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Korolek [52]
3 years ago
14

On December 31, Strike Company sold one of its batting cages for $20,000. The equipment had an initial cost of $310,000 and had

accumulated depreciation of $260,000. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?
a.gain of $30,000
b.gain of $20,000
c.loss of $20,000
d.loss of $30,000
Business
1 answer:
KonstantinChe [14]3 years ago
8 0

Answer:

d.loss of $30,000

Explanation:

The initial cost of the cage: $310,000.00

Selling price: $ 20,000.00

Depreciation recorded: $260,000.00

calculating book value: (initial cost-Depreciation)

=$310,000-$260,000

Book value =$50,000.00

Profit or loss=selling price- book value.

=$20,000.00- $50,000.00

=($30,000.00)

loss of $ 30,000.00

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Answer:

The correct answer is option B.

The correct answer is option D.

Explanation:

If the number of firms in an industry decreases, the overall market supply will decrease. This decrease in supply will cause the market supply curve to shift to the left. So the statement given in the question is false.  

The cost of production is inversely related to supply. An increase in the cost of production causes supply to decline, shifting the curve to the left and vice versa.  

Technology and productivity are directly related, an improvement in technology will cause the supply to increase shifting the curve to the right.  

Taxes cause the supply to decrease as it is seen as a cost and it reduces the price received by the firms. This causes the supply curve to shift to the left.

Subsidies reduce the cost of production so the supply curve shifts to the left.

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3 years ago
Rank the following instruments in terms of credit risk. In your rankings, use 1 for the greatest credit risk and 4 for the small
bija089 [108]

Answer:

a. A Ba1 corporate bond <u>2 (not investment grade)</u>

b. A ten-year BBB- corporate bond with a YTM of 7% <u>3 (medium risk but still investment grade)</u>

c. A secured loan from Argosy Gaming, which is a B- rated firm <u>4 (less risky since it is backed by a collateral)</u>

d. A senior subordinated bond from Argosy Gaming <u>1 (highest risk)</u>

Explanation:

There are two major bond rating agencies in the US: Moody's and Standard & Poor's.

Their rankings are very similar, although the letters vary a little:

AAA: safest

AA: low risk

A: low risk

BBB: medium risk

BB: a little bit more riskier

B: risky

CCC: very high risk

CC: even riskier

C: riskiest

D: junk, in default

8 0
3 years ago
Present value​ (with changing interest​ rates). Marty has been offered an injury settlement of ​$12 comma 000 payable in 3 years
lesantik [10]

Answer:

If opportunity cost is 5%, PV=10,366.05

If opportunity cost is 6.5%, PV=9,934.19

If opportunity cost is 11.5%, PV=8,656.79

Explanation:

PV=Σ(\frac{CF_{t} }{(1+i)^{t} })

If opportunity cost is 5%: PV = \frac{12,000 }{(1+0.05)^{3} } =10,366.05

If opportunity cost is 6.5%: PV = \frac{12,000 }{(1+0.065)^{3} } =9,934.19

If opportunity cost is 11.5%: PV = \frac{12,000 }{(1+0.115)^{3} } =8,656.79

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Answer:

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Answer:

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Explanation:

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