Answer:
Marquez will recognize a gain of $4714
Explanation:
The gain or loss on disposal of a fixed asset is calculated by deducting the carrying value of an asset from the sales proceeds. If the carrying value is higher than the cash received from the sale, there is a loss on disposal and vice versa.
The carrying value of an asset is,
Carrying value = Cost - Accumulated depreciation
The carrying value for Marquez's equipment is,
Carrying value = 58750 - 6964 = $51786
The gain/loss on sale is = 56500 - 51786 = $4714 Gain
The answer to this question is D. A student's community service experience
Answer:
D) $0
Explanation:
The depreciation method changed, but the previous depreciation expense has already been recorded and subject to taxes. Therefore the new straight line depreciation should start with the remaining asset value and calculate the depreciation expense for the remaining 6 years:
For example, if the purchase value was $1,200,000 (= $300,000 x 4), the remaining value would be $675,000 then the depreciation expense will be $112,500 per year during the next 6 years starting on year 9.
Answer:
Economic profit $10,000
Explanation:
Income earned as an assistant professor = Salary + Interest on bonds = 75000 + 5% on 100,000 = 75000 + 5000
Income earned as an assistant professor = $80,000
Income from the bookstrore = $90,000
In calculating economic profit, opportunity costs are deducted from revenues earned.
Economic profit = $90,000 - $80,000 = $10,000
