Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Brief Exercise 11-21 In its 2020 annual report, Waterway Limited reports beginning-of-the-year total assets of $2,226 million, end-of- the-year total assets of $2,344 million, total

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Brief Exercise 11-21 In its 2020 annual report, Waterway Limited reports beginning-of-the-year total assets of $2,226 million, end-of- the-year total assets of $2,344 million, total revenue of $2,498 million, and net income of $148 million Calculate Waterway's asset turnover ratio. (Round answer to 2 decimal places, e.g. 52.75.) Asset turnover ratio times LINK TO TEXT Calculate Waterway's profit margin. (Round answer to 2 decimal places, e.g. 52.75%.) Profit margin % LINK TO TEXT Calculate Waterway's rate of return on assets (1) using the asset turnover and profit margin, and (2) using net income. (Round answers to 2 decimal places, e.g. 52.75%.) Rate of return on assets (1) Using the asset turnover and profit margin % (2) Using net income Brief Exercise 11-22 Bonita Limited purchased an asset at a cost of $30,000 on March 1, 2020. The asset has a useful life of seven years and an estimated residual value of $2,400. For tax purposes, the asset belongs in CCA Class 8, with a rate of 20%. Calculate the CCA for each year, 2020 to 2023, assuming this is the only asset in Class 8. CCA 2020 2021 2022 $ 2023 How would the calculation change for 2020-2023 based on the new CCA rules implemented in late 2018 (see footnote 20) assuming this is "eligible property"? CCA 2020 2021 $ 2022 2023 Brief Exercise 11-8 Riverbed Corporation purchased a truck at the beginning of 2020 for $84,200. The truck is estimated to have a residual value of $3,000 and a useful life of 290,000 km. It was driven for 62,000 km in 2020 and 85,000 km in 2021. Calculate depreciation expense for 2020 and 2021 using the units of production method. (Round per km to 4 decimal places, e.g. 15.1254 and round final answers to 0 decimal places, e.g. 5,275.) 2020 2021 Depreciation expense LINK TO TEXT LINK TO TEXT For tax purposes, the asset's capital cost allowance (CCA) rate is 30%. Calculate the CCA for 2020 and 2021. 2020 2021 Capital Cost Allowance (CCA) Brief Exercise 11-9 Pronghorn Corporation, a publicly traded mining company, acquires a mine at a cost of $520,000. Capitalized development costs total $134,500. After the mine is depleted, $79,000 will be spent to restore the property, after which it can be sold for $160,500. Pronghorn estimates that 5,000 tonnes of ore can be mined. Assuming that 860 tonnes are extracted in the first year, prepare the journal entry to record depletion. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round per tonne to 2 decimal places, e.g. 15.75 and final answer to 0 decimal places, e.g. 1,575.) Account Titles and Explanation Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

MP Auditing And Assurance Services W/ACL Software CD ROM A Systematic Approach

Authors: William Messier Jr, Steven Glover, Douglas Prawitt

9th Edition

1259162346, 978-1259162343

More Books

Students also viewed these Accounting questions