1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ExtremeBDS [4]
3 years ago
15

Marston acquired assets for $100,000. At the end of year 3, the assets had accumulated depreciation of $40,000. An impairment lo

ss was indicated, and the fair value of the assets was $48,000. The journal entry to record the impairment loss will include (Select all that apply.)
(a)-Debit to accumulated depreciation of $40,000
(b)-Debit to loss on impairment of $12,000
(c)-Credit to assets of $52,000
Business
1 answer:
MissTica3 years ago
7 0

Answer:

(b)-Debit to loss on impairment of $12,000

Explanation:

As for the details in question,

The asset purchase price = $100,000

Accumulated depreciation = $40,000

Thus, book value = Purchase price - Accumulated depreciation = $100,000 - $40,000 = $60,000

Now, this has a fair market value = $48,000

Thus, loss of value to be recorded as impairment loss = $60,000 - $48,000 = $12,000

Since loss in value will decrease the value of asset, it will be debited against credit in fixed assets by $12,000

This, will represent book value = $48,000

Therefore, correct option is:

Statement B

You might be interested in
If you were told that your credit score was 700, how would you judge that number?
pav-90 [236]
No thats considered a desent score. Keep up the good work
4 0
3 years ago
When mcdonald's offered madame alexander gifts in its happy meals, both companies profited from the _____ arrangement?
Olin [163]

<span>The answer is comarketing arrangement. It is a partnership between two or more companies where both companies cooperatively market each other's products. For example, a company who manufacturers video cards may partner with a game software company, and both companies will market each other's related product.</span>

6 0
3 years ago
Mary Robertson sells tires at a large car service center. She earns 10% commission on the first $1,000, 15% on the next $2,000,
prohojiy [21]

$560 I just took the test on primavera and this was right.

5 0
3 years ago
Which of the following would not be counted in the calculation of GDP? Choose one or more: A. paying for a local garage to rotat
alex41 [277]

Answer:

Correct options are: (D), (E), (F).

Explanation:

Since the dog seller does not pay taxes, he is evading tax and is therefore conducting illegal transactions. Illegal transactions are excluded from GDP.

Mowing the law does not have an imputed market value and is excluded from GDP.

Government spending on food stamps is a transfer payment since no value gets added in return, therefore is excluded.

5 0
3 years ago
Marina, Inc., acquires 1 million shares of its own $1 par value common stock at $70 per share. It later resells the 1 million sh
Archy [21]

Answer:

c. credit to Additional Paid-in Capital

Explanation:

The journal entry to record the difference is shown below:

Cash A/c Dr $75 million

      To Treasury stock A/c $70 million    (1 million shares × $70 per share)

      To Additional paid in capital - in excess of par $5 million

(Being the issuance of treasury stocks is reported and the amount remaining is credited to the additional paid-in capital account)

3 0
2 years ago
Other questions:
  • An antique dealer buying items and hoping to sell them for more than he or she paid for them is the very definition of​ a:
    11·1 answer
  • J.D. formed Clampett, Inc., as a C corporation (calendar tax year) with J.D., Granny, and Jethro, Inc. (a C corporation) as shar
    10·1 answer
  • Smith &amp; Sons, Inc., is authorized to issue one million shares of $1 par value common stock. The company actually sells 500,0
    13·1 answer
  • What tends to happen to the inflation rate if the Fed works to lower the unemployment rate? Why?
    14·1 answer
  • Retailer can determine how consumers perceive the company relative to its retail category and its competitors through _____.
    13·1 answer
  • Which of the following is a product that is considered a commodity?
    8·2 answers
  • Peter offers his manager some suggestions for a new holiday display. His manager shrugs his shoulders and tells Peter that the d
    10·1 answer
  • Interest rates and the price of old or existing bonds are a. directly related. b. independent of each other. c. inversely relate
    6·1 answer
  • a 17-year annuity pays $1,100 per month, and payments are made at the end of each month. The interest rate is 16 percent compoun
    12·1 answer
  • Were you to have information about the salaries of various levels of employees in each company, what would you use (mean, median
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!