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Colt1911 [192]
3 years ago
9

On January 1, 2009, Coronado Industries purchased for $690000, equipment having a useful life of ten years and an estimated salv

age value of $48600. Coronado has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2017, the equipment was sold for $152500. As a result of this sale, Coronado should recognize a gain of
(A) $88360.
(B) $152500.
(C) $0.
(D) $39760
Business
1 answer:
JulijaS [17]3 years ago
6 0

Answer:

There is not gain in this operation so the answer is $0

Explanation:

There are some journal entries that needs to be done to have a full picture of the statement

* Purchase

Fixed Assets                        690.000

Cash                                                        690.000

* Monthly depreciation

Since, the FA was depreciated during 8 years. Firstly you have to calculate the amount that can be depreciate on a monthly basis

Amount to be depreciated = (Cost of the FA - Salvage value) = (690.000-48.600) = 641.400

Then calculate the yearly depreciation

Yearly depreciation = ((amount to be depreciated/useful life) * years used) =

(641.400/10*8) = 513.120

then the journal entry to record the monthly depreciation for 8 years is

Depreciation expense          513.120

Acc Depreciation                                   513.120

* Post the Journal Entry to record the sell of FA

You have to reverse the Acc Depreciation and credit the FA

Cash                                     152.500

Fixed assets                                         690.000

Acc depreciation                   513.120

Loss on sale of FA                   24.380

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Answer:$9,000

Explanation:

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In the United States of America, adoption tax credit qualified expenses include court costs, traveling expenses, lawyer's or Attorney's fee and other expenses for legal adoption of an eligible child.

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4 0
3 years ago
Perhaps the greatest risk for a company that chooses to pursue an integrated low cost/differentiation strategy is that it will
Amiraneli [1.4K]

The greatest risk of a low-cost provider strategy is getting lost with overly high price reduction and ending up with lower profit.

<h3>Low-cost / low-price advantage </h3>

It results in high profit only if;

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What is the reason it's better to underestimate your income instead of overestimating when creating your budget?
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Answer:

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Explanation:

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Specially when your income is variable iit can be hard to predict. You will be safer both if your income lowers or your unpredictable expenses increase.

There are many unpredictable situations that could put you in a difficult situation: a disease, a natural disaster, the need to help a family member or friend in trouble. If any of these unfortunate circumstances arises and your budget is too tight, you could see yourself in financial trouble.

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