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olchik [2.2K]
3 years ago
14

If total liabilities decreased by $30,000 and stockholders' equity decreased by $10,000 during a period of time, then total asse

ts must change by what amount and direction during that same period?
(A) $40,000 increase
(B) $20,000 decrease
(C) $40,000 decrease
(D) $20,000 increase
Business
1 answer:
boyakko [2]3 years ago
4 0

Answer:

C) $40.000 Decrease

Explanation:

The accounting equation states that: Assets = Liabilities + Equity, so in this case the Assets must decrease in the same amount that change the other side of the equation, $40.000.

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Canyon Buff Corp. is considering the purchase of a new piece of equipment which would cost $11,000. This equipment will have a f
Furkat [3]

Answer:

Tax shield on depreciation = 600

Explanation:

given data

new piece of equipment = $11,000

salvage value = $1,000

marginal tax rate = 30%

average tax rate = 20%

time period = 5 year

to find out

net effect of annual depreciation on the free cash flow

solution

we know here cost of asset and  Salvage value so we get depreciation cost  

depreciation cost is = 11000 - 1000 = 10000  

and

annual depreciation = 2000  

so that Tax shield on depreciation will be

Tax shield on depreciation = 2000 × 30%

Tax shield on depreciation = 600

5 0
3 years ago
Sebastian, an employee, understands that he has great potential after taking a self-assessment test at his company. He decides t
tiny-mole [99]
<h2>Sebastian is employing <u>Goal setting</u> as a mechanism of career management.</h2>

Explanation:

<u>Goal setting:</u>

  • Serve as a base for "Human resource Planning"
  • It is proven that those employees who have goal setting will show good performance on their job.
  • This will directly or indirectly promote the organization
  • We can achieve organizational goals too
  • Goal setting techniques are used by successful people around the world
  • This might even be a favorite interview questions because the HR can understand how effective the employee would be for the organization.
5 0
3 years ago
Read 2 more answers
If a major misdeed is committed by a brokerage that results in a substantial drain on the real estate recovery trust account, wh
Dmitry_Shevchenko [17]

Answer:

Explanation:

Real Estate Recovery Trust Account are accounts that are funded by administrative penalties and dispersed to consumers that are owed damages due to a license holder's conduct and subsequent inability to pay. These licence holders may be charged an additional $10 fee on the renewal date in order to make up for the substantial drain, or receive a special assessment if the replenishment is urgent.

8 0
3 years ago
Cogswell Corporation is considering how to price their patented mega-cogs. It knows that if it prices each widget at $50 then th
allsm [11]

Answer: $25

Explanation:

Total revenue, at price = $50

Total revenue = price × units sold

                       = $50 × 0

                       = 0

Total revenue, at price = $45

Total revenue = price × units sold

                       = $45 × 1

                       = $45

Total revenue, at price = $40

Total revenue = price × units sold

                       = $40 × 2

                       = $80

Total revenue, at price = $35

Total revenue = price × units sold

                       = $35 × 3

                       = $105

Marginal revenue of third unit = \frac{Change\ in\ total\ revenue}{change\ in\ units\ sold}

                                                    = \frac{105 - 80}{3 - 2}

                                                    = $25

5 0
3 years ago
Barbara wanted to go into the long-distance trucking business. She bought a used tractor and trailer for $102,000. However, the
Norma-Jean [14]

Answer:

Basis in the tractor 78.000 and new trailer basis 30.000

Explanation:

The adjusted basis is referred to as the cost basis of the assets as reduced by  the cost recovery amount including the depreciation at the point of sale. Alternatively, the adjusted basis can be termed as the unrealized cost basis of the assets. The formula for the adjusted basis is:

Adjusted basis = cost basis - Cost recovery deductions

The adjusted basis for B's tractor and trailer is calculated as follows:

Adjusted basis for tractor = Cost of tractor

=102.000 - 24.000

=78.000

Adjusted basis for new trailer = Cost of trailer

=30.000

3 0
3 years ago
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