Keating Co. is considering disposing of equipment with a cost of $63,000 and accumulated depreciation of $44,100. Keating Co. can sell the equipment through a broker for $26,000 less 8% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $47,000. Keating will incur repair, insurance, and property tax expenses estimated at $10,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is

Answers

Answer 1

Answer:

$11,080

Explanation:

Calculation to determine what The net differential income from the lease alternative is

Using this formula

Equipment leased net differential income = Lease amount - Estimated expenses - Net sale of equipment

Let plug in the formula

Equipment leased net differential income= $47,000-$10,000-[$26,000-($26,000*8%)]

Equipment leased net differential income=$47,000-$10,000-($26,000-$2,080)

Equipment leased net differential income=$47,000-$12,000-$23,920

Equipment leased net differential income=$47,000-$35,920

Equipment leased net differential income=$11,080

Therefore The net differential income from the lease alternative is $11,080


Related Questions

Approximately 395 years ago, the Dutch settler, Peter Schaghen, purchased Manhattan Island from the Lenape Indians for 60 guilders (about $35 USD) worth of various commodities. Assume the Lenape Indians sold the commodities and invested the $35 earning a 7.5% annualized compounded return. What would their investment be worth today (395 years later)

Answers

Answer:

the investment be worth today is $90 trillion

Explanation:

The computation of the  investment be worth today is shown below:

Amount = $35 × (1 + 0.075 ÷ 1)^1.395

= $35 × 1075^1.395

= $90 trillion

Hence, the investment be worth today is $90 trillion

Basically we applied the above method to compute the same so that the correct amount could come

Working capital accounts include:Multiple Choicecurrent assets and current liabilities.current assets and all liabilities.all assets.all assets and liabilities.

Answers

Answer:

current assets and current liabilities

Explanation:

As we know that

The working capital shows the difference of the current assets and the current liabilities

It can be shown

Working capital = current assets - current liabilities

It is used for liquidity purpose whether the firm is able to pay off the short term obligations or not

Therefore the first option is correct

Your firm is trying to recruit more women. During data analysis you discover that women are offended by some of your behavioral questions during job interviews. You determine that such questions reduce your firm’s attractiveness to women and strongly suggest dropping these gender-biased questions in order to achieve the objective of recruiting more women. This would be ______.

Answers

Answer: an insight

Explanation:

The above situation explained in the question depicts an insight. An insight refers to the interpretations of the finding from a research based on the research question.

Insights are downtimes referred to as the output of research. Insight is the understanding of a particular problem.

A portfolio is entirely invested into BBB stock, which is expected to return 16.4 percent, and ZI bonds, which are expected to return 8.6 percent. Stock BBB comprises 48 percent of the portfolio. What is the expected return on the portfolio

Answers

Answer:

the expected return on the portfolio is 12.34%

Explanation:

The computation of the expected return on the portfolio is shown below:

Expected Return is

= Investment in BBB ×  Return+ Investment in ZI × Return  

= 16.4 × 48% + 8.6 ×52%      

= 7.87% + 4.47%    

= 12.34%

hence, the expected return on the portfolio is 12.34%

The valuation of short-term marketable securities on the balance sheet is likely to be for an amount that is approximately equal to the cost of these investments because:

Answers

Answer:

the high quality and close maturity date of the securities cause their market values to be relatively stable.

Explanation:

The  short-term marketable securities are also known by the names like short term investments or by the name temporary investments or marketable securities. These are all financial securities or investments that can be converted into cash after a fixed period.

The valuation of these short term securities is the amount of money which is nearly equal to the cost of the investment done as the high quality as well as the close maturity of these securities makes the market values relatively stable.

- True or False: Professional shoplifters steal primarily for the excitement.

Answers

False, professional shoplifters steal to resell items

A Forman of a construction company is responsible for a construction crew comprised of many unskilled workers. The work is hard, and employee turnover rate is high with individuals often leaving without notice. Throughout the work week employees record their attendance on separate time cards, which the foreman approves and submits to the payroll department at the end of week. Based on the time cards, the payroll department prepares the paychecks, sends them to the foreman who then distributes the checks to his work crew. Required Identify the segregation of duties problems in the system. What sorts of fraud may result from the above control problem(s)

Answers

Solution :

In the context, it is given that foreman in a construction company is responsible for the workers who are unskilled labors.

1. The segregation of the duties which involves the separation of the main functions and have them to conducted by the different workers. But here in this case, the approval of the attendance of the employees and the distribution of the checks to the worker are the important activities that are being conducted by a single employee.

