Answer:
$50
Explanation:
The computation of the selling price of each purse is shown below:
As we know that
Selling price = Total value ÷ number of purses sold
where,
Total value is
= Cost of the purse × number of purses sold + producer surplus
= $35 × 12 purses + $180
= $600
And, the number of purses sold is 12
So, the selling price of each purse is
= $600 ÷ 12 purses
= $50
payable = money owed by a company to its creditors
receivable = money owed to a company by its debtors.
Answer:
Book value= $96,000
Explanation:
Giving the following information:
Pearson Company bought a machine on January 1, 2014. The machine cost $144,000 and had an expected salvage value of $24,000. The life of the machine was estimated to be 5 years.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Straight-line depreciation= (144,000 - 24,000)/5= 24,000
Accumulated depreciation= 24,000*2= 48,000
Book value= 144,000 - 48,000= 96,000
Answer:
$42,000
Explanation:
If the transaction has commercial substance, the company should record the new display case at the original cost or fair value of the asset.
The fair value of the asset is $42,000 which involves
= Cash paid for display case + trade-in old display case
= $40,000 + $2,000
= $42,000
All other information which is given is not relevant. Hence, ignored it
