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
Daniel [21]
3 years ago
6

Marker Corp. exchanged an old truck for a piece of equipment and cash on January 1st 2019. The truck was purchased at a cost of

$24,000 and accumulated depreciation at the time of the exchange is $17,000. As compensation for the truck, Marker received a piece of equipment with a fair value of $8,000 and $500 cash. How much gain would be recognized assuming this transaction DOES have commercial substance? Do not use dollar signs or decimals when inputting your answer.
Business
1 answer:
LiRa [457]3 years ago
3 0

Answer:

There is a 1,500 gain

Explanation:

we have commercial subtance so we can recognize gain/loss

these will be the numebrs of the transaction:

truck

purchase             24,000

acc depreciation 17, 000

book value            7, 000

equipment 8,000

cash               500

total            8,500

received - given up = gain/loss

8,500      -    7,000  = 1,500 gain

the journal entry would be

Equipment      8,000 debit

cash                    500 debit

acc dep truck 17,000 debit

           Truck              24,000 credit

          gain on disposal 1,500 credit

You might be interested in
Which of the following activities is an example of gathering data by observation?
s344n2d4d5 [400]
From the given options, the activity which exemplifies gathering data by observation is option D: Measuring how many parts workers assemble in an hour. This is the best answer as it uses senses to observe people in naturally occurring situation — according to the definition of observation as a data collection method.
5 0
3 years ago
Read 2 more answers
Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of di
Gnom [1K]

Answer:

<u>December 31, 2018</u>

Debit : Dividend $40,000

Credit : Shareholders for dividends $40,000

Explanation:

When dividends are declared, we Debit an Equity Element - Dividend and Credit the Liability - Shareholders for dividends.

Calculation of this dividend is made on the stockholders in existence at the on a stated date (January 15 in this case) and at par value ($2) as follows :

Dividend = 100,000 x $2.00 x $0.20 = $40,000

6 0
3 years ago
____ reading will increase your focus and concentration, help you understand the reading, and prepare you to study.
Studentka2010 [4]

Answer:

Active.

Explanation:

Active reading can be defined as a process which typically involves an individual being focused on his or her study. It is aimed at acquiring knowledge and understanding of a particular subject or topic without distractions.

Hence, active reading will increase your focus and concentration, help you understand the reading, and prepare you to study.

5 0
3 years ago
At the end of 2001, Lehnhoff Inc. had $75 million in cash on its balance sheet. During 2002, the following events occurred: The
Zepler [3.9K]

Answer:

The multiple choices are:

a. $200 Million

b. $50 Million

c. $1.4 Billion

d. $100 Million

The correct option is A,$200 million

Explanation:

The increase in cash recorded from the statement of cash flows prepared in the year plus the opening balance of cash at the beginning of the year gives the cash balance at the end of the year shown below:

Increase in cash in the year=cash flow from operations+cash flow from financing activities-cash flow used on investing activities

increase in cash in the year=$325+($500-$100)-$600=$125  million

cash at the end of the year=$125 +$75=$200 million

6 0
3 years ago
Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales
djverab [1.8K]

Answer:

According to the flexible budget, income from operations will increase from $557,000 to $915,000 if the units sold increase from 15,000 to 18,000 during 2017.

Explanation:

sales revenue should increase to                         $4,050,000

cost of goods sold should increase to:                ($2,237,000)

  • direct materials $1,260,000
  • direct labor $180,000
  • machinery repairs $54,000
  • depreciation (fixed) $315,000
  • utilities $228,000
  • management salaries $200,000

gross profit                                                              $1,813,000

S&A expenses increase to:                                   ($898,000)

  • packaging $72,000
  • shipping $108,000
  • sales salaries (fixed) $260,000
  • advertising expense (fixed) $127,000
  • adm. salaries (fixed) $241,000
  • entertainment (fixed) $90,000

income from operations                                          $915,000

4 0
3 years ago
Other questions:
  • The WorldLight Company produces two light fixtures (products 1 and 2) that require both metal frame parts and electrical compone
    15·1 answer
  • Assume the world market for oil is competitive and that the marginal cost of producing​ (extracting and bringing to​ market) ano
    12·1 answer
  • A _____relationship would include your coworkers and friends
    10·2 answers
  • If you are trying to move your audience to do something, you should choose which organizational style?
    13·1 answer
  • A company switched from the cash basis to the accrual basis for recognizing warranty expense. The unrecorded liability for warra
    9·1 answer
  • If goods in transit are shipped FOB destination
    12·1 answer
  • Connie Shockey wants to put funds in an account that does not offer checking privileges because she has a tendency to overspend.
    15·1 answer
  • A manager checked production records and found that a worker produced 156 units while working 40 hours. In the previous week, th
    13·1 answer
  • The transactions of Spade Company appear below.
    11·1 answer
  • What was one significant difference between the beginning of the great depression and the economic fallout of the covid-19 epide
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!