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Sladkaya [172]
3 years ago
13

Abbott Landscaping purchased a tractor at a cost of $39,000 and sold it three years later for $19,800. Abbott recorded depreciat

ion using the straight-line method, a five-year service life, and a $2,500 residual value. Tractors are included in the Equipment account. 2. Assume the tractor was sold for $12,400 instead of $19,800. Record the sale.
Business
1 answer:
love history [14]3 years ago
6 0

Answer:

The journal entry is as follows:

Cash A/c Dr. $12,400

Accumulated Depreciation - Equipment A/c Dr. $21,900

Loss on sale of equipment A/c Dr. $4,700

            To Equipment                                                          $39,000

(To record the sale)

Working notes:

Accumulated Depreciation - Equipment:

= [(Cost of tractor - Residual value) ÷ Service life] × No. of years

=  [(39,000 - 2,500) ÷ 5] × 3

= $21,900

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Suppose that annual income from a rental property is expected to start at ​$ per year and decrease at a uniform amount of ​$ eac
Aloiza [94]

Answer and Explanation:

Year    Cash Inflow      Discounting factor 9%, 12 Years   Present Value

0        -$8,200                         1                                 -$8,200.00

1          $1,350                               0.8929                               $1,205.42

2          $1,295                              0.7972                               $1,032.37

3          $1,240                               0.7118                                $882.63

4          $1,185                                0.6355                              $753.07

5           $1,130                               0.5674                               $641.16

6           $1,075                               0.5066                              $544.60

7            $1,020                              0.4523                              $461.35

8            $965                                0.4039                              $389.76

9             $910                                 0.3606                             $328.15

10            $855                                0.322                               $275.31

11            $800                                0.2875                              $230.00

12            $745                                 0.2567                            $191.24

Net Present Value                                                                  -$1,264.95

Since the net presnet value comes in negative so it is not beneficial for a company as it is not able to cover the initial investment

6 0
3 years ago
Which statement best describes the two billing cycle method that some credit card companies use
Alborosie

Answer:

Double-cycle billing is a method used by creditors, usually credit card companies, to calculate the amount of interest charged for a given billing period. It takes into account not only the average daily balance of the current billing cycle (usually one month), but also the average daily balance of the previous cycle.

Explanation:

idk...my mom helped me answer this for you

3 0
3 years ago
A bond that pays interest semiannually has a price of $941.35 and a semiannual coupon payment of $26.00. If the par value is $1,
zalisa [80]

Answer:

5.52%

Explanation:

Calculation to determine the current yield

Current yield = ($26.00 × 2)/$941.35

Current yield=$52/$941.35

Current yield= .0552*100

Current yield= 5.52%

Therefore the Current yield is 5.52%

8 0
3 years ago
An increasing number of firms decide to install tablets and computers so that customers are able to order and pay on their own.
Gekata [30.6K]

Options:

a. have no effect on; increase; decrease; negative

b. increase; increase; decrease; negative

c. increase; increase; increase; positive

d. increase; increase; decrease; uncertain

e. decrease; increase; decrease; negative

Answer:

Option D is the correct answer.

An increasing number of firms decide to install tablets and computers so that customers are able to order and pay on their own. This can be expected to <u>increase</u> investment spending by the firms. At the same time we can expect the unemployment rate to <u>increase</u> and consumption spending to <u>decrease</u>. Overall the effect on gross domestic product (GDP) is <u>uncertain.</u>

Explanation:

Since, Firm choose to build venture by introducing tablets and PCs and hope to accomplish benefit level. And yet joblessness can be relied upon to increment and subsequently utilization spending will diminish. Thus, the general impact GDP is dubious in light of the fact that an underlying increment in venture increment the monetary development level by increment in work rate. On the off chance that business rate increment, at that point consequently utilization spending increment. And yet it was relied upon to expand joblessness rate which decline the utilization spending. Thus, all things considered GDP may increase or diminish . Consequently GDP is dubious.

8 0
3 years ago
Given a need to raise capital of $2 million and attorney costs of $150,000, with an underwriter's spread of 3%, the amount of bo
ipn [44]

Answer:

The amount of bond issuance is $2,085,500

Explanation:

The computation of the amount of bond issuance is shown below:

= Raise capital + attorney cost - underwriter spread

= $2,000,000 + $150,000 - 3% of $2,150,000

= $2,150,000 - 3% of $2,150,000

= $2,150,000 - $64,500

= $2,085,500

Hence, the amount of bond issuance is $2,085,500

We simply applied the above formula so that the correct value could come

6 0
3 years ago
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