Golden flights inc is considering buying some specialized

Assignment Help Accounting Basics

Reference no: EM13595794

Golden Flights, Inc., is considering buying some specialized machinery that would enable the company to obtain a six-year government contract for the design and engineering of a futuristic plane. The machinery costs $975,000 and must be destroyed for security reasons at the end of the six-year contract period. The estimated annual operating results of the project are as follows:

Revenue from sales under the contract $975,000
Expenses other than depreciation $560,000
Depreciation (straight-line basis) 162,500 (722,500)
Increase in net income from government contract $252,500

All revenue from the contract and all expenses will be received or paid in cash in the same period as recognized for accounting purposes. You are to compute the following three factors for this project:

Reference no: EM13595794

Questions Cloud

The henrys law constant kh for carbon monoxide co in water : the henrys law constant kh for carbon monoxide co in water at 25oc is 9.71x10-4 moll.atm . how many grams of co will

Nikki is interested in investing in a listed mining company : nikki is interested in investing in a listed mining company and requests a copy of the last annual report of several

The leaf then floats down the river at 3ms-1 for 20 seconds : on a windy day a leaf is blown from 5m high central branch tree. as soon as it leaves the branch it is blown at 10ms-1

Determine the total concentration in moll of cl- ions in a : determine the total concentration in moll of cl- ions in a solution formed from the reaction of 500ml of 1.0m barium

Golden flights inc is considering buying some specialized : golden flights inc. is considering buying some specialized machinery that would enable the company to obtain a six-year

Consider the reaction that describe the haber process for : consider the reaction that describe the haber process for the production of ammonia nh3n2g3h2g lt---gt 2 nh3 g for

A sample of naphthalene which should be pure white was : a sample of naphthalene which should be pure white was found to have a grayish color after the usual purification

The purchasing department buys the quantities of raw : stromski corporation manufactures a single product. the standard cost per unit of product is shown below. direct

Decision making across the organization byp2-4 lisa ortega : decision making across the organization byp2-4 lisa ortega is president of ortega riding academy inc. the academys

User Account

All Pages