Answer:
$25,000 capital gain
Explanation:
The book value of the equipment on the date of disposal if $55,000 having dedcuted depreciation of $20,000 from cost price of $75,000. Gian or loss on disposal of a fixed asset(equipment) is the difference between the selling price and book value ($80,000-$55,000) giving us $25,000.
Answer:
This is a false statement.
Explanation:
Price has certain effect on the demand of a product.
An increase in price may lead to higher demand while an decrease in price may lead to lower demand.
The increase or decrease in demand following the fall or rise in price varying amount different products.
Product demand is said to be elastic when a change in price has relatively big effect in the demand while it is said to be inelastic when a change in price lead to little change in demand of a product.
As a result, the statement quote in the question is false. Demand for a good should be said to be elastic instead given the quantity demanded increases substantially when the price falls by a large amount.
Answer:
Net worth is the value of all assets, minus the total of all liabilities. Put another way, net worth is what is owned minus what is owed. it can help you identify areas where you spend too much money
Answer:
See below
Explanation:
With regards to the above, the contribution margin is computed as;
Contribution margin per unit = Selling price per unit - Variable cost per unit
Selling price per unit = $20
Variable cost per unit = $15
Then,
Contribution margin per unit = $20 - $15
Contribution margin per unit = $5
Answer:
the after tax terminal value would be $14,500
Explanation:
