Answer:
The recognized gain is $2000
Explanation:
The carrying value of the cab sold is the difference between the original cost of $23,000 and the accumulated depreciation of $16,000, hence, carrying value is $7000($23000-$16,000)
The cash proceeds from the disposal of then cab are $9000
Gain on disposal of cab=$9000-$7000
Gain on disposal of cab=$2000
Answer:
hot dogs and pretzels are inferior goods
Explanation:
From the question, We are informed about Miles who graduated from college and his his income increases by $ 35000 a year. Nothing else changes. Miles Miles decreases the quantity of hot dogs and pretzels that he buys and increases the quantity of gourmet ice cream that he he buys. For Miles, hot dogs and pretzels are inferior goods. In economics, inferior good can be regarded as goods that have a fall in demand whenever there is increase in consumer income, i.e increase in consumer income will bring decrease to such goods, which is opposite to normal goods.
Answer:
cannot sue John for the extra $250 asJohn made the promise to him based on past consideration.
Explanation:
When Gerald was helping John build the garage, there was no agreement between them on payment for services. After the two weeks John made the promise to pay Gerald.
This is not a binding promise as John is paying Gerald at his own discretion as a past consideration, since no contract was agreed between them.
Answer:
Purchases= $408,000
Explanation:
Giving the following information:
Beginning Ending Raw materials inventory$547,000 $610,000
The raw materials used in manufacturing during the year totaled $1,018,000
<u>To calculate the direct material purchased, we need to use the following formula:</u>
Purchases= direct material used in production - ending inventory
Purchases= 1,018,000 - 610,000
Purchases= $408,000
Answer:
A : decreasing its variable costs by at least 15%
Explanation:
Variable costs depend on the number of passengers they transport as there will be a decrease of the 15 %in the income received by each passenger. Then, it must be an equal reduction on the expenses generated by each passenger in order to remain competitive.