2. This may result into frauds to the company. If the segregation of the duties is not implemented, then the company is at risk. This is because a single employee does the work for the approval of the attendance of the workers and distributing the checks to them for their work. So this can result in a fraud if the foreman wants to do fraud. But distributing the work among two employee will reduce the risk of fraud as one employee many not be willing to do fraud.

What is segregation of duty?

Segregation of duties is an internal control designed to prevent error and fraud by ensuring that at least two individuals are responsible for checking and authorizing transactions.

The segregation of the duties which involves the separation of the main functions and have them to conducted by the different workers. In the above scenario, the approval of the attendance of the employees and the distribution of the checks to the worker are the important activities that are being conducted by a single employee.

What sorts of fraud may result from the above control problem?

The above may bring about fraud in the company where segregation of the duties is not in place. This means that the company is at risk.

Reason is that a single employee does the work for the approval of the attendance of the workers and distributing the checks to them for their work. Hence, can result in a fraud if the foreman wants to engage in  fraud.

Learn more about segregation of duty here : https://brainly.com/question/26589679

Helen Ming receives a travel allowance of $120 each week from her company for time away from home. If this allowance is taxable and she has a 28 percent income tax rate, what amount will she have to pay in taxes for this employee benefit

Answers

Answer:

$1,747.2

Explanation:

Calculation to determine what amount will she have to pay in taxes for this employee benefit

First step is to determine the Annual travel allowance

Using this formula

Annual travel allowance=Weekly allowance × 52 weeks

Let plug in the formula

Annual travel allowance=$120 × 52 weeks

Annual travel allowance=$6,240

Now let determine the Annual tax

Using this formula

Annual tax=Annual travel allowance × Tax rate

Let plug in the formula

Annual tax=$6,240 × 0.28

Annual tax=$1,747.2

Therefore the amount that she will have to pay in taxes for this employee benefit is $1,747.2

Select the correct revenue recognition principle for each of the following. Clear All Recognize revenue over the passage of time. Recognize revenue when the customer takes possession of the product. Recognize revenue when cash is collected. Recognize revenue when service is performed.

Answers

Answer:

Recognize revenue when service is performed.

Explanation:

Revenue recognition principle is an accounting principle which states that revenue should only be recognized when it is earned(when service has been rendered or completed) and not when cash is being collected.

What the above means is that revenue can only be earned when services are completed or rendered and not necessarily when payment is made. The reason is that payment may not be made for several weeks even after service has been rendered hence the principle or concept is incorporated into the accrual basis of accounting.

James Ryan has been a Budweiser Beer distributor for the past 20 years. James owns a ________ franchise.

Answers

Answer:

product and trademark

Explanation:

These are the options for the question

business format

product and business format

product plus

business design

product and trademark

product and trademark

Product franchise can be regarded as franchising agreement in which manufacturers give a retailers access to distribute the products of the manufacturer using the trademark as well as names of the manufacturer. It is right given to to market a product using another person trade mark.

For, instance in the case whereby James Ryan has been a Budweiser Beer distributor for the past 20 years. Then James owns a product and trademark

franchise.

Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $12,750 cash and $54,825 of photography equipment in the company in exchange for common stock. 2 The company paid $3,500 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,423 cash. 20 The company received $2,050 cash in photography fees earned. 31 The company paid $868 cash for August utilities. Prepare general journal entries for the above transactions.

Answers

Answer:

Aug 1

Dr Cash $12,750

Dr Photography equipment $54,825

Cr Common stock $67,575

Aug 2

Dr Prepaid insurance $3,500

Cr Cash $3,500

Aug 5

Dr Office supplies $2,423

Cr Cash $2,423

Aug 20

Dr Cash $2,050

Cr Photography fees earned $2,050

Aug 31

Dr Utilities Expense $868

Cr Cash $868

Explanation:

Preparation of general journal entries for the above transactions

Aug 1

Dr Cash $12,750

Dr Photography equipment $54,825

Cr Common stock $67,575

($12,750+$54,825)

Aug 2

Dr Prepaid insurance $3,500

Cr Cash $3,500

Aug 5

Dr Office supplies $2,423

Cr Cash $2,423

Aug 20

Dr Cash $2,050

Cr Photography fees earned $2,050

Aug 31

Dr Utilities Expense $868

Cr Cash $868

Highly Suspect Corp. has current liabilities of $450,000, a quick ratio of .89, inventory turnover of 6.5, and a current ratio of 1.7. What is the cost of goods sold for the company

