Answer: The loss that will be reported in the income statement for the sale of the machine is $2,000.
Explanation: The cost of the machine is $12,000 while the accumulated depreciation is $9,000. This means the net book value (NBV) of the machine is $3,000 ($12,000 - $9,000). To calculate the gain or loss on the sale of the machine, we have to compare the sales proceed to the NBV. If the sales proceed is greater than the NBV, we have a gain. Otherwise, we have a loss by the difference. <u>In this instance, there is a loss on the sale transaction of $2,000 ($1,000 - $$3,000).</u>
Answer:
(C) The RR is using a form of asset allocation for the client.
Explanation:
Given that Asset allocation is a term that describes the undertaking of an investment technique. This technique tries to offset risk with reward by diversifying the proportion of each asset in an investment portfolio based on the investor's preference, which is influenced by risk tolerance, and investment period.
Hence, in this situation, the right answer is option C: The RR is using a form of asset allocation for the client.
The present value is $450,000, and we have 4% annual interest over 10 years. Since we are looking at monthly payments, we further divide the 10 years into 120 months. The monthly interest is calculated as:
(1.04) = (1+i)^12
i = 0.003274
Then using the formula for periodic payments:
PP = PV*i*(1+i)^n / [(1+i)^n - 1]
PP = (450,000)*0.03274*(1.03274)^120 / (1.03274^120 - 1)
PP = $4540.75
Therefore, the monthly payment is $4,540.75.
Answer:
$92,00
Explanation:
Base on the scenario been described in the question which we saw how Carly donated an to the church, when she purchased the gift, it was $100,000 but when she is to present the gift to the church, the fair market value became $92,000 which is her maximum charitable contribution deduction
the charitable deduction for ordinary income property is the lesser of fmv or basis limited to 50% of AGI
Answer:
Explanation:
Make Buy Net income
Variable manufacturing costs $54,000 $0 $54,000
Fixed manufacturing costs $27,000 $27,000 $0
Purchase price $0 $67,500 -$67,500
Total annual cost $81,000 $94,500 -$13,500
Conclusion: Manson Industries should make the part as making part save cost than buying it.
<u>Workings</u>
Make Buy
Variable manufacturing costs 13500*4 0
Fixed manufacturing costs 13500*2 13500*2
Purchase price 0 13500*5