FEASIBILITY STUDY On DMC Sparkle WATER REFILLING STATION INTRODUCTION The demand at the water refilling stations – water stores that sell purified water – is now increasing. The quality of purified water conforms to the national standards for drinking water and is even better than the quality of water produced by traditional water supply systems in terms of removed impurities. Over the years‚ as the demand for cleaner water becomes higher‚ the price of household water purifiers and bottled
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Solution to Case 103 IF THE COAT FITS WEAR IT – TEACHING NOTE Questions 1. Your supervisor‚ Vic Gonzales‚ has asked you to prepare a capital budgeting report indicating whether ISGC should replace the existing machine or not. Indicate how would you proceed (without making any calculations)? I would estimate the incremental cash flows over the economic life of the new machine‚ taking into consideration the after-tax salvage values of the old and new machine respectively. Changes in
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income is substantially smaller than average total assets‚ the percentage decrease in the numerator would be greater‚ and ROA would be understated. However‚ in the next two years‚ net income would be overstated because it is not burdened by a depreciation charge‚ average total assets would remain understated‚ and ROA would be overstated. b. This error does not affect cash flows‚ but it does affect classification within the statement of cash flows. Expensing results in an operating cash ouflow
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loss account. Properties for sale: It belongs to the commodity‚ be treated as an inventory account for real estate industry. It can bring sales revenue after be sold. Question 2 a) What is purpose of amortization / depreciation? What is the difference between depreciation and
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your answer book and start each question on a fresh page. Please write legibly. 3. You must return your exam and answer book or your exam will not be graded. 4. SHOW ALL YOUR STEPS OR NO CREDIT WILL BE GIVEN. 1. (25 points) Analysis of Depreciation Candy Coffee purchased a professional coffee machine on January 1‚ 2008. The management provides the following information about the asset and its acquisition: |Purchase Price |$100
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IPSAS 17—PROPERTY‚ PLANT AND EQUIPMENT Acknowledgment This International Public Sector Accounting Standard (IPSAS) is drawn primarily from International Accounting Standard (IAS) 16 (revised 2003)‚ “Property‚ Plant and Equipment” published by the International Accounting Standards Board (IASB). Extracts from IAS 16 are reproduced in this publication of the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) with the permission
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Chapter 9 Property Acquisition and Cost Recovery McGraw-Hill Connect Homework Answers 40. [LO 1] Emily purchased a building to store inventory for her business. The purchase price was $760‚000. Beyond this‚ Emily incurred the following necessary expenses to get the building ready for use: $10‚000 to repair the roof‚ $5‚000 to make the interior suitable for her finished goods‚ and $300 in legal fees. What is Emily’s cost basis in the new building? $765‚300 cost basis‚ computed
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Exam training Case 1 Chapter 1 Basics of financial reporting Chapter 2 International accounting differences Chapter 3 The process of harmonization Case 1 Case of Sanofi – Aventis Case “Old habits die hard” Case 2 Chapter 11 Basics of interpretation of financial statements Chapter 30 Interpretation of financial statements Chapter 31 Techniques of financial analysis Calculate ratios and conduct the analysis Case 2 Calculate Profitability
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recognizing revenues? Why or why not? Case 3: Depreciation at Delta and Singapore Airlines Presentation date: Dec 3 1. Calculate the annual depreciation expense that Delta and Singapore would record for each $100 gross value of aircraft. (a) For Delta‚ what was its annual depreciation expense (per $100 of gross aircraft value) prior to July 1‚ 1986; from July 1‚ 1986 through march 31‚ 1993; and from April 1‚ 1993 on ? (b) For Singapore‚ what was its annual depreciation expense (per $100 of gross aircraft value)
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Chapter 10 Property: Dispositions SOLUTIONS MANUAL Discussion Questions: 1. [LO 1] Compare and contrast different ways in which a taxpayer triggers a realization event by disposing of an asset. A realization event for tax purposes is created in many ways. Virtually any disposal will result in a sale or other disposition. These include a sale‚ trade‚ gift to charity‚ disposal to the landfill‚ or destruction in a natural disaster. In a sale or trade (exchange)‚ the taxpayer receives something
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