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A: Solution: Retained earnings balance on December 31 = Beginning retained earnings + Net income - Divi...
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A: Solution:- a) Computation of taxable income and income taxes payable for 2020 as follows:- Note:- To...
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A: The profit is recognized by an entity at the instance where the assets are increasing, or the liabil...
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A: Gross salary = (40 hours x $20) + (45 hours - 40 hours) x $30 = $950 FICA taxes...
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A: Solution: Absorption costing net operating income for year 1 = Variable costing net operating income...
Keating Co. is considering disposing of equipment that cost $65,000 and has $45,500 of
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- Keating Co. is considering disposing of equipment with a cost of $62,000 and accumulated depreciation of $43,400. Keating Co. can sell the equipment through a broker for $28,000, less a 9% broker commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $47,000. Keating will incur repair, insurance, and property tax expenses estimated at $12,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is Oa. $6,664 Ob. $11,424 Oc. $14,280 Ⓒd. $9,520Keating Co. is considering disposing of equipment with a cost of $66,000 and accumulated depreciation of $46,200. Keating Co. can sell the equipment through a broker for $32,000, less a 5% broker commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $45,000. Keating will incur repair, insurance, and property tax expenses estimated at $9,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative isKeating Co. is considering disposing of equipment with a cost of $74,000 and accumulated depreciation of $51,800. Keating Co. can sell the equipment through a broker for $33,000, less a 7% broker commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $49,000. Keating will incur repair, insurance, and property tax expenses estimated at $12,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is Oa. $4,417 Ob. $7,572 Oc. $9,465 Od. $6,310 Previous Next 7:36 PM 12/13/2020 CP DELL
- Hull Manufacturing Co. must decide whether to purchase or lease a new piece of equipment. The equipment can be leased for $4,000 a year or purchased for $15,000. The lease includes maintenance and service. The salvage value of the equipment at the end of five years is $5,000. If the equipment is owned, service and maintenance charges (a tax-deductible cost) would be $900 a year. The firm can borrow the entire amount at a rate of 15% if they buy. The tax rate is 50%. Which method of financing would you choose? Use the following capital cost allowance amounts. Year Amount $4,500 3,150 2,205 1,543 1,081 2 3 4Robert Cooper is considering purchasing apiece of business rental property containing storesand offices at a cost of $250,000. Cooper estimatesthat annual disbursements (other than income taxes)will be about $12,000. The property is expected toappreciate at the annual rate of 5%. Cooper expectsto retain the property for 20 years once it is acquired.Then it will be depreciated as a 39-year real-propertyclass (MACRS), assuming that the property will beplaced in service on January 1st. Cooper’s marginaltax rate is 30% and his MARR is 15%. What wouldbe the minimum annual total of rental receipts thatwould make the investment break even?Moore & Moore (MM) is considering the purchase of a new machine for $50,000, installed. MM will use the MACRS accelerated method to depreciate the machine, which is classified as 5-year property (see the following MACRS table for depreciation rates). MM expects to sell the machine at the end of its 4-year operating life for $10,000. If MM's marginal tax rate is 40%, what will the after-tax cash flow be when it disposes of the machine at the end of Year 4? Annual depreciation rates for years 1 through 6 are respectively as follows: 20%, 32%, 19%, 12%, 11%, 6%. A. $7,656 B. $8,059 C. $8,484 D. $8,930 E. $9,400
- McPherson Company must purchase a new milling machine. The purchase price is $50,000, including installation. The machine has a tax life of 5 years, and it can be depreciated according to the following rates. The firm expects to operate the machine for 4 years and then to sell it for $12,500. If the marginal tax rate is 40%, what will the after-tax salvage value be when the machine is sold at the end of Year 4? Depreciation Rate Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 a. $10,900 b. $9,837 c. $8,878 d. $9,345 e. $10,335 0.20 0.32 0.19 0.12 0.11 0.06A local delivery company has purchased a delivery truck for $15,000. The truck will be depreciated under MACRS as a five-year property. The truck's market value (or selling price) is expected to be $2,500 less each year. The O&M costs are expected to be $3.000 per year. The firm is in a 40% tax bracket, and its MARR is 15%. Compute the annual-equivalent cost for retaining the truck for a two-year period, which will be(a) $5,527 (b) $5.J75 (c) $5,362 (d) $5,014Dave's Demolitions Inc. is considering purchasing $697,400 of equipment for a four- year project. The equipment falls in the five-year MACRS class. At the end of the project the equipment can be sold for an estimated $135,000. If the tax rate is 23 percent, what is the amount of the after-tax salvage value of the equipment?
- Pike Industries is considering selling excess machinery with a book value of $150,000 (original cost of $475,000 less accumulated depreciation of $325,000) for $72,500 less a 5% brokerage commission. Alternatively, the machinery can be leased out for a total of $107,500 for five years, after which it is expected to have no residual value. During the period of the lease, Pike Industries' costs of repairs, insurance, and property tax expenses are expected to be $40,000. a. Prepare a differential analysis report for the lease or sell decision. PIKE INDUSTRIES Proposal to Lease or Sell Machinery Differential Analysis Report Differenti revenue from alternatives: Differential cost of alternatives: b. Based on the data presented, which is the most appropriate plan of action?Delta Electric Company expects to have an annual taxable income of $500,000 from its residential accounts over the next two years. The company is also bidding on a two-year wiring service job for a large apartment complex. This commercial service requires the purchase of a new truck equipped with wirepulling tools at a cost of $50,000. The equipment falls into the MACRS five-year class and will be retained for future use (instead of being sold) after two years, indicating no gain or loss on this property. The project will bring in additional annual revenue of $200,000, but it is expected to incur additional annual operating costs of $100,000. Compute the marginal tax rates applicable to the project'soperating profits for the next two years.Comey Products has decided to acquire some new equipment having a $220,000 purchase price. The equipment will last four years and is in the MACRS 3-year class. (The depreciation rates for Year 1 through Year 4 are 0.3333, 0.4445, 0.1481, and 0.0741.) The firm can borrow at a 7% rate and pays a 25% federal-plus-state tax rate. Comey is considering leasing the property but wishes to know the cost of borrowing that it should use when comparing purchasing to leasing and has hired you to answer this question. What is the correct answer to Comey's question? Do not round intermediate calculations. Round your answer to the nearest dollar.
