Answer:
$100,000 loss on disposal
Explanation:
The current value (V) of the plant asset is the original $375,000 subtracted by the accumulated depreciation until the end of the current year, $150,000:
![V=\$375,000 -\$150,000 =\$225,000](https://tex.z-dn.net/?f=V%3D%5C%24375%2C000%20-%5C%24150%2C000%20%3D%5C%24225%2C000)
The gain or loss from this transaction is measured by the amount received in cash subtracted by the current value of the plant asset:
![\$125,000-\$225,000 = -\$100,000](https://tex.z-dn.net/?f=%5C%24125%2C000-%5C%24225%2C000%20%3D%20-%5C%24100%2C000)
Therefore, the company should recognize a $100,000 loss on disposal.
Answer:
b. $16,700
Explanation:
The computation of the depreciation expense under the straight line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($98,500 - $15,000) ÷ (5 years)
= ($83,500) ÷ (5 years)
= $16,700
In this method, the depreciation is same for all the remaining useful life
The original cost is computed below:
= $85,000 + $3,500 + $10,000
= $98,500
Answer:
the more money that you save over time the more money you will have to buy nicer things... and if you keep spending money on stupid things you wont have enough money to buy more expensive things if you will.
Explanation:
Answer: A) cost-leadership business strategy
Explanation:
Cost leadership business strategy is a
- strategy of getting a competitive advantage by having the lowest cost of operation in the entire industry.
- makes a reasonable profit on each sale because you've reduced costs.
Here, To gain an advantage over other computer chip makers, Sematech focuses on <u>reducing its costs below all of its competitors</u> .
where as product differentiation is a technique use to differentiate a product from similar offerings on the market.
So, Sematech is pursuing a<u> cost-leadership business strategy</u>.
So, correct option is (A).
Answer:
Mark has the absolute advantage in the production of bats.
Mark has the comparative advantage in the production of bats
Explanation:
The absolute advantage is a principle in which a party is able to produce a good more efficiently than the others. In this situation, Mark can produce 40 bats while Katie can produce 30 bats which indicates that Mark can produce them more efficiently having an absolute advantage in the production of bats.
The comparative advantage is a principle in which a party has the ability to produce a good at a lower opportunity cost than others. In this situation:
Baseballs Bats
Mark 50 40
Katie 60 30
The opportunity cost for Mark of producing 1 bat is producing 1.25 baseballs and the opportunity cost for Katie of producing 1 bat is producing 2 baseballs. This means that Mark has a lower opportunity cost and the comparative advantage in the production of bats.