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- Sage Hill Company purchased a machine at a price of $104, 000 by signing a note payable, which requires a single payment of $138, 424 in 3 years. What would be the purchase price of the machine had Sage Hill negotiated a single payment of $120,000 in 3 years, using the same effective rate? To calculate, use (1) a financial calculator or (2) Excel function PV. ( Round answer to 2 decimal places, e.g. 5,275.25.)Need-Based Accounting Corp. has just purchased 10 photocopiers for a total cost of $500,000. The CCA rate for these photocopiers is 20%. The company plans to use these photocopiers for 10 years. By the end of the 10th year, the company expects to move into new imaging system that will no longer require the photocopiers, and the asset pool will then be closed. If the company can sell the photocopiers for $50,000 in 10 years’ time, what amount of terminal loss/CCA recapture can be claimed after the photocopiers have been sold? Assume that half-year rule applies. Please show all calculation steps:Cisco Systems is purchasing a new bar code–scanning device for its servicecenter in San Francisco. The table that follows lists the relevant cost items for this purchase. The operating expenses for the new system are $10,000 per year, and the useful life of the system is expected to be five years. The SV for depreciation purposes is equal to 25% of the hardware cost. Solve, a. What is the BV of the device at the end of year three if the SL depreciationmethod is used? b. Suppose that after depreciating the device for two years with the SL method, the firm decides to switch to the doubledeclining balance depreciation method for the remainder of the device’s life (the remaining three years). What is the device’s BV at the end of four years?
- Suppose that you purchased industrial equipment that requires special software to run the machine. The licensing agreement calls for a $20,000 payment immediately and $10,000 every other year to renew and get any update on the software. If the machine is to be kept for 48 years, determine the total equivalent cost in present worth at an interest rate of 10%.Fittipaldi Company recently purchased a patent for a radar detection device for $8 million. This radar detection device has been proven to detect three times better than any existing radar detector on the market. Fittipaldi expects four years to pass before any competitor can devise a technology to beat its device.a. Why does the $8 million represent an asset? Should the fixed asset department be responsible for its accounting?b. Where would the source documents come from?c. What happens if a competitor comes out with a new model in two years rather than four?d. How does the auditor verify the numbers that the fixed asset department calculated at the end of the period? Is it the auditor’s responsibility to be aware of external regulatory conditions that might affect the value of the patent? For example, what if seven more states prohibit the use of radar detectors?May I ask for help with this question? I got an answer of 28,750 (Rounded Up) Please check. In 20x1, G Co. started to develop a patent. Total costs incurred during the year amounting to P400,000. On January 1, 20x2, the patent was fully developed. Legal and registration cost incurred in registering the patent amounted to P300,000. It was estimated that the patent has a useful life of 25 years. In 20x4, G Co. started to develop a new improved patent to extend the life of the old patent. Development costs totaled P800,000. On January 1, 20x5, the new patent was completed and legal and registration costs incurred to register the new patent amounted to P320,000. It was estimated that the new patent will extend the life of the old patent by another 20 years starting January 1, 20x5. How much is the amortisation expense in 20x5?
- LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a single payment of $123,210 in two years. a. Assuming annual compounding of interest, what rate of interest is being paid on the loan? Use Excel function Rate to calculate the rate. b. What would be the purchase price of the machine had LEW negotiated a single payment of $120,000 in two years, using the same effective rate? Use excel only..Using the following unrelated situations. A. A patent with a 10-year remaining legal life was purchased for $280,000. The patent will be usable for another 8 years. B. A patent was acquired on a new smartphone. The cost of the patent itself was only $38,000, but the market value of the patent is $600,000. The company expects to be able to use this patent for all 20 years of its life. Calculate the annual amortization expense. A. $ В. $ Prepare a journal entry to record the expense. If an amount box does not require an entry, leave it blank. A. В. 00Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master Industries (the manufacturer) has agreed to accept $23,500 at the end of each of the next 4 years. Based on this deal, how much interest will Grummet pay over the life of the loan?A. $94,000B. $80,000C. $23,500D. $14,000
- Bramble Corp. is purchasing new equipment with a cash cost of $312000 for an assembly line. The manufacturer has offered to accept $67900 payment at the end of each of the next six years. How much interest will Bramble Corp. pay over the term of the loan? O $95400. O $312000. O $67900. O $407400.Grant Company has acquired a machine and equipment on January 2, 2018. The cost of the machine (including installation cost and decommissioning cost), P80,000,000 and the cost of the equipment is P20,000,000. The machine produces chemical products that are sold to overseas customers. As a condition to operate the machine, regular inspection for faults is performed every year at a cost of P1,000,000. The life of the machine is 10 years while the equipment 5 years. The company uses the straight-line method of depreciation. On January 1, 2021, a cost was incurred to overhaul the machine at a cost of P4,000,000. After the overhaul, the machine is expected to produced twice as it was producing in the prior years. Also, a residual value of P1,200,000 is expected on this machine. What is the total carrying value of the manufacturing plant (machine, and equipment) as of December 31, 2021?A wood products company has decided to purchase new logging equipment for $100,000 with a trade-in of its old equipment. The old equipment has a BV of $10,000 at the time of the trade-in. The new equipment will be kept for 10 years before being sold. Its estimated SV at the time is expected to be $5,000. Use this information to solve, Using the MACRS (GDS recovery period), if the equipment is sold in year five, the BV at the end of year five is equal to (a) $29,453 (b) $24,541 (c) $12,672 (d) $6,336.