Answer:
b. the difference between Solomon's contract price and the amount paid by Renny
Explanation:
Neal sues Solomon for damages as Solomon breaches his contract with Neal to purchase the 500 pairs of socks from him. Although he can sell the 500 pairs to Renny even then he was in loss only as he sells socks to Renny at a lower amount then it's actual cost.
In this case, Neal will be able to recover the difference between Solomon's contract price and the amount paid by Renny.
Answer:
decisional
Explanation:
She is playing a decisional role in the above scenario since she has to make the necessary arrangements and arguments and select the best possible price for the given scenario.
Answer:
c. Depreciation Expense (Dr.) $3,600
Accumulated Depreciation (Cr.) $3,600
Explanation:
At each year end, we make adjustments for depreciation to systematically allocate the cost of an asset over its useful life. The matching principle requires us to record a portion of an asset as an expense that relates to the revenue generated by that asset. Another purpose of recording depreciation is Taxation. Depreciation is a tax-allowable expense, and hence reduces corporate Income Taxes. We should also reduce the cost of an equipment each year because the asset losses its worth as the time goes on due to wear and tear.
The Journal Entry to record depreciation is:
Depreciation Expense (Dr.) $3,600
Accumulated Depreciation (Cr.) $3,600
Depreciation Expense in charged as a Debit to Profit or Loss Statements, hence reduces our Profit and as a result Taxes. Whereas, Accumulated Deprecation is a contra-asset account. It has a credit balance and reduces the cost of asset.
