All categories

3 years ago

When an asset is sold, a gain occurs when the:______.

Business

1 answer:

Serhud [2]3 years ago

5 0

Answer:

a. sale price exceeds the book value of the asset sold.

Explanation:

The gain recognized when the sale price is exceeded than the book value i.e

Gain recognized = Sale price - book value

where

Sale price is the selling price of the asset

And, the book value is the carrying value of the asset

Book value = Acquired value of an asset - accumulated depreciation

Hence, the option a is correct

You might be interested in

When reviewing the balance sheet for Portable Pet Care, Inc., a mobile small animal care business, Ricky noted the following inf

mash [69]

Answer:

The net worth (owners' equity) for this business is $2.2 million

Explanation:

Net worth: It is also known as owner's equity which is a difference between total assets and total assets.

In this question, we use the accounting equation which is used to balance the debit and credit side of the balance sheet items.

So, the accounting equation is

Total Assets = Total Liabilities + Owner's Equity

where,

Company assets are $3.5 million

And, liabilities is $1.3 million

Now, apply the above equation to find out the value of the owner's equity

So, owner equity would be equals to

= $3.5 million - $1.3 million

= $2.2 million

Hence, the net worth (owners' equity) for this business is $2.2 million

3 0

3 years ago

How many McDonalds are in America

Anastaziya [24]

36,899 macdonalds i think in america

4 0

3 years ago

Read 2 more answers

Assume the following information concerning two stocks that make up an index. What is the value-weighted return for the index? (

tatuchka [14]

Answer:

8.54%

Explanation:

Current Index value:

= [current total market value of index stocks] ÷ [Base year total market value of index stocks] × Base year index value

= [(69 × 35000) + (122 × 32500)] ÷ [(63 × 35000) + (113 × 32500)] × 100

= 108.54

Return in percent:

= ( 108.54 - 100 ) ÷ 100

= 8.54%

Therefore, the value-weighted return for the index is 8.54%.

8 0

3 years ago

The contract to buy and sell real estate has a dates and deadlines section. should these dates be ignored:

8_murik_8 [283]

No, because the date is there to help you stay on track

5 0

3 years ago

Read 2 more answers

Warner Company purchases $50,100 of raw materials on account, and it incurs $62,800 of factory labor costs. Supporting records s

a_sh-v [17]

Answer:

[Debit] Work In Process : Assembly Department $47,064

[Debit] Work In Process : Finishing Department $19,504

[Credit] Overheads $66,568

Explanation:

Note that overheads are assigned to departments on the basis of 160% of labor costs. Thus, our first point of call is to determine the labor cost for the respective departments. After that we then apply the 160 % to arrive at the Overheads assigned to that department

Step 1

Determine Departmental Labor Cost

Total Labor Costs = $62,800

Assembly Department = ( $44,400)

Finishing Department = $18,400

Step 2

Determine Overhead Cost for the Departments

Assembly Department ( $44,400 × 160 %) = $47,064

Finishing Department ( $18,400 × 160 %) = $19,504

Step 3

Journalize

<em>Debit</em> the Work In Process Account for the respective department and <em>Credit</em> the Overheads Account as above.

5 0

3 years ago