The board of directors is charged with protecting the rights of

Campbell Corp. exchanged delivery trucks with Highway, Inc. Campbell's truck originally cost $23,000, its accumulated depreciati

iragen [17]

Answer:

equipment 3,700

Explanation:

First we calcualte the values of the machine given up:

traded-out assets

purchased 23000

depreciation 20,000

book value 3,000

fair value 5,000

gain on disposal 2,000

This gain would be recognzie if there was commercial substance. In this case we don't have commercial substance. So it is deffered.

Value given up forthe new equipment:

cash 700

traded-out 5,000

total value 5,700

We subtract the deffered gain on disposal to get the accounting value for the new equipment:

deferred gain (2,000)

accounting value 3,700

The machine will enter the accounting with 3,700

journal entry

equipment 3,700

acc del 20,000

equipment 23,000

cash 700

3 0

3 years ago

A stock had returns of 12 percent, 16 percent, 10 percent, 19 percent, 15 percent, and -6 percent over the last six years. What

OleMash [197]

Answer:

10.68%

Explanation:

Data provided in the question:

Returns on stock : 12%, 16%, 10%, 19%, 15%, -6%

Now,

Geometric average return on the stock is calculated as:

Geometric average return = $({(1 + r_1)\times(1 + r_2).......\times(1 + r_n)})^\frac{1}{n}- 1$

Thus,

For the given returns on stock

Geometric average return

= $[ (1 + 0.12)\times(1 + 0.16)\times(1 + 0.10)\times(1 + 0.19)\times(1 + 0.15)\times(1 + (- 0.06)) ]^{\frac{1}{6}}-1$

= $[ 1.12\times1.16\times1.10\times1.19\times1.15\times0.94 ]^{\frac{1}{6}}-1$

= $[1.8384056768]^{\frac{1}{6}}-1$

= 1.1068 - 1

= 0.1068

or

= 0.1068 × 100%

= 10.68%

6 0

3 years ago

Suppose the cost of flying a 100-seat plane for an airline is $50,000 and there are 10 empty seats on a flight. The average cost

Svetlanka [38]

Answer:

$500

Explanation:

The average cost per seat will be the total cost per plane divided by the seating capacity.

Therefore, the average cost of $50,000 divide by 100 seats

=$50,000/50 seats

=$500

3 0

2 years ago

Match the economic scenario to the relevant characteristics. Increase in savings increase in unemployment more demand for funds

Elan Coil [88]

Answer:

Economic expansion

Increase in savings

The economy is expanding which means that people have access to higher wages. This will enable them to save more.

More demand for funds among borrowers

As the economy is expanding, people will borrow to consume more as well as to invest which will lead to a higher demand for borrowed funds.

Increase in price of products

With more people able to afford goods and services, prices will increase as there is now more demand for those goods.

Economic recession

Increase in unemployment

With the economy shrinking, companies will be making less profit and will have to layoff workers to reduce their costs.

Increase in government borrowing

In a recession, the Government will have to spend more to prop up the economy like the US Government did during this pandemic by providing stimulus packages. This spending is supported by borrowing.

3 0

2 years ago

g Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $276,000 and credit

abruzzese [7]

Answer:

accounts receivable = $276,000

total credit sales = $1,000,000

3% of accounts receivable will not be decollete = $276,000 x 3% = $8,280

if allowance for doubtful accounts has a credit balance of $2,200, you must add = $8,280 - $2,200 = $6,080

the adjusting entry should be:

Dr Bad debt expense 6,080

Cr Allowance for doubtful accounts 6,080

Since allowance for doubtful accounts is a contra asset account it has a credit balance that reduces the value of accounts receivable.

6 0

3 years ago