Reference no: EM132962720
Problems -
(1) On June 30, 2021, a company sold an old equipment for $24,000. The equipment originally cost $36,000 and had accumulated depreciation to the date of disposal of $15,000. Determine gain or loss from the disposal and Prepare the journal entry on the date of sale.
(2) On May 12, Green Co. purchased for $1,620,000 a tract of land on which a warehouse and office building was located. The following data were collected concerning the property:
Current Assessed Valuation Vendor's Original Cost
Land $600,000 $550,000
Warehouse 400,000 370,000
Office Building 800,000 680,000
$1,800,000 $1,600,000
What are the appropriate amounts that Mooney should record for the land, warehouse, and office building, respectively?
(3) Silver Inc. purchased equipment for $510,000 which was estimated to have a useful life of 10 years with a salvage value of $10,000 at the end of that time. Depreciation has been recorded for 7 years on a straight-line basis. In 2020 (year 8), it is determined that the total estimated life should be 15 years with a salvage value of $5,000 at the end of that time. Calculate the depreciation expense for 2020.
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Evaluate what estimated cost of common equity using capm
: Booher Book Stores has a beta of 0.8. The yield on a 3-month T-bill is 4%. What is the estimated cost of common equity using the CAPM?
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Calculate gross profit and net profit
: Cost of goods sold for the period after returns was $ 320,000. Operational Expenses are $ 50,000. Calculate gross profit and net profit
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Journalize the transactions for Worner Corporation
: Worner Corporation is authorized to issue 100,000 ordinary shares with a $5 par value. Journalize the transactions for Worner Corporation
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What would the new levered equity beta be
: If the firm increases its debt to equity ratio to 1.0, what would the new levered equity beta be according to equation 12.3 in the text?
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Determine gain or loss from the disposal
: The equipment originally cost $36,000 and had accumulated depreciation to the date of disposal of $15,000. Determine gain or loss from the disposal
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Find what is the estimated cost of common equity using capm
: The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 6%. What is the estimated cost of common equity using the CAPM?
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What is the carrying amount of the lease liability
: East Company reported net sales of P2,000,000 in 2014 and P3,000,000 in 2015. What is the carrying amount of the lease liability on December 31, 2014
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Determine if first republic should acquire use npv approach
: Based on the information contained in the case, use the NPV approach to determine if First Republic should acquire the new data processing system.
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Calculate the terminal value of the fund
: The fund matures five years after the last payment is made into the fund. Calculate the terminal value of the fund in 15 years' time to the nearest pound
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