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
Which interest-bearing account is best for people who won't need access to their money for several months or longer?
Alecsey [184]
The answer is A. 
CD(<span>Certificate of Deposit)</span> is similar to a saving account, but it has additional perks. There is a minimum amount of money you have to deposit and you have to deposit that money for a certain amount of time (term). CDs have better interest rate than savings accounts, but if you withdraw your money before the term you pay penalties.
This makes them a good option for people have some extra money that they won't need in a near future.
3 0
3 years ago
Zisk Co. purchases raw materials on account Budgeted purchase amounts are April, $80,000, May, $110,000, and June, $120,000. Pay
Amanda [17]

Answer:

A schedule of cash payments for April, May, and June is prepared.

Explanation:

The following image shows the calculation and explanation of the cash payment schedule.

3 0
2 years ago
A lender estimates that the closing costs on a $165,000 home loan will be $6,187.50. The actual closing costs were 3.5% of the l
Ivanshal [37]
Home loan amount = $165,000

Estimated closing costs = $6,187.50 

% of estimated closing cost = ?

$165,000 * x% = $6,187.50
x% = $6,187.50 ÷ $165,000
x% = 0.0375
x = 0.0375 x 100 = 3.75

Therefore, estimated closing costs = 3.75% of loan amount = 3.75% of $165,000

Actual closing costs = 3.5% of loan amount = 3.5% of $165,000 = $5775

Difference in estimated and actual closing cost percent = 3.75% - 3.5% = 0.25%

The closing costs were lower than the estimate by 0.25%
5 0
3 years ago
Read 2 more answers
Question 3 of 10
Stels [109]

Answer:

underrepresented student scholarship.

7 0
2 years ago
Read 2 more answers
g Suppose the Federal Reserve begins to increase the supply of money at an increasing rate. What impact would that have on GDP,
satela [25.4K]

Expansionary monetary policy shifts AD to the right.

<h3>What is Expansionary monetary policy?</h3>
  • Expansionary policy, often known as loose monetary policy, expands the availability of money and credit in order to stimulate economic growth.
  • During difficult economic circumstances, a central bank may use expansionary monetary policy to reduce unemployment and stimulate growth.
<h3>Impacts on GDP, unemployment, and inflation by the increase of supply of money:</h3>
  • The Federal Reserve begins to grow the money supply at an increasing rate.
  • The impact on GDP, unemployment, and inflation would be significant.
  • AD is shifted to the right by expansionary monetary policy.

Therefore, expansionary monetary policy shifts AD to the right.

Know more about Expansionary monetary policy here:

brainly.com/question/18939014

#SPJ4

8 0
2 years ago
Other questions:
  • If a country has a trade surplus, we can conclude that it also has:
    10·1 answer
  • A portion of the Sarbanes-Oxley Act makes it illegal to fire or otherwise discriminate against a corporate officer for trying to
    5·1 answer
  • A customer has just received a $100,000 inheritance and wants to know what to do with the money until he decides how to use it.
    15·1 answer
  • If a radio station holds an online contest in which you must log in to its website and submit personal details such as name, pho
    14·1 answer
  • In comparing two online e-tailers, Walmart vs. DeepDiscounts, Walmart should be considered the better online business based on b
    8·1 answer
  • Prepare a statement of cash flows. Also assume the following:
    14·1 answer
  • Universal Air is a no-growth firm and has two million shares outstanding. It expects to earn a constant $20 million per year on
    11·1 answer
  • A company has the following information. What is the financial leverage ratio? Total assets $736,000 Total liabilities 314,000 I
    9·1 answer
  • To complete the model of international trade using the PPF, we must also use the idea of indifference curves. One of these curve
    10·1 answer
  • Which internal control procedure is violated when the cashier at the checkout stand also records the daily receipts in the journ
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!