Should the company lagoon replace the delivery van

Assignment Help Accounting Basics
Reference no: EM133155475

Question - Lagoon Inc. is considering replacing its old delivery van with a new delivery van. Estimates for the next three years are as follows:


Old Van

New Van

Average annual sales

$450,000

$475,000

Annual operating costs

80,000

65,000

Original costs of old van

90,000

--

Remaining book value of old van

8,000

--

List price of new van

--

110,000

Remaining life

3 years

--

Expected life

--

3 years

Disposal value now

$10,000

---

Disposal value in 3 years

$ nil

$ nil

Required - Based strictly on the financial information presented above, should the company Lagoon replace the delivery van? (Ignore time value of money).

Reference no: EM133155475

Questions Cloud

Calculate the depreciation expense on the garage : Calculate the 2025 depreciation expense on the garage using the straight-line method and assuming a 10-yearlife and a $38,043 salvage value
Calculate the effect of these journal entries : Calculate the effect of these journal entries on 2021 net income, and the amount at which the investment is carried in the December 31, 2021, balance sheet
What is the ocf for this project : The project is estimated to generate $1,675,000 in annual sales, with costs of $645,000. If the tax rate is 21 percent, what is the OCF for this project
Overview of perceptions of information security : one-page overview of Perceptions of Information Security at the Workplace: Linking Information Security Climate to Compliant Behavior
Should the company lagoon replace the delivery van : Based strictly on the financial information presented above, should the company Lagoon replace the delivery van? (Ignore time value of money)
Overview - design thinking by doreen lorenzo : Overview - Design Thinking by Doreen Lorenzo - Analyze internal and external dimensions of Information Systems strategic planning by applying appropriate
What would operating income have been using full costing : Ignoring income taxes, if the fixed factory overhead application rate was $8.19 per unit, what would operating income have been using full costing
What was watson total prevention and appraisal cost : Listed below are selected line items from the Cost of Quality report for Watson Products for last month: What was Watson total prevention and appraisal cost
Determine qrx taxable income for this year : QRX had a net operating loss of $10,000 and a net long-term capital loss of $30,000. Determine QRX taxable income for this year

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the total cost of building picture frames

What is the total cost of building 8 picture frames by a new employee using the cumulative average-time method? You may use an index of -0.1520

  What amount of warranty expenditures was incurred

Warranty expense is based on 4% of sales which amounted to P50,000 for the year. What amount of warranty expenditures was incurred for the current year?

  How much australian dollar the exporter will receive

The exporter expects that the value of the INR will appreciate by 24.38% against the Australian dollar. How much Australian dollar the exporter will receive

  Set up t accounts for the following accounts

Charles Chadwick opened a business called Charlie's Detective Service in January 20--. Set up T accounts for the following accounts: Cash; Accounts Receivable; Office Supplies; Computer Equipment; Office Furniture.

  As a businessperson could you support ambush marketing

As a businessperson, could you support ambush marketing? Provide the rationale for your answer.

  By how much will Kevin and Michelles bonus change

Suppose that profit without using the technique this year will be $7 million. By how much will Kevin's and Michelle's bonus change

  Calculate the depreciation expense per annum for equipment

On 1 January 2021, Fatt Choy Sdn. Bh, purchased an equipment at a cost of RM130 000. Calculate the depreciation expense per annum for equipment

  Calculate the lower of cost or market

Then write a memo to Greg explaining what designated market value is as well as how it is computed. Use your calculations to aid in your explanation.

  What was the total amount of sales tax paid

Cash sales for November 2018 were $64,500 plus sales tax of 8 percent. What was the total amount of sales tax paid in 2018

  Prepare a schedule for each month showing budgeted cash

Prepare a schedule for each month showing budgeted cash disbursements for This Corporation. Prepare a schedule for each month showing budgeted cash receipts.

  What is jacob qbi deduction

Income from his Schedule C of $175,000. His taxable income is $140,000 after his other deductions. What is Jacob's QBI deduction for 2019?

  Clarkston inc has 400000 of 12 bonds callable at 102 with a

clarkston inc. has 400000 of 12 bonds callable at 102 with a remaining 10-year term and interest payable semiannually.

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