Answer:
Debit to loss on sale of equipment of $20,000
Explanation:
Data provided in the question:
Selling cost of the equipment = $100,000
Cost of the equipment = $300,000
Accumulated depreciation of the equipment = $180,000
Now,
The book value of the equipment
= Cost of the equipment - Accumulated depreciation
= $300,000 - $180,000
= $120,000
Therefore,
Proceeds for selling
= Selling cost of the equipment - Book value of the equipment
= $100,000 - $120,000
= - $20,000
Here, the negative sign depicts a loss
Hence,
The company’s journal entry to record the sale of the equipment would include a Debit to loss on sale of equipment of $20,000
Soaking the documents in water after tearing them up words well, burning them is less safe, but is the safest for your records, always tear or shred them no matter what
9%, as the unadjusted rate of return is equal to the average yearly net income growth rate divided by the initial investment's net cost.
<h3>Calculation:</h3>
$40,090 divided by $430,00 is.093 * 100, or 9%.
<h3>If the needed rate of return is 6%, what is the present value of a cash inflow of $2,000 five years from now? Examine later?</h3>
$2600 will be given to the recipient after five years.
<h3>If the internal rate of return is 5% and the desired rate of return is 6%, should management accept the investment opportunity?</h3>
No, as the internal rate of return on the investment is lower than the intended rate of return.
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Complete Question:
A 60-year old retiree is in a very low tax bracket. He has a low risk tolerance and wishes to make an investment that will provide income. Which is the BEST recommendation?
Group of answer choices.
A. Mid-cap common stock
B. Municipal bond
C. Bank CD
D. Treasure STRIPS
Answer:
C. Bank CD
Explanation:
In this scenario, a 60-year old retiree is in a very low tax bracket. He has a low risk tolerance and wishes to make an investment that will provide income. A Bank certificate of deposit (CD) is the best recommendation.
A bank certificate of deposit (CD) can be defined as a secured form of time-bound deposit and a special low-risk savings account, wherein money (lump-sum) are left with the bank for a specific period of time in exchange for an interest rate premium.
Generally, a certificate of deposit pays a higher interest rate to its holder than the regular savings account because the banks invest the money in a business.
<em>Additionally, the bank certificate of deposit is protected and insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000.</em>
