In January 2009, the Status Quo Company was formed. Total assets were $586,000, of which $377,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $37,700 per year, and in 2009 it estimated its fixed assets to have useful lives of 10 years. Aftertax income has been $59,000 per year each of the last 10 years. Other assets have not changed since 2009. a. Compute return on assets at year-end for 2009, 2011, 2014, 2016 and 2018. Note: Input your answers as a percent rounded to 2 decimal places. Year 2009 2011 2014 2016 2019 Return on Assets % % %
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- In January 2007, the Status Quo Company was formed. Total assets were $563,000, of which $349,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $34,900 per year, and in 2007 it estimated its fixed assets to have useful lives of 10 years. Aftertax income has been $63,000 per year for each of the last 10 years. Other assets have not changed since 2007. a. Compute return on assets at year-end for 2007, 2009, 2012, 2014, and 2016. (Use $63,000 in the numerator for each year.)In January 2009, the Status Quo Company was formed. Total assets were $593,000, of which $351,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $35,100 per year, and in 2009 it estimated its fixed assets to have useful lives of 10 years. Aftertax Income has been $43,000 per year each of the last 10 years. Other assets have not changed since 2009. a. Compute return on assets at year-end for 2009, 2011, 2014, 2016 and 2018 Note: Input your answers as a percent rounded to 2 decimal places. Year 2009 2011 2014 2016 2019 Return on Assets % % % % b. To what do you attribute the phenomenon shown in part a Increase in current assets Annual depreciation charges Increase in market share. Return on assets will be 4 c. Now assume income increased by 10 percent each year. What effect would this have on your answers to perta?In January 2007, the Status Quo Company was formed. Total assets were $502,000, of which $354,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $35,400 per year, and in 2007 it estimated its fixed assets to have useful lives of 10 years. Aftertax income has been $44,000 per year for each of the last 10 years. Other assets have not changed since 2007. a. Compute return on assets at year-end for 2007, 2009, 2012, 2014, and 2016. (Use $44,000 in the numerator for each year.) (Input your answers as a percent rounded to 2 decimal places.)
- (Analysis of Subsequent Expenditures) The following transactions occurred during 2017. Assume thatdepreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year.Jan. 30 A building that cost $132,000 in 2000 is torn down to make room for a new building. The wrecking contractor was paid $5,100 and was permitted to keep all materials salvaged.Mar. 10 Machinery that was purchased in 2010 for $16,000 is sold for $2,900 cash, f.o.b. purchaser’s plant. Freight of $300 is paid on the saleof this machinery.Mar. 20 A gear breaks on a machine that cost $9,000 in 2009. The gear is replaced at a cost of $2,000. The replacement does not extend theuseful life of the machine but does make the machine more effi cient.May 18 A special base installed for a machine…The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. A building that cost $168,960 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,528 and was permitted to keep all materials salvaged. Jan. 30 Machinery that was purchased in 2013 for $20,480 is sold for $3,712 cash, f.o.b. purchaser's plant. Freight of $384 is paid on the sale of this machinery. Mar. 10 Mar. 20 A gear breaks on a machine that cost $11,520 in 2012. The gear is replaced at a cost of $2,560. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2014 when the machine was purchased…Burrell Company purchased a machine for $33,000 on January 2, 2016. The machine has an estimated service life of 5 years and a zero estimated residual value. The asset earns income before depreciation and income taxes of $16,500 each year. The tax rate is 25%. Required: Compute the rate of return earned (on the average net asset value) by the company each year of the asset's life under the straight-line and the double-declining-balance depreciation methods. Assume that the machine is the company's only asset.
- The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5 % per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. A building that cost $ 171,600 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,630 and was permitted to keep all materials salvaged. Jan. 30 Machinery that was purchased in 2013 for $ 20,800 is sold for $ 3,770 cash, f.o.b. purchaser's plant. Freight of $ 390 is paid on the sale of this machinery. Mar. 10 Mar. 20 Agear breaks on a machine that cost $ 11,700 in 2012. The gear is replaced at a cost of $ 2,600. The replacement does not extend the useful life of the machine but does make the machine more efficient. Aspecial base installed for a machine in 2014 when the machine was…The following transactions occurred during 2020. Assume that depreciation of 15% per year is charged on all machinery and 7.5% per year on buildings, on a straight-line basis, with no estimated residual value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Feb. 10 A building that cost $115,000 in 2005 is torn down to make room for a new building. The wrecking contractor was paid $5,500 and was permitted to keep all materials salvaged. June 15 Machinery that was purchased in 2016 for $18,000 is sold for $1,500 cash, 10 f.o.b. purchaser’s plant. Freight of $700 is paid on the sale of this machinery. July 28 A special base installed for a machine in 2018 when the machine was purchased has to be replaced at a cost of $7,500 because of defective workmanship on the original base. The cost of the machinery was $14,500 in 2018. The cost of the base was $5,000, and this amount was…On August 1, 2015, Toy inc. purchosed a new piece of equipment that cost$25000. The estimoted useful ife is five years and the estimated residual value is 52,500 . During the five years of useful life the equpment is expected to produce 10.000 units. If the company uses the double declining bolance method of depreciation, what is the depreciation expense for the yeat ended December 31 , 2016 ? Mutiple Croice $15,000 $5,400 $8,333 $6,000 None of the other atfenatives aro correct
- The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 A building that cost $132,000 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $5,100 and was permitted to keep all materials salvaged. Mar. 10 Machinery that was purchased in 2013 for $16,000 is sold for $2,900 cash, f.o.b. purchaser’s plant. Freight of $300 is paid on the sale of this machinery. Mar. 20 A gear breaks on a machine that cost $9,000 in 2012. The gear is replaced at a cost of $2,000. The replacement does not extend the useful life of the machine but does make the machine more efficient. May 18 A special base installed for a machine in 2014 when the…REMAX Ltd. purchased a warehouse on January 2, 2016, for $440,000. The straight-line method is used, and useful life is estimated to be 10 years, with a $40,000 residual value. At the beginning of 2022 REMAX spent $96,000 on major renovations. After the renovations, REMAX estimated that the useful life would be extended by 4 years, and the residual value would be $20,000. Calculate the depreciation expense for 2022.The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 A building that cost $147,840 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $5,712 and was permitted to keep all materials salvaged. Mar. 10 Machinery that was purchased in 2013 for $17,920 is sold for $3,248 cash, f.o.b. purchaser’s plant. Freight of $336 is paid on the sale of this machinery. Mar. 20 A gear breaks on a machine that cost $10,080 in 2012. The gear is replaced at a cost of $2,240. The replacement does not extend the useful life of the machine but does make the machine more efficient. May 18 A special base installed for a machine in 2014…