How does the existence of black market work against the intended purpose of rationing

Kingbird Inc. owns equipment that cost $672,000 and has accumulated depreciation of $174,000. The expected future net cash flows

aev [14]

Answer:

Explanation:

In this scenario, we compare the values between book value and the fair value of equipment, the difference would be the loss on impairment of the asset

In mathematically,

= Book value - fair value

where,

Book value = Equipment cost - accumulated depreciation

= $672,000 - $174,000

= $498,000

And, the fair value is $384,000

Now put these values to the above formula

So, the value would equal to

= $498,000 - $384,00

= $114,000

Now the journal entry would be

Loss on impairment A/c Dr $114,000

To Accumulated depreciation A/c $114,000

(Being the impairment loss is recorded)

4 0

4 years ago

On April 1, 2019, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What

emmainna [20.7K]

Answer:

The insurance expense on the annual income statement for the year ended December 31, 2019 will be D. $337.50

Explanation:

The company paid the $1,350 premium on a three-year insurance policy.

The insurance expense per year = $1,350/3 = $450

From April 1, 2019 to December 31, 2019, the company had bought the insurance for 9 months.

The insurance expense on the annual income statement for the year ended December 31, 2019 = $450/12x9 = $337.5

6 0

3 years ago

During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following tr

DanielleElmas [232]

Answer:

Trial Income Statement:

Service revenue $17,000

Rent expense ($3,500)

Insurance expense ($350)

<u>Wages expense ($10,500)</u>

Net income $2,650

*We need to adjust other expenses like supplies or utilities. I assumed the salaries paid were for a 10 days period since no one pays salaries in advance.

Trial Balance Sheet

Assets:

Cash $62,200

Supplies $1,000

Prepaid insurance $3,850

<u>Equipment $10,000 </u>

Total Assets $77,050

Liabilities and Equity:

Accounts payable $8,000

Wages payable $7,000

Common Stock $60,000

<u>Retained earnings $2,050 </u>

Total Liabilities and Equity $77,050

Explanation:

July 1

Dr Cash 60,000

Cr Common stock 60,000 (6,000 stocks $10 par value)

July 3

<u>Rent expense 3,500</u>

Cr Cash 3,500

July 5

Dr Prepaid insurance 4,200

Cr Cash 4,200

Adjusting entry July 31

Dr Insurance expense 350

Cr Prepaid insurance 350

July 7

Dr Supplies 1,000

Cr Accounts payable 1,000

July 10

Dr Wages expense 3,500

Cr Cash 3,500

Adjusting entry July 31

Dr Wages expense 7,000 ($3,500 x 2 10 day periods)

Cr Wages payable 7,000

July 14

Dr Equipment 10,000

Cr Cash 2,500

Cr Accounts payable 7,500

July 15

Dr Cash 8,000

Cr Service revenue 8,000

July 19

Dr Accounts payable 500

Cr Cash 500

July 31

Dr Cash 9,000

Cr Service revenue 9,000

Dr Retained earnings 600

Cr Dividends payable 600

Dr Dividends payable 600

Cr Cash 600

6 0

3 years ago

A retail store had sales of $44,900 in April and $55,000 in May. The store employs eight full-time workers who work a 40-hour we

WINSTONCH [101]

Answer:

0.52%

Explanation:

Productivity in April = $44,900 / (((8*40) + (8*12)) * 4)

Productivity in April = $44,900 / ((320 + 96) * 4)

Productivity in April = $44,900 / (416 * 4)

Productivity in April = $44,900 / 1664 hours

Productivity in April = $26.98 per hour

Productivity in May = $55,000 / (((8*40) + (11*17)) * 4)

Productivity in May = $55,000 / ((320 + 187) * 4)

Productivity in May = $55,000 / (507 * 4)

Productivity in May = $55,000 / 2028 hours

Productivity in May = $27.12 per hour

% increase in productivity per hour = ($27.12 - $26.98) / $26.98

% increase in productivity per hour = $0.14 / $26.98

% increase in productivity per hour = 0.0052

% increase in productivity per hour = 0.52%

6 0

3 years ago

If the new business will last only for the next five years, so she can take the profits from the new business for five times sta

Tresset [83]

Based on the profits of the new business, the size of the value of the new business would be $282,860.

<h3>What would be the value of the new business?</h3>

The new business is said to make a profit of $100,000 every year and the interest rate is 3%.

The value of the new business is therefore:
= Amount x Present value interest factor of an annuity, 5 years, 3%
= 100,000 x 2.8286

= $282,860

In conclusion, the value would be $282,860.

Find out more on present value of annuities at brainly.com/question/25792915.

5 0

2 years ago