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Anton [14]
3 years ago
13

Bateman Corporation sold an office building that it used in its business for $800,950. Bateman bought the building ten years ago

for $599,525 and has claimed $201,425 of depreciation expense. What is the amount and character of Bateman's gain or loss?
Business
1 answer:
LekaFEV [45]3 years ago
5 0

Answer:

The amount of Bateman's gain is $402,850, in character of profits from the sale of property and equipment

Explanation:

The gain of selling an asset is determined by the formula: Sale price minus Book value. The book value of the building is Cost minus accumulated depreciation. So, the book value is 599,525 - 201,425 = 398,100

Then, the amount of Bateman's gain is equal to 800,950 - 398,100 = 402,850.

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Smith Company gives the following information on the financial statements: Net Income $50,000 Preferred Dividends 8,000 Average
ch4aika [34]

Answer: The rate of return on common stockholder’s equity is 23%.

Explanation:

Given that,

Net Income = $50,000

Preferred Dividends = 8,000

Average Common Stockholder’s Equity = 180,000

Average number of Common Shares Outstanding = 250,000 shares

Market Price = $2 per share

Therefore,

Return on equity = \frac{Net\ income - Preferred\ Dividends}{stockholder\ equity}

=  \frac{50000 - 8000}{180000}

= 23%

5 0
3 years ago
A symmetric, bell-shaped frequency distribution that is completely defined by its mean and standard deviation is the _____ distr
crimeas [40]

A symmetric, bell-shaped frequency distribution that is completely defined by its mean and standard deviation is the<u> normal distribution.</u>

A symmetrical distribution about the mean, such as the normal or Gaussian distribution, indicates that data points closer to the mean occur more frequently than data points further from the mean.

The normal distribution is represented graphically by a bell curve. A bell curve of probabilities is more properly known as the normal distribution. The standard deviation is one and the mean is zero in a normal distribution. Its kurtosis is 3, and its skewness is 0. Not all symmetrical distributions are normal, but all normal distributions are symmetrical. The normal distribution can be thought of as a rough approximation of many naturally occurring events. However, most price distributions in finance are not normally distributed.

<u></u>

To know more about normal distribution refer to:

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6 0
1 year ago
Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of
Natasha_Volkova [10]

Answer:

8

Explanation:

The maximum amount she can spend is $12. If she buys 4 apples, it would cost her : 4 x $1.50 = $6. She would have $12 - $6 = $6 to spend on bananas.

If the price of bananas are $0.75, she can buy a total of $6 / $0.75 = 8 bananas

I hope my answer helps you

3 0
3 years ago
Which of the following statements is true if total fixed costs decrease while the sales price per unit and variable cost per uni
Trava [24]

Answer:

D. The breakeven point decreases.

Explanation:

Breakeven point of a business is defined as the point where it's total cost and total revenues are equal, at this point there is no gain or loss. Hen revenue is above this point profit is made, and when revenue is below this point there is loss.

The formula for break-even is

Breakeven point= Total fixed cost/(Sales price per unit- Variable cost per unit)

Since sales price and variable cost is constant, let's say

(Sales price per unit- Variable cost per unit)= constant (k)

So when we cross-multiply in the formula

Breakeven* k= Total fixed cost

It shows that Breakeven point is directly proportional to Total fixed cost.

So a reduction in Total fixed cost will result in a reduction in Breakeven point.

3 0
3 years ago
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Nutka1998 [239]

Please find attached full question Answera and Explanation:

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7 0
3 years ago
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