Answer: Gain of $12,000
Explanation:
First off, what was the Net book value of the old sailboat?
= Cost Price - Accumulated Depreciation
= 210,000 - 84,000
= $126,000
They paid $101,000 in cash and received a trade in allowance of $138,000 bringing the value to $239,000.
What they should have received as the trade in allowance was the NBV of $126,000. Since they didn't they got a gain of,
= 138,000 - 126,000
= $12,000
Because this transaction has commercial substance, the gain would be $12,000.
Answer:
If the workers had been paying other people to perform the household activities prior to unemployment, then total production will fall.
Explanation:
Answer:
Explanation:
The journal entry is shown below:
Interest expense A/c Dr $3,000
To Interest payable A/c $3,000
(Being interest is recorded)
The computation of the interest expense is shown below:
= Principal × rate of interest × number of months ÷ total number of months in a year
= $125,000 × 6% × (4 months ÷ 12 months)
= $2,500
The four-month is calculated from the September 1 to December 31
Answer:
Off - invoice allowance
Explanation:
Off - invoice allowance
It is type of allowance that offer retailer to market quantities of item for a particular period of time. The main purpose of this bills is to cope up with competition and to advertise new product in the market.
It is a reduction in price made by manufacturer to retailer so to promote their product in a faster way.
Answer:
The chosen option (considering enrollment costs and opportunity cost) is:
b) College course.
Explanation:
a) Data and Calculations:
Costs/Benefits
College Course Community Course
Cost $2,600 $1,390
Opportunity costs -2,080 2,080
Net costs $520 $3,470
Distance to course 0.40 miles 16 miles
(walking distance) (driving distance)
Timing of course Weekday Weekend
Number of meetings 16 8
b) With the College course option, you will earn $2,080 ($260 * 8) weekdays to offset part of the enrollment cost. With the Community course option, $2,080 will be lost in opportunity cost, thereby increasing the total costs incurred. These costs are apart from the driving costs associated with traveling 16 miles to the Community Course at the local library.
