Qstn. No.1: Calculate the annual depreciation expense that Delta and Singapore Airlines would record for each $100 gross value of Aircraft. a. For Delta‚ what was its annual depreciation expenses (per $100 of gross aircraft value) prior to July 1‚ 1986‚ From July 1‚ 1986 through March 31‚ 1993 and from April 1st‚ 1993 on? b. For Singapore‚ what was its annual depreciation expense (per $100 of Gross aircraft value) prior to April1‚ 1989 and from April 1‚1989 on? | | | | Delta Airlines
Premium Depreciation
shelving in order to renovate the store. If they sell‚ they expect to receive $14‚000 for the shelving. Which of these is TRUE about the shelving? a. The accumulated depreciation at the point of sale will be $41‚000. b. The gain on sale of shelving will be $1‚000. c. The entry to record the sale will debit the accumulated depreciation account by $55‚000. d. The asset received is a $1‚000 more than the asset removed. Disposal: Compare book value ($15‚000) to proceeds ($14‚000) to see you have a
Premium Depreciation Generally Accepted Accounting Principles Expense
and water 60% variable 60‚000 Managerial salaries 20% variable 100‚000 Maintenance costs 40% variable 100‚000 Depreciation 0% variable 120‚000 Indirect labor 50% variable 120‚000 Non manufacturing costs Accounts Nature or Classification Amount in Tshs 000 Administration expenses 0% variable 120‚000 Marketing expenses 40% variale 100‚000 Depreciation costs 0% variable 80‚000 During the year 2013‚ Ujamaa Ltd produced 80‚000 bags. Management is forecasting sales price
Premium Costs Cost Depreciation
equipment is USD 12‚000‚ the cost for transportation and installation is USD 1‚000 USD. The asset is depreciated according to a straight line depreciation scheme within 5 years. It is expected that the project can produce and sell 7‚500 units of product at the price of USD 2 per unit‚ for the first year. The operating costs for the first year (excluding depreciation) are estimated to be USD 10‚000. Revenues and operating costs are supposed to grow at the annual rate of 7% and 5% respectively. The pre-tax
Premium Depreciation Corporate tax Net present value
machine for a new one. 13.6 Year 0 Net Cash Flow = Machine Price + Cost of Install + Increase in Net Working Capital Year 0 = $1‚080‚000 + $22‚500 + $15‚500 = ($1‚118‚000) Depreciation Year 1 = ($1‚080‚000 + $22‚500) x 0.3333 = $367‚463 Depreciation Year 2 = ($1‚080‚000 + $22‚500) x 0.4445 = $409‚061 Depreciation Year 3 = ($1‚080‚000 + $22‚500) x 0.1481 = $163‚ 280 Net Operating Cash Flow for Year 1 = $375‚612 ; Year 2 = $418‚521 ; Year 3 = $304‚148 Book Value of the Asset = ($1‚080‚000
Premium Depreciation Net present value Generally Accepted Accounting Principles
Intermediate Accounting Accounting Cycle Project You have been engaged to perform accounting services for Herman and Sons’ Law Offices. Your responsibilities include maintaining all accounting records and preparing annual financial statements. Herman and Sons’ opened on January 1‚ 2015. During the year‚ the firm had the following transactions: 1. January 2: The owners invested $200‚000 into the business and acquired 25‚000 shares of capital stock in return. 2. January 15: Herman and Sons’ took
Premium Accounts receivable Generally Accepted Accounting Principles Balance sheet
Jefferson Animal Rescue is a private not-for-profit clinic and shelter for abandoned domesticated animals‚ chiefly dogs and cats. At the end of 2011‚ the organization had the following account balances: [pic] .:. The following took place during 2012: 1. Additional supplies were purchased on account in the amount of $15‚000. 2. Unconditional (and unrestricted) pledges of support were received totaling $95‚000. In light of a declining economy‚ 5 percent is expected to be uncollectible. The remainder
Premium Generally Accepted Accounting Principles Asset Depreciation
12%. What is the NPV? | Figures in 000 ’s | | Year | 0 | 1 | 2 | 3 | 4 | 5 | Unit Sales | | 500 | 600 | 1‚000 | 1‚000 | 600 | Revenues | | 2‚000 | 2‚400 | 4‚000 | 4‚000 | 2‚400 | Costs | | 750 | 900 | 1‚500 | 1‚500 | 900 | Depreciation | | 1‚200 | 1‚200 | 1‚200 | 1‚200 | 1‚200 | Pretax Profit (includes salvage in year 5) | | 50 | 300 | 1‚300 | 1‚300 | 800 | Taxes at 35% | | 18 | 105 | 455 | 455 | 280 | Profit after tax | | 33 | 195 | 845 | 845 | 520 | | |
Premium Net present value Cash flow Depreciation
The controller’s bonus is based on the next income. It is the controller’s belief that the switch in inventory methods would increase the net income of the company. What are the differences between the LIFO and FIFO methods? D2: A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited by the
Premium Balance sheet Expense Income statement
Because the methods employed in treating certain items within the accounting records may be varied from time to time‚ the concept of consistency has come to be applied more and more rigidly. For example‚ because there can be no single rate of depreciation chargeable on all fixed assets‚ every business has potentially a lot of discretion over the precise rate
Premium Balance sheet Depreciation Generally Accepted Accounting Principles