Answers

Answer:

See below

Explanation:

First , we will compute current ratio

Current ratio = Current asset / Current liabilities

1.25 = Current ratio / $415,000

Current asset = $415,000 × 1.25

Current assets = $518,759

Next is to calculate quick ratio

Quick ratio = Current asset - Inventory / Current liabilities

0.79 = $518,750 - Inventory / $415,000

0.79 × $415,000 = $518,750 - Inventory

$327,850 = $518,750 - Inventory

Inventory = $518,750 - $327,850

Inventory = $190,900

Inventory turnover = Cost of goods sold / Inventory

9.5 = Cost of goods sold / $190,900

Cost of goods sold = 9.5 × $190,900

Cost of goods sold = $1,813,550

Locked-In Real Estate (LIRE) is preparing for their Initial Public Equity Offering (IPO). With its holdings consisting of rent controlled apartments, and no plans for expanding, LIRE plans to payout all of its earnings as dividends. These dividends amount to $7.50 per share, forever. If the expected rate of return is 12%, what is the stock price of LIRE

Answers

Answer: $62.50

Explanation:

The stock price of Locked-In Real Estate (LIRE) will be calculated thus:

Stock price = D /ke - g

where,

D = Dividend paid per share = $7.50

Ke = expected rate of return on equity = 12% = 0.12

g is growth rate of dividend = 0

Stock price = $7.50/0.12

Stock price = $62.5

Therefore, the stock price is $62.50

Waterway Industries is planning to sell 800 buckets and produce 1080 buckets during March. Each bucket requires 200 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 200 grams and employees of the company are paid $15 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Waterway has 300 kilos of plastic in beginning inventory and wants to have 500 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?

Answers

Answer:

See below

Explanation:

From the above,

One bucket requires;

200 grams of plastic and one half of direct labor

The plastic costs $10 per 200 grams and the employees are paid $15 per hour.

Therefore, one bucket costs (material and labor) :

= $10 + $15 × (1/2)hour = $17.5 per plus 1.10 × $7.50 = $25.75

For 1,080 buckets

$25.75 × 1,080 = $27,810

Therefore, the total amount of budgeted direct material for March is $27,810

I need money help me!

Answers

Answer:

Leadership in restaurants calls for implementing systems that ensure the smooth running of the business. This means setting up systems that help with cash flow management, inventory tracking, staff management, training programs and others. That is not all.

Explanation:

Great knowledge of the restaurant business

Motivate your staff and recognize their achievement

Set Goals

Set training programs

Handle stress

Delegate wisely

Be approachable and trustworthy

Leaders in the restaurant industry are realizing that old vertical leadership styles don't bring the desired results. By generating resentment, dependence, passivity, feelings of inferiority or mistrust, they do not motivate people to give their best, to work with excellence and to be in a continuous learning process; nor do they encourage unity, collaboration, and synergy.

It is for this reason, a growing number of restaurant owners are beginning to practice service-oriented leadership, which I define as servant leadership.

Consider the following game. Harry has four quarters. He can offer Sally from one to four of them. I

Answers

Answer:

i think Harry  should be nice a gave Sally 2 of them.Then, they well have the same amount

Explanation:

Springfield Bank holds $280 million in total deposits and $40.7 million in total reserves. With a required reserve ratio of 11.5 percent, how much in excess reserves is Springfield Bank holding?
a) $239.3 million
b) $247.8 million
c) $36 million
d) $32.2 million
e) $8.5 million

Answers

Answer:

e) $8.5 million

Explanation:

The computation of the excess reserve is shown below:

We know that

Excess reserve = total reserve - required reserve

where

Required reserve is

= Total deposits × required reserve ratio

= $280 × 11.5%

= $32.20

So, the excess reserve is

= $40.7 - $32.20

= $8.5 million

The situations presented here are independent of each other. For each situation, prepare the appropriate journal entry for the redemption of the bonds.
1. Ayayai Corp. redeemed $158,000 face value, 12% bonds on April 30, 2022, at 102. The carrying value of the bonds at the redemption date was $142,674. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded.
2. Kingbird, Inc. redeemed $179,000 face value, 14.0% bonds on June 30, 2022, at 95. The carrying value of the bonds at the redemption date was $193,320. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded.

