Reference no: EM131967422
Problem
Rohan Company purchased equipment in January 2008 for $8,000,000 that had an estimated useful life of 6 years with a salvage value of $2,000,000. At December 31, 2010, new technology was introduced that would accelerate the obsolescence of Rohan's equipment. Rohan's controller estimates that expected future net cash flows on the equipment will be $4,900,000 and that the fair value of the equipment is $4,600,000. Rohan intends to continue using the equipment, but it is estimated that the remaining life is 2 years and new salvage value is $1,000,000. Rohan uses straight-line depreciation.
Required:
(a) Prepare the journal entry (if any) to record the impairment at December 31, 2010.
(b) Prepare any journal entries for the depreciation of the equipment at December 31, 2011.
(c) Assume that Rohan used the double-declining balance method of depreciation, prepare the journal entry (if any) to record the impairment at December 31, 2010.
(d) Assume that Rohan used the double-declining balance method of depreciation, prepare the journal entries for the depreciation of the equipment at December 31, 2011.
|
Calculate the diluted earnings per share
: Compute diluted earnings per share for 2017, assuming the same facts as above, except that $1,070,000 of 6% convertible preferred stock was issued.
|
|
How long will it take this woman to pay for the dress
: If interest is 6% compounded semiannually, how long will it take this woman to pay for the dress?
|
|
What sum of money should be set aside right
: What sum of money should be set aside right now in order to provide an income of $2,000 a month for 5 years.
|
|
Determine what kuhn companys wacc will be for this project
: Kuhn has noncallable bonds outstanding that mature in 15 years with a face value of $1,000, an annual coupon rate of 11%, and a market price of $1,555.38.
|
|
Prepare the journal entry to record the impairment
: Assume that Rohan used the double-declining balance method of depreciation, prepare the journal entry (if any) to record the impairment at December 31, 2010.
|
|
How much are the monthly payments
: A debt of $250,000 is due in 5 years. If payments made are monthly (at the beginning of each month), how much are the monthly payments if interest is at 6%?
|
|
What is the koses weighted average cost of capital
: What is the Kose's weighted average cost of capital? Use the book value of debt and the market value equity for your weights?
|
|
What is the amount of the safe payment to partner x
: The XY partnership is undergoing an installment liquidation. Assuming all liabilities have been paid, what is the amount of the safe payment to partner X?
|
|
Grow at an annual rate
: Sarif currently reinvests 28% of its earnings each year and its dividends are expected to grow at an annual rate of 5% in perpetuity.
|