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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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Alice worked for Fountain Valley, Inc., a corporation that manufactured baby supplies. According to her employment contract with
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Question Completion with Answer Options:

A. Yes, according to the terms of her contract.

B. Yes, according to the duty of good faith and fair dealing.

C. No, according to the at-will termination provision in her contract.

D. No, because subsequent conduct of the parties modified the contract.

Answer:

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B. Yes, according to the duty of good faith and fair dealing.

Explanation:

Alice is entitled to the bonus of $10,000 because the duty of good faith and fair dealing requires Fountain Valley not to deny Alice the benefits arising from their valid contract.  Since Alice's employment contract included a 5% bonus of all sales in excess of the previous 12 months' sales, the Fountain Valley, Inc. should not deny Alice's claim to the benefits.

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8 0
2 years ago
Starr Company reports the following information for August. Raw materials purchased on account $ 76,200 Direct materials used in
il63 [147K]

Answer:

1. Raw materials purchased.

Raw Materials Account $ 76,200 (debit)

Account Payable $ 76,200 (credit)

2. Direct materials used in production.

Work In Progress Account $48,000 (debit)

Raw Materials Account $48,000 (credit)

3. Direct labor used in production.

Work In Progress Account $15,350 (debit)

Wages and Salaries $15,350 (credit)

4. Applied overhead.

Work In Progress Account $18,360 (debit)

Manufacturing Overhead Account $18,360 (credit)

Explanation:

1. Raw materials purchased.

Raw Materials Account $ 76,200 (debit)

Account Payable $ 76,200 (credit)

Recognise the Assets of Raw Materials and a Liability - Account Receivable

2. Direct materials used in production.

Work In Progress Account $48,000 (debit)

Raw Materials Account $48,000 (credit)

De-recognise the Raw Materials used in production and recognise the cost in Work In Progress Account

3. Direct labor used in production.

Work In Progress Account $15,350 (debit)

Wages and Salaries $15,350 (credit)

Recognise the labor cost in Work In Progress Account and de-recognise the Wages and Salaries Account with the amount applied to production

4. Applied overhead.

Work In Progress Account $18,360 (debit)

Manufacturing Overhead Account $18,360 (credit)

De-recognise the Manufacturing Overheads used in production and recognise the cost in Work In Progress Account

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