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3 years ago

8

If an owner takes a property off the market for a definite period of time in exchange for some consideration, but grants the rig

ht to purchase the property within that period for a stated price, this is called

1 answer:

HACTEHA [7]3 years ago

8 0

Answer:

b. Option

Explanation:

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Smiley Corporation sold equipment costing with of accumulated depreciation for cash. Which of the following journal entries shou

Pani-rosa [81]

The question is incomplete as the figures are missing. The complete question is,

Smiley Corporation sold equipment costing $72, 000 with $66, 000 of accumulated depreciation for $10, 000 cash. Which of the following journal entries should be prepared?

A. debit Cash for $10, 000, credit Equipment for $6000 and credit Gain on Sale of Equipment for $4000

B. debit Cash for $10, 000, debit Accumulated Depreciation - Equipment for $66, 000, credit Equipment for $72000 and credit Gain on Sale of Equipment for $4000

C. debit Cash for $10, 000 and credit Gain on Sale of Equipment for $10, 000

D. debit Accumulated Depreciation - Equipment for $66, 000 and credit Equipment for $66, 000

Answer:

Option B is the correct answer.

Explanation:

To calculate the gain or loss on disposal of the equipment, we first need to determine the book value of the equipment on the date of sale.

Net Book Value = Cost - Accumulated depreciation

Net Book value = 72000 - 66000 = $6000

The gain/(loss) on disposal = Sales Proceeds - Net Book value

The gain/(loss) on disposal = 10000 - 6000 = $4000 Gain

The entry to record this transaction will be,

Cash $10000 Dr

Accumulated depreciation - Equipment $66000 Dr

Equipment $72000 Cr

Gain on sale-Equipment $4000 Cr

6 0

3 years ago

Rainey Enterprises loaned $40,000 to Small Co. on June 1, Year 1, for one year at 6 percent interest. Required Show the effects

MariettaO [177]

<u>Explanation:</u>

Cash flow is a statement which shows the amount of cash inflow and outflow of the company. With the help of the cash flow statement the company can determine its efficiency in managing the debt and credit in the company.

The operations of the company can be found with the CFS. The investors to the company can understand the position of the company with the cash flow statements. Financial strength of the company can be determined with cash flow statement.

7 0

2 years ago

Luma Inc. has provided the following data concerning one of the products in its standard cost system.Col1 Inputs Direct material

polet [3.4K]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Standard cost= 6.90 per ounce

Standard quantity= 4.8 ounces per unit

Actual output 2,100units

Actual price of raw materials $7.80 per ounce

Actual cost of raw materials purchased $81,900

Raw materials used in production 10,090 ounces.

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (6.9 - 7.8)*10,090= $9,081 unfavorable

3 0

3 years ago

A citizen of the United States A. feels no obligation to do community service. B. gets no preparation for community service in s

Harrizon [31]

Has both a private life and a public life

4 0

3 years ago

When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold, the tax has.

Dmitry_Shevchenko [17]

When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold, the tax has caused a deadweight loss.

<h3>What is meant by deadweight loss?</h3>

The gap between the production and consumption of any given good or service, including taxes, is referred to as deadweight loss in economics. Deadweight loss is most frequently detected when the quantity generated compared to the quantity consumed deviates from the ideal surplus concentration.
Overproduction of commodities results in a loss of money. For instance, a baker might only sell 80 of the 100 loaves of bread they produce. There will be a deadweight loss since the 20 remaining loaves will become moldy and dry, and they will need to be thrown away.
The loss in economic activity that results when the market pricing of products or services change negatively affects consumers and businesses is referred to as deadweight loss.
You need to know the change in price and the change in quantity demanded in order to compute deadweight loss. Deadweight Loss is calculated using the following formula:. 5 * (P2 - P1) * (Q1 - Q2).

When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold, the tax has caused a deadweight loss.

To learn more about deadweight loss, refer to:

brainly.com/question/21335704

#SPJ4

8 0

1 year ago