User Account

All Pages

What is the equivalent annual cost of this equipment

Assignment Help Accounting Basics
Reference no: EM133117434

Question - Bridgton Golf Academy is evaluating new golf practice equipment. The Dimple-Max equipment costs $113,000, has a 5-year life, and costs $9,200 per year to operate. The relevant discount rate is 9 percent. Assume that the straight-line depreciation method is used and that the equipment is fully depreciated to zero. Furthermore, assume the equipment has a salvage value of $8,500 at the end of the project's life. The relevant tax rate is 25 percent. All cash flows occur at the end of the year. What is the equivalent annual cost (EAC) of this equipment?

Reference no: EM133117434

Questions Cloud

What was White capital balance at the end : Each partner withdrew $1,500 for personal use every month during 2020 and 2021. What was White's capital balance at the end of 2021
What are the amounts allocated to the work-in-process : What are the amounts allocated to the work-in-process ending inventory when spoilage units are recognized and when spoilage units are ignored
What amount did Stephanie have to pay : Stephanie was injured in a car accident and was rushed to the emergency room. What amount did Stephanie have to pay
Should marijuana be legalized : Should marijuana be legalized - The argument for Legalizing: Premise: marijuana is good for the economy and lowers crime
What is the equivalent annual cost of this equipment : The relevant tax rate is 25 percent. All cash flows occur at the end of the year. What is the equivalent annual cost (EAC) of this equipment
What was Singh net income : During 2018 the following events occurred at Singh Inc.: owners invested $10,000 of cash; What was Singh net income
Name the four main steps in inventory management : Name the four main steps in inventory management. For each of these steps, list any relevant documentation such as source documents, schedules, reports
What amount should be reported as unearned service : What amount should be reported as unearned service contract revenues in Marigold's December 31. 2019 balance sheet
Find the sensitivity analysis and production report : Find the sensitivity analysis and production report for given problem

Reviews

Write a Review

Accounting Basics Questions & Answers

  How many contracts should gd buy or sell

Question - Generous Dynamics maintains an inventory of 15000 ounces of gold. How many contracts should GD buy or sell to hedge its inventory

  Prepare a diagram of the interrelationships of the budgets

Prepare a diagram of the interrelationships of the budgets in the master budget. Indicate whether each budget is an operating or a financial budget

  What pretax amount related to the lease would IC report

Georgia-Atlantic's incremental borrowing rate is 10%, What pretax amount related to the lease would IC report in its balance sheet at December 31, 2021

  Accounts receivable after the adjusting entry

Their net credit sales for the year 20A is $450,000, the balance in accounts receivable at the end of the year is $40,000 and there is a debit balance (before adjustment) in the allowance for doubtful accounts of $400. How much would Johnstone rep..

  What dollar amount should be credited to allowance

Allowance for Uncollectible Accounts had a credit balance of 6,000. What dollar amount should be credited to Allowance for Uncollectible Accounts at year end?

  The company had an accounts receivable balance of 60000 and

the company had an accounts receivable balance of 60000 and an allowance for uncollectible accounts balance of 550

  Determine the profit for the period

General and Administrative Expenses 275,000; Merchandise inventory, beginning 55,000; Merchandise inventory, ending 35,000. Determine the profit for the period

  Discuss Alex residency and the tax implications

In the business, to promote their products, one of the suppliers Tara Inc. Discuss Alex's residency and the tax implications of Alex's business

  Prepare journal entries to update depreciation

Sheffield Corporation owns equipment that cost $63,600 when purchased on April 1, 2013. Prepare journal entries to update depreciation

  The sierra corp acquired a piece of land with a building on

the sierra corp. acquired a piece of land with a building on it for 240000. the fair value of the land is 180000 and

  Estimated total machine hours

What would be the depreciation expense in year 1, using units-of-production, and an estimated total machine hours of 36,000

  What was the book value of the property

Calculate and record the depletion expense for 2012 and 2013. What was the book value of the property at the end of 2013

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd