Alexander Industries is considering a project that requires an investment in new equipment of $3,570,000. Under the new tax law, the equipment is eligible for 100% bonus depreciation at t - 0 so the equipment will be fully depreciated at the time of purchase. Alexander estimates that its accounts receivable and inventories need to increase by $680,000 to support the new project, some of which is financed by a $272,000 increase in spontaneous liabilities (accounts payable and accruals). The company's tax rate is 25%. The after-tax cost of Alexander's new equipment is ____Alexander's initial net investment outlay is _________Suppose Alexander's new equipment is expected to sell for $400,000 at the end of its four-year useful life, and at the same time, the firm expects to recover all of its net operating working capital (NOWC) investment. Remember, that under the new tax law, this equipment was fully depreciated att -0. If the firm's tax rate is 25%, what is the project's total termination cash flow? O $400,000 O $300,000 O $500,000 O $708,000

Answers

Answer 1

The after-tax cost of Alexander's new equipment is $2,677,500, Alexander's initial net investment outlay is $3,085,500The project's total termination cash flow is $708,000.

Define terminal cash flow.

The term "terminal cash flow" refers to the total cash flow (i.e., net of cash inflow and cash outflow) at the conclusion of the project, which includes the after-tax cash flow from selling all of the project-related equipment and recovering working capital.

Given:

Year 0

Cash flow Purchase Cost of new equipment = $3,570,000

Tax rate = 25%

The equipment is eligible for tax benefit of 100%

Depreciation at t = 0,Thus the equipment will be fully depreciated at the time of purchase.

The after taxes cost of Alexander's new equipment

After taxes cost of equipment = Purchased - Tax savings on Depreciation = 3570000 - (3570000×25%) =

$2,677,500

Increase in accounts receivable and inventories = $680,000

Increase in spontaneous liabilities = $272,000

Increase in NWC = Increase in current assets - Increase current liabilities

= $680,000 - $272,000

= $408,000

Alexander's initial net investment outlay is:

Initial investment outlay = After tax cost of equipment + Increase NWC requires

= $2,677,500 + $408,000

= $3,085,500

Recovery of net working capital (NOWC) = $408,000

Sales value of equipment = $400,000

The project's total termination cash flow is

Termination cash flow = After tax salvage value + NOWC recovered

= $408,000(1-0.25)+ $408,000

= $708,000

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Related Questions

Which of the following is true regarding the rights of an incidental beneficiary to a contract to sue to recover incidental rights? An incidental beneficiary may sue to enforce incidental contractual rights only if the incidental beneficiary is also a second-party beneficiary. An incidental beneficiary may sue to enforce incidental contractual rights so long as those rights have vested. An incidental beneficiary may sue to enforce incidental contractual rights only if the incidental beneficiary is also a donee beneficiary. O An incidental beneficiary cannot sue to enforce a contract that provides incidental benefits. O An incidental beneficiary may sue to enforce incidental contractual rights so long as those rights have vested. An incidental beneficiary may sue to enforce incidental contractual rights only if the incidental beneficiary is also a donee beneficiary. An incidental beneficiary cannot sue to enforce a contract that provides incidental benefits. An incidental beneficiary may sue to enforce incidental contractual rights only if the incidental beneficiary is also a creditor beneficiary.

Answers

An incidental beneficiary cannot sue to enforce a contract that provides incidental benefits is true regarding the rights of an incidental beneficiary to a contract to sue to recover incidental rights.

One who unintentionally reaps the benefits of a transaction between other parties is known as an incidental beneficiary. Incidental beneficiaries cannot bring a lawsuit to enforce a contract, unlike intended beneficiaries. Incidental beneficiaries are not permitted to enforce the contracts of others. According to the rule of privity of contract, a third party cannot bring a claim for damages based on a contract to which he is not a party. Particularly when the contract is for the advantage of the third party, this norm has come under heavy fire recently. Indeed, similar contracts are recognised and upheld by other States' civil law systems. The Indian Law rule that forbids a third party from enforcing contractual conditions established in their favour continues to exist despite pleas for statutory reform.

According to the common law idea of privity, a contract ordinarily cannot grant rights to or impose obligations flowing from it on anybody other than the parties to it.

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this project will also utilize a database to store all inventory items, financial data, and past orders. when the user closes the program, this information must be retained so that when they open the program later, the data remains.

Answers

Database management system (DBMS) is a collection of programs that enables users to create and maintain a database.

A database management system (DBMS) is a piece of software that is used to construct and administer databases. It can be used personally by a single person or corporately by a large number of users.

The GRANT ALL option grants the user myuser full access to all databases and tables. This offers the user total power over your databases and related data, as you could have guessed. With higher level administrators and trusted users, you would use this command.

To create or open a table in Datasheet view, right-click the desired table in the Navigation Pane and select Datasheet view from the shortcut menu. This will allow you to enter data in the Add New Field column. Enter the name of the field you want to create in the Add New Field column.

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Joe has $49 to spend on apples and oranges. Given the information in the following table, is Joe maximizing utility?
Yes, Joe is maximizing his total utility. Marginal utility per dollar spent on each good is equal, and he has some of his income that he does not spend on apples or oranges that he may save. No, Joe is not maximizing his utility. If he spent more on oranges he could gain greater satisfaction per dollar spent. Yes, Joe is maximizing his total utility. Marginal utility per dollar spent on each good is equal, and he is spending his entire budget. No, marginal utility per dollar spent on each good is equal, but Joe has some money left in his budget which could be used to increase his utility,

Answers

Yes, given the information Joe is maximizing his total utility.

a) Joe's marginal utility per dollar spent on apples is 50.

b) Joe's marginal utility per dollar spent on oranges is 50.

c) The total amount of Joe's income that he spends on apples and oranges is $49.

Yes, Joe is definitely maximizing his total utility. The marginal utility per dollar spent on each good is​ equal, and he is spending his entire budget.

What is Marginal utility?

Marginal utility is the additional satisfaction or benefit that an individual receives when they increase their consumption of a particular good or service. It is the change in total utility as the amount of a good or service consumed increases by one unit. Marginal utility is used by economists to determine how much of a good or service people will choose to consume.

Therefore, Option C is correct.

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When incorporating seasonality into a forecast the first step is to determine the seasonality ________.

Answers

The first step in adding seasonality to a prediction is to identify the seasonality pattern.

What does the term "forecasting" mean?

Forecasting is a method that generates precise forecasts of the future direction of movements using historical data as inputs. Forecasting helps businesses allocate their budgets and plan for upcoming expenses.

What is forecasting and how does it work?

The method of projecting entails creating predictions based on historical and current data. These can then be contrasted (resolved) with what actually occurs. For instance, a business can predict its income for the following year and then contrast that prediction with the actual outcomes. A comparable but more broad phrase is prediction.

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Which two ratios should be of greatest interest to
a) A pension fund considering the purchase of 20-year bonds?
b) A bank contemplating a short-term loan?
c) A common stockholder?

Answers

Two ratios should be of greatest interest to  A pension fund considering the purchase of 20-year bonds will be debt-to-assets ratio .

A.  Interest income, which indicates the entity's ability to make interest payments, and debt-to-assets ratio, which indicates the entity's ability to absorb losses without adversely affecting the interests of its creditors.

B.  liquidity ratios and acid test ratios, which indicate a company's liquidity and short-term ability to service its liabilities;

C. his earnings per share and return on equity of common stockholders; Both show the earning power of an investment.

Liquidity ratio :

A liquidity metric is used by creditors (and sometimes debtors) to calculate whether a company can repay creditors from all its available cash. The higher the company's cash ratio, the more liquid its assets and the easier it is to service its short-term debt.

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Sam, a citizen of New Mexico, wants to fila a lawsuit in New Mexico against Tanya, a citizen of Texas for $200,000 US for personal injuries. Their diversity of citizenship may be a basis for
a. a New Mexico court to exercise in rem jurisdiction
b. a federal district court to exercise original jurisdiction
c. a US court of appeals to exercise appellate jurisdiction
d. the US Supreme Court to issue a writ of certiorari

Answers

Their diversity of citizenship may be a basis for a federal district court to exercise original jurisdiction

The diversity of citizenship creates a significant legal precedent on the distinction between federal and state jurisdiction. Most Americans, however, have never even heard of this phrase. If you have been charged with a federal offence, continue reading to learn more and get in touch with a qualified criminal defence lawyer.

When the plaintiffs and defendants in a lawsuit do not have a common state of citizenship, this is referred to as diversity of citizenship. In other words, all of the parties on one side of the argument are from different states than the parties on the other.

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g you are a buyer for your company and are reviewing the shipping paperwork from an overseas supplier for their first shipment. you notice a potential issue with the assigned harmonized tariff code and contact the supplier before the shipment occurs to correct it. which of the statements below is true: group of answer choices no answer text provided.

Answers

The buyer requests that a financial institution issue the document.

What does finance mean to a business?

Business Finance Meaning

It refers to the total amount of money and credit that a company has utilised. All other economic activities, as well as the purchase of commodities, assets, and raw materials, require business financing. In particular, it is required for carrying out all business processes.

What is fundamental financial knowledge?

Budgeting, knowing how much money to save, picking beneficial loan conditions, understanding how credit will be affected, and differentiating between retirement vehicles are all included in this. These skills enable people to make more informed decisions and manage their money more prudently.

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Which of these statements about disaster relief supply chains is best? Select one: a. Critical supplies are usually deployed the instant they are available in the disaster zone. b. Supplies follow a pull flow initially but change to a push flow once demand is more predictable. c. Employee turnover in disaster relief is low since these individuals are dedicated to the cause. d. Most disaster relief supply chains exist for only short times.

Answers

Which of these claims regarding supply networks for disaster relief is the most accurate? Ans: d. The majority of supply networks for disaster aid are transient.

What are the three categories of disaster relief?

There are three types of basic disaster assistance provided by the federal government: support for people and enterprises, public assistance, & hazard mitigation assistance.

What is an illustration of disaster relief?

Disaster aid examples include: establishing temporary shelters that offer a secure place to sleep, meals, and psychological support through skilled staff. delivering food and drink. distributing essentials like cosmetics , hygiene & tarps, shovels, and trash bags for cleanup.

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Douglas Whipple Corporation needs $200 million to expand its production and to develop new products. It has agreed to issue written pledges that it will repay a specified amount of money with interest on a particular day. Because it is uncertain it will have sufficient funds available if all of the pledges should become due on the same day, none of the pledges will be paid during the first 15 years. After 15 years, 10 percent of the pledges will mature each year until all of them are retired at the end of the 25th year. What are the pledges?

Answers

Note that the pledges here are serial bonds. (Option C). A serial bond is a type of bond that matures in installments over a specified period of time, rather than all at once.

What is a Serial Bond?

In the scenario described, the Douglas Whipple Corporation has agreed to issue written pledges to repay a specified amount of money with interest on a particular day.

These pledges will not be paid for the first 15 years, after which 10 percent will mature each year until all of them are retired at the end of the 25th year. This indicates that the pledges are serial bonds, which mature in installments over a period of time.

Registered bonds and term-loan agreements are not the correct answers because they do not fit the description of the pledges in the scenario.

Registered bonds are bonds that are registered in the name of the owner, and term-loan agreements are contracts between a borrower and a lender that outline the terms of a loan.

Bond indentures are contracts that outline the terms and conditions of a bond, but they do not specify the type of bond being issued.

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Full Question:

Douglas Whipple Corporation needs $200 million to expand its production and to develop new products. Is has agreed to issue written pledges that it will repay a specified amount of money with interest on a particular day. Because it is uncertain it will have sufficient funds available if all of the pledges should become due on the same day, none of the pledges will be paid during the first 15 years. After 15 years, 10 percent of the pledges will mature each year until all of them are retired at the end of the 25th year. What are the pledges?

A. Registered bonds

B. Term-loan agreements

C. Serial bonds

D. Bond indentures

After running the numbers on a new Green Job plan, the CBO projects that the government _______ will increase by $40 billion each year, and _______ will increase $400 billion over the project’s lifespan.
A) debt; the deficit
B) debt; transfer payments
C) deficit; debt
D) deficit; transfer payments

Answers

Deficit; debt. The required statement for the given question is option (C).

What is deficit and debt?

The national debt is the total amount of money the government has acquired over the course of our country's history and is the net result of all government deficits and surpluses. The deficit determines how much money the government must borrow in any given year. The amount of government debt is the interest expense on this debt. Deficits have other reasons besides just recessions.

A government may also be dealing with a debt problem, or one that continues even when the economy is at full employment and capacity. Since it represents the demands that the government is making on the private credit markets, public debt is a much better indicator of how debt is affecting the economy than gross debt.

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Real options analysis is appropriate to use when __________________; a ________________ investment up front can be followed by subsequent investments.
investments can be staged; larger
investments can be staged; smaller
decisions are complex; large
decisions are not complex; large

Answers

Real options analysis is appropriate to use when the investments can be staged; a smaller investment up front can be followed by the subsequent investments.

What is Real options analysis?

The term "real options analysis" (ROA) in finance refers primarily to the choice to design, dump, inflate, or decrease a capital investment. The ROA method can help investors keep their investing alternatives open, allowing them to investigate other, more riskier opportunities. The investor does not need to make a long-term commitment to these speculations in order to accomplish this via ROA. It enables analysis while identifying investment halt points. Applications in corporate finance and general decision-making under uncertainty can both benefit from real options analysis' approaches and techniques. Research and development managers frequently utilize ROA to determine the optimum investment strategy for their business. ROA forces the person or group to make assumptions in their projections clear-cut.

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In a __________ banking system, commercial banks provide a full range of banking, securities, and insurance services, all within a single legal entity.
A) universal
B) severable
C) barrier-free
D) dividerless

Answers

Within a single legal organization, commercial banks in a universal banking system offer the whole spectrum of banking, securities, and insurance services.

In a system known as universal banking, banks offer a wide range of all-encompassing financial services, including those that are specifically geared toward retail, business, and investment services. Some European nations, including Switzerland, use universal banking frequently.

Following the lifting of the restrictions limiting commercial banks from providing investment banking services by the Gramm-Leach-Bliley Act (GLBA) in 1999, universal banking started to become more prevalent in the US. Universal banking proponents contend that it improves risk diversification for banks. Opponents believe that segmenting banking operations makes sense since it reduces risk.

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Countries whose economies are dominated by primary-sector activities tend to have a relatively low per capita GDP. The exceptions are
A. some oil-rich countries (Saudi Arabia, Qatar, Venezuela).
B. tourism-based countries (Jamaica, Kenya, Thailand)
C. manufacturing-based countries (Germany, Italy, Japan)
D. service-based countries (U.S., Canada, Austria)
E. primary commodity-producing countries (Mexico, China, Turkey)

Answers

Countries whose economies are dominated by primary-sector activities tend to have a relatively low per capita GDP. The exceptions are some oil-rich countries (Saudi Arabia, Qatar, and Venezuela).

GDP

GDP is the monetary value of goods and services produced within a country's borders over a specific time period, usually a quarter or a year. GDP is the most comprehensive measure of an economy's health because it measures changes in output over time. The gross domestic product (GDP) is one of the primary indicators used to assess a country's economic health. It is often referred to as the size of the economy because it represents the total dollar value of all goods and services produced over a specific time period.

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Type your answer in the box. Suppose that in the last year consumers spent $12 billion on durable goods, $34 billion on non-durable goods, and $44 billion on services. Consumption equals $ billion. (Enter a number In the blank.)

Answers

Consumption equals to $90Billion when durable goods , nondurable goods and services are counted.

(Consumption = Durable goods + Non-durable Goods + Services;)

                                C = $12 + $34 +$ 44

   consumption =            $ 90

Durable goods :

Durable goods are products that can be used for more than three years. This includes RVs, large and small appliances, furniture and fixtures, carpets and rugs, automobiles, rubber tires, lead acid batteries, boats, appliances, luggage, sporting goods, household goods and jewelry.

Non durable goods :

Paper and cardboard products account for the largest share of consumer goods. Other non-perishable products include paper and plastic plates, cups and other disposable hospitality products, disposable diapers, clothing and shoes, bedding and miscellaneous items. Consumables are purchased for immediate or near-immediate use and have a lifespan of minutes to three years. Common examples include food, beverages, clothing, shoes, and gasoline.

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According to the misperceptions theory of the short-run aggregate supply curve, if a firm thought inflation was going to be 4 percent and actual inflation was 2 percent, then the firm would believe that the relative price of what it produces had....
decreased, so it would decrease production.

Answers

Answer: In accordance with the short-run aggregate supply curve's misperceptions theory, if a firm anticipated inflation to be 4% and it ended up being 5%,

Explanation: Why does a short-run aggregate supply curve have an upward slope, and how does the misperception effect explain it?

The inclination of producers to increase supply when they notice a rise in prices causes the short-run aggregate supply curve to have an upward slope. Worker misconception is the cause of the SRAS's increasing slope. Businesses raise the nominal wages of employees as economic prices rise.

The misperception theory is what?

The misperceptions theory postulates that when prices suddenly drop, suppliers wrongly think their relative pricing have also dropped, which prompts them to cut back on output.

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if there were 10 firms in this market, the short-run equilibrium price of ruthenium would be $ per pound. at that price, firms in this industry would . therefore, in the long run, firms would the ruthenium market.

Answers

If there were 10 firms in this market, the short-run equilibrium price of ruthenium would be $ per pound. at that price, firms in this industry would . therefore, in the long run, $52, earn a profit, & enter.

What do you mean by short-run equilibrium price?

When the total amount of output required and supplied equals one another, an economy is in short-run equilibrium. Finding the point where AD meets SRAS will allow you to determine the short-run equilibrium in the AD-AS model. The equilibrium is made up of the equilibrium output and the equilibrium price level. Thinking of the short-run equilibrium as "how much real GDP is this economy making right now, and what is an economy's current CPI" is a good approach.According to our analysis of markets, when an economy is out of equilibrium, prices change until the market reaches equilibrium. A short-run macroeconomic equilibrium follows the same general principle, but with a slight change.

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To figure whether she should pay estimated tax for 2021, Jane determines her expected adjusted gross income for 2021 will be $82,800. Her AGI for 2020 was $73,700. Her total tax on her 2020 return was $9,001. Using the 2021 Estimated Tax Worksheet she figures her total 2021 estimated tax to be $11,015. Her tax expected to be withheld in 2021 is $10,000. She will file as Head of Household and expects no refundable credits in 2021. All of the following are true regarding Jane’s estimated taxes except:
A. She expects to owe at least $1,000 for 2021 after subtracting her withholding from her expected total tax
B. She expects her income tax withholding to be at least 90% of the tax to be shown on her 2021 return
C. Jane does not need to pay estimated tax
D. Jane will need to pay estimated tax

Answers

Answer:

C. Jane does not need to pay estimated tax

If we multiply the current stock price per share and the number of shares outstanding, we will be able to calculate the _____ value of equity.

Answers

If we multiply the current stock price per share and the number of shares outstanding, we will be able to calculate the market capitalization value of equity.

Capitalization (American English) or capitalisation (British English)[1] is writing a phrase with its first letter as a capital letter (uppercase letter) and the closing letters in decrease case, in writing structures with a case distinction. The time period also may also talk to the selection of the casing carried out to text. traditional writing structures (orthographies) for specific languages have distinct conventions for capitalization, as an example, the capitalization of titles. Conventions additionally vary, to a lesser extent, among distinctive fashion publications. similarly to the Latin script, capitalization additionally influences the Armenian, Cyrillic, Georgian and Greek alphabets.

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When the quantity demanded of a goods is equal to the quantity supplied of that goods, then

Answers

Consumer and producer plans only align at the equilibrium price, which is reached when the quantity demanded by consumers and the amount supplied by producers, respectively, are both equal.

Describe what an equilibrium price is and give an illustration.

Every market experiences the price at which supply and demand are balanced. The equilibrium price of coffee in the market is therefore $6 per pound. The quantity that is required and supplied at the equilibrium price is the equilibrium quantity.

When supply and demand are equal or nearly equal, the cost to the customer of an item or service at the market-clearing price, sometimes referred to as the equilibrium price, happens. The customer can access as many products as they want, and the producer or seller.

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Why do far fewer children complete high school in poor countries than in rich countries? Do you think education is important to a country's economic growth? Why? Please explain your point with a case.​

Answers

Because fundamental education is a identified entitlement and society benefits when children are educated, the kingdom have to bear the cost, specifically for poor

Why is it so hard to enhance training in growing countries?

The answer is each systemic and circular. Investment in schooling for the duration of the growing world is historically low and uncertain. Many international locations fail to make investments in high quality teachers, education and materials.

In growing and developed international locations alike, adolescents do not have get right of entry to to basic training because of inequalities that originate in sex, health and cultural identification (ethnic origin, language, religion).

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An American company operates a fast food restaurant in Paris, France. Which of the following statements is accurate? The value of the goods and services produced by the restaurant is included in both French GDP and U.S. GDP.

Answers

The value of the goods and services produced by the American fast food restaurant in Paris, France would be included in French GDP but would not be included in U.S. GDP.

What is GDP?

Gross Domestic Product (GDP) is a measure of the market value of all final goods and services produced within a country in a given period of time, typically a year. It is used to measure the economic performance of a country and is a key indicator of the overall well-being of a nation.

The value of the goods and services produced by the American fast food restaurant in Paris, France would be included in French GDP because the restaurant is located within the territorial boundaries of France and is producing goods and services that are consumed within France.

However, the value of the goods and services produced by the restaurant would not be included in U.S. GDP because the restaurant is not located within the territorial boundaries of the United States and the goods and services it produces are not consumed within the United States.

Hence, only goods and services produced within a country's territorial boundaries and consumed within that country are included in that country's GDP.

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select all that apply which of the following statements about the statement of cash flows are correct? (check all that apply.) multiple select question. the purpose is to report cash receipts and cash payments during a period. in certain circumstances, it can replace the statement of retained earnings. it details the sources and uses of cash.

Answers

The following claims regarding the cash flow statement are true.

What is cash flows?Cash flow is the amount of cash that comes in and goes out of a company. Businesses take in money from sales as revenues and spend money on expenses. They may also receive income from interest, investments, royalties, and licensing agreements and sell products on credit, expecting to actually receive the cash owed at a late date.Assessing the amounts, timing, and uncertainty of cash flows, along with where they originate and where they go, is one of the most important objectives of financial reporting. It is essential for assessing a company’s liquidity, flexibility, and overall financial performance.Cash flows can be analyzed using the cash flow statement, a standard financial statement that reports on a company's sources and usage of cash over a specified time period.

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Scroll down to complete all parts of this task.
In Year 3, Cougar Co. purchased the equipment indicated in the situations below. The company has a December 31 year end and records depreciation using the straight-line method.
To prepare each required journal entry:
Click on a cell in the Account Name column and select the appropriate account. An account may be used once or not at all for a journal entry.
Enter the corresponding debit or credit amount in the associated column.
All amounts will be automatically rounded to the nearest dollar.
Not all rows in the table might be needed to complete each journal entry.
If no journal entry is needed, check the "No Entry Required" box at the top of the table as your response.Cougar purchased a tractor on March 1, Year 3, for $240,000, and the estimated useful life was 5 years. Cougar recorded $48,000 for depreciation expense in Year 3. Record the entry upon discovery of the error in Year 4. Assume that Cougar records depreciation expense monthly.
No Entry Required
A B C
1 Account Name
Debit
Credit
2 3 4 5

Answers

The journal entries to record the Depreciation Expenses for Cougar Co. are as follows:

Journal Entries:

  Account Name                                               Debit      Credit

1) Depreciation Expense                                $11,000

 Accumulated Depreciation                                         $11,000

2) Year 4 Depreciation Expense                $40,000

Accumulated Depreciation                                        $40,000

3) June 30, Year 4: Depreciation Expense $4,500

Accumulated Depreciation                                         $4,500

What is the journal entry for depreciation expense?

The journal entry for depreciation expense is to debit the Depreciation Expense account and credit the Accumulated Depreciation account.

The Depreciation Expense appears on the income statement while the Accumulated Depreciation appears in the balance sheet as a contra account of the long-term asset.

Adjustment Analysis:

1) Additional Engine:

Equipment Addition $65,000  Cash $65,000

Equipment $120,000 Accumulated Depreciation $20,000

Remaining useful life = 10 years (12 -2)

Additional useful life following the equipment addition = 5

New useful life of Equipment = 15 years (10 + 5)

Annual depreciation = $11,000 ($165,000/15)

Depreciation Expense $11,000 Accumulated Depreciation $11,000

2) Tractor:

Year 4 Depreciation Expense $40,000 ($48,000 - $8,000) Accumulated Depreciation $40,000 ($48,000 - $8,000) $8,000 is to reverse the overstatement in Year 3.

3) Snowmobile:

Cost of Snowmobile = $19,000

Salvage value = $1,000

Purchase date = October 1, Year 3

Depreciable amount = $18,000

Annual depreciation = $6,000 ($18,000/3)

Estimated useful life = 3 years

Year 3 Depreciation Expense = $1,500 ($6,000 x 3/12)

Year 4 Depreciation Expense = $6,000

Year 4 Depreciation Expense to June 30 = $3,000

June 30, Year 4: Depreciation Expense $4,500 Accumulated Depreciation $4,500

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Question Completion:

1) On January 1, Year 3, Cougar added an engine to a backhoe at a cost of $65,000, which extended the estimated useful life of the asset by 5 years. The original equipment, purchased January 1, Year 1, cost $120,000 and had an estimated useful life of 12 years. Record the entry needed on December 31, Year 3. Assume that Cougar records depreciation expense annually.

2) Cougar purchased a tractor on March 1, Year 3, for $240,000, and the estimated useful life was 5 years. Cougar recorded $48,000 for depreciation expense in Year 3. Record the entry upon discovery of the error in Year 4. Assume that Cougar records depreciation expense monthly.

3) Cougar purchased a snowmobile on October 1, Year 3, for $19,000, with a $1,000 salvage value, and the estimated useful life was 3 years. Due to an oversight, the company failed to record depreciation expense in Years 3 and 4. Record the entry needed on June 30, Year 4, when the oversight was discovered. Assume that Cougar records depreciation expense monthly.

Identifying the effects of a transaction

Answers

Answer: All transactions are recorded in the books of accounts on the basis of the dual-aspect concept.

Explanation: A transaction is a completed agreement between a buyer and a seller to exchange goods, services, or financial assets in return for money. The term is also commonly used in corporate accounting. In business bookkeeping, this plain definition can get tricky.

Thus, every transaction affects at least two accounts in opposite directions. There can be no transactions in a business that affect only one account or have only one aspect because the double-entry system of accounting is followed while recording the transactions in the books of accounts. For example, if furniture is purchased for cash, the transaction will affect two accounts. i.e. Furniture A/c, as furniture is increased and Cash A/c as cash is decreased.

Each transaction has two effects on a balance sheet - one that increases an asset and one that decreases a liability. These two effects cancel each other out, so the balance sheet always remains in balance.

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Consider the following scenario. If foreign goods are relatively more expensive than U.S. goods, exports from the U.S. rise. How would this scenario make the aggregate demand curve change? a. The AD curve would shift to the left.
b. The AD curve would remain unchanged.
c. The AD curve would shift to the right.

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The AD curve would shift to the left  this scenario make the aggregate demand curve change. (OPTION A) As a result, the quantity demanded at a given price can be larger or lower.

If a good is a normal good, a decline in income, a decrease in the price of a substitute, and a rise in the price of a complement can all result in a decrease in demand and a shift to the left of the demand curve. A shift in consumer preference to buy a specific good or service, regardless of a change in price, is referred to as a change in demand. A change in customer preferences or income levels may be the cause of the change.

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if a security's realized return is negative, it must have been true that the expected return was greater than the required return. T/F

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If a security's realized return is negative, it must have been true that the expected return was greater than the required return. False.

Stocks, bonds, preferred shares, and ETFs are among the most common examples of marketable securities. money market instruments, futures, options, and hedge fund investments can also be marketable securities.

Securities are fungible and tradable financial instruments used to raise capital in public and private markets. There are primarily three kinds of securities: equity—which affords ownership rights to holders; debt—essentially loans repaid with periodic payments; and hybrids—which combine factors of debt and equity.

There are four main types of safety: debt securities, equity securities, spinoff securities, and hybrid securities, which are a combination of debt and equity .they are called securities due to the fact there is a relaxed economic contract that is transferable, meaning it has clear, standardized, recognized terms, so can be sold and sold via the financial markets.

