Answer:
The entry will be,
Cash 33200 Dr
Accumulated depreciation 16440 Dr
Asset 47700 Cr
Gain on Disposal 1940 Cr
The company will record a gain on disposal of 1940.
Explanation:
The straight line depreciation method allocates a constant depreciation expense through out the useful life of the asset based on the depreciable cost, which is cost less residual value.
<u>Straight line method</u>
Depreciation expense per year = (Cost - Residual value) / estimated useful life
Depreciation expense per year = (47700 - 6600) / 5 = $8220 per year
Accumulated depreciation fr two years = 8220 * 2 = 16440
Carrying value of the asset at the end of two years = 47700 - 16440 = 31260
The asset is sold for $33200. So, there is a gain on sale of 33200 - 31260 = $1940 as the cash received from selling the asset is more than its carrying value.
Answer:
must give phil at least forty-five days' notice.
Explanation:
The 2009 Credit Card Accountability Responsibility and Disclosure Act (CARD Act) which expanded the Truth in Lending Act (TILA), requires that credit card companies give its costumers at least a 45 day notice before charging a higher interest rate. They are also required to give their customers a 21 day grace period between receiving the monthly statement and setting a due date for the payment.
Answer:
PV=?
N=3
FV= 47,700
PMT= 17,000
I= 5%
Put values in financial calculator
Pv=$87,500
Now use this value to calculate residual value at the end of year 4
PV= 87,500
N=4
Fv=?
PMT= -17,000
I=5
$33,084= residual value in 4 years.
Explanation:
Answer:
c) $18,986
Explanation:
The computation of the payment of principal is shown below:
= Annual payment - (Balance of Principal × interest rate)
= $48,986 - ($250,000 × 12%)
= $48,986 - $30,000
= $18,986
We do not consider the time period. Hence, we ignored it as it is not relevant for the computation part.
We simply multiply the principal balance with the interest rate and then deduct it from the annual payment.