What is the net advantage to the company from upgrading

Assignment Help Accounting Basics
Reference no: EM131791990

Problem

The Tingey Company has 400 obsolete microcomputers that are carried in inventory at a total cost of $576,000. If these microcomputers are upgraded at a total cost of $130,000, they can be sold for a total of $190,000. As an alternative, the microcomputers can be sold in their present condition for $40,000.

What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?

Reference no: EM131791990

Questions Cloud

How many minutes of grinding machine time would be required : Broze Company makes four products in a single facility. How many minutes of grinding machine time would be required to satisfy demand for all four products?
Develop critical path management diagram : Why Heagney, the author believes that scheduling is worthless if we do not develop a Critical Path Management (CPM) diagram? Explain.
Research time management theories : Research time management theories. Describe some of the time management theories that you found in your research.
Determining correct state taxable income for typical state : What adjustment, if any, should be made to Federal taxable income in determining the correct state taxable income for the typical state
What is the net advantage to the company from upgrading : What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?
Is his home plan appropriate to ensure a successful re-entry : What areas does the offender need to address to be successful upon re-entry? Make sure that the goals you develop for him can be measured.
Effects of outsourcing and devolvement on strategic position : The Effects of Outsourcing and Devolvement on the Strategic Position of Hr Departments - All explanations clear and easy to understand, factually correct
What is the differential cost of alternative b over a : Zurasky Corporation is considering two alternatives. What is the differential cost of Alternative B over Alternative A, including all of the relevant costs?
Compute the company long-term debt-to-total-equity ratio : Compute the company's long-term debt-to-total-equity ratio and its interest coverage ratio for Year 2 and Year 1 as if AT&T Wireless had issued 8% debt.

Reviews

Write a Review

Accounting Basics Questions & Answers

  The following facts pertain to a noncancelable lease

the following facts pertain to a noncancelable lease agreement between lennox leasing company and gill company a

  What is the maximum price pay for machine

Gannon Company is considering purchasing a machine. The machine will produce the following cash flows: Year 1 $60,000 Year 2 $90,000 Gannon requires a minimum rate of return of 10%. What is the maximum price Gannon should pay for this machine?

  Prepare the journal entry to record the transactions

Prepare the journal entry to record the transactions for the month based on data given

  You were recently admitted to college and your aunt tillie

you were recently admitted to college and your aunt tillie has agreed to fund the tuition for your education. the

  Huron company produces a commerical cleaning compound known

huron company produces a commerical cleaning compound known as zoom. the direct materials and direct labor standards

  Calculate the depreciation cost for the financial years

Anglesea Ltd constructed a building in 2010 for a cost of $960 000. Calculate the depreciation cost for the 2013, 2014 and 2015 financial years

  Which of the following statements best describes how gaap

which of the following statements best describes how gaap and ifrs treat cash?gaap is more strict about what is

  What is the theoretical justification of the allowance

Q: In your own words, what is the theoretical justification of the allowance method as contrasted with the direct write-off method of accounting for bad debts

  Identify the three cost categories in manufacturing

Identify the three cost categories in manufacturing. A graphical representation of what type of cost has zero cost with zero units

  Dividends and working capital requirements

The beta of the stock is 1.05, and there were 200 million shares outstanding (trading at $60 per share), with a book value of $5 billion. Union Pacific paid 40 percent of its earnings as dividends and working capital requirements are negligible. (..

  Which gaap requires the use of depreciation for assets that

1. which gaap requires the use of depreciation for assets that have useful lives beyond 1 year? explain why this

  Basics of stockholders equity section

Construct the stockholders' equity section incorporating all the above information.

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