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morpeh [17]
3 years ago
10

A company purchased equipment valued at $120,000. It traded in old equipment for a $95,000 trade-in allowance and the company pa

id $25,000 cash with the trade-in. The old equipment cost $110,000 and had accumulated depreciation of $33,000. This transaction has commercial substance. What is the recorded value of the new equipment
Business
1 answer:
Zepler [3.9K]3 years ago
8 0

Answer:

$120,000

Explanation:

Data provided in the question

Purchase value of an equipment = $120,000

Trade in allowance = $95,000

Paid cash = $25,000

Cost of an old equipment = $110,000

Accumulated depreciation = $33,000

So by considering the above situation, the recorded value of the equipment is $120,000 as the cash is paid for $25,000 and the trade in allowance is $95,000

So it would be equal to the purchase value i.e $120,000

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wlad13 [49]

Answer:

I think that the answer is B, The The general likelihood of business success is very high.

Explanation:

I got it right on edgenuity

4 0
3 years ago
An agent sells his client 10 U.S. government bonds due to mature in 30 years. According to NASAA's Statement of Policy on Unethi
Artemon [7]

Answer:

The bonds are guaranteed as to principal and interest payments by the US government.

Explanation:

According to NASAA's Statement of Policy on Unethical or Dishonest Business Practices of Broker-Dealers and Agents, a broker can say US government bonds are guaranteed on principal and interest payments.

However if inflation sets in and interest rates rises there is no guarantee from the government that interest paid on the bonds will match the higher interest rate.

So legally this statement is correct, even though the investor can lose money as a result of higher interest rate in the future.

4 0
3 years ago
Abardeen Corporation borrowed $90,000 from the bank on October 1, 2018. The note had an 8 percent annual rate of interest and ma
Vitek1552 [10]

Answer:

$0

Explanation:

Data provided in the question

Borrowed amount from the bank = $90,000

Annual interest rate  = 8%

Maturity date = March 31, 2019

Since it is mentioned in the question that, the interest and the principal were paid in cash on the maturity date so for the amount of cash that Abardeen had to pay for 2018 interest would be zero as the principal and the interest is paid for 2018

7 0
4 years ago
Moonburst is a newly launched brand of energy drinks, one among many other recently introduced competing brands. The advertising
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Answer: Advertising seeks to appeal to a mass audience with a uniform message.

Explanation:

3 0
3 years ago
A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $2 per
Gnom [1K]

Answer:

c. $3,200 favorable.

Explanation:

We know that

Total controllable cost variance = Budgeted overhead cost - actual overhead cost

where,

Budgeted overhead cost =  Variable overhead + Fixed overhead

where,

Variable overhead = 40,000 units × $2 = $80,000

And, the fixed overhead = $72,000

So, the budgeted overhead = $152,000

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So, the total controllable cost variance would be

= $152,000 - $148,800

= $3,200 favorable

7 0
3 years ago
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