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:
rate of technological progress = 8 %
Explanation:
given data
capital net of depreciation = 10 percent
Population growing rate = 2 percent.
solution
we will apply here Golden Rule that is
According to golden Rule level of capital accumulation is in steady state which have the highest level of the consumption
so here rate of technological progress is = 10% - 2 %
rate of technological progress = 8%
and here economy will at Golden Rule steady state
so correct answer is 8 percent
Answer: $1,075,000
Explanation: When a current or fixed asset is held in inventory, the worth at which it is recorded in accounting is called its net realizable value. In the given case, the net realizable value could be computed using following formula :-
Net realizable value = Balance of receivable on Dec 31 - expected uncollectibles
Putting the values into equation we get :-
Net realizable value = $1,200,000 - $125,000
= $1,075,000
