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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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An employee is given a formal written warning for an offense he has committed. Despite this, he proceeds to commit another offen
galben [10]

Answer:

temporary suspension and maybe an Improvement Plan.

Explanation:

Based on the scenario, if the company has adopted a progressive discipline program then the according response would be a temporary suspension and maybe an Improvement Plan. This is because a progressive discipline program follows the following steps accordingly.

1) Verbal Counseling. The first step in a progressive discipline process is to merely have a conversation with the employee. ...

2) Written Warning. The second step should be another conversation that is documented in a written format. ...

3) Employee Suspension and Improvement Plan. ...

4) Termination.

Seeing since step 2 has already been done the next course of action would be step 3.

6 0
3 years ago
Read 2 more answers
A product found in homes built before 1978 is harmful to children. It can lead to birth defects and is generally hazardous. It s
BabaBlast [244]

Answer:

Asbestos

Explanation:

This environmental hazard is asbestos. Exposure to asbestos especially for a long term period is very detrimental to health. It's fibres can be easily inhaled to the lungs which is dangerous and can cause fibrotic lung disease and also lung cancer. It can lead to defects in birth when inhaled by a pregnant woman and many other health problems. During sales of property it is very important that such hazard is disclosed to the other party.

4 0
3 years ago
Which of the following is not a ratio to assess a firm's liquidity?a. Current Ratiob. Debt ratioc. Quick Ratiod. All of the abov
Mandarinka [93]

Answer:

b. Debt ratio

Explanation:

The liquidity ratio includes the current ratio, quick ratio, etc

where,  

Current ratio = Total Current assets ÷ total current liabilities

And, Quick ratio = Quick assets ÷ total current liabilities  

where,  

Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)  

These two ratios check the liquidity of the business organization whereas debt ratio shows a relationship between the total liabilities and the total assets. It checks the leverage of the firm whether it is capable to repay the borrowed amount or not

Hence, option b is correct

4 0
3 years ago
Avicorp has a $10 million debt issue outstanding, with a 6% coupon rate. The debt has semiannual coupons, the next coupon is due
rjkz [21]

Answer:

Explanation:

Pretax cost of debt is the annual rate(YTM) of the bond. Using a financial calculator, input the following to calculate it;

N = 5*2 = 10

PV = -(95% *10,000,000) = -9,500,000

Coupon PMT = (6%/2)*10,000,000 = 300,000

FV = 10,000,000

then compute semiannual rate; CPT I/Y = 3.604%

convert to annual rate = 3.604*2 = 7.21%(this is the pretax cost of debt)

After tax cost of debt is calculated because interest payable on debt has tax shield. The formula is as follows;

Aftertax cost of debt = pretax cost of debt (1-tax)

AT cost of debt = 7.21% (1-0.40)

AT cost of debt = 4.33%

8 0
3 years ago
The following information is available for Ivanhoe Company. April 1 April 30 Raw materials inventory $10,500$14,000 Work in proc
Fiesta28 [93]

Answer and Explanation:

The preparation of the cost of goods manufactured schedule for the month of April is presented below

Beginning work-in-process inventory                          $4,840

Manufacturing costs:

Direct materials:                                                  

Beginning inventory                                   $10,500

Purchases                                                    $97,700

Materials available                                      $108,200 

Less:  Ending inventory                              -$14,000

Direct materials used                                                             $94,200

Direct labor                                                                             $80,300

Manufacturing overhead                                                       $162,000

Total manufacturing costs:                                                     $336,500

Total costs of work-in-process                                                $341,340

                                                                               ($4,840 + $341,340)

Less:  Ending work-in-process                                                -$3,700

Cost of goods manufactured                                                   $337,640

Basically we simply the cost of goods manufactured formula

3 0
2 years ago
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