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Ratling [72]
3 years ago
13

Sweetpea Corporation sold a tiller that it used in its landscaping business. The tiller cost $5,000 and Sweetpea had taken $2,00

0 of depreciation deductions up to the time of sale. The corporation sold the tiller for $4,000 two years after it was purchased. What is Sweetpea's gain or loss
Business
1 answer:
astraxan [27]3 years ago
6 0

Answer:

Sweetpea have a gain of $1,000

Explanation:

When the depreciable property is sold, then the gain or loss will be computed to the extent on the difference among the selling price and the adjusted basis.

So, the adjusted basis will be

= Cost of the basis - Depreciation

= $5,000 - $2,000

= $3.000

Therefore,

Gain or Loss = Selling Price - Adjusted basis

                     = $4,000 - $3,000

                     = $1,000

Hence, it is a gain of $1,000.

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One of the most reliable sources of money that candidates receive comes from corporations and unions. this money cannot be contr
HACTEHA [7]

Soft Money.

What is Soft Money

Contributions made outside the parameters and restrictions of federal law are referred to as soft money (also known as non-federal money). This indicates that it consists of substantial individual and PAC contributions as well as direct corporate and union contributions. Hard cash, on the other hand, refers to contributions that must comply with the FECA, i.e., limited individual and PAC contributions.

To learn more about Soft Money

brainly.com/question/12660638

#SPJ4

5 0
1 year ago
Newman Labs is considering buying equipment, which would enable the company to obtain a five-year research contract. The special
DanielleElmas [232]

Answer:

B

Explanation:

Net present value is a tool used to analyze how profitable a project by deducting the present value the difference between cash inflow and cash outflow over a period of time.

The formula is (cash flow)/(1+r)^i

Revenue - $750,000

Expenses - $650,000

Increase in net income - 100,000

Annual depreciation charge - 650000/5 =$130,000

Discount rate - 12%=3.605

Present cash value =( $100,000+$130000) = $230,000

Please note that depreciation is added back as it is a non cash expenses

Present value of cash flow = annual cash flow * discount rate

=$230,000*3.605 =829,150

Net present value = 829150-650000= 179,150

3 0
3 years ago
Read 2 more answers
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 61,00
DanielleElmas [232]

Answer:

It is more convenient to produce in house.

Explanation:

Giving the following information:

Direct materials $ 4.00

Direct labor 8.00

Overhead 9.00

Total costs per unit $ 21.00

Direct materials and direct labor are 100% variable. The overhead is 80% fixed. An outside supplier has offered to supply the 61,000 units of RX5 for $19.00 per unit.

The fixed costs are unavoidable, therefore we will concentrate the analysis in the variable costs.

Make in house:

Unitary cost= 4 + 8 + (9*0.20)= $13.8

Buy= 19

Difference= 19 - 13.8= 5.2

It is more convenient to produce in house.

7 0
3 years ago
Monte inherited 1,000 shares of Corporation Zero stock from his father who died on March 4, 2020. His father paid $44 per share
Marina86 [1]

Answer:

$6,000 LTCG

Explanation:

Calculation to determine the amount and character of the gain or loss that Monte recognizes

Using this formula

Recognized gain or loss =Amount realized -Basis

Let plug in the formula

Recognized gain or loss=(1,000 Shares*$54 per share)-(1,000shares*$48 per share)

Recognized gain or loss=$54,000-$48,000

Recognized gain or loss=$6,000 LTCG

Therefore the amount and character of the gain or loss that Monte recognizes is $6,000 LTCG reason been the any gain Amount on the sales of property that was inherited are often tend to be LTCG

6 0
2 years ago
Which of the following describes the substitution effect of a price change?A) The change in demand that results from a change in
Liula [17]

Answer:

The answer is D. The change in quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power

Explanation:

Substitution effect is a concept in which, as the price of a good or service increases, less of the good or service is substituted for other less expensive.

For example, if the price of Pepsi were to rise, the substitution effect would cause the consumer to buy less of it and substitute more coca-cola for now relatively more expensive Pepsi.

Option A. is wrong because we are talking about the quantity demanded and not just demand. (Please take note).

6 0
3 years ago
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