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According to this model, which of the following statements are true as a result of the quality change? Check all that apply.
O The real exchange rate declines.
O Net capital outflow decreases.
O The trade balance decreases.
O There is no change in the real interest rate.
True or False: The claim that some people made in the popular press is consistent with the model in this chapter.
True
False
True or False: The change in the real exchange rate that resulted from the decline in the quality of U.S. products may decrease our standard of living.
True
False

Answers

Based on the Trade Balance graph given, the correct following statements are:

The real exchange rate declinesThe trade balance decreasesThe claim that some people made in the popular press is consisten with the model in this chapter is TRUEThe change in the real exchange rate that resulted from the decline in the quality of US products may decrease our standard of living is TRUE.

Please refer to the graph below for the question graph.

Trade Balance or Balance of Trade (BOT) refers to the difference between imports and exports levels made by a country. A positive trade balance represents the more exports made by a country than imports. A negative trade balance shows that a country imports more products than its exports.

The negative trade balance will directly impact the real exchange rates, because trade balance reflects the demand for a currency. A country with positive trade balance experiences increasing demand for its currency and have higher rate exchange rates.

When the US experience trade deficit because of a decline in the production quality, US dollar also experience lower real exchange rates. Net capital outflows will increase since more foreign investors will try to withdraw their investment from the country. To secure the limited net capital, the Fed will try to increase the real interest rate to keep the market interesting for investors.

The change in the real exchange rate might impacting the standar of living. If the production quality could not improve and the people have tot depend on using imported goods, the decrease in the real exchange rate will make those imported goods price higher. Hence the standar of living will decrease along with the decrease on the real exchange rate.

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The village laundry company purchased Br. 6,500 worth of laundry supplies on June 2 and
recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only
birr 30,000 on hand. The adjusting entry that should be made by the company:
A. Debit laundry supplied expense br. 3000 credit laundry supplies, Br. 3000
B. Debit Laundry supplies expense Br. 3500 credit laundry supplies, Br. 3,500
C. Debit laundry supplies Br. 3, 500, credit laundry supplies expense Br. 3, 500
D. Debit laundry expense Br. 3, 500, credit laundry supplies Br. 3, 500
E. None

Answers

The company has used supplies with a value of $6,500 - $2,000 = $4,500 in the period, and the journal entry must record this expense by increasing the expense account with a debit entry and decreasing the asset account with a credit entry.

What is  journal entry?

A journal entry is the act of recording any transaction, whether one that is economic or not.

An accounting diary that displays the debit and credit balances of a corporation lists transactions. Multiple recordings, each of which is either a debit or a credit, may be included in the journal entry.

The total of the debits and credits must be equal in order for the journal entry to be considered balanced.

Depreciation or bond amortization are examples of recurring items that can be recorded in journal entries.

Accounts payable typically has its own subledger that indirectly affects the general ledger, and journal entries are typically entered using a different module in accounting software.

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Silas has been recently promoted to head of his department. He is responsible for maximizing the profits of the department and to ensure that the earning are ploughed back into the business. Silas is most likely to head a
Investment center

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Silas has been recently promoted to head of his department. He is responsible for maximizing the profits of the department and ensuring that the earnings are plowed back into the business. Silas is most likely to head an investment center.

Business is the exercise of creating one's dwelling or earning money through producing or shopping for and promoting products. it is also "any hobby or organization entered into for profit.

A commercial enterprise is described as an company or enterprising entity engaged in industrial, industrial, or professional activities. agencies may be for-profit entities or non-earnings groups. enterprise sorts variety from limited liability agencies to sole proprietorships, businesses, and partnerships.

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Agile project management focuses on ____________ collaboration between the project team and customer representatives.

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Agile project management focuses on active collaboration between the project team and customer representatives

Collaboration between the Team and with the ClientThe team participates with the client in the creation of the prioritized list of requirements of the product or project, in the replanning meetings of the product or project, providing the estimation of their effort and contributing improvements, new ideas and innovation.At the start of each iteration, in the iteration planning meeting, the team asks the client for any details they may need from the requirements in order to better size the content of the iteration.All of this is synthesized through iteration planning meetings and daily team synchronization meetings.

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