Q2 Vincent Limited paid $100,000 to purchase equipment at the beginning of 2020. Vincent Limited estimated the useful life of the equipment to be 5 years or 200,000 units. The equipment will be considered fully amortized a when the balance in the Accumulated Depreciation account reaches $100,000. The equipment produced 50,000 units in 2020. a. Determine the estimated residual value of the equipment. b. What is the amortisable cost of the equipment? c. Calculate depreciation expense for 2020 under each of the following methods: 1. straight-line ii. units-of-production iii. double-declining-balance d. If you were a new accountant in a company and you were asked to determine how best to depreciate a new machine they just bought; how would you determine the best method? What is the difference between your method and other method? How does your method affect the income statement? Q3. Sydney Rangers Inc operates remote parking lots near major airports. The board of directors of this family-owned company believes that Sydney Rangers could earn an additional $2 million income before interest and taxes by expanding into new markets. However, the $5 million that the business needs for growth cannot be raised within the family. The directors, who strongly wish to retain family control of the company, must consider issuing securities to outsiders. Sydney Rangers's Plan 1 is to borrow at 6%. Plan 2 is to issue 100,000 common shares. Plan 3 is to issue 100,000 non-voting, $3.75 preferred shares ( $3.75 is the annual dividend paid on each preferred share). Sydney Rangers currently has net income of $3.5 million and 1 million common shares outstanding. The company's income tax rate is 25%. 1. Prepare an analysis to determine which plan will result in the highest earning per common share. 2. Recommend one plan to the board of directors. Explain your reasons. share. 2. Recommend one plan to the board of directors. Explain your reasons. Q4 Down Inc. operates a large quarry in Central BC. Selected data from Down Inc. for the year ended December 31, 2018 are presented below: (20 marks) Total assets $1,600,000 Average total assets 1,500,000 Net earnings 123,200 Net sales 1,200,000 Average common shareholders' equity 1,000,000 Net cash provided by operating activities 280,000 Required: 1. Calculate the profit margin and return on equity for Down's for the year ended December 31, 2018. 2. Comment on the ratios you prepared in part 1 by comparing your ratios to the following averages in the industry: Profit Margin: 5% Return on Equity 7% 21 Bom 14 WA A y veb x, X A Aa O. A A. Abde AaBbcode 1. ACCO YUO List . Yu Salone 5.) On January 1, 2017, Vancouver Corporation paid $400,000 to purchase 40% of the outstanding voting stock of Montreal Corporation. The equity method is used to account for the investment. The following data relate to this investment 2017 Dividends received from Montreal Corporation amounted to $20,000. . Net income reported by Montreal Corporation was $200,000. Current market value of Montreal Corporation Investment on December 31, 2017, was $700,000. 2018 Dividends received from Montreal Corporation amounted to $30,000. Net Income reported by Montreal Corporation was $300,000. Current market value of English Court Corporation Investment on December 31, 2018, was $860,000. The investment was sold on December 31, 2017, for $830,000. Prepare all journal entries for 2017 and 2018 relating to Vancouver Corporation's investment in Montreal Corporation. Words Engish (United Kingdo
