Splish company purchases an oil tanker depot on january 1, 2017, at a cost of $565,300. splish expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. it is estimated that it will cost $71,990 to dismantle the depot and remove the tanks at the end of the depot’s useful life. collapse question part (a) prepare the journal entries to record the depot (considered a plant asset) and the asset retirement obligation for the depot on january 1, 2017. based on an effective-interest rate of 6%, the present value of the asset retirement obligation on january 1, 2017, is $40,198.

The market yield on spice grills' bonds is 15%, and the firm's marginal tax rate is 33%. what is their shareholders' required return if the equity risk premium is 4%?

cranium, inc., purchases term papers from an overseas supplier under a continuous review system. the average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. it costs $60 to process each order and there is a five−day lead−time. the holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. cranium operates 200 days per year. what is the reorder point r to satisfy a 98% cycleminus−service level? a. greater than 1,700 unitsb. greater than 1,600 units but less than or equal to 1,700 unitsc. greater than 1,500 units but less than or equal to 1,600 unitsd. less than or equal to 1,500 units

Sye chase started and operated a small family architectural firm in 2016. the firm was affected by two events: (1) chase provided $25,000 of services on account, and (2) he purchased $2,800 of supplies on account. there were $250 of supplies on hand as of december 31, 2016. record the two transactions in the accounts. record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. post the entries in the t-accounts and prepare a post-closing trial balance.