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The Joshua Company contemplates the replacement of certain machinery. The annual cost of operating the machinery is P138,600, excluding depreciation, while the estimate for the new machinery is P91,800. Cost of the new equipment is P160,000, net of the trade-in allowance, with a useful life estimate of 8 years and no salvage value. Assume an income tax rate of 50% and 8% cost of capital, and straight line depreciation of P20,000 per year. The book value of the old machine is zero.
Problem 1: The average annual return on original investment is
A. 20.88%B. 16.75%C. 29.25%D. 8.375%
Edgar Detoya, tax consultant, began his practice on Dec. 1, 2019. Journalize the December transactions and post to the ledger
Most airlines offer frequent flier mileage awards where a passenger who accumulates enough miles can turn those miles in for an airline ticket at very little extra cost. How should the airlines handle the accumulated mileage at the end of each year?
On December 20x4, the land was appraised at 28,000,000. How much is the impairment loss in 20x4
SMC's incremental borrowing rate 6%. Find whether the lease is an operating or a finance lease from the perspective of Lessor Co.
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Make the entry to record Black Panther Comics Ltd. income taxes for 2016. what Black Panther will report for current and long-term liabilities on its December
The following are planned and actual revenues for Cutting Edge Surgery Center. Because they are one of four surgery centers in the community, the administrator is concerned with his rates in relation to those of his competitors. Determine the volume ..
Identify rental of vacation homes and explain its current treatment. Then, argue whether or not it should be allowed as a general deduction. You can approach this question from an economic, social, revenue, or political perspective.
The ?rm pays a quarterly dividend of $2.50 per share. What is Delos' expected opening price tomorrow if tomorrow is an ex-diyidend date?
Prepare the year-end adjusting journal entries to account for the anticipated sales returns. Assume that all sales are made on credit
Does Tina have a contract of service or a contract for service with Johnson Insurance Brokers? As the company's Payroll Supervisor
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