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anyanavicka [17]
3 years ago
5

Flint Corporation traded a used truck (cost $21,600, accumulated depreciation $19,440) for a small computer with a fair value of

$3,564. Flint also paid $540 in the transaction. Prepare the journal entry to record the exchange, assuming the exchange lacks commercial substance
Business
1 answer:
lara [203]3 years ago
5 0

Answer:

Dr Computer 2,700

Dr Accumulated depreciation - truck 19,440

    Cr Truck - 21,600

    Cr Cash 540

Explanation:

Since the transaction lacked commercial substance, Flint must record the computer at the asset value of the truck plus the additional cash given (boot payment).

computer's basis = $21,600 - $19,440 + $540 = $2,700

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Rock Adventures has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15
Maslowich

Answer:

the actual direct deposit payroll is $12,843

Explanation:

The computation of the actual direct deposit payroll is shown below;

= Total salary - withholdings

= (15 × 40 × $30) - Federal income tax - state income tax - FICA tax

= $18,000 - ($18,000 × 0.15) - ($18,000 × 0.06) - ($18,000 × 7.65%)

= $12,843

Hence, the actual direct deposit payroll is $12,843

Basically we applied the above formula

4 0
2 years ago
On January​ 1, 2018​, White Corporation signed a $ 120,000​, four​-year, 2​% note. The loan required White to make payments annu
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Answer:

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Cr Notes payable                         $120,000

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On 31 December 2018,White Corporation would need to repay $30,000 principal plus interest of $2,400 ($120,000*2%).The interest payment is debited to interest expense while $30,000 repayment is debited to notes payable and cash is credited with the total of $32,400

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Ramsay, the ceo of a large corporation, was indicted for tax fraud. the government accused him of hiding a vast amount of the co
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In this type of situation, both Ramsay and the company will be investigated for the tax fraud case. Even if Ramsay was found not guilty, the company will still be investigated since the company is a separate entity and there is an alleged big amount hidden in company's assets. If the company is found guilty, it will still be liable for the case even if Ramsay was found not guilty. Most likely, the investigators will try to tie the case back to him anyway since he is one of the main representatives of the company. 
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Which of the following is not required by lenders and investors?
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Answer:

Master plan

Explanation:

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Read 2 more answers
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