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Alborosie
3 years ago
13

A truck costs $ 52 comma 000 when new and has accumulated depreciation of $ 40 comma 000. Suppose John Towing exchanges the truc

k for a new truck. The new truck has a market value of $ 70 comma 000​, and John pays cash of $ 44 comma 000. Assume the exchange has commercial substance. What is the result of this​ exchange? A. No gain or loss B. Gain of $ 14 comma 000 C. Gain of $ 58 comma 000 D. Loss of $ 14 comma 000
Business
1 answer:
Elena-2011 [213]3 years ago
6 0

Answer:

B.Gain of $14,000

Explanation:

Truck Old-Cost          $52,000

Accumulated Depreciation ($40,000)

Written Down Value          $12,000

New Truck                $70,000

Less: Cash paid        (44,000)

Sale Proceeds of old truck 26,000

Gain on disposal of old truck=26,000-12,000=$14,000

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You know the following information about the Miller State Bank Gross Loans$300 Miscellaneous Assets$50 Deposits$390 Total Equity
lesantik [10]

Answer:

The Firm's Total Liabilities is $450

Explanation:

Use the accounting equation to calculate the Total Liabilities

Total Assets = Total Equity + Total Liabilities

Now rearrange the accounting equation to make the required formula

Total Liabilities = Total Assets - Total Equity

Where

Total Assets = $500

Total Equity = $50

Placing values in the formula

Total Liabilities = $500 - $50

Total Liabilities = $450

8 0
3 years ago
What are the stages<br> of Busines activity??
Citrus2011 [14]

Answer:

Business activity takes place at three stages of production: Primary activity involves extracting the gifts of nature (e.g. drilling oil from the ground); Secondary activity involves manufacturing finished goods (e.g. refining oil and gas); Tertiary activity involves providing services such as making finished goods

7 0
3 years ago
Read 2 more answers
Aggressive marketing in the context of format wars: a. does not encompass point-of-sales promotion techniques. b. deters early a
Dvinal [7]

Answer:

Helps a company jump-start demand

Explanation:

Format war in business is defined as competition for market dominance between producers of a particular type of technology with closely related functions.

Aggressive marketing are strategies employed to gain and ensure survival in a new market.

A typical example an aggressive marketing in the format war is selling a software at a low price but a relatively high price for support service.

One of the advantages is that it helps a company jump -stand demand among competitions

6 0
3 years ago
Sammy Slick works for a company that allows him to contribute up to 10% of his earnings into a tax-deferred savings plan. The co
kiruha [24]

Answer:

Explanation:

the file attached shows the full explanation and i hope its explanatory enough

Download docx
6 0
3 years ago
Barry Cuda is considering the purchase of the following Builtrite bond: $1000 par, 3 1/4% coupon rate, 10 year maturity that is
Sav [38]

Answer:

Yield to Maturity = 3.97%

Explanation:

<em>The yield to maturity is the discount rate that equates the price of the bond to the present value of its future cash flow receivable from it.</em>

The yield on the bond can be determined as follows using the formula below:  

YM = C + F-P/n) ÷ 1/2 (F+P)  

YM-Yield to maturity-  

C- annual coupon  

F- Face Value  

P- Current Price  

DATA  

Coupon = coupon rate × Nominal value = 1,000 × 3 1/4%=  32.5

Face Value = 1000

YM-?, C- 32.5, Face Value - 1,000, P-940  

YM = (32.5+ (1000-940)/10) ÷ ( 1/2× (1000 + 940) )  

YM = 0.0397 × 100 =  3.97%

Yield to Maturity = 3.97%

4 0
4 years ago
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