Suppose Apple builds a plant in Taiwan and agrees to take 30% of the plant's output as

Garcia Co. owns equipment that cost $84,400, with accumulated depreciation of $44,600. Garcia sells the equipment for cash.

user100 [1]

Answer:

a.

Accumulated depreciation 44600 Dr

Cash 52700 Dr

Equipment 84400 Cr

Gain on disposal 12900 Cr

b.

Accumulated depreciation 44600 Dr

Cash 39800 Dr

Equipment 84400 Cr

c.

Accumulated depreciation 44600 Dr

Cash 34700 Dr

Loss on disposal 5100 Dr

Equipment 84400 Cr

Explanation:

First we need to determine the net book value of the equipment at the time of sale. The net book value is the net value after deducting accumulated depreciation from the cost of the asset.

Net Book value = Cost - Accumulated depreciation

Net Book Value = 84400 - 44600 = $39800

If the asset is sold for more than its net book value, there is gain on disposal.

If it is sold for exactly its net book value, there is no gain or no loss on disposal.

If it is sold for less than its net book value, there is loss on disposal.

a.

Gain on disposal = 52700 - 39800 = $12900

b.

No gain or no loss as Net Book Value of the asset equals the amount of cash it is sold for.

c.

Loss on disposal = 34700 - 39800 = - $5100

6 0

3 years ago

Marsh uses a perpetual inventory system. On December 29, Marsh, Inc. sold inventory for $5,500 on account with terms 2/10 n/30.

krok68 [10]

Answer:

no no entry will be made

Explanation:

Data provided in the question:

Date on which inventory sold, December 29

Amount of inventory sold = $5,500

Account terms = 2/10 n/30

Date on which amount is paid, January 3

Now,

Since the date on which the entry is being made (i.e December 29) is before the payment is actually made (i.e January 3). Therefore, no no entry will be made in its inventory account

3 0

4 years ago

What is perfect competition of economic

iris [78.8K]

- Free entry and exit
- Homogeneous product
- Large buyers and sellers
- No artificial restrictions
- No transportation costs
- Perfect knowledge of prices and technology

5 0

3 years ago

Towson Corp., had 6,000 shares of $100 par, 4% cumulative preferred stock as of January 1, 2018. No additional shares of preferr

aleksandr82 [10.1K]

Answer:

Common Dividend paid in 2019 = $37,000

Explanation:

Given:

Number of shares = 6,000

Rate = 4% = 0.04

Share price = $100

Computation of per year Dividend

Dividend = Number of shares × Share price × Rate

Dividend = 6,000 × $100 × 0.04 = $24,000 per year

Preferred dividend for 2 years = $24,000 × 2 = $48,000

Computation of Dividend paid in 2019:

Total Dividend paid = $85,000

Preferred dividend for 2 years = $24,000 × 2 = $48,000

Common Dividend paid in 2019 = $85,000 - $48,000

Common Dividend paid in 2019 = $37,000

8 0

3 years ago

Roger inherited 100 shares of Periwinkle stock when his mother, Emily, died. Emily had acquired the stock for a total of $60,000

Serjik [45]

Answer:

Please see attachment

Explanation:

Please see attachment

4 0

3 years ago