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valentina_108 [34]
3 years ago
12

The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed a.histori

cal cost b.contra asset c.market value d.book value
Business
1 answer:
masya89 [10]3 years ago
7 0

The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed as "book value".

<u>Answer:</u> Option D

<u>Explanation:</u>

An asset's value as per the balance of its balance sheet account in accounting is known as "book value". For securities, the value depends on the asset's original price, minus any cost of depreciation, amortization, or impairment against the property.

Practically, the book value may vary depending on the source of the measurement including goodwill, intangible assets or even both.The underlying value of its labor force, which is part of a firm's intellectual capital, is always disregarded. When intangible assets and goodwill are exempted, it is often stated that the calculation is tangible book value.

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job cost journal entries prior to the beginning of 2016, lowe company estimated that it would incur $264,000 of manufacturing ov
saw5 [17]

Answer:

raw materials inventory    58,500 debit

                      accoutns payable       58,500 credit

Explanation:

Required prepare general journal entries to record the following for 2016. a. purchased materials on account, $58,500.

The raw materials inventory will increase for 58,500 which is the amount purchased. As the materials are an asset, we will debited.

We will also use an account to represent the debt we have with our providor.

We have an "account to pay" --> account payable

As this is a debt, we have a liability. Thus we credit to increase it-

4 0
3 years ago
Suppose that in 1994 the total output in a single-good economy was 10,000 buckets of chicken. Also suppose that in 1994 each buc
maxonik [38]

Answer:

a. The GDP price index for 1994, using 2015 as the base year is 62.5.

b. Percentage rise the price level between 1994 and 2015 is 60.0%.

c. We have:

Real GDP in 1994 = $160,000

Real GDP in 2015 = $352,000

Explanation:

Note: The requirements of this question is not complete. The complete requirements of the question are presented before answering the question as follows:

a. What is the GDP price index for 1994, using 2015 as the base year

b. By what percentage did the price level, as measured by this index, rise between 1994 and 2015?

c. What were the amounts of real GDP in 1994 and 2015?

Explanation of the answers is now given as follows:

a. What is the GDP price index for 1994, using 2015 as the base year

GDP price index for 1994 = (Price of a bucket of chicken in 1994 / Price of a bucket of chicken in 2015) * 100 = ($10 / $16) * 100 = 62.5

b. By what percentage did the price level, as measured by this index, rise between 1994 and 2015?

Percentage rise the price level between 1994 and 2015 = ((100 - GDP price index for 1994, using 2015 as the base year) / GDP price index for 1994, using 2015 as the base year) * 100 = ((100 - 62.5) / 62.5) * 100 = 60.0%

c. What were the amounts of real GDP in 1994 and 2015?

Since 2015 is being used as the base year, we have:

Real GDP in 1994 = Number of buckets of chicken produced in 1984 * Price per bucket of chicken in 2015 = 10,000 * $16 = $160,000

Real GDP in 2015 = Number of buckets of chicken produced in 2015 * Price per bucket of chicken in 2015 = 22,000 * $16 = $352,000

4 0
3 years ago
Hazelton Manufacturing prepares a bank reconciliation at the end of every month. At the end of May, the general ledger checking
Zepler [3.9K]

Answer:

Option (3) $1,245

Explanation:

Data provided in the question:

General ledger checking account  balance = $1,360

Bank balance on bank statement = $1445

Deposits in transit = $150

Outstanding checks = $350

Bank statement service charges = $30

NSF checks = $85

Now,

The Correct cash balance will be

                  Bank balance on bank statement              $1,445

Add :          Back deposits in transit                               $150

Subtract :  Outstanding checks                                     $350

----------------------------------------------------------------------------------------------------

Correct balance                                                             $1,245

Hence,

Option (3) $1,245

5 0
3 years ago
This firm is a natural monopoly. True False If the firm produces 68 units and charges $28 per unit, it will in the long run. Whi
Maurinko [17]

Answer:

True. This is because the curve of ATC shifted downward to show an increase in output. As the ATC curve moves downward, the quantity of goods increase while the price decreases. The quantity of goods produced is equivalent to 68 units which is consistent with the regulation of price. Price regulation is used to manage the effects of monopoly on the market system.

Explanation:

True. This is because the curve of ATC shifted downward to show an increase in output. As the ATC curve moves downward, the quantity of goods increase while the price decreases. The quantity of goods produced is equivalent to 68 units which is consistent with the regulation of price. Price regulation is used to manage the effects of monopoly on the market system.

3 0
2 years ago
Shanken corp. issued a 30-year, 5.9 percent semiannual bond 6 years ago. the bond currently sells for 108 percent of its face va
bazaltina [42]

The pre-tax cost of debt is yield to maturity of the debt.

The yield to maturity of debt is calculated as -

Yield to maturity = ]Coupon payment + ( Face value - Current price) / Number of years)] / [ ( Face value + Current price) / 2]

Here,

Coupon payment = $ 29.50 (semi-annual, thus 5.9% / 2 * 1000)

Face value = $ 1,000

Price = $ 1,000 * 108% = $ 1,080

Number of years = 12 ( semi-annual, thus 6 years * 2)

Pre-tax cost of debt = [ 29.50 + (1,000 - 1080/12)] / [ (1000+1080)/2 ]

Pre-tax cost of debt = 2.196 %

Annual pre-tax cost of debt = = 2.20 % * 2 = 4.40%

After tax cost of debt = ( 1 - tax rate ) * Annual pre-tax cost of debt

After tax cost of debt = ( 1 - 35%) * 4.40 %

After tax cost of debt = 2.86 %

6 0
3 years ago
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