Hom corporation acquired a computer on january 1, 2011, for $10,000,000. the computer had an estimated useful life of six years and $1,000,000 estimated salvage value. the firm uses the straight-line depreciation method. on january 1, 2013, thom corporation discovers that new technologies make it likely that the computer will last only four years in total and that the estimated salvage value will be only $600,000.what is the amount of depreciation expense for 2013 for this change in depreciable life and salvage value assuming that the change does not represent an impairment loss

Gather reliable information to brent make his decision. to gather this information, use newspapers, call insurance companies or look at their web sites, and review consumer magazines and web sites. also, look at the manufacturer web site or for information about gas mileage. list the sources you use and take notes.

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?

Which of the following would indicate an improvement in a company's financial position, holding other things constant? a. the inventory and total assets turnover ratios both decline. b. the debt ratio increases. c. the profit margin declines. d. the times-interest-earned ratio declines. e. the current and quick ratios both increase.