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Free_Kalibri [48]
3 years ago
14

Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $50,000. Koch originally purchased Machine 1

for $75,000, and Machine 1's adjusted basis was $40,000 at the time of the exchange. Machine 2's seller purchased it for $65,000 and Machine 2's adjusted basis was $55,000 at the time of the exchange. What is Koch's adjusted basis in Machine 2 after the exchange
Business
1 answer:
nexus9112 [7]3 years ago
8 0

Answer:

The right answer is $50,000

Explanation:

Simply put, adjusted basis is the cost of an object after factors that affects the cost has being considered. These factors usually include taxes, depreciation value and any other cost incurred in getting and retaining the said object. Adjusted basis is important so as to know the right amount to sell.

Adjusted basis increases when an individual factors the cost incurred from taxes and maintenance ad it reduces when he/she factors in depreciation.

In the case of Koch, he already exchanged his machine for another at $50,000, as far as he is concerned at that moment, the adjusted basis is $50,000 because it was exchanged in a fair market.  

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At July 31, Oriole Company has this bank information: cash balance per bank $8,085, outstanding checks $755, deposits in transit
lions [1.4K]

Answer:

The adjusted cash balance per bank at July 31 is <u>$8,720</u>

Explanation:

Adjusted cash balance is the cash balance calculated after required adjustments in the balance as per bank or balance as per record of the entity having that bank account.

Accroding to the bank reconciliation statement

  • The outstanding checks are deducted from the cash balance as per bank because these are the check issued but not be presented in the bank until the end of a period.
  • On the other hand, the deposit in transit is the cash that is to be received but this balance is in the clearing process of the check.
  • Bank Service charges is already adjusted in the balance as per bank.

Adjusted Balance can be calculated as follow

Cash balance as per Bank ______________ $8,085

Less: Outstanding Checks ______________ $755

Add: Deposit in transit _________________ <u>$1,390</u>

Adjusted Cash balance ________________ <u>$8,720</u>

8 0
3 years ago
✓ checkpoint
Alja [10]

Answer:

I'm not sure, but I think government makes the money suppply

6 0
3 years ago
The Laresen Company uses the machine hour method of applying factory overhead to production. The budgeted factory overhead last
Pani-rosa [81]

Answer:

Total cost= $1,375

Explanation:

Giving the following information:

The budgeted factory overhead last year was $200,000, and there were 40,000 machine hours budgeted.

Job 84:

Direct materials= $900

direct labor hours= 25

Direct labor cost= $350.

First, we need to calculate the manufacturing overhead rate based on direct labor hours:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 200,000/40,000= $5 per direct labor hour

Now, we can calculate the total cost:

Total cost= direct material + direct labor + allocated overhead

Total cost= 900 + 350 + 5*25= $1,375

6 0
3 years ago
A trucking company sold its fleet of trucks for $55,400. The trucks originally cost $1,426,000 and had Accumulated Depreciation
victus00 [196]

Answer:

