A company sold equipment that originally cost $280,000 for $140,000 cash. the accumulated depreciation on the equipment was $140,000. the company should recognize a $0 gain or loss.
The term depreciation refers to an accounting technique used to spread the cost of a tangible or physical asset over its useful life. Depreciation indicates how much of an asset's value has been used. It allows companies to generate income from the assets they own by making payments over a period of time.
Depreciation is a method of calculating the depreciation of an asset through use, wear and tear, and obsolescence. The value of most assets declines over time after purchase. Organizations should take this loss of value into account when analyzing performance and calculating costs.
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The answer to this question would be D the balance sheet contains only assets and liabilities sections
Answer:
B. Suppose a firm wants to maintain a specific TIE ratio. It knows the amount of its debt, the interest rate on that debt, the applicable tax rate, and its operating costs. With this information, the firm can calculate the amount of sales required to achieve its target TIE ratio.
Explanation:
The times interest earned (TIE) ratio measures the company's ability to meet its debt obligations from its current income. The formula for calculating TIE number is 'earnings before interest and taxes (EBIT) divided by the total interest payable on all debts.
With the above definition and formula in mind it becomes <u>true</u> that if a firm wants to maintain a specific TIE ratio, If it knows the amount of its debt, the interest rate on that debt, the applicable tax rate, and its operating costs. With this information, the firm can calculate the amount of sales required to achieve its target TIE ratio, because;
With the parameters 'If it knows the amount of its debt, the interest rate on that debt,' It will work out total interest on all debts which is the denominator of TIE.
AND
With the parameters 'the applicable tax rate, and its operating costs' it will work out the Earnings Before Interest and Taxes'
Answer:
40 air conditioners
60 fans
Explanation:
If the conditions are as follows:
Each air conditioner takes 3 hours of wiring and 2 hours of drilling.
Each fan must go through 2 hours of wiring and 1 hour of drilling.
During the next production period, 240 hours of wiring time are available and up to 140 hours of drilling time may be used.
Each air conditioner sold yields a profit of $25.
Each fan assembled may be sold for a $15 profit.
About 1.4 percent of the shrink in revenue is caused by Theft for Walmart.
Explanation:
Theft and shoplifting are huge problems in retain markets and supermarkets where buying groceries is done by the person and many attempt to shoplift a few items that they want to have.
According to the National Retail Federation around 1.4 percent of the sale is affected by theft and shoplifting.
Other forms of damage to the sale comes from theft from employees which is counted in the statistic here and the errors in system and cashier errors in collection, faulty and invalid currency.