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Sindrei [870]
3 years ago
12

Isle Co. owned a copy machine that cost $5,000 and had accumulated depreciation of $2,000. Isle exchanged the copy machine for a

computer that cost $4,000. Isle's future cash flows are not expected to change significantly as a result of the exchange. What amount of gain or loss should Isle report and at what amount should it record the asset?
Business
1 answer:
slava [35]3 years ago
5 0

Answer:

NONE.

Explanation:

computer     3,000 debit

accumulated depreciation 2,000 debit

copy machine 5,000 credit

Because there is none commercial substance, it will be recorded wit the same book value fo the copy machine.

Gain and losses are only recognize if here is an expected change in the future cash flow.  This is not the case.

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z = (900-1100)/150
z = -1.33
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8 0
3 years ago
A firm is producing an output such that the benefit from one more unit is more than the cost of producing that additional unit.
Burka [1]
Losing they're investment dollars. calculating the cost of production.
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3 years ago
In a $1031 like-kind exchange, Rafael exchanges a business building that originally cost $346,800. On the date of the exchange,
Andreyy89

Answer:

A. $52,020

B. $0

C. $208,080

Explanation:

a. Computation of Rafael's realized gain on the exchange

Using this formula

Realized gain=Fair market value -Adjusted basis

Let plug in the formula

Realized gain= $190,740-$138,720

Realized gain=$52,020

Therefore a. Rafael's realized gain on the exchange is $52,020

b. Based on the information given Rafael's recognized $1031 gain is $0 reason been that

NO BOOT WAS RECEIVED

c. Computation for Rafael's $1245 depreciation recapture Amount

Using this formula

Depreciation recapture Amount=Equipment originally cost -Adjusted basis

Let plug in the formula

Depreciation recapture=$346,800-$138,720

Depreciation recapture=$208,080

Therefore Rafael's $1245 depreciation recapture of $208,080 is carried over to the replacement property

4 0
3 years ago
Suppose that Italy and Portugal both produce cheese and wine. Italy's opportunity cost of producing a bottle of wine is 2 pounds
Lemur [1.5K]

Answer:

The correct answer is letter "A": Neither Italy or New Zealand.

Explanation:

Comparative advantage is the ability of an individual or organization to manufacture its products at a lower opportunity cost than its competitors. The scenario does not imply the individual has an absolute advantage. It actually means it sacrifices less to achieve that goal.

Thus, <em>Portugal has a lower opportunity cost than Italy in producing a bottle of wine. Portugal's opportunity cost is 1/2 while Italy's opportunity cost is 2. Neither Italy or New Zealand (or any other country not mentioned in the example) has a comparative advantage in producing wine</em>.

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4 years ago
Ms. Claggett is sixty-six (66) years old. She has been covered under Original Medicare for the last six years due to her disabil
umka2103 [35]

What should you tell her about how the Part D Initial Enrollment Period applies to her situation is: Part D occurs 3 months prior and 3 months after the month a beneficiary meets the requirements for Part B.

<h3>What is Part D plan?</h3>

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Based on the scenario you should tell her that  Part D Initial Enrollment Period start  3 months prior and 3 months after the month when a beneficiary  of the plan meets the eligibility or necessary requirements for Part B plan.

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3 0
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