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-Dominant- [34]
3 years ago
5

Charm Co. owns a delivery truck with an original cost of $10,000 and accumulated depreciation of $7,000. Charm acquired a new tr

uck by exchanging the old truck and paying $2,000 in cash. The new truck has a fair value of $5,000 at the time of the exchange. What amount of gain or loss should Charm recognize?
Business
1 answer:
Kazeer [188]3 years ago
4 0

Answer:

no loss or gain should be recognized by the Charm

Explanation:

Given:

Original cost of the truck = $10,000

Accumulated depreciation of the truck = $7,000

Thus,

the value of the truck after depreciation = $10,000 - $7,000 = $3,000

The amount paid with the exchange of the truck = $2,000

Therefore, the total considerable amount paid for the new truck

= value of the truck after depreciation +  amount paid with the exchange

= $3,000 + $2,000

= $5,000

Also, the fair value of the truck  = $5,000

Since, the amount total considered amount paid by the charm co. for the new truck is equal to the fair value of the truck.

Hence, there no loss or gain should be recognized by the Charm

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Answer:

the answer is 11,000

Explanation:

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2 years ago
The cross-price elasticity of demand measures the a. percentage change in the quantity demanded of one good in one location divi
LenaWriter [7]

Answer:

d. percentage change in the quantity demanded of one good divided by the percentage change in the price of another good.

Explanation:

Price-demand elasticity measures the demand sensitivity of a good when a change in the price of another good occurs. For example, what happens to the demand for bread when the price of butter varies? This depends on the cross elasticity of demand since these goods tend to be complementary.

 The price elasticity of cross demand between two goods is easily calculated by a formula where the numerator is the change in the quantity of a good and the denominator is the percentage change in the price of the complementary good.

If the calculation of elasticity is greater than 1, it means that the amount demanded for bread is sensitive (elastic) to the price of butter and tends to vary sharply. If the result is between 0 and 1, the demand is inelastic, that is, the amount of bread demanded will not change considerably when the price of butter varies. If the calculation is equal to 1, then the demand for bread varies perfectly with the price of butter.

5 0
3 years ago
Following is partial information for the income statement of Audio Solutions Company under three different inventory costing met
Tamiku [17]

Answer:

The computation is shown below:-

Explanation:

1.                     FIFO    LIFO Average cost  

Cost of goods sold      

Beginning inventory       $11,200      $11,200  $11,200

(400 units ×  $28))                          

purchases                       $16,625    $16,625   $16,625

(475 units × 35)                  

Goods available for use $27,825    $27,825   $27,825  

Ending inventory             $18,025    $15,575    $16,695

(525 units)  

Cost of goods sold          $9,800    $12,250    $11,130  

under ending inventory = 475 × $35 + 50 × $28    

FIFO = $18,025  

LIFO ending inventory 400 × $28 + 125 × $35

= $15,575  

Average cost = $27,825 ÷ $875    

= 31.8      

Ending inventory = 525 × 31.8

= $16,695

2.                                  FIFO            LIFO         Average

Sales

(307 × $50)                $15,350         $15,350    $15,350

Cost of goods sold     $9,800    $12,250    $11,130

Gross Profit                 $5,550           $3,100      $4,220

Expenses                     $1,680           $1,680      $1,680

Net income                  $3,870           $1,420       $2,540

3. FIFO = 3

LIFO = 2

Average = 1

5 0
3 years ago
A clearinghouse scam involves a victim receiving: a. a letter that claims he or she has inherited a significant amount of money.
Vitek1552 [10]

Answer:

c. a letter that falsely claims the writer represents a foreign bank.

Explanation:

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So the clearing house scam includes the victim that collect the letter in which there is false claims where the writer shows the foreign bank

5 0
3 years ago
Suppliers deliver product to restaurants on a regular schedule throughout the week. You are responsible for checking delivery or
Katen [24]

Answer: e) All of the above

Explanation:

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