1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kogti [31]
3 years ago
15

A truck costing $110,000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the

truck was $50,000. An insurance check for $125,000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a
a. Gain on Disposal of $15000.
b. credit to the Truck account of $79000.
c. credit to the Accumulated Depreciation account for $46000.
d. Gain on Disposal of $61000.
Business
1 answer:
Eduardwww [97]3 years ago
3 0

Answer:

The original price of the truck was $110,000 and its accumulated depreciation was 50,000, which means that its remaining book value was 60,000 (110,000-50,000). So when its engine caught fire the truck's book value was 60,000 but because of the insurance the money received to replace the truck was 125,000. This means that a profit was made. To calculate the profit we will subtract the book value of the truck at the time which was 60,000 from the money received from insurance which was 125,000.

125,000-60,000 =65,000

So the $65,000 will be recorded as gain on disposal

Explanation:

You might be interested in
If your laptop is not able to connect to your wireless network, which of the following might be a likely cause of the problem?
Kobotan [32]
I would pick A.  good luck hope i helped out :)
7 0
3 years ago
Read 2 more answers
Carter Corporation has some money to invest, and its treasurer is choosing between City of Chicago municipal bonds and U.S. Trea
padilas [110]

Answer:

If Chicago municipal bonds yield  is 10% then Carter's treasurer make indifferent between the two.

Explanation:

Because Treasury Bond is exempt from tax income and both have same maturity, and they are equally risky and liquid; we then have the equation as below

Treasury bonds yield = Chicago municipal bonds yield after tax

⇔ 6% = Chicago municipal bonds yield * (1 - tax rate 40%)

⇔ 6% = Chicago municipal bonds yield * 0.6

⇒ Chicago municipal bonds yield = 6%/  0.6 = 10%

3 0
3 years ago
Parne Two large American beer producers have decided to merge and seek government approval. They claim that by joining forces th
leonid [27]

Answer:

The correct answer is letter "A": Beer prices will go down.

Explanation:

Usually, when two large companies merge they take most or almost all part of their market causing a monopoly. This implies the recently-merged company to set the price of the goods according to what they believe is suitable which does not necessarily match with the consumers' expectations. However, for the companies in the case to prove the government that the merger will benefit the economy, they must show that the price of the beer will go down which is the opposite of what is expected under other regular situations.

5 0
4 years ago
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 pe
umka21 [38]

Answer:

50%

Explanation:

Given: Selling price= $120 per unit.

          Variable cost= $60 per unit.

First computing contribution margin.

Contribution margin= Selling\ price\ per\ unit - variable\ cost\ per\ unit

⇒ Contribution margin= \$120 - \$ 60

∴ Contribution margin=  \$ 60

Now, calculating the contribution margin ratio.

Contribution margin ratio= \frac{Contribution\ margin}{selling\ price\ per\ unit}

⇒ Contribution margin ratio= \frac{\$ 60}{\$ 120} \times 100

∴ Contribution margin ratio= 50\%

Hence, the product´s contribution ratio is 50%.

7 0
3 years ago
Classify technical education with example?​
german

Answer:

A kind of education which equips with skills that involve the use of practical approaches and other physical instruments in executing projects. Technical education is learning something about a specific work scientifically in detail and practical.

A few common examples include schools and education programs that focus on science and engineering, information and technology, architecture and design, business and fipnance, health and social services, education and child development, hospitality and tourism, or the fine and performing arts.

7 0
3 years ago
Other questions:
  • Explain the importance of elasticity​
    10·2 answers
  • Crystal Glass recently paid $3.60 as an annual dividend. Future dividends are projected at $3.80, $4.10, and $4.25 over the next
    13·1 answer
  • The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that had cost $15,000 w
    7·1 answer
  • in industires where international competition is so fieerce and the costs of competing on a global basis are so high that only a
    6·1 answer
  • Marina Inc. sells and services sailboats. On April 1, Marina financed the purchase of its entire inventory with ACE Finance Comp
    5·1 answer
  • In developing a marketing plan, the section on goals and objectives defines the parameters by which the firm will measure actual
    6·1 answer
  • The FED is often referred to as the "_________________" Bank.
    15·1 answer
  • True or false: promotion of a store's merchandise is known as product promotion.
    8·2 answers
  • 3.Part 2 Management agency agreement – complete and submit for marking Maria’s agreement only.
    9·1 answer
  • Which of the following statements about negotiation is true? 1) Once you have gotten what you want, try pushing to see what else
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!