What impact does this loss on the sale of the old equipment

Assignment Help Cost Accounting
Reference no: EM133017108

Question - TRL, Inc. is purchasing new computer equipment. As part of the investment project, old computer equipment is being sold. The old equipment was originally purchased three years ago. At the time of purchase, it was expected to have a five-year life and no salvage value, resulting in a current book value of $27,000. TRL's management is disposing of the old equipment for a sales price of $16,000. What impact does this loss on the sale of the old equipment have on the investment project's net cash flows?

Net cash inflows from the old equipment's sale plus the tax effect of the loss deduction

Net cash inflows from the old equipment's sale less the tax effect of the loss deduction

Net cash inflows from the old equipment's sale

There is no effect because the loss is recorded as part of the accrual accounting system for determining net income.

Reference no: EM133017108

Questions Cloud

Four communication styles in personal selling : What are the four communication styles in personal selling
What the adjusted cash balance per books on June : Pharaoh Company gathered the following reconciling information in preparing its June bank reconciliation: What the adjusted cash balance per books on June
Identify the different types of bonds : Identify the different types of bonds and explain each.
Heckscher-ohlin theory and porter diamond : Explain the difference between how factor endowments are described in the Heckscher-Ohlin theory and Porter's Diamond.
What impact does this loss on the sale of the old equipment : TRL's management is disposing of the old equipment for a sales price of $16,000. What impact does this loss on the sale of the old equipment
Calculate the price of the bond in the secondary market : Assume the number of days between 15 April and 15 October for any given year is 183 days. Calculate the price of the bond in the secondary market
How much is the net effect of the investment : The profit is earned even during the year. Ritz's shares are selling P130 per share on December 31,20x1. How much is the net effect of the investment
How much money is required today to fund perpetuity earning : Question - How much money is required today to fund a perpetuity earning 5.65% annually that needs to pay out $17,000 at the end of each year
What is the present value of a deferred annuity : What is the present value of a deferred annuity with a deferral period of 17 years at 6.7% compounded semi-annually followed by a 10-year annuity

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

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