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Mars2501 [29]
4 years ago
14

A company had a tractor destroyed by fire. The tractor originally cost $135,000 with accumulated depreciation of $69,000. The pr

oceeds from the insurance company were $30,000. The company should recognize: Multiple Choice A gain of $30,000. A loss of $66,000. A loss of $36,000. A gain of $66,000. A gain of $36,000.
Business
1 answer:
icang [17]4 years ago
6 0

Answer:

The correct answer is a loss of $36,000.

Explanation:

Gain or loss on disposal of an asset is calculated by deducting the net book value (NBV) of the asset from the sales proceeds. The NBV is historical cost minus accumulated depreciation.

Therefore, the NBV of the tractor is $135,000 - $69,000 = $66,000

Gain or loss = $30,000 - $66,000

Loss of $36,000, since the sales proceed is less than the NBV.

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Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest wil
8090 [49]

Answer:

$16,667

Explanation:

Given that

Cash flows = $1,000

Growth rate = 6%

Interest rate = 12%

So by considering the above information, the amount would be

Amount = Cash flows ÷ (Interest rate - growth rate)

= $1,000 ÷ (12% - 6%)

= $16,667

We simply applied the above formula so that the amount could come by considering the given information

3 0
3 years ago
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation bet
irga5000 [103]

Answer:

Adriana Corporation

Using the High and Low method the Variable and Fixed portions of the Total Cost is:

Fixed Costs = $247,420

Variable Costs = $39.50 Per unit x 8,020 Machine Hours = $316,790

B. at an average of 7,500hrs Machine hours, the estimated Overhead costs = $247,420 x (39.50 x 7,500)

= $543,670

Explanation:

The High and Low Method is a costing method which attempts to split the mix of Fixed and Variable costs in a mixed Total cost of production by looking at one element of variability (in this case Machine Hours)

It is a subjective approach, however simple to calculate. Other method is the regression analysis, which is more complex in comparison to the high and Low

The attached excel file shows how we derived the Variable and Fixed Costs element of the Overhead Costs

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Download xlsx
5 0
3 years ago
Scientific evidence suggests that consumption of foods rich in fiber lowers cholesterol. As a result, the demand for bran increa
Oxana [17]

The quantity of bran consumed will rise by exactly 5,000 bushels .

<u>Explanation: </u>

A small cost increase in ideally Elastic demand leads to a reduction in demand to zero, while a small price decline allows demand to grow to infinity. The demand is in this case completely elastic.

Elastic demand is the same when the energy storage is higher and the price increases proportionately less. Inelastic production is the other where demand changes are comparatively less and the price changes are more pronounced.

The sum of demand elasticity helps define a request curve's shape and pitch. The slope of the demand curve may, therefore, evaluate the elasticity of demand.

5 0
4 years ago
Using the lower of cost or market, what should the total inventory value be for the following items:_____. Item Quantity Unit Co
Allisa [31]

Answer:

 $ 4252  is the lower cost price.  

Explanation:

Using lower of cost price or lower of market price :

<u>Item</u>      <u>Total cost price</u>    <u>Total market value</u>     <u>Lower of cost or market price</u>

  A            $ 1980                      $ 2420                          $ 1980

  B            $ 1598                      $ 1222                           $ 1222

  C            $ 1050                      $ 1176                          <u>  $ 1050  </u>            

                                                                                        $ 4252                                                  

5 0
3 years ago
The _____ is a voice for small business.
alex41 [277]

Answer:

I believe it's the SBDC but I'm not 100% sure tho

8 0
3 years ago
Read 2 more answers
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