Hanh E9-28, E9-42, P10-44 - E9-28 1 What is the cost of the...

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Unformatted text preview: E9-28: 1. What is the cost of the machine to Freddy’s Restoration Company? Machine cost $45,000 Sales tax 2,000 Delivery costs 1,000 Assembly cost 1,400 Cost of machine $49,400 2. What is the amount of the first full year’s depreciation if Freddy’s uses the straight -line method? 49,400 Depreciation expense= = $3,293 depreciation expense/year 15 years E 9-42: 1. What amount will the individual assets of Stansbury Island be recorded on the book of Stringtown, the acquiring company? Cash $1,800,000 Liability $(400,000) Recorded on the book of Stringtown $1,400,000 2. How will Stringtown account for the liabilities of Stansbury Island Account receivable ………………….. $300,000 Inventory …………………………….. 600,000 Property, plan and equipment………… 900,000 Goodwill………………………………..400,000 Liability……………………………………400,000 Cash ……………………………………….1, 400,000 3. How much goodwill will be record as part of this acquisition? Goodwill = $400,000 P10-44: 1. Determine the present value in each of the following situation a) Amount of payment Present value of $1 in 20 periods at 2% interest (table1) Present value of payment b) Amount of payment Present value factor of $1 in 12 periods at 6%interest (table1) Present value of payment c) Amount of payment Present factor of $1 in 12periods at 1% interest (table 2) Present value $9,000 0.6730 $6,057 $12,000 0.4970 $5,964 $6,000 11.2551 $67,530.6 2. Determine the future value in each of the following situation a) Present value Future value factor of $1 in 8 periods at 4% interest (table 3) Future value b) Present value Future value factor of $1 in 60 period at 3% interest (table 3) Future value $20,000 1.3686 $27,372 $40,000 5.8916 $235,664 ...
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Hanh E9-28, E9-42, P10-44 - E9-28 1 What is the cost of the...

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