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
emmainna [20.7K]
3 years ago
9

Alliance Products purchased equipment that cost $120,000. It had an estimated useful life of four years and no residual value. T

he equipment was depreciated by the straight-line method and was sold at the end of the third year of use for $25,000 cash. Alliance should record:
Business
1 answer:
poizon [28]3 years ago
3 0

Answer:

Alliance should record a loss of $5000.

Explanation:

Depreciation : The depreciation is the amount which is charged every year. It is a decrease value in the asset due to obsolescence, tear and wear value, usage of time, etc.

There are many methods for calculation the depreciation such as straight line method (SLM), Written down value method (WDV) and many more.

In the question, the straight line method is used.

In straight line method, the deprecation is charged with same value over the useful life of asset.

So, the calculation of depreciation is given below:

Since,

The purchase amount of equipment = $120,000

Useful life  = 4 years

Salvage value = 0

Sale value at the end of the third year = $25,000 cash.

By using above information, we have to calculate the depreciation for 3 years as in the end of the 3 year, the asset is sold.

Depreciation Formula for SLM method  = (Purchase cost- Salvage value) ÷ useful life

=  ($120,000 - 0) ÷ 4

= $30,000

So, the amount of depreciation for all year is $30,000

Depreciation for 1 year = $120,000 - $30,000 = $90,000

Depreciation for 2nd year = $90,000 - $30,000 = $60,000

Depreciation for 3rd year = $60,000 - $30,000 - $25,000 = -$5000

In the 3rd year, the alliance have a loss of $5000 after selling asset.

Hence, Alliance should record a loss of $5000.

You might be interested in
Because a decrease in real autonomous spending results in a ________ in the price level, the ultimate effect on real gdp is ____
KIM [24]

Because a decrease in real autonomous spending results in a <u>fall</u> in the price level, the ultimate effect on real GDP is<u> smaller</u> that predicted by the multiplier.

Another significant discovery is made by Keynesian economics. You've learnt that Keynesians think fluctuations in total spending are what ultimately determine the level of economic activity in the short run (or aggregate demand).

Assume that full employment prevails in an economy because the macro equilibrium occurs at the potential GDP.

Keynes noted that even while the economy starts at potential GDP, it is improbable that it will stay there because aggregate demand has a propensity to fluctuate.

In 2007, the collapse of the housing market caused a decline in U.S. investment spending. The Great Recession subsequently hit the American economy as a result.

To learn more about Keynesian here

brainly.com/question/17247821

#SPJ4

7 0
1 year ago
Prompt 1 in his 2015 papal encyclical, laudato si', in which he addresses climate change and our collective responsibility to ca
iogann1982 [59]

Suppose in studying Climate Change we discover that in one country, deserts are going to be created where formerly there was grasslands and an abundance of water and in another place the coastlines are going to be altered. If you are an American, how do you think a politician is going to respond to such a problem.

Will his/her response be well thought out based on scientific preparedness, or will he (or she) grab onto the first solution suggestion to him/her and try and implement that?

Whatever he/she does, it will cost and everyone will be affected. A starting place is to find out what presidents in the past have done. During the Bush administration (the second Bush), there was an oil crisis. He responded by allocating more acreage to the growing of corn so supplementing oil production. Replaceable resources for non renewable ones. Sounded like a very good solution, but was it? As it turned out, no. He was robbing Peter to pay Paul. Thousands of people suffered (and died) with that decision because food is much more important than solving transportation problems at the expense of food.

The same is true here. If a solution is sought for global warming, politicians have to be well aware of what they are doing. And that has to be studied very carefully.

6 0
3 years ago
Which of the following transactions would NOT be acceptable to the IRS as a means of switching the taxable income to another tax
hodyreva [135]

Answer:

B) Transferring interest income from a taxpayer's investment to his young daughter

Explanation:

If you want to pay less taxes there are two basic ways that you can do it:

  1. moving income (and deductions) to a more favorable tax jurisdiction, e.g. many multinational corporations did this by setting foreign headquarters that managed sales outside the US
  2. moving income form a tax payer that falls under into a high tax bracket to another taxpayer that falls under a lower tax bracket, e.g. giving stock to your children as a gift

5 0
3 years ago
A bank service charge of $10 would be included on the bank reconciliation as a(n):_____.
iris [78.8K]

A bank service fee of $10 would be included on the bank reconciliation as on the last day of the bank statement

<h2>What exactly does a bank reconciliation include?</h2>

Starting with the bank's ending cash balance, adding any deposits that are currently being made up of the company to the bank, subtracting any checks that haven't yet been cleared by the bank, then either adding or subtracting any other items completes the basic process flow for a bank reconciliation.

<h3>A bank reconciliation is what?</h3>

At the conclusion of every month, a business should perform a bank reconciliation, which is that the process of confirming the correctness of both the bank statement and the cash accounts.

The most frequent reasons why the ending bank balance and ending book balance of cash differ.

Learn more about bank reconciliation :

brainly.com/question/15525383

#SPJ4

7 0
1 year ago
The bullet points beneath a one-line mission statement often serve as A. value statements to show how the mission will be achiev
umka21 [38]
Um, Hello there. The answer to your question is probably going to be.
<span>


The bullet points beneath a one-line mission statement often serve as
A. value statements to show how the mission will be achieved.
B. a timeline for achieving the company's goals.
C. lesser goals to consider for the future.
D. a reminder of the one-line statement.</span>
3 0
3 years ago
Read 2 more answers
Other questions:
  • The City of Twizzle issues $10,000,000 face value of general obligation bonds for $9,800,000. The bonds will be used for the con
    13·2 answers
  • Heller Company offers an unconditional return policy to its customers. During the current period, the company records total sale
    10·1 answer
  • After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of direct
    9·1 answer
  • 17-2. Assume that an average firm in the office supply business has a 6% profit margin, a 40% total liabilities/assets ratio, a
    5·1 answer
  • Trade sanctions were often enacted as expressions of U.S. revulsion against nations for their internal practices, such as human
    8·1 answer
  • You have just graduated and have decided to purchase a brand-new sports car to enjoy your newfound freedom. Your local credit un
    13·1 answer
  • Select the correct answer.
    15·1 answer
  • Plumber Corporation acquired all of Socket Corporation's voting shares on January 1, 20X2, for $482,000. At that time, Socket re
    14·1 answer
  • What's an assembly line for business and what does it do? ​
    11·1 answer
  • What is the role of debt is the pecking order theory of capital structure? How does it differ under the stulz (1990) model?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!