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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

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Answer:

option (c) $25 million

Explanation:

Data provided in the question:

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Increase in spending = $10 million

Now,

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3 years ago
Assume that a hypothetical economy with an MPC of 0.75 is experiencing severe recession. Instructions: In part a, round your ans
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Answer:

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3 years ago
Classify each characteristic as relating to a fixed exchange rate regime or a flexible, or floating, exchange rate regime.a. sig
marshall27 [118]

Answer:

(A) Fixed exchange rate regime

(B) Fixed exchange rate

(C) Flexible exchange rate

(D) Flexible exchange rate

Explanation:

(A) A fixed exchange rate regime signals a commitment not to engage in inflationary policies. NOTE: Inflationary policies are a type of monetary policies (the type used to pump money into the economy). See answer (D).

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8 0
3 years ago
Jerry Jay is the CEO of Jerry's Jackets (JJ). In June, Jerry expects to produce and sell 3200 jackets, and he expects his June u
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Explanation:

Based on the information that have been provided in the question, the planning budget for the utilities in June will be calculated as:

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where

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Variable cost per unit = $0.70

Therefore, planning budget will be:

= $8,000 + (3,200 × $0.70)

= $8,000 + $2240

= $10240

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This is an example of Selection bias.

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