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Harman [31]
3 years ago
12

Rebecca sells her personal scooter for $550. She purchased the scooter for $700 three years ago. She also sells a painting for $

1,200 which she acquired five years ago for $900.
1. Rebecca has a $ _________ realized loss on the scooter and a $ ____________ realized gain on the painting. Rebecca only will recognize the gain or loss associated with the painting.
Business
1 answer:
SIZIF [17.4K]3 years ago
4 0

Answer:

Rebecca has a $150 realized loss on the scooter and a $300 realized gain on the painting

Explanation:

The question when looked from a taxation point of view centers on capital gains.Capital gains are gains on which a company or an individual pays capital gains tax upon disposal of their assets .

Since Rebecca bought the scooter for $700 but disposed of at $550 , it follows that Rebecca received $150 less from the purchaser, which is the realized loss on scooter's sale.

Also, the proceeds received by Rebecca on the painting was $300 much more than the cost of the painting,this refers to the gains recorded upon outright sale of the painting

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Todd Williamson and Jim Miranda started their business, Broad Reach Sailing, as a way to earn a living doing something they love
Helga [31]

Answer:

C. More leisure time

Explanation:

Leisure time is the time spent away from work, business, school, or doing domestic chores. Spending time in necessary activities such as eating or sleeping is not leisure. Leisure activities include cycling, taking holidays, hiking, or cycling.

Starting a business is not a leisure activity. Engaging in recreation activities away from the enterprise is leisure.

7 0
3 years ago
Neakanie Industries sells specialized mountain bikes. Each specialized bike purchased includes free maintenance service for 12 m
Ede4ka [16]

$875 is the amount of revenue that will be recognized.

<u>Explanation:</u>

Entire price for specialized bike will be appropriated in the ratio of individual prices of the non- specialized bikes and the maintenance contract.

The following calculation is made to calculate the revenue from the sale of a bike:

= 1400 multiply with  (1000 divide by 1600)

After solving the above equation we get,

= $875  will be recognized by Neakanie at the date of sale.

Hence, the correct option will be with an amount of $875

Note: a maintenance contract is $600 and a comparable but non-specialized bike is $1,000 when added sums to $1600 amount.

 

6 0
3 years ago
Alfred Home Construction is considering the purchase of five dumpsters and the transport truck to store and transfer constructio
Neporo4naja [7]

Answer:

If the total number of days per year is 1,419 or less, then the company should obtain the services from the city. But if the total number of days per year is 1,420 or more, then the company should purchase the equipment.

Explanation:

alternative 1:

initial outlay = $125,000

useful life 8 years

depreciation per year = ($125,000 - $5,000) / 8 = $15,000

costs:

$40 per day

maintenance $2,000 per year

total annual costs = $40x + $2,000

alternative 2:

$125 x 45 sites = $5,625

$20x

total annual costs = $5,625 + $20x

how large does x need to be in order for alternative 1 to be better using a 12% discount rate

cash flows

year 0 = ($125,000)

year 1 = $40x + $2,000 - $5,625 - $20x = $20x - $3,625  

year 2 = $20x - $3,625

year 3 = $20x - $3,625

year 4 = $20x - $3,625

year 5 = $20x - $3,625

year 6 = $20x - $3,625

year 7 = $20x - $3,625

year 8 = $20x - $3,625 + $5,000 = $20x + $1,375

I used the present value of an annuity formula, to determine the value of cash flow:

the PV annuity factor for 12% and 7 periods is 4.5638, so:

24,756.20 x 4.5638 = $112,982

$29,756.20 / (1.12⁸) = $12,018

total = $125,000

$20x - $3,625 = 24,756.20

$20x = $28,381.20

x = $28,381.20 / $20 = 1,419.06 days (including all 45 sites)

That means that if the total number of days per year is 1,419 or less, then the company should obtain the services from the city. But if the total number of days per year is 1,420 or more, then the company should purchase the equipment.

5 0
3 years ago
In a garments factory, a part requires 0.10 hours of labor per unit in Work Center B and 1 hour of setup time. The planned order
Nady [450]

Answer:

d. 201

Explanation:

The computation of the capacity requirement is shown below:

= Order size in units × labor hours per unit + setup time

= 2,000 units × 0.10 hours + 1

= 200 hours + 1

= 201 hours

Simply we multiplied the order size with labor hours per unit and add the setup time so that the correct hours could come. So, we take all the items for the computation part.

7 0
3 years ago
The primary difference between the accrual basis and the cash basis of accounting is:
ryzh [129]

Answer:

The correct answer is letter "A": The timing of when revenues and expenses are recorded.

Explanation:

The main difference between <em>accrual basis</em> and the <em>cash basis</em> of accounting is that with the accrual basis revenue is recognized when it is earned while expenses are recorded when they are invoiced, not necessarily paid. On the other hand, with the cash basis of accounting method, revenue and expenses are recorded when the transactions are realized.

5 0
3 years ago
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