Answers

Answer:

1. April 30

Dr Bonds payable $158,000

Dr Loss on redemption of bonds payable $18,486

Cr Discount on bonds payable $15,326

Cr Cash $161,160

2. June 30

Dr Bonds payable $179,000

Dr Premium on bonds payable $14,320

Cr Gain on redemption of bonds payable $23,270

Cr Cash $170,050

Explanation:

1. Preparation of the appropriate journal entry for the redemption of the bonds.

April 30

Dr Bonds payable $158,000

Dr Loss on redemption of bonds payable $18,486

($161,160+$15,326-$158,000)

Cr Discount on bonds payable $15,326

($158,000-$142,674)

Cr Cash $161,160

($158,000*1.02)

(To record redemption of bonds)

2. Preparation of the appropriate journal entry for the redemption of the bonds.

June 30

Dr Bonds payable $179,000

Dr Premium on bonds payable $14,320

($193,320-$179,000)

Cr Gain on redemption of bonds payable $23,270

($179,000+$14,320-$170,050) .

Cr Cash $170,050

($179,000*.95)

(To record redemption of bonds)

Class: Finance - Money and Banking

Under what circumstances might you be willing to pay more than $1,000 for a coupon bond that matures in three years, has a coupon rate of 10 percent, and has a face value of $1,000?

Answers

Answer:

mmm?mmmm???m?mmmm?mmmmm

Suppose you are buying your first condo for $250,000, and you will make a $30,000 down payment. You will finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6% nominal interest rate, with the first payment due in one month. What will your monthly payments be

Answers

Answer:

The monthly payments will be

= $1,319.01.

Explanation:

a) Data and Calculations;

Cost of the first condo = $250,000

Down payment = $30,000

Principal loan amount = $220,000 ($250,000 - $30,000)

Period of monthly payments = 30 years or 360 months

Nominal interest rate = 6%

N (# of periods)  360

I/Y (Interest per year)  6

PV (Present Value)  220000

FV (Future Value)  0

Results

PMT = $1,319.01

Sum of all periodic payments $474,844.02

Total Interest $254,844.02

The law of increasing opportunity costs Multiple Choice applies to land-intensive commodities but not to labor-intensive or capital-intensive commodities. results in straight-line production possibilities curves rather than curves that are bowed outward from the origin. may limit the extent to which a nation specializes in producing a particular product. refutes the principle of comparative advantage.

Answers

Answer:

may limit the extent to which a nation specializes in producing of a particular product.

Explanation:

Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invested the same amount of resources in a salon business or any other business as the case may be.

The law of increasing opportunity costs can be defined as a principle in business which states that, if an organization or business firm continually raise (increase) its level of production, its opportunity cost also increases (rises).

Consequently, this may limit the extent to which a nation or country in any part of the world specializes in producing of a particular product so as to reduce or lower its opportunity cost.

You are to make monthly deposits of $1,721 into a retirement account that pays 8 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 5 years?

Answers

Answer:

FV= $126,585.60

Explanation:

Giving the following information:

Monthly deposit (A)= $1,721

Interest rate (i)= 0.08/12= 0.0067

Number of periods (n)= 12*5= 60 months

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {1,721*[(1.0067^60) - 1]} / 0.0067

FV= $126,585.60

calculate how much credit created by commercial bank when there is a deposit of 80000, reserve requirement is 8% and withdrawl is 35%?

Answers

Answer:

Amount of credit created by commercial bank = 47,840

Explanation:

Given:

Total deposit in bank = 80,000

Reserve requirement = 8%

Withdrawal = 35%

Find:

Amount of credit created by commercial bank

Computation:

Amount available for withdrawal = Total deposit in bank[1 - Reserve requirement]

Amount available for withdrawal = [80,000][1-8%]

Amount available for withdrawal = 73,600

Amount of withdrawal = Amount available for withdrawal[35%]

Amount of withdrawal = 73,600[35%]

Amount of withdrawal = 25,760

Amount of credit created by commercial bank = 73,600 - 25,760

Amount of credit created by commercial bank = 47,840

Baby Day Care, a sole proprietorship, wants to pay as many of its obligations as reasonably possible, and be discharged of the rest. To accomplish this goal, the proprietorship should file a petition in bankruptcy under for relief through:_______

a. a liquidation.
b. a reorganization.
c. a repayment plan.
d. an adjustment plan.

Answers

Answer:

b. a reorganization.

