“Price insensitive” would be the closest answer
A sole proprietor is personally liable for the liabilities which remain unpaid after the utilization of assets. In the given case the sole proprietorship has total assets of $34,583 and liabilities of $55,867. It means total assets can be used to pay off $34,583 out of total liabilities of $55,867 and the proprietor shall be personally liable for the balance liabilities= 55867-34583 = $21,284
Hence, you are personally liable for <u>$21,284</u>
Answer:
Dr Impairment Loss $8,000
Cr Truck $8,000
Explanation:
Preparation of journal entry
Based on the information given we told that the new delivery truck cost the amount of $30,000 in which the company intend to sell the delivery truck for the amount of $2,000 after using it for 7 years and secondly we were told that in the 5th year of using the truck the truck was considered as illegal in which the company is expected to sell the truck later this year for the amount of $6,000 which means journal entry should be recorded as:
Dr Impairment Loss $8,000
Cr Truck $8,000
($6,000+$2,000)
