Answer:
The recognized gains upon the sale is $2000.
Explanation:
As the cost of purchase of the equipment to Mathew is $15000 and the sale proceeds received is $17000. The gain is actually calculated as follows;
Gain = Sale proceeds –Cost of equipment
Gain = Matthew sells the equipment to an unrelated party for $17,000 – Matthew bought equipment for its fair market value of $15,000
Which is $1700 -$1500 = $2000
Therefore the recognized gains upon the sale is $2000.
Answer:
The answer is B. $555,000
Explanation:
Please note that the student meant $300,000 for non-current liability and not $350,000
Stockholder's equity = total asset - total Liability
Total asset = current asset + fixed asset
= $250,000 + $800,000
= $1,050,000
Total liability = current Liability + non-current liabilities
= $195,000 + $300,000
= $495,000
Therefore, shareholder's equity is
$1,050,000 - $495,000
$555,000
Answer:
Costs that have already been incurred
Explanation:
Sunk costs are costs already incurred which are irrecoverable. These costs will stay the same irrespective of business actions and are also not considered for business decision in the future as they are deemed irrelevant .
If an organization wants to decide on business actions, they make use of relevant costs as they are cost meant for the future and will still be incurred. Revenue and cost that varies are only considered by organization to make a decision.
Example of sunk cost is money spent on rent. This money incurred cannot be recovered once it has been paid.
The question is incomplete. The complete question is :
You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the account needs to hold to make this possible. Round your answer to the nearest dollar.
Regular withdrawal $ 2200
Interest rate 2%
Frequency Monthly
Time 20 years
Solution :
Given :
Monthly withdrawal = $ 2200
Interest rate = 2%
Frequency = monthly
Time = 20 years
= 20 x 12 = 240 months
Formula used :
![$w=\frac{[PZ^{r-1}(Z-1)]}{[Z^Y-1]}$](https://tex.z-dn.net/?f=%24w%3D%5Cfrac%7B%5BPZ%5E%7Br-1%7D%28Z-1%29%5D%7D%7B%5BZ%5EY-1%5D%7D%24)
with Z = 1 + r
where, w = monthly withdrawal
P = principal amount
r = monthly interest rate
Y = Number of months
So, w = 2200
r = 2% = 0.02
Z = 1 + r
= 1 + 0.02 = 1.02
Y = 240
Therefore,
= 111,231829
≈ 111,232 (rounding off)
Thus, the account balance = $ 111,232
The administrator or executor is representative of an estate which has the capacity to sue and be sued on behalf of the estate.
In bankruptcy, the administrator or executor is the representative whose responsibilities is to possess the asset, pay creditors and distribute the remaining assets or other beneficiaries of the bankrupted company.
Usually, the administrator and executors are appointed when the bankruptcy of a business is declared and ascertained.
Therefore, the administrator or executor acts as representative of an estate which has the capacity to sue and be sued on behalf of the estate.
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