What does it mean to be "in the black "?

An asset was acquired on September 30, 2021, for $104,000 with an estimated five-year life and $25,000 residual value. The compa

NISA [10]

Answer:

There is a loss on disposal of $80

Explanation:

The double declining rate method of depreciation is an accelerated form of charging depreciation on an asset. It charges higher depreciation in the earlier years and lower depreciation in the later years of the useful life of the asset. the formula for double declining balance depreciation per year is,

Depreciation expense = 2 * [ (Cost - Accumulated depreciation) / estimated useful life of the asset ]

The depreciation expense per year on this asset is,

Depreciation expense = 2 * [(104000 - 0) / 5]

Depreciation expense for the 1 year(2021) = $41600

As the asset was purchased in September, we will charge a depreciation expense of 4 months.

Depreciation expense for 2021 = 31600 * 4/12 = $13866.67

Accumulated depreciation at the end of 2021 = $13866.67

Depreciation expense for 2nd year (2022) = 2 * [(104000 - 13866.67) / 5]

Depreciation expense for 2nd year (2022) = $36053.33

Accumulated depreciation at the end of 2022 = 13866.67 + 36053.33

Accumulated depreciation at the end of 2022 = $49920

To calculate the gain or loss on disposal, we need to determine the Net Book value of the asset at the end of 2022 and compare it with the cash received from the sale. If the cash received is more than the Net Book Value, there is a gain on disposal and if the cash received is less than the Net Book Value, there is a loss on disposal.

Net Book value at the end of 2022 = 104000 - 49920 = $54080

Loss on disposal = 54000 - 54080 = - $80 (loss on disposal)

6 0

4 years ago

An increase in the price of butter, a substitute good, would be most likely to cause a. a rightward shift of the demand curve fo

vesna_86 [32]

Answer:

a. a rightward shift of the demand curve for margarine

Explanation:

If the price of butter increases, consumers would demand less of butter and more of margarine. This would shift the demand curve of margarine to the right and the demand curve of butter to the left.

A substitute good is a good which can be used in place of another good. Substitute goods usually have a more elastic demand because if the price of the good increases, it can be easily substituted with another good.

The phenomenon exhibited by butter and margarine is known as cross price elasticity. It when the change in price of one good leads to a change in the quantity demanded of another good.

8 0

3 years ago

Why do you think a reliable scholarly source is always stressed in academic writing?<br><br>

ivolga24 [154]

A reliable scholarly source is stressed in academic writing because it helps in providing genuine information about the topic that's being discussed.

It should be noted that when one is writing, it is important for the person to use credible sources because the audience expect the researcher to back up their assertions with facts.

Furthermore, using reliable scholarly sources help in the improvement of communication and helps in building trust.

In conclusion, it is vital for an individual or researcher to use only credible sources when writing.

Read related link on:

brainly.com/question/24470190

7 0

3 years ago

The crowding-out effect works through interest rates to:  A. Increase the effectiveness of expansionary fiscal policy B. Decreas

neonofarm [45]

Answer: Option (B) is correct.

Explanation:

Suppose there is an increase in the government spending which means that it is a expansionary fiscal policy, this will also results in an increase in the government borrowings. Now, this increase in the government borrowings will increase demand for the loanable funds, as a result interest rate increases. This rise in the interest rate will lead to a reduction in investment spending.

Hence, the government spending crowding out the investment spending. Therefore, crowding out reduces the effect of expansionary fiscal policy.

5 0

4 years ago

An account becomes uncollectible a. at the end of the fiscal year b. There is no general rule for when an account becomes uncoll

Nonamiya [84]

Answer:

b. There is no general rule for when an account becomes uncollectible.

Explanation:

Accounts uncollectible are the debts and loans which do not have any chance of being paid. There are many other reasons by which the account becomes uncollectible. The inability of the debtor, the bankruptcy of the debtor and the fraud conducted by the debtor are some of the reasons why accounts become uncollectible.

5 0

3 years ago