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leva [86]
3 years ago
9

Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated

useful life is 5 years. The straight-line method is used for depreciation. On July 1, 2013 Stevenson sold the equipment for $100,000. Calculate the gain or loss on the sale of the equipment
Business
1 answer:
evablogger [386]3 years ago
8 0

Answer:

The answer is loss of $10,000 on the sale of the equipment

Explanation:

The formula for straight-line depreciation is:

(Cost of asset - salvage value) ÷ number of useful life.

Cost of asset is $250,000

Salvage value is $50,000

Useful life is 5 years

So depreciation for the year is:

($250,000 - $50,000) ÷ 5 years

$200,000 ÷ 5 years

=$40,000

January 1 2010 through June 30 2013 is 3 years and 6months

Accumulated depreciation will be:

3.5 years( 3 years + 6months/12 months) x $40,000

$140,000

Carrying value or net book value at this date is $250,000 - $140,000

=$110,000.

The equipment was sold for $100,000.

Selling price - carrying value

=$100,000 - $110,000

= - $10,000

We have a loss of $10,000 on the sale of equipment

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Answer:

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B. False

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Since Abshir holds a J-1 immigration visas and returned to the US to live, the IRS considers him a resident alien.

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A. True

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7 0
2 years ago
During a period of economic expansion, when expected profitability is high, the: select one: a. Equilibrium price of bonds incre
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During a period of economic expansion, the demand curve for bonds shifts to the left.

<h3>What is the effect of an economic expansion?</h3>

During an economic expansion, the supply of money in the economy rises and the demand for money also increases. This leads to an increase in the interest rate and the price of the bonds would fall.

If expected profitability is expected to be high, people would prefer to hold more risky investment. Thus, there would be a fall in the demand for bonds. The demand curve for bonds would shift to the left.

Here are the options to this question:

A) the demand curve for bonds shifts to the left.

B) the supply curve of bonds shifts to the right.

C) the equilibrium interest rate falls.

D) the equilibrium price of bonds rises.

To learn more about economic expansion, please check: brainly.com/question/831569

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4 0
2 years ago
As a business owner, you're responsible for making the decisions that pertain to the profitability of your business. This decisi
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Answer: Independence

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As a business owner, one thinks and acts based on one's personal volition of what is best for his or her business without having to sit and discuss with a group of individual's who may habiur different perceptions or scope. This freedom is usually enjoyed by small business owners rather than large groups of companies or corporations.

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6 0
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Answer:

The Capacity utilization rate is 73.94 units per hour for the month.

Explanation:

Provided data,

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