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Pavel [41]
3 years ago
11

Infinity Corporation purchased equipment with a 10-year useful life and zero residual value for $10,000. At the end of the fifth

year, the equipment is sold for $6,000. The entry to record this sale will include _______. Assume the straight-line depreciation method is used. (Select all that apply.)
Business
1 answer:
sesenic [268]3 years ago
5 0

Answer:

a capital gain of $1,000.

Explanation:

Given,

The cost price of Equipment = $10,000

Useful life of the equipment = 10 years

Residual value = $0

Depreciation (Straight-line method) = Cost price/useful life

Depreciation (Straight-line method) = $10,000/10 = $1,000

Since, it is a straight line method, the depreciation will remain same each year. Therefore, at the end of the fifth year, the depreciation of equipment = $1,000 x 5 = $5,000

At the end of the fifth year,

The book value of the equipment= Equipment - Accumulate depreciation= $(10,000 - 5,000) = $5,000

If the company sales the equipment after the end of the fifth year,

there will be a capital gain.

Capital Gain of equipment = Sales price of equipment - book value of equipment

Capital Gain of equipment = $6,000 - 5,000 = $1,000. The journal entry will be -

Cash/Bank                              Debit       $6,000

Accumulated Depreciation   Debit       $5,000

Gain on sale of equipment                  Credit       $1,000

Equipment                                            Credit      $10,000

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As a licensed foster mom, the answer is F. All of above
4 0
2 years ago
Please write the answer in the same blank format I provided
stepladder [879]

The preparation of the Trial Balance of Ceco Co. from the ledger accounts as of June 20, 2020, is as follows:

Ceco Co.

<h3>Trial Balance</h3>

As of June 30, 2020

Accounts                                      Debit            Credit

Cash                                      $5,000.00

A/R - R. Tamo                          3,500.00

A/R - G. Slaught                        1,124.00

A/R - P. Onno                            850.00

Supplies                                  1,585.00

Automobile                         22,800.00

Equipment                          25,350.00

A/P - Batt Inc.                                                 $785.00

A/P - Parker Products                                   1,000.00

A/P - Nishi Co.                                               1,200.00

Bank Loan                                                  25,000.00

C. Hernandez, Capital                               32,224.00

Totals                              $60,209.00    $60,209.00

<h3>What is a trial balance?</h3>

A trial balance is a list of the ledger accounts balances at a particular date of the financial period.

The trial balance helps to show if accounts have been correctly recorded according to the double-entry system.

Thus, the above trial balance shows the ledger accounts balances of Ceco Co as of June 30, 2020.

Learn more about preparing the trial balance at brainly.com/question/13669511

#SPJ1

8 0
1 year ago
(a) Graphically show &amp; explain how carpooling may eliminate the shortage.
balu736 [363]

Answer:Graphically show & explain how carpooling may eliminate the shortage.

Explanation:

4 0
3 years ago
The manager of a 100-unit apartment complex knows from experience that all units will be occupied if the rent is $900 per month.
Aliun [14]

Answer:

$950 in order to maximize the revenue.

Explanation:

The computation of monthly rent in order to maximize revenue is shown below:-

R (x) = Rent price per unit × Number of units rented

= ($900 + $10 x) × (100 - x)

= $90,000 - 900 x + 1000 x - 10 x^2

R (x) = -10 x^2 + 100 x + $90,000

Here to maximize R (x), we will find derivative and equal it to zero

R1 (x) = -20 x + 100 = 0

20 x = 100

x = 5

Therefore the monthly rent is p(5) = $900 + 10(5)

= $900 + 50

= $950 in order to maximize the revenue.

3 0
3 years ago
When a market’s annual growth rate falls below 10 percent, a star will become a dog if it still has the largest market share?
mezya [45]
That statement is false

according to <span>IX Boston Consulting Group Model, a star will became a<em> cash cow</em> </span><span>if it still has the largest market share under this circumstances.
This means that the company still making enough cash for its employees and still enjoy a pretty high-profit margin.

</span>
3 0
3 years ago
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