Answer:
Loss of $1,080
Explanation:
The correct journal entries would be:
Dr Accumulated Depreciation 9,010
Dr Cash 2,010
Dr Loss on sale 1,080
Cr Truck (Asset) 12,100
Thus, the correct answer is a loss of $1,080
Answer:
Decrease in the interest rate
Explanation:
Present value is the sum of discounted cash flows
let me use an example to illustrate
the present value of $100 in year 0 discounted at 6% = $100
the present value of $100 one year from now discounted at 6% = $94.33
the present value of $100 two years from now discounted at 6% = $89
We can see that present value decreases with an increase in time
2. the present value of $100 one year from now discounted at 6% = $94.33
the present value of $90 one year from now discounted at 6% = $84.91
We can see that present value decreases with a decrease in the future value.
3. the present value of $100 one year from now discounted at 6% = $94.33
the present value of $100 one year from now discounted at 5% = $95.24
We can see that the lower the discount rate, the higher the present value
Sbs could do it by starting to find out each functions of the spare parts.
If the spare parts is resided to be a part of the product, it should be classified as inventory.
IF the spare parts is resided for people who want to redeem warranty, it shold be classified as prepaid.
If the spare parts is part of research and development it should be classified as other assets.
By its target market, Foot's shoes seen as : Heterogeneous shopping products.
The company's product has a unique product that differentiate the product with others.
This will make the product very hard to substitute
