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dlinn [17]
3 years ago
9

On January 1, 2015, Alpha Manufacturing purchased a machine for $920,000. The company expects the machine to remain useful for e

ight years and to have a residual value of $70,000. Alpha Manufacturing uses the straight-line method to depreciate its machinery. Alpha Manufacturing used the machine tor four years and sold it on January 1, 2019. for S400.000. Compute accumulated depreciation on the machine at January 1, 2019 (same as December 31, 2018). Record the sale of the machine on January 1, 2019.
Business
1 answer:
Pie3 years ago
4 0

Answer:

The accumulated depreciation at 1 January 2019 = $425000

January 1, 2019

Accumulated Depreciation               425000 Dr

Cash                                                    400000 Dr

Loss on disposal                                95000 Dr

      Machine                                                               920000 Cr

Explanation:

The straight line method of depreciation charges a constant depreciation expense every year through out the estimated useful of the asset. The depreciation expense per year under this method is calculated as,

Depreciation expense per year = (Cost - Residual value) / estimated useful life of the asset

Depreciation expense per year = (920000 - 70000) / 8 = $106250 per year

The asset was used for four years from 2015 to 2018. Thus, the accumulated depreciation at 31 December 2018 is,

Accumulated depreciation - 31 Dec 2018 = 106250 * 4 = $425000

The Net book value of the asset at 31 December 2018 = 920000 - 425000 = $495000

The loss on disposal is = 495000 - 400000 = $95000

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Return on investment (ROI) for a firm is _______. a. the firm's total assets multiplied by net profits after taxes b. a measure
Zarrin [17]

Return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.

<h3>What is the return on investment?</h3>
  • A ratio between net income and investment is known as return on investment or return on costs.
  • A high ROI indicates that the returns on the investment outweigh the costs.
  • ROI is used as a performance metric to assess an investment's effectiveness or to compare the effectiveness of multiple distinct investments.
<h3>What are profits?</h3>
  • The difference between an economic entity's revenue from its outputs and the opportunity costs of its inputs is what is known as a profit.
  • It is equivalent to total income less total expenses, which includes both direct and indirect expenses.
<h3>What are assets?</h3>
  • Any resource that a company or other economic organization owns or controls is considered an asset in financial accounting.
  • Anything that has the potential to provide positive economic value qualifies.
  • The ownership value that can be turned into cash is represented by assets.

Therefore, return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.

Know more about revenue here:

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3 0
2 years ago
Notes or accounts receivables that result from sales transactions are often called A. non-trade receivables.B. trade receivables
oksian1 [2.3K]

Answer:

B. trade receivables

Explanation:

Trade receivables are amounts billed by a company to its clients when it delivers goods or services to them in the ordinary course of business, not been collected at the sale moment, but in the future. This may or may not include interest.

Instead, non-trade receivables are amounts owed to the company that falls outside of the normal course of business, such as employee advances or insurance reimbursements.

7 0
3 years ago
Temple Square Inc. reported that its retained earnings for 2005 were $490,000. In its 2006 financial statements, it reported $60
V125BC [204]

Answer:

Dividend = $40,000

Explanation:

Given:

Temple Square Inc. reported that its retained earnings for 2005 were $490,000.

In its 2006 financial statements, it reported $60,000 of net income,

It ended 2006 with $510,000 of retained earnings. ( Ending retained earnings )

Question asked:

How much were paid as dividends to shareholders during 2006 ?

Solution:

Here given that Temple Square Inc. reported that its retained earnings for 2005 were $490,000, means this amount will carry forward and will be considered as Beginning retained earnings for 2006.

Now, we have to find, how much dividends were paid to shareholders during 2006.

As we know:

Ending retained earnings = Beginning retained earnings + Net income - Dividend

510,000 = 490,000 + 60,000 - Dividend

510,000 = 550,000 -  Dividend

Subtracting both sides by 550,000

- 40,000 = -  Dividend

Adding both sides by minus ( - )

Dividend = $40,000

Therefore, Temple Square Inc. paid $40,000 to shareholders during 2006.

3 0
3 years ago
Suppose that a flower nursery benefits from having a butterfly farm located only a few miles away, because the presence of the i
garri49 [273]

Answer: Contracts

Explanation: Because the 2 parties are coming to a contractual agreement.

4 0
3 years ago
According to the path-goal theory of leadership, the level of involvement a manager utilizes should (1) be the same for all empl
harkovskaia [24]

Answer:

1. None of the above

2. All of the above

Explanation:

According to the path-goal theory of leadership, the level of involvement a manager utilizes should (1) be the same for all employees in the department, (2) be either low or high management involvement regardless of the circumstances, and (3) not be influenced by subordinates' expectations. Which statements are correct?

<u>NONE OF THE ABOVE</u>

<u>The Path-Goal theory of leadership stipulates that managers should adapt a leadership style that is employee oriented for the purpose of organizational goal achievement. </u>

<u />

This is an ability issue. When a manager's performance deteriorates because manager's ability has deteriorated. The steps to be taken will be in the order below:

(1) Determine if the resources are adequate,

(2) retrain the individual, and

(3) redesign the job.

<u>All of the above steps are correct in that order</u>

3 0
3 years ago
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