Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a company is planning to purchase a machine that w

A company is planning to purchase a machine that will cost $35,400, have a six-year...

80.2K

Verified Solution

Question

Accounting

image

A company is planning to purchase a machine that will cost $35,400, have a six-year life, and be depreciated over a three-year period with no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine? $147,000 Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses $53,900 5,900 49,000 (108,800) $38,200 (13,370) Income before taxes Income tax (35%) Net income $24,830 o 33.33% 0 70.14% 140.28% 0 5.90% 0 50.00%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Suppose you are long 8 gold futures contracts, established at an initial settle price of $1,325...

Basic Math
1.2K views

2. Lactation promotes a temporary loss of bone mass to provide adequate amounts of calcium for milk...

Biology
1.2K views

Which of the following statements concerning E coli polymerase I and polymerase III are incorrect...

Geometry
1.2K views

Complete the table of values for the equation y 5 0 Then plot the ordered...

Calculus
1.2K views

For the following exercises the position function of a ball dropped from the top of...

Algebra
1.2K views

CIIITT 8 X 6 5 3 2 AY 10 TT 8 CTN COO LIJ N...

Accounting
1.2K views

Youve just started your first accounting job, as the accounts payable and payroll clerk...

Accounting
1.2K views

Pinnacle Plus declared and paid a cash dividend of $6,600 in the current...

Accounting
1.2K views

In Lizzie Shoes experience, gift cards that have not been redeemed within 12 months are...

Accounting
1.2K views

Ivanhoe Corporation sells item A as part of its product line. Information as to balances...

Accounting
1.2K views

Explain in your words, What do you mean by COSO and COBIT? differentiate between both...

Accounting
1.2K views

34. Robertson Inc. bought a machine on January 1, 2000 for 300,000. The machine was...