Investment Diversity | Get Solution Now
You are finance manager of a Moroccan company that looks to diversify its investment strategy by investing in short term assets.1. On March 1st, you bought 100.000 shares of Maroc Telecom at 160 MAD/share; 2. On March 18th, you received cash dividend of 9 MAD/ share; 3. On March 20th, the price of Maroc Telecom shares dropped to 145 MAD/share: 4. On March 28th, you decided to sell all your investment at 148 MAD/share. Requirements: A. Record the journal entry for each transaction. B. How transaction 3 is different from transaction 4. C. What will happen if the share price increased to 172 MAD/share ? explain your answer and record the journal entry Problem 2: Shooster Company is disposing of a $25,000 truck with no residual value. This truck has been fully depreciated. 1. Record the journal entry of this operation Suppose that the truck has an accumulated depreciation of $ 21,000. 2. Record the new journal entry. Problem 3: The New look company purchased a machine on January 1, 2010. All the relevant information is given below: Cost of the machine: $300,000 Expected useful life of machine: 6 years Salvage value: $50,000 1. Prepare a schedule showing the depreciation expense of each year of the useful life of the machine using sum of years digits method. Problem 4: An asset costing $200,000 has estimated useful life of 5 years and salvage value of $4,500. 1. Prepare a depreciation schedule using double declining balance method. 2. What is the book value of the asset at the end of the first year ?
This question was posted on order ID 11***