Answer:
A gain of $16,100
Explanation:
When the amount received from the disposal of an asset is higher than the carrying value of the asset, the company makes a gain on disposal.
The carrying amount of an asset is the difference between the cost of the asset and the accumulated depreciation of the asset.
Carrying amount
= $22,000 - $6,600
= $15,400
Gain/(loss) on sale of asset
= $31,500 - $15,400
= $16,100
The answer & explanation for this question is given in the attachment below.
A statistic is a measure that summarizes a particular characteristic of an entire group of numbers.
Statistics is considered the universal language of the sciences which involves information, numbers, visual graphics in order to summarize information and its interpretation.
Statistics is the science of collecting, interpreting, and describing data. A statistic is any quantity computed from values in a sample which is considered for a statistical purpose.
Statistical measures are a descriptive analysis technique which is used to summaries the characteristics of a data set. This data set represent the whole population or a sample of it.
Hence, a statistic measure summarizes a particular characteristic of an entire group of numbers.
To learn more about the Statistical measures here:
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Answer:
Please refer explanation and tables attached
Explanation:
1. Double-declining balance Method:
This is where the asset's value is depreciated at twice the rate than the straight line method. The depreciation amounts would be higher in the early years of the asset's life and gradually reduce towards the end. Hence, it does not mean that the depreciation amount would be higher than the straight line basis.
Straight Line depreciation per year = 1/6* x 100 = 16.67%
*as it is useful for six years
Hence double-depreciation value = 16.67% x 2 = 33.34%
It is calculated as depreciation rate x book value of asset at the beginning of the period.
Please refer attached table one for all years depreciation.
2. Activity based depreciation is whereby an asset is depreciated based on the asset’s activity such as the number of hours worked or the number of units produced, during a particular period of time. Activity based depreciation per year is calculated as:
[(Cost - Salvage value) x activity performed during the period] / Total estimated life activity of the asset
Please refer attached table two for all years depreciation.
Answer:
-$1,908
Explanation:
Current liabilities:
= Total debt - Long term debt
= $21,750 - $18,100
= $3,650
Retained earnings:
= Net income - Dividend
= $5,500 - $1,925
= $3,575
Increase in assets:
= Total assets × Percentage increase in sales
= $48,900 × 4%
= $1,956
Increase in liabilities:
= Current liabilities × Percentage increase in sales
= $3,650 × 4%
= $146
Increase in retained earnings:
= Retained earnings × (1 + 4%)
= $3,575 × 1.04
= $3,718
Therefore,
External financing need:
= Increase in assets - Increase in liabilities - Increase in retained earnings
= $1,956 - $146 - $3,718
= -$1,908