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Yuki888 [10]
3 years ago
7

A company bought new heating system for $42,000 and was given a trade-in of $2,000 on an old heating system, so the company paid

$40,000 cash with the trade-in. The old system had an original cost of $37,000 and accumulated depreciation of $34,000. If the transaction has commercial substance, the company should record the new heating system at:
Business
1 answer:
mixer [17]3 years ago
7 0
35000$ for sure
thanks
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Last year Rennie Industries had sales of $395,000, assets of $175,000 (which equals total invested capital), a profit margin of
maxonik [38]

Answer: 5.9%

Explanation:

Before:

Equity is calculated as:

= Total Assets / Equity Multiplier

= $ 175,000 / 1.2

= $ 145,833

Therefore, ROE will be:

= (Turnover × Profit Margin) / Equity

= ($ 395,000 × 5.3%) / $ 145,833

= $ 20935 / $145,833

= 0.1436

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After:

New Total Assets will be:

= $ 175,000 - $ 51,000

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Equity

= Total Assets / Equity Multiplier

= $ 124,000 / 1.2

= $ 103,333

ROE will then be:

= (Turnover × Profit Margin) / Equity

= ($ 395,000 × 5.3%) / $ 103,333

= $ 20935 / $ 103,333

= 0.2026

= 20.26%

Therefore, the change in ROE will be:

= 20.26% - 14.36%

= 5.9%

= 4.035%

7 0
3 years ago
Price discrimination is a rational strategy for a profit-maximizing monopolist when A. consumers are unable to be segmented into
creativ13 [48]

Price discrimination is a rational strategy for a profit-maximizing monopolist when there is no opportunity for arbitrage across market segments.

<u>Option: C</u>

<u>Explanation:</u>

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Answer:

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