User Account

All Pages

Would the inclusion of the amount of gain or loss change

Assignment Help Financial Accounting
Reference no: EM132659871

Problem 1: Concluding the Justice League problem, now consider the gain or loss on the sale of the X-1600 Wall-E compactor and assuming that 5 years of useful life remain on the machine. Would the inclusion of the amount of gain or loss change the decision made in the question above? Note: this is a "throw back question" and requires that you remember how to calculate the gain or loss on the sale of a machine. DO NOT make any assumptions regarding the tax treatment for the gain or loss on the disposal of the EVE-1000 after its useful life has expired (year 5). The only modifier from question above relates specifically to the sale of the X-1600 Wall-E.

[A] BOGUS QUESTION: The Gain/Loss on the sale of the X-1600 is not relevant to the decision to buy or not buy the new EVE-1000

[B] YES, the sale of the X-1600 creates a $41,870 positive cash flow in year 0 which changes the decision from don't buy to buy the EVE-1000

[C] YES, the sale of the X-1600 creates a negative cash flow of $41,870 which changes the decision from BUY the EVE-1000 to don't buy the EVE-1000

[D] NO the sale of the X-1600 creates a tax benefit of $11,130 in year 0 which is not sufficient to change the decision from don't buy to buy.

[E] YES, the sale of the X-1600 creates a tax benefit of $11,130 in year 0 which is sufficient to change the decision from don't buy to buy.

Reference no: EM132659871

Questions Cloud

Discuss bentham and kant ethical theories : How does Bentham explains how to bring the individual and society together. What is the summum bonum in Kant's theory?
What the labor efficiency variance for november is : What the labor efficiency variance for November is? Chhom Corporation makes a product whose direct labor standards are 0.8 hours per unit and $31 per hour.
Positive and negative aspects of deviance on society : There are several theories on deviance. Throughout this discussion, you will explore two of these theories
What you know about rational choice theory : After learning about "Rational Choice Theory", please discuss the major points of Rational Choice Theory. Apply what you know about rational choice theory.
Would the inclusion of the amount of gain or loss change : Wall-E compactor and assuming that 5 years of useful life remain on the machine. Would the inclusion of the amount of gain or loss change the decision
Examine the related law enforcement agencies and change : Select one to two (1-2) contemporary issues in modern police operations and examine the related law enforcement agencies, change, and efficiency.
How to calculate the npv of the replacement decision : How to Calculate the NPV of the replacement decision and choose the best answer below. NOTE: DO NOT make any assumptions regarding the tax treatment.
Examine juvenile diversion program in brief : Define a juvenile diversion program. Then research and examine at least one juvenile diversion Program that is located in a state of your choice and outline.
Which channel would produce the highest adr : Joel Liberman is the RM at the City Center Plaza, a 300-room franchised hotel. Which channel would produce the highest ADR?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare journal entries necessary to record the transactions

Prepare the journal entries necessary to record the transactions. Prepare the entries necessary to record amortization expense for the intangible assets.

  Determine the following measures for the fiscal years ended

Determine the following measures for the fiscal years ended May 31, 2010, and May 31, 2009. Do not round interim calculations. Round your final answers to one decimal place. When required, use the rounded final answers in subsequent computations.

  No dividends were declared on either the preferred

At December 31, 2014 Pine Company had 200,000 shares of common stock and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2014 or 2015. On February 10, 2..

  Create all necessary journal entries

Prepare any journal entries (if necessary) that would be required related to the Note Receivable at end of 2009, 2010, 2011, and 2012. Assume that $100,000 is received from ColdPlay Co. on 12/31/2013. Prepare all necessary journal entries for 2013.

  Common global language for business affairs

Based on the above statement, Students are required to do research and write an essay of 1500 words (with proper references) which demonstrates their understanding about the Topic, outline the justifications and controversy of IFRSs.

  Analyze the techno incs cash flows statement

Explain the difference between net income and cash flow from operating activities for Techno in 2012. Analyze Techno Inc.'s cash flows for 2012 and 2011.

  What amount of income tax expense

Kraft Company made the following journal entry in late 2014 for rent on property it leases to Danford Corporation. What amount of income tax expense should Kraft Company report at the end of 2014? Assuming the income taxes payable at the end of 2015 ..

  What is the payback period on the investment

What is the NPV of the investment when the cost of capital is 8%? 10%? What is the IRR of the investment? (Enter your answer as a whole percent.)

  Record the transactions in the books of xyz company

On January 1, 2019, Record the transactions in the books of XYZ Company (assuming there is significant influence and insignificant influence)

  What amount of warranty expense will appear on kohl co

What amount of Warranty Expense will appear on Kohl Co. income statement for year ended December 31, 2013? What amount will be reported in Estimated Warranty Liability account on December 31, 2013, balance sheet?

  Which system should be chosen

Allied accounts for differential risk by adjusting its corporate cost of capital up or down by 2 percentage points. Which system should be chosen

  What the cowboys should

Cowboys brand was valued at $5 billion, up from $4.8 billion in 2018. Further, the Cowboys generated $365 million in EBITDA. Based on this, the Cowboys should

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