Explanation:

Under the chapter 13, the bankruptcy should be filed and it mainly reorganization plan for the payment. It is to be done by splitting the non-secured debt across the various years also it permits the individual to retain the assets

So as per the given situation, in order to attain the goal, the proprietorship should file the petition in bankruptcy under for relief via a reorganization

What is one thing every good career should provide you

Answers

Experience. All u need in a career

what is the major source of competition for motor carrier?​

Answers

Answer: The major source of competition for motor carrier is intermodal in nature.

The major source competition for motor carriers is railroad. This is because rail system is quicker than motor carriers and has been used widely. Railroads do not cover all geographical zones but they have been a trend in several regions.

Explanation:

Fact Pattern 28-2 Adam, a director of Beta Computer Company, learns that a Beta engineer has developed a new, significantly faster computer chip. Adam buys Beta stock and tells his friend Cathy, who also buys Beta stock. When the new chip is announced three weeks later, Adam and Cathy sell their stock for a big profit.Refer to Fact Pattern 28-2. Regarding Adam's profits on the purchase and sale of Beta stock, under Section l6(b) of the Securities Exchange Act of 1934 Beta may recapturea) 10 percent of Adam's profitsb) half of Adam's profitsc) all of Adam's profits.d) none of the above.

Answers

Answer:

C. All of Adam's profits

Explanation:

If Adam is found guilty of using insider information from the company Beta Computer to gain profits by buying and selling stock of the company. He can be sued by the other security holders and will be held liable to pay all of his profits made with that trade. under the Section 16{b} of the Securities Exchange Act of 1934.

The following is selected financial information for Osmond Dental Laboratories for 2021 and 2022: 2021 2022 Retained earnings, January 1 $ 53,000 ? Net income 40,000 45,000 Dividends 12,000 25,000 Common stock 78,000 ? Osmond issued 3,000 shares of additional common stock in 2022 for $22,000. There were no other stock transactions. Prepare a statement of stockholders' equity for the year ended December 31, 2022. (Amounts to be deducted should be indicated with minus sign.)

Answers

Answer:

Osmond Dental Laboratories

Statement of Stockholders' Equity:

                                                           2022

Common stock                              $90,000

Retained earnings, December 31   101,000

Stockholders' equity                    $191,000

Explanation:

a) Data and Calculations:

Osmond Dental Laboratories for 2021 and 2022:

                                                       2021        2022

Retained earnings, January 1 $ 53,000              ?

Net income                                 40,000    45,000

Dividends                                    12,000    25,000

Common stock                          78,000              ?

Analysis:

Cash $22,000 Common stock $22,000

Retained earnings, January 1         $ 53,000     81,000

Net income                                         40,000    45,000

Dividends                                           -12,000   -25,000

Retained earnings, December 31   $ 81,000 $101,000

Common stock on December 31 = $90,000 ($78,000 + $22,000)

Statement of Stockholders' Equity:

Osmond Dental Laboratories for 2021 and 2022:

                                                           2021        2022

Common stock                             $78,000  $90,000

Retained earnings, December 31  81,000     101,000

Stockholders' equity                  $159,000  $191,000

Ano ang dapat nating tandaan kapag nagbibigay ng pangunang lunas?​

Answers

I dont know just need the points

During year 8, Clark Company manufactured equipment for its own use at a total cost of $2,400,000. The project required the entire year to complete and all costs were incurred uniformly throughout the year. At the beginning of the period, Clark was able to borrow $1,500,000 at 6% specifically for the purchase of materials and the manufacture of the equipment. The entire debt, with interest was repaid on December 31, year 8, replaced with a long-term loan. Throughout year 8, Clark Company had additional debt of $1,000,000 with a weighted average interest rate of 7%. If Clark Company capitalizes the maximum amount of interest allowable under GAAP, how much will Clark report as interest expense in year 8

Answers

Answer:

$88,000

Explanation:

Calculation to determine how much will Clark report as interest expense in year 8

First step is to calculate the total interest expense for the year

Total interest expense = ($1,500,000 x 6%) + ($1,000,000 x 7%)

Total interest expense = $90,000 + $70,000

Total interest expense=$160,000

Second step is to calculate the weighted average costs

Weighted average costs = $2,400,000 / 2

Weighted average costs= $1,200,000

Third step is to calculate the capitalize interests

Capitalize interests =$1,200,000 x 6%

Capitalize interests= $72,000

Now let calculate the interest expense in year 8 using this formula

Year 8 Interest expense=Total interests - Capitalized interests

Let plug in the formula

Year 8 Interest expense= $160,000 - $72,000

Year 8 Interest expense= $88,000

Therefore The amount that Clark will report as interest expense in year 8 is $88,000

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