Answer:
equipment 3,700
Explanation:
First we calcualte the values of the machine given up:
<u>traded-out assets</u>
purchased 23000
depreciation <u>20,000 </u>
book value 3,000
fair value 5,000
gain on disposal 2,000
This gain would be recognzie if there was commercial substance. In this case we don't have commercial substance. So it is deffered.
Value given up forthe new equipment:
cash 700
traded-out <u>5,000 </u>
total value 5,700
We subtract the deffered gain on disposal to get the accounting value for the new equipment:
deferred gain (2,000)
accounting value 3,700
The machine will enter the accounting with 3,700
journal entry
equipment 3,700
acc del 20,000
equipment 23,000
cash 700
Answer:
for ten years please thanks
Answer:
None of the fixed costs are avoidable. Therefore the company now loses all the fixed costs and the positive contribution margin.
Explanation:
Giving the following information:
Wood Aluminum Hard Rubber
Total Sales $65000
Variable expenses (58000)
Contribution margin 7000
Fixed expenses (22000)
Net income (loss) (15000)
Effect on income= -22,000 - 7,000= -29,000
None of the fixed costs are avoidable. Therefore the company now loses all the fixed costs and the positive contribution margin.
Answer:
A. $50 in required reserves.
Explanation:
Required reserve is a reserve amount which is required by the regulatory authority to a bank to maintain as a percentage of total deposit. Sometimes the bank reserve extra amount above the requirement to deal with any abnormal transaction. This value is known as the excess reserves.
As per given data
Deposits = $500
Reserves = $200
Required Reserve ratio = 10 percent
Required reserve = Reserve required / Total Deposit
0.1 = Reserve required / $500
Reserve Required = $500 x 0.1
Reserve Required = $50
Excess reserve value = Actual Reserve - Required reserve = $200 - $50 = $150
debits Depreciation expense, while the other debits Manufacturing overhead
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