Compute the cost of this asset

Assignment Help Financial Accounting
Reference no: EM132767568

Question - Adam Smith is considering automating his pin factory with the purchase of a $475,000 machine. Shipping and installation would cost $5,000. Smith has calculated that automation would result in savings of $45,000 a year due to reduced scrap and $65,000 a year due to reduced labor costs. The machine has a useful life of 4 years and falls in the 3-year property class for MACRS depreciation purposes. The estimated final salvage value of the machine is $120,000. Compute the cost of this asset that, by law, may be written off over time for tax purposes?

a. $280,000

b. $380,000

c. $480,000

d. $580,000

Reference no: EM132767568

Questions Cloud

Determine the impairment loss of Asset X and Asset Y : Determine the impairment loss of Asset X and Asset Y. Prepare the (extract) Statement of Comprehensive Income for the year ended 31 December 2019
Determine the selling prices of products Alpha : Determine the selling prices of products Alpha and Beta such that the contribution per direct labour hour is the same for both the products
Accreditation and certification on health service delivery : Describe the benefits of accreditation and certification on health service delivery.
Discuss how a companys philanthropic efforts : Discuss how a company's philanthropic efforts affect the way you view the business? Are you more inclined to patronize a business who makes a point
Compute the cost of this asset : The estimated final salvage value of the machine is $120,000. Compute the cost of this asset that, by law, may be written off over time for tax purposes
Marx missed lot of nuance in his criticisms : I understand Marx missed a lot of nuance in his criticisms, which feminists and other parties made up for in the future.
Christmas is observably popular people in saskatchewan : Christmas is observably popular amongst people in Saskatchewan. I believe there are Manifest and Latent Functions of only celebrating Christmas in the workplace
Create a stepped report based on your table : Create a Stepped report based on your table that views all information classified by one field with any summary calculation. Save the report by your name_Report
Data collections used in diverse populations : Appraise multiple methods of data resources and data collections used in diverse populations.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare a statement of retained earnings for ashwood inc

Prepare a statement of retained earnings for Ashwood for the year ended December 31, 2007. Assume that only single period financial statements for 2007 are presented.

  How much is tardis total equity

How much is Tardis's total equity? Tardis, Inc. has total current assets of $900,000; total current liabilities of $450,000; long-term assets of $300,000

  What is the maximum amount of interest expenditures

What is the maximum amount of interest expenditures that the government would be permitted to report on the bonds for 20X7?

  Compute mycos diluted earnings per share for the year ended

Compute Myco ‘s basic earnings per share for the year ended December 31, 2013. Compute Myco's diluted earnings per share for the year ended December 31, 2013.

  Motivational consulting business

Todd Olson is the owner and operator of Alpha, a motivational consulting business. At the end of its accounting period, December 31, 2013, Alpha has assets of $652,450 and liabilities of $206,170. Net income (or net loss) during 2014, assuming that a..

  Accounts receivable before allowance for doubtful accounts

At the close of its first year of operations, December 31, 2017, Ming Company had accounts receivable of $1,620,000, after deducting the related allowance for doubtful accounts. What should the company report on its balance sheet at December 31, 2017..

  Manufactures several lines of packing equipment

AVF Inc. manufactures several lines of packing equipment. The company considers product reliability and outstanding customer service to be critical to its success. The customer service department is responsible for: Developing aand delivering custome..

  Prepare adjusting journal entry to record bad debt expense

Prepare the adjusting journal entry to record bad debt expense for the year. Accounts receivable are $417,800 at the end of the year.

  Determine the total value of the ending inventory

Ginning inventory 15 units @$6 per unit, first purchase 30 units.Determine the total value of the ending inventory using a perpetual inventory system

  Differentiate between the various aims of appraising project

Assume that a firm is offered 2/10 net 30, indicating that if the account is settled, Differentiate between the various aims of appraising projects.

  Compute the cost of capital of the stock to the firm

The dividend rate is 12%, and the par value of the stock is $100. Compute the cost of capital of the stock to your firm. Show all work.

  Illustrate the annual effective interest rate

Illustrate the annual effective interest rate. A loan is to be repaid by level annual installments at the end of each of the next six years

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