Calculating the capital cost

Assignment Help Accounting Basics
Reference no: EM133146880

Question - A laboratory bought a CNC machine for $25,000. The accounting department has estimated that the machine would have an annualized capital cost of $3,880 over its 10-year service life. What salvage value was assumed in calculating the capital cost? The firm's interest rate is known to be 10%.

Reference no: EM133146880

Questions Cloud

What was the balance of x limited retained profits : During 2029, X Limited earned revenue of $1,000 and a net profit of $200. What was the balance of X Limited's retained profits at 1 January 2029
Develop a balance sheet : Marion has a muffin shop located in a rented 1200 square foot building in a small town of approximately 10,000 people. Develop a balance sheet
Journalize the transactions for the month : Jan 11 Received a long-term loan from VTBC Bank for $ 45,000 by cheque and bought stationery for cash $12,000. Journalize the transactions for the month
Compute the irr under this new assumption : Assume that instead of $15,800, the salvage value in 15 years for the new equipment will be $0. Compute the IRR under this new assumption
Calculating the capital cost : A laboratory bought a CNC machine for $25,000. What salvage value was assumed in calculating the capital cost
Discuss any three high-risk impact scam security breaches : Discuss any three high-risk impact Scam security breaches, mechanism of these Scam security breaches impacted Australian users and organisations
Write an expression to represent your total costs for week : Cost, Revenue, Profit - You decide to begin selling bags of peanuts at the local fairground. Write an expression to represent your total costs for week
Expatriates assigned to international assignment : Define and describe the advantages and disadvantages of expatriates assigned to an international assignment.
How quickly does the company pay its debts : Assume a banker is interested in finding answers to the following questions about a company applying for a loan. How quickly does the company pay its debts

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the journal entry for vaughn

At December 31, 2017, Vaughn Corporation had a deferred tax liability of $642,200, Prepare the journal entry for Vaughn to adjust the deferred tax liability

  Dfine and describe the term intangible asset what major

define and describe the term intangible asset. what major characteristics differentiate intangible assets from other

  Assume the shareholders equity of the transacting

Indicate by letter whether each of the transactions listed below increases (I), decreases (D), or has no effect (N) on retained earnings.

  How many units did serene purchase

Serene Corporation had 25,000 units of brake calipers on hand at the end of 2015. How many units did Serene purchase in 2016

  What is the adjusted basis for the warehouse

Richard acquired a warehouse for business purposes on August 30, 1998. What is the adjusted basis for the warehouse

  List ten items to be included in a due diligence checklist

List 10 items to be included in a due diligence checklist. Buying a business involves careful consideration of many issues and as such should be undertaken

  What is the probability of Barilaro stock return exceeding

Barilaro's annual stock returns are assumed to be normally distributed with a mean of 0.08 and a standard deviation of 0.04. What is the probability of Barilaro

  Determine the tax consequences of the transactions

Determine tax consequences of the following transactions - Tractor Corp receives $100,000 of interest income from a Bank based on its checking account balance

  Determine the real interest rate that the company must pay

Due to lack of liquidity, a company needs a short-term loan of $2,500 to be able to buy its merchandise. Determine the real interest rate that the company pay

  Calculate the variance

A business estimated Sale Revenue of $210,000 for the first quarter. The actual Sale Revenue is $220,000. Calculate the variance

  Compute the operating expenses for one travel

Cost Function for Travel Services One Travel provides travel services on the Internet. 2011 was an important year for One Travel.

  Determine the maximum CCA deduction for rental properties

Determine the maximum CCA deduction for the rental properties for the current year. Income tax reference: Reg. 1100(11), 1101(1ac)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd