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AURORKA [14]
3 years ago
10

"On January 1, 2018, Payton Co. sold equipment to its subsidiary, Starker Corp., for $115,000. The equipment had cost $125,000,

and the balance in accumulated depreciation was $45,000. The equipment had an estimated remaining useful life of eight years and $0 salvage value. Both companies use straight-line depreciation. On their separate 2018 income statements, Payton and Starker reported depreciation expense of $84,000 and $60,000, respectively. The amount of depreciation expense on the consolidated income statement for 2018 would have been:"
Business
1 answer:
MAXImum [283]3 years ago
3 0

Solution:

Sales Price $115,000 - BV $80,000 = $35,000

Gain on Sale /8 years = $4,375

Annual Amortisation of Unrealised Gain over Expected Useful Life of the Asset

Parent's Depreciation $84,000 + Sub's Depreciation $60,000 - Annual amortisation $4,375 = $139,625

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TRANSACTIONS1. John Amos started the business with a cash investment of $60,000.2. Purchased equipment for $22,000 on credit.3.
Tanya [424]

Answer:

Cash  44,250      

Receivables  $1,850      

Equipment $26,600        

Accounts payable 9,000    

Capital 60,000    

Revenue 8,150  

Expenses 4,450

Explanation:

The question is to determine the recording of the transactions above on the Accounting equation

The accounting equation says Assets = Liabilities + Owners' Equity

In this context assets = Cash, Receivables and Equipment

Liabilities = Payables

Owners' Equity = Capital + Revenue - Expenses

The Accounting Equation

ASSETS                                            = LIABILITIES       +     OWNERS EQUITY

 Cash      + Receivables + Equip.           payable   + Capital + Rev -  Expens

1. $60,000                                                                      60,000

2.                                            $22,000     $22,000

3. $3,100                                                                                        3,100

4. -4,600                                    4,600

5                      $5,050                                                                  5,050

6. -4,450                                                                                                    4,450

7. 3,200           -3,200

8. -13,000                                                    -13,000

<u>     44,250        $1,850        $26,600         9,000    60,000     8,150   4,450</u>                  

6 0
3 years ago
Division X makes a part with the following characteristics:
rodikova [14]

Answer:

If Division X refuses to accept the $19 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be:_________.

c. worse off by $28,600 each period.

Explanation:

The $28,600 loss the company incurs is from the lost contribution that Division Y's purchase of Division X's parts could have brought to the company if it buys parts inhouse.  This is calculated as follows:

Division X's variable cost per unit = $17

Division X's selling price to outside customers = $23

Division Y's offered buying price = $19

The contribution = $2 ($19 - $17)

7 0
3 years ago
If an occupation is projected to grow by 13% over the next 10 years, how would you rate the job outlook?
Rus_ich [418]
D weak  because is d so i hope i helpes


5 0
3 years ago
Read 2 more answers
The slope of the budget line represents the rate at which the consumer is willing to trade one good for another at any given bun
Softa [21]

Answer:

False

Explanation:

The slope of the budget line is the ratio of the prices of that bundle of goods. It represents the price at which a consumer would be willing to substitute one good for the other in the same bundle of goods.

I hope my answer helps you

7 0
3 years ago
Enter mia profit/loss for the 2 month
Tems11 [23]
She profits more each month
8 0
3 years ago
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