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Lerok [7]
3 years ago
7

Three years ago, Sydney remodeled her home. Rather than discarding some shelving units that were in her home, she moved them to

the employee lounge of the business that she owns. Her original cost (basis) in the shelves was $3,500. The fair market value of the shelves when she converted them to business use was $1,500. Sydney has taken depreciation on the shelves of $300. She sold the shelving units this year for $1,000. What is the amount of her basis and the amount of the gain or loss recognized on the sale of the shelves?
Business
1 answer:
Alisiya [41]3 years ago
4 0

The correct answers are, $1200 and -$200.

Sydney has taken depreciation on the shelves of $300. The amount of basis and the amount of the gain or loss recognized on the sale of the shelves are $1200 and -$200 respectively.

Explanation:

Fair market value at the date of conversion = $1,500

Depreciation on the Shelves = $300

Basis = Fair market value - Depreciation

Basis = $1500 - $300 = $1,200  

So Basis = $1,200

Now

Sale Price of Shelves = $1,000

Adjusted Basis = $1,200

Loss would be = Sale price - Adjusted Basis

Loss = $1000 - $1200

Loss = -$200

So, Loss = $200

Learn more about depreciation at:

brainly.com/question/10456007

#LearnWithBrainly

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7 0
3 years ago
Parts and materials for skis made by Company C are supplied by two suppliers. Supplier​ A's materials make up 27​% of what is​ u
neonofarm [45]

Answer:

Supplier B more likely supplied the defective materials.

Explanation:

This exercise is solved in four steps:

1. Statistical events are defined:

A = (provider A)

B = (provider B)

D = defective materials

From the problem statement, 27% of the materials used by Company C are provided by supplier A. Therefore:

P (A) = 0.27.

The remaining 73% is provided by supplier B. Therefore:

P (B) = 0.73.

2. Conditional probabilities are established. In other words, what is the probability that the materials are defective? Remember that the "defect" is the condition that most interests the manager.

According to the example, 22% of materials from supplier A are defective. We can formalize this as follows:

P (D / A) = 0.22

On the other hand, 9% of supplier B materials are defective:

P (D / B) = 0.09

3. It will be determined what is the probability that each supplier has provided defective products by applying Bayes´ theorem.

3.1 The probability of this event will be found for supplier A:

The Bayes´ Theorem for this case is:

P (A / D) = \frac{P(A)  P(D/A)}{P(A) P(D/A) + P(B) P(D/B)}

We replace with the data obtained in the previous points (1 and 2):

P (A/D) = \frac{(0.27)(0.22)}{(0.27)(0.22)+(0.73)(0.09)}

P (A/D)= \frac{0.0594}{0.0594+0.0657}

P (A/D) = \frac{0.0594}{0.1251}

P (A / D) = 0.474

That means that approximately 47.4% of defective materials come from supplier A.

3.2 The probability of this event for provider B will be found.

The Bayes´ Theorem for this case is:

P (B/D) = \frac{P(B) P(D/B)}{P(A) P(D/A) + P(B) P(D/B)}

We replace with the data obtained in the previous points (1 and 2):

P (B/D) = \frac{(0.73)(0.09)}{(0.27)(0.22)+(0.73)(0.09)}

P (B/D)= \frac{0.0657}{0.0594+0.0657}

P (B/D) = \frac{0.0657}{0.1251}

P (B / D) = 0.525

That means that approximately 52.5% of the defective materials come from supplier B.

4. Compare the conditional probabilities.

If we compare P (A / D) and P (B / D), we can see that the largest is P (B / D) (47.4 < 52.5). Therefore, supplier B is more likely to have supplied defective materials.

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Answer:

Direct labor cost is like $184000

Explanation is not my nation

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