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myrzilka [38]
3 years ago
15

Assume a company sold a piece of equipment for $3,000. The original cost was $15,000 and the accumulated depreciation prior to t

he sale was $10,000. What amount, if any, would appear in the operating activities section of the statement of cash flows using the indirect method?
Business
1 answer:
Flauer [41]3 years ago
4 0

Answer:

The amount of $2000 (loss on sale) would be added to the reported profit under the operating section of the statement of cash flow

Explanation:

<em>With the sale of an asset, the reported profit would have been increased or decreased by the amount of gains or losses realized on the sale of the equipment</em>

Gain/loss on sale = sales value - Carrying amount

Carrying amount = cost - accumulated deprecation

                      = $15,000 - $10,000

                      = $5,000

Loss on depreciation = 3,000 -5,000

                                   = ($2000)

The amount of $2000 would be added to the reported profit under the operating section of the statement of cash flow

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he following information applies to the questions displayed below.] Raphael Corporation’s common stock is currently selling on a
arsen [322]

Answer:

The correct answer is $151 per share.

Explanation:

According to the scenario, the computation of the given data are as follows:

Currently selling price = $151 per share

So, we can calculate the Current market value by using following formula:

Current market value (price) of stock = Currently selling price of stock

As, Currently selling price of stock is already given.

Than, Current market value (price) of stock = $151 per share.

4 0
3 years ago
Read the description of following adjustments that are required at the end of the accounting period for Paulo Consulting Service
exis [7]

Answer:

A. Equipment was purchased on January 1, 2019, for $49,770 and has an estimated useful life of 5 years with a salvage value of 4,270.

Depreciation is computed using the straight-line method.

depreciation expense per year = ($49,770 - $4,270) / 5 years = $9,100

depreciation expense per month = $9,100 / 12 = $758.33

January 31, 2019, depreciation expense

Dr Depreciation expense 758.33

    Cr Accumulated depreciation - equipment 758.33

B. Signed a 5-month contract for $5,490 of prepaid advertising on January 1, 2019.

advertising expense per month = $5,490 / 5 = $1,098

January 31, 2019, advertising expense

Dr Advertising expense 1,098

    Cr Prepaid advertising 1,098

C. Prepaid rent for the year on January 1, 2019, in the amount of 22,560.

rent expense per year = $22,560 / 12 = $1,880

January 31, 2019, rent expense

Dr Rent expense 1,880

    Cr Prepaid rent 1,880

D. Purchased supplies for $4,200 on January 1, 2019. Inventory of supplies was $2,850 on January 31, 2019.

supplies expense = $4,200 - $2,850 = $1,350

January 31, 2019, supplies expense

Dr Supplies expense 1,350

    Cr Supplies 1,350

8 0
3 years ago
In an exchange, archie gave up his fully depreciated business-use dump truck (fmv $15,000) and $5,000 for a newer business-use d
TiliK225 [7]

Answer:

The realized gain is 0

Explanation:

The fair market value of the truck that archie gives up is $15,000 and the new truck he gets has a fair market value of $20,000. Archie also gives $5,000 in cash plus his old truck in order to buy the new truck.

Gain= Fair market value of new truck -Fair market value of old truck - Cash paid

Gain = 20,000-15,000-5,000

Gain = 0

5 0
3 years ago
The five stages a buyer passes through in making choices about which products and services to buy is called the postpurchase beh
pychu [463]

Answer:

Purchase Decision Process

Explanation:

The purchase decision process is the one through which the a buyer makes his decision of buying a certain product.

This consumer buying process has five step which they use to make their decision, are following;

  1. Need or Problem Recognition.
  2. Information Search.
  3. Evaluation of Alternatives.
  4. Purchase Decision.
  5. Post-Purchase Evaluation.

I hope the answer is helpful.

Thanks for asking.

8 0
2 years ago
For each of the following costs incurred in a manufacturing firm, indicate whether the costs are most likely fixed (F) or variab
Murrr4er [49]

Answer:

a. Depreciation on the building for administrative staff offices. (F) (P)

b. Cafeteria costs for the factory. (F) (M)

c. Overtime pay for assembly workers. (V) (M)

d. Transportation-in costs on materials purchased (V) (M)

e. Salaries of top executives in the company. (F) (P)

f. Sales commissions for sales personnel (V) (P)

g. Assembly line workers' wages (V) (M)

h. Controller's office rental. (F) (P)

i. Administrative support for sales supervisors (F) (P)

j Energy to run machines producing units of output in the factory. (V) (M)

Explanation:

Fixed Cost (F): Fixed cost is cost which is fixed and does not vary on the basis of production.

Variable Cost (V): Variable cost is cost which is not fixed and varies on the basis of production i.e. with the change in production, it also changes.

Product Cost (M): Product cost is a direct cost which is attributable directly in the creation of the product such as Direct Material, Direct Labour, etc.

Period Cost (P): A period cost is associated with the passage of time and is not included in the product cost, and is treated as an expense.

8 0
3 years ago
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