Student ID: 7608756 FACC Assignment FACC/Jul11/1 Ryan Marc Gonsalves Ryan Marc Gonsalves MBSW 60127 FINANCIAL ACCOUNTING FACC/JULY11/1 Student ID: 7608756 Table of Contents Table of Tables .................................................................................................................... 3 Table of Figures ................................................................................................................... 3 Introduction and Purpose ................
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[pic] Click www.ondix.com to visit our student-to-student file sharing network. REVIEW OF FACTS Rock Creek Golf Club is a public golf course owned by a private company and managed by Lee Jeffries. The case entails a debate about the golf carts used to take players around the course instead of walking around. The carts they already owned were old and there was a need for new golf carts. Approached by two salesman‚ Lee Jeffries was forced to chose to make a deal with one of them. Salesman
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from contract manufacturers less incremental Stryker manufacturing costs Operating income from project less architect and engineering fees pre-tax income less taxes at 36% After-tax income add back Building depreciation add back Equipment depreciation add back It & other equipment depreciation Subtotal plus NCW Savings Subtotal Cash Flow Terminal Value‚ at book value Hurdle rate Discount factor at 15% PV of Cash Flows Sum‚ PV of Cash Flows & Terminal Value (BV Less 3 Initial Investments: 1. Building
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$13‚980; depreciation expenses = $2‚370; interest expense = $345; dividends paid = $400. At the beginning of the year‚ net fixed assets were $13‚800‚ current assets were $2‚940 and current liabilities were $2‚070. At the end of the year‚ net fixed assets were $16‚340‚ current assets were $3‚280‚ and current liabilities were $2‚160. The tax rate for 2010 was 35 percent. a. What is net income for 2010? Net income = Revenue – Expenses = Net sales – Cost of goods sold – Depreciation – Interest
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property‚ plant and equipment‚ the amount will be carried at its cost less any accumulated depreciation and ant accumulated impairment losses. However under the Revaluation model‚ after recognition of an item of property‚ plant and equipment whose fair value can be measured reliably shall be carried at a revaluated amount‚ being it’s fair value at the dated of the revaluation less any subsequent accumulated depreciation and accumulated impairment losses. It also states that revaluation shall be done regularly
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Harnischfeger Corp case study 1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. Note 2 (pg. 17) states that in 1984 Harnischfeger changed their depreciation method that was being used to expense their plants‚ machinery and equipment from the direct method to the straight-line method for financial reporting purposes. An adjustment of the residual values on certain machinery and equipment was made. Harnischfeger also included
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The journal entry to record its purchase on January 1‚ 2008. (2) The journal entry to record annual depreciation at December 31‚ 2008‚ assuming the straight-line method of depreciation is used. (b) Calculate the amount of depreciation expense that Arlo should record for machine B each year of its useful life under the following assumption. (1) Arlo uses the straight-line method of depreciation. (2) Arlo uses the declining-balance method.The rate used is twice the straight-line rate. (3) Arlo
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000 $15‚000 Depreciation shield 11‚220 15‚300 5‚100 Net Cash Flow $26‚220 $30‚300 $20‚100 ==================== Notes: 1. The after-tax cost savings is $25‚000(1-T)=$25‚000(.6)=$15‚000. 2. The depreciation expense in each year is the depreciable basis‚ $85‚000 times the MACRS allowance percentage of .33‚ .45‚ and .15 for Years 1‚ 2‚ and 3. Depreciation expense in Years 1‚ 2‚ and 3 is $28‚050‚ $38‚250‚ and $12‚750. The depreciation shield is calculated
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Once the estimated depreciation expense for an asset is calculated: (Points : 1) | It may be revised based on new information | 6. When originally purchased‚ a vehicle had an estimated useful life of 8 years. The vehicle cost $23‚000 and its estimated salvage value is $1‚500. After 4 years of straight-line depreciation‚ the asset’s total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5
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Once the estimated depreciation expense for an asset is calculated: (Points : 1) It may be revised based on new information 6. When originally purchased‚ a vehicle had an estimated useful life of 8 years. The vehicle cost $23‚000 and its estimated salvage value is $1‚500. After 4 years of straight-line depreciation‚ the asset’s total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:
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