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masya89 [10]
3 years ago
10

1. On January 1, 2017, a subsidiary sold equipment to its parent for $520,000. The subsidiary's original cost was $200,000 and a

s of January 1, 2017, $20,000 in depreciation had been recorded on the subsidiary's books. At the date of sale, the equipment had a 10-year remaining life, straight-line. It is now December 31, 2021 (5 years since the sale), and the parent still holds the equipment. In the consolidation eliminating entries for 2021, the equipment account (gross cost) is reduced by a net amount of____________
Business
1 answer:
Triss [41]3 years ago
7 0

In the consolidation eliminating entries for 2021, the equipment account (gross cost) is reduced by a net amount of <u>$340,000</u>.

<u>Explanation</u>:

<em><u>Given</u></em>:

Selling cost of equipment = $520,000

Original cost of the equipment = $200,000

Depreciation of asset = $20,000

The net amount of the Equipment = Original cost - Accumulated Depreciation

The net amount = $200,000 - $20,000 = $180,000

The Profit on Sale of the Equipment = Selling cost - The net amount

                                                                = $520,000 - $180,000

                                                                = $340,000

The equipment account (gross cost) is reduced by a net amount of <u>$340,000 </u>.

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Suppose that on Valentine's Day, the demand for both roses and greeting cards increases by the same percentage amount. However,
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Answer:

The correct answer is: the supply of the greeting cards is less elastic than the one of the roses.

Explanation:

To begin with, the elasticity show how much the price and the quantity are related by indicating the variation that happens to one of them when the other changes. Therefore that the supply of the greeting cards is less sensitive to price because when the quantity demanded increased the price did not change as much as the roses due to the fact that the sellers were not encourage as much as the sellers of the roses to produce more and therefore to increase the price of the cards. So to sum up, when the price changed the sellers were not encourage to increase the production of the cards as much as the production of the roses because of its elasticity.

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3 years ago
Greg, a project manager in your company, is falling behind on the project schedule. He has elected to crash the project. What is
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Answer:

c) Adding additional project resources to the project

Explanation:

Falling behind schedule is something that needs to be avoided or dealt with promptly and systematically

Crashing is the technique to use when fast tracking has not saved enough time on the project schedule. You use crashing to save resources to the project for the least cost possible. Anyhow, crashing is expensive because more resources are added to the project.

References:

Dave. “A Step-by-Step Process of Dealing with a Project That Is Falling behind Schedule.” MyClientSpot Blog, 10 Sept. 2015

Monnappa, Avantika. “Project Management Learning Series: Fast Tracking Versus Crashing.” Simplilearn.com, Simplilearn, 27 Sept. 2019,

5 0
3 years ago
A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout th
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Answer:

51,000

Explanation:

Beginning WIP 0

Started into Production (60,000+15,000)

Total Units 75,000

Transferred Out (60,000 – 15,000)

= 45,000 = 45,000 equivalent conversion units

Ending WIP 15,000

= 15,000 * .4 = 6,000

45,000+6000 =51,000

Total Units 75,000 = 51,000 conversion total equivalent units

Therefore the equivalent units of production for conversion costs for the month of July is 51,000

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3 years ago
Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the an
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Answer: 1. $218750 ; 2. $231, 250 ; 3. $11562.50

Explanation:

1. The bonds with a par value of $250,000 and implied selling price of 87 ½.

Cash proceed = 250,000 × 87.5%

= $218,750

2. Since it's semiannual interest payments, the total amount of bond interest expense that will be recognized over the life of these bonds will be:

[20 × (250,000 × 8% × 6/12)]+ $250,000 - $218,750

= $200,000 + $250,000 - $218,750

= $231, 250

3. The amount of bond interest expense recorded on the first interest payment date will be:

= Total bond interest expense/number of payments

= $231,250/20

= $11562.50

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5 0
3 years ago
Read 2 more answers
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