Answer:
O increase by $48,000
Explanation:
A loss is made on disposal of an asset when the amount received from the disposal is lower than the carrying amount of the asset. The carrying amount or net book value of an asset is the difference between the cost of the asset and its accumulated depreciation.
Hence
Carrying amount = $75,000 - $20,000
= $55,000
Let the amount received on disposal be K
K - $55,000 = -$7,000
K = $55,000 - $7,000
= $48,000
This is the amount received from the disposal and it represents an increase in cash.
Answer:
b.$127,500 increase
Explanation:
Using Accounting Equation we can find thetotal increase in total assets:
Assets = Equity + Liabilities
Change in Assets = Change in Equity + Change in Liabilities
Change in Assets = $37,500 + $90,000
Change in Assets = $127,500
Total Change in equity and liabilities will be equal to the change in Assets.
So, the correct answer is b.$127,500 increase.
Answer:
The dentist should get a new drill and it does not matter who pays for the new drill
Explanation:
Based on the information given the economically efficient outcome is that The dentist should get a new drill and it does not matter who pays for the new drill reason been that the building is been share by both the dentist and the radio station in which the electrical current from the dentist's drill was the one who causes static in the radio broadcast making them to lose some amount of money which means the dentist should go ahead and buy a new drill in which it does not matter who pays for the drill because they both shared the building .
