If sold now the current copier would have a salvage value

Assignment Help Accounting Basics
Reference no: EM13571094

Kinder Enterprises relies heavily on a copier machine to process its paperwork. Recently the copy clerk has not been able to process all the necessary copies within the regular work week. Management is considering updating the copier machine with a faster model.

                                                                        Current Copier               New Model

Original purchase cost                                         $10,000                       $20,000

Accumulated depreciation                                      8,000                             -

Estimated operating costs (annual)                       7,000                           2,600

Useful life                                                              5 years                         5 years

If sold now, the current copier would have a salvage value of $1,000. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after five years.

Instructions

Prepare an analysis to show whether the company should retain or replace the machine.

Reference no: EM13571094

Questions Cloud

Indicate how each item should be classified in the : an analysis of comparative balance sheets the current years income statement and the general ledger accounts of judd
Each warrant entitles its owner to buy one share at a price : kinston has 200000 shares of common stock and 50000 warrants outstanding. each warrant entitles its owner to buy one
Under both us gaap and ifrs which one of the following : under both u.s gaap and ifrs which one of the following items is reported separately in the income statement net of
A company purchased land for its natural resources at a : a company purchased land for its natural resources at a cost of 1570000. it expects to mine 2175000 tons of ore from
If sold now the current copier would have a salvage value : kinder enterprises relies heavily on a copier machine to process its paperwork. recently the copy clerk has not been
A corporation purchased for cash 5000 shares of its own 10 : a corporation purchased for cash 5000 shares of its own 10 par common stock at 34.00 a share. in the following year it
Baker brothers has a dso of 40 days and its annual sales : day salesoutstanding baker brothers has a dso of 40 days and itsannual sales are 7300000.nbsp what is its accounts
The dates of importance in connection with a cash dividend : the dates of importance in connection with a cash dividend of 65000 on a corporations common stock are january 15
Compute the present value of the tax shield from : rush corporation plans to acquire production equipment for 635000 that will be depreciated for tax purposes as follows

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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