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Inessa05 [86]
3 years ago
6

1. A company sells a plant asset that originally cost $375,000 for $125,000 on December 31, 2017. The accumulated depreciation a

ccount had a balance of $150,000 after the current year's depreciation of $37,500 had been recorded. The company should recognize a
Business
1 answer:
qaws [65]3 years ago
6 0

Answer:

The company should recognize a loss on sale of plant asset of $100,00.

Explanation:

The cost = $375,000

Accumulated Depreciation = $150,000

Therefore, book value = $225,000

This book value is compared with the sales value of $125,000.

There is a difference of $100,000 ($225,000 - $125,000).

Since the book value is greater than the sales value, it means that the plant asset was sold at a loss.

The cost is the amount at which the plant asset was purchased.  The accumulated depreciation represents the cost that has been expensed so far.  The sales value is the amount at which the plant asset was sold.

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_____ are companies that invest in start-up businesses with high growth potential in exchange for an ownership stake.
melamori03 [73]
SHARK TANK
<span>IS A company that invest in start up business </span>
3 0
3 years ago
Price discrimination occurs when people are charged _____ prices for _____ products.
ValentinkaMS [17]
The answer is different, identical. That is "price discrimination occurs when people are charged different prices for identical products.

Take into account the price discrimination is a strategy aimed to maximize profits. This strategy consists on charging customers different prices for the same product or service based on the maximum price that a particular sector (customers) is willing to pay for the product or service.
6 0
3 years ago
Read 2 more answers
Cailin Corp issues 10,000 callable bonds with same coupon rate and years to maturity in part A, where coupon rate is 8%, maturit
lisabon 2012 [21]

Answer:

$955.37 per bond

Explanation:

Callable bonds are generally worth less than normal bonds since the call option decreases the value of the bondholder while increases the value of the issuer. Bonds will only be called if the interest rate falls below a certain level and calling them is cheaper (form the issuer's point of view) than keep paying high interest rates.

market price of callable bonds:

  • PV of face value = $1,000 / (1 + 5%)¹⁰ = $613.91
  • PV of coupon payments = $80 x 7.7217 (PV annuity factor, 5%, 10 periods) = $617.74
  • Price of call option = [(1 + 5%)⁵ x $1,000] - $1,000 = $1,276.28 - $1,000 = $276.28

current market price of callable bonds = $613.91 + $617.74 - $276.28 = $955.37

7 0
3 years ago
During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2015, yo
SVETLANKA909090 [29]

Answer:

<em>adjusted income:  92,830</em>

<em>adjusted income:  92,830</em>

<em>adjusted income:  92,830</em>

Explanation:

a) 20,400 contract for a year

20,400 / 12 = 1,700 value per month

from Oct 1st to Dec 31th:  3 months for a total of 5,100 expense

b) we should decrease revenue by 3,400

c) we should reverse 2,450 supplies expense and post under supplies

d) principal x rate x time = interest

64,000 x 0.09 x 4/12 = 1,920 interest expense

94,000 - 5,100 insurance expense + 3,400 unearned revenue +2,450 reversing of supplies expense - 1,920 interest expense

<em>adjusted income:  92,830</em>

6 0
3 years ago
Following up on bad news in writing is important to _________. a. promote good relations b. formally confirm follow-up procedure
Tanzania [10]

Answer:

a. promote good relations

b. formally confirm follow-up procedures

c. establish a record of the incident

Explanation:

If we follow up with the bad news in written form so it is important for promoting the goods relations with the clients or customers, confirming the follow-up procedures with respect to clients or customers, plus it also develops the record of the incident but it does not important to achieve for all of the purposes

Therefore the correct option is a, b and c but not d

5 0
3 years ago
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