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
Advice Florence and her team on how they can convince the staff using john kotter's theory to lead change
shtirl [24]

John Kotter’s theory for leading can help business staffs to improve their performance especially in completing assignments and improving teamwork.  His theory centers on eight steps:

1.       Creating urgency to spur change.

2.       Forming a powerful coalition from people of diverse talents.

3.       Make a vision of change that would inspire and rally your group.

4.       Communicate that vision so that all of you understand what needs to be done.

5.       Remove obstacles that would impede your goals.

6.       Create short-term wins that would help in the short run but will contribute in the long run.

7.       Build on change while the momentum is there.

8.       Anchor that change as a model for others to follow.

4 0
3 years ago
Divine plc is a pure-honey producing plant. The firm wants to replace its aging processing machine. One option is to purchase a
AleksAgata [21]

Answer:

Project A

Years      Cashflows     Discount factor     Present values

0            250,000                    1                           -250,000

1-10            45,100                   6.144                     277,094.40

Sum of all present value=NPV=27,094.40

IRR (by using trial and error method) = 12.4696%

Note: Discount factor for the year 1-10 is calculated by using annuity formula i.e [1-(1+10%)]/10% = 6.144

Project B

Years Cashflows Discount factor  Present values

0        (350,000)           1                              (350,000)

1           72,500               0.91                   65,975  

2           65,500               0.83                    54,365  

3           73,800                  0.75                    55,350  

4            71,500                  0.68                    48,620  

5           69,800                  0.62                   43,276  

6           75,500             0.56                   42,280  

7           31,000                  0.51                            15,810  

8           47,500                  0.47                           22,325  

9           55,500                  0.42                   23,310  

10           29,200                  0.38                    11,096

Sum of all present values=NPV=32,407

IRR(by using trial and error method=12.4186%

On the basis of NPV project B is better because it gives higher NPV than project A. Whereas, Project A is better than project B on the basis of IRR because project A has slightly higher IRR than project B.

b)The conflict between both the investment appraisal technique is likely due to different cash flow patterns of both the project. In such situation decision should be based on NPV because this is an absolute measure

5 0
3 years ago
Read 2 more answers
Linda visits her favorite clothing store and is disappointed to discover that the shirt she was hoping to purchase is out of sto
Julli [10]

Answer:

d. backorder

Explanation:

Based on the scenario being described within the question it can be said that the sales associate most likely offered to backorder the item for Linda. This is when a retailer places an order for a product that is no longer in stock for the time being, in order to comply with the customer, but will take a while for that order to come in and for the transaction to be completed.

8 0
3 years ago
Dell Computer's primary consumer business takes orders from customers for specific configurations of desktop and laptop computer
irina1246 [14]

Answer:

Assemble to order

Explanation:

The reason is that the customer places the order and all Dell does is just assemble the product and deliver it to its customers. Dell is using just in time mechanism and has all of its chips manufacturing, LED manufacturing, etc production facilities interconnected. Even its suppliers are close to its production sites. This enables Dell to produce products that the customer is desiring. So assembling products by just after taking the customer orders is "assemble to order mechanism".

8 0
2 years ago
Submit Test
Gnoma [55]

Answer:

you didnt put the full question in.

Explanation:

we cant tell what donna bought and cant see the question at all actually

6 0
2 years ago
Other questions:
  • Match, an online dating service, offers you an internship to collect and analyze data. Your primary task is to test the correlat
    6·1 answer
  • Suppose an economic boom drives up wages for the sales representatives who work for cell phone companies. This will cause the:__
    14·1 answer
  • Bob bought some land costing $15,390. Today, that same land is valued at $44,817. How long has Bob owned this land if the price
    14·1 answer
  • Discuss the statement: ‘Silence is Golden’ in approximately a hundred 300 words, in
    11·1 answer
  • If people bought the same market basket of goods as the average consumer again and again the:______.
    8·1 answer
  • Answer and I give u brainliest and extra pts
    6·1 answer
  • Generally, parties of 8 or more require many restaurants to include gratuity of 18% on the check before presenting to the guest.
    12·1 answer
  • Pinkin Inc. needs to determine a price for a new phone model. Pinkin desires a 25% markup on the total cost of the phone. Pinkin
    12·1 answer
  • Cholula hot sauce, a mexican made chili-based sauce brand, is introducing a new hot sauce flavor and wants to use its owners’ un
    8·1 answer
  • In a planned economy, prices of commodities are controlled by _________.
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!