FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

On January 1, 2014, Freeman Inc. purchased a new machine and financed this purchase by making a cash down payment of $30,000 and issuing

On January 1, 2014, Freeman Inc. purchased a new machine and financed this purchase by making a cash down 

On January 1, 2014, Freeman Inc. purchased a new machine and financed this purchase by making a cash down payment of $30,000 and issuing a 12%, 5-year note that will be paid in semiannual installment of $45,000, each payable on June 30 and December 31. Determine the original cost of the machine: a. $281,280 b. $361,205 c. $418,800 d. $450,000

Step by Step Solution

★★★★★

3.47 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

To determine the original cost of the machine you can use the present value of an annuity formula ... 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_2

Step: 3

blur-text-image_3

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

South Western Federal Taxation 2017 Comprehensive
South Western Federal Taxation 2017 Comprehensive

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

40th Edition

1305874161, 978-1305874169

More Books

Students explore these related Accounting questions

Question

What are some insightful takeaways from the videos provided? Do you see yourself as a business owner? If so, what kind of business do you want to start and why? If not, why don't you see yourself as...

Answered: 3 weeks ago

Question

The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study property, plant,...

Answered: 3 weeks ago

Question

Altec Manufacturing Inc. is a company that manufactures and sells a single product, which they call an Altec. For planning and control purposes they utilize a monthly master budget, which is usually...

Answered: 3 weeks ago

Question

1. Was 1MDB a fraudulent venture from the beginning? Why or why not? 2. How did the US Government become involved in the 1MDB saga? 3. What does the involvement of so many financial institutions in...

Answered: 3 weeks ago

Question

An air tank of volume 1.5 m3 is at 800 kPa and 20C when it begins exhausting through a converging nozzle to sea-level conditions. The throat area is 0.75 cm2. Estimate (a) The initial mass flow; (b)...

Answered: 3 weeks ago

Question

Determining cash payments to stockholders OBJ. 2 The board of directors declared cash dividends totaling $585,000 during the current year. The comparative balance sheet indicates dividends payable of...

Answered: 3 weeks ago

Question

3.19 LCD TVs, continued Refer to Exercise 3.18. Suppose we assume that the relationship between x and y is linear. a. Find the correlation coefficient, r. What does this value tell you about the...

Answered: 3 weeks ago

Question

Simulate Problem 28 to find the probabilities of project completion. Use a triangular distribution for defining activity time distributions. After a 1,000-trial simulation, examine the statistical...

Answered: 3 weeks ago

Question

On February 1, 2022, the balance of the retalned earnings account of Blue Power Corporation was $378.000. Revenues for Fobriary totaled $73,800, of which $69,000 was collected in cash. Expenses for...

Answered: 3 weeks ago

Question

Choice Designs Ltd operates a wholesale/retail carpet store. The statement of financial position of the business as at 31 May Year 8 is as follows: As a result of falling profits the directors of the...

Answered: 3 weeks ago

Question

Andes Ski Cimpany management is considering the cost effect of growth for conversion costs if they produce the same amount of products in 2013 as they did in 2012. In 2012, the company produced...

Answered: 3 weeks ago

Question

Score: 0/19 0/19 answered Question 7 A company produces steel rods. The lengths of the steel rods are normally distributed with a mean of 209.6-cm and a standard deviation of 0.8-cm. For shipment, 47...

Answered: 3 weeks ago

Question

EXPENSES TOTAL ($) MY 2022 (Year 1) MY 2023 (Year 2) MY 2024, Year 3 Revenues[SI1] Sales $6,400,000 $8,524,000 $10, 366,000 Diversity Grant $1,000,00 $1,000,000 $ 1,000,000 EXPENSES TOTAL ($) MY 2022...

Answered: 3 weeks ago

Question

Describe the usefulness of applying "What, Why, When, How, Where and Who" principles in the search for and extraction of digital evidence. Consider the way in which you would undertake a computer...

Answered: 3 weeks ago

Question

Calculate the angle between the [1,1,1] and [0,2,1] directions in a cubic system.

Answered: 3 weeks ago

Question

2.Raw computation question. Let X and Y be two random variables with the joint density f(x, y) = 2 - - x 1 + 2y 8(e7/41) 4(e7/4 - 1) where 0 x 2 - 2 and 1 y e7/4. a) Please calculate the marginal...

Answered: 3 weeks ago

Question

Profit Margin, Investment Turnover, and ROI Campbell Company has income from operations of $49,644, invested assets of $197,000, and sales of $709,200. Use the DuPont formula to compute the rate of...

Answered: 3 weeks ago

Question

If the cylinder described in Problem 21.3 were initially heated to 500F, how long would it take for the center of the cylinder to cool to 240F if it were constructed of a. Copper? b. Brass? c. Nickel?

Answered: 3 weeks ago

Question

What is the difference between the Federal income tax on individuals and that imposed on corporations?

Answered: 3 weeks ago

Question

Herbert was employed for the first six months of 2016 and earned $90,000 in salary. During the next six months, he collected $8,800 of unemployment compensation, borrowed $12,000 (using his personal...

Answered: 3 weeks ago

Question

LaJoie, Bhatti, and Jenkins are going to form LBJ Partnership. The ownership interests and tax years of the partners are as follows: Partner Partnership Interest Tax Year-Ends...

Answered: 3 weeks ago

Question

=+corresponding mirror disk and that the three such pairs of disks are connected in series.

Answered: 3 weeks ago

Question

=+the sensor, thereby meeting the required fill specification; these bottles are then shipped to customers. Describe the shape of the distribution of fill volumes for the bottles that pass this...

Answered: 3 weeks ago

Question

=+54. Instead of constructing x and R charts for 30 subgroups of size 4, a friend suggests the simpler alternative of calculating the standard deviation s of the 30 means to establish 3-sigma limits...

Answered: 3 weeks ago

Previous Question Next Question