Business, 30.10.2019 20:31 unknown9263
You are a financial analyst for loch motor company and have been asked to determine the impact of alternative depreciation methods. for your analysis, you have been asked to compare methods based on a machine that cost $186,000. the estimated useful life is 8 years, and the estimated residual value is $37,760. the machine has an estimated useful life in productive output of 218,000 units. actual output was 29,000 in year 1 and 25,000 in year 2.
required:
1. for years 1 and 2 only, prepare separate depreciation schedules assuming:
a. straight-line method.
b. units-of-production method.
c. double-de clining-balance method.
2. evaluate each method in terms of its effect on cash flow, fixed asset turnover, and eps. assuming that ford motor company is most interested in reducing taxes and maintaining a high eps for year 1, what would you recommend to management? would your recommendation change for year 2? why or why not?
Answers: 3
Business, 22.06.2019 05:50
Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes
Answers: 2
Business, 22.06.2019 08:40
The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to u.s. gaap. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000. 5. erismus is a plaintiff in a lawsuit. erismus’s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $500,000.
Answers: 1
Business, 22.06.2019 11:10
Sam and diane are completing their federal income taxes for the year and have identified the amounts listed here. how much can they rightfully deduct? • agi: $80,000 • medical and dental expenses: $9,000 • state income taxes: $3,500 • mortgage interest: $9,500 • charitable contributions: $1,000.
Answers: 1
Business, 22.06.2019 20:00
In william rathje's garbology project that focused on household waste, front door interviews found 15 percent of respondents saying that they consumed beer. the trash discard from the same area showed what percentage of household's consuming beer
Answers: 1
You are a financial analyst for loch motor company and have been asked to determine the impact of al...
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