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OLEGan [10]
3 years ago
6

Sears Corporation, which has a calendar year accounting period, purchased a new machine for $40,000 on April 1, 2007. At that ti

me Sears expected to use the machine for ten years and then sell it for $10,000. The machine was sold for $24,500 on Sept. 30, 2012. Assuming straight-line depreciation, the gain to be recognized at the time of sale would be:
Business
1 answer:
Irina-Kira [14]3 years ago
5 0

Answer:

$1,000

Explanation:

The computation of gain on sales is given below:-

Depreciation per year = $40,000 - $10,000 ÷ 10

= $3,000

Life of equipment = 5.5 years

Accumulated Depreciation on equipment = 5.5 × $3,000

= $16,500

Book value of equipment = $40,000 - $16,500

= $23,500

Gain = Proceed from sale - Book value at the time of sale

= $24,500 - $23,500

= $1,000

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Calculate the values for each of the questions. Assume that in each country there are no taxes, international trade, or inflatio
Inessa [10]

Explanation:

a. The computation is shown below:

As we know that

Multiplier = 1 ÷ 1 - MPC

1.5  = 1 ÷ 1 - MPC

So, MPC is 0.3333

Now the real GDP is

= Multiplier × Government spending

= 0.3333 × $70 billion

= $105 million

So the change in real GDP is

= $105 million - $70 million

= $35 million

b. The computation is shown below:

As we know that

Multiplier = 1 ÷ 1 - MPC

Multiplier  = 1 ÷ 1 - 0.6

So, multiplier is 2.5

Now the real GDP is

= Multiplier × Government spending

= 2.5 × $16 billion

= -$40 million

c. As we know that

Real GDP = Multiplier × Government spending

$280 billion = Multiplier × $70 billion

So, the multiplier is 4

Now the MPC is

Multiplier = 1 ÷ 1 - MPC

4 = 1 ÷ 1 - MPC

So, the multiplier is 0.75

3 0
3 years ago
In a practical sense, the best size for a team is:A. between two and twenty-five members.B. five or fewer people.C. determined b
natali 33 [55]

C is the correct answer because it really varies depending on the game.

3 0
3 years ago
Contingency costs in the project costs estimate, also referred to as ____, are to cover unexpected situations that may come up d
slega [8]

Answer:

Reserves

Explanation:

Risk is any uncertain event with positive or negative consequences on a project. Contingency costs are related to risks, and therefore cannot be disregarded in risk management within a project. It is essential that management plan and prevent for the project to occur in a predictable and effective manner.

7 0
3 years ago
Companies striving for global market leadership pursue strategic alliances or collaborative partnerships with foreign companies
FrozenT [24]

Answer:

get into critical country markets quickly, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations.

Explanation:

Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.

Some examples of international economic organizations involved in global economy and trade are;

I. World Trade Organization (WTO).

II. United Nations (UN).

III. International Monetary Fund (IMF).

IV. United Nations Conference on Trade and Development (UNCTAD).

When a company or business firm strive for global market leadership, its main focus would be to pursue strategic alliances or collaborative partnerships with foreign companies. This would enable it get into critical country markets quickly and effectively, it would also gain an inside knowledge and understanding about unfamiliar markets, consumer demographics and cultures, as well as getting hold of valuable skills and competencies that are concentrated in specific geographic locations in the world.

6 0
3 years ago
Given the data below for production equipment,Initial Cost, P = $50,000 Salvage Value at the end of 5 years, S = $10,000. Deprec
Taya2010 [7]

Answer:

1. B. $8,000

2. C. $7,200

Explanation:

Units or production (UOP) method of depreciation bases the depreciation expense of a machine or equipment on how much it is actually used during the period.

depreciable value = $50,000 - $10,000 = $40,000

depreciation rate per unit = $40,000 / 25,000 = $1.60

Year          Projected Production units         Actual Production units

1                              4,500                                    5,000

2                             5,000                                    4,000

3                             3,500                                    3,000

4                             5,500                                    5,000

5                             6,500                                    Not known

Total                      25,000

depreciation expense year 4 = $1.60 x 5,000 = $8,000

accumulated depreciation year 4 = $1.60 x 17,000 = $27,200

book value = $50,000 - $27,200 = $22,800

if sold at $30,000, gain resulting from sale = $30,000 - $22,800 = $7,200

7 0
2 years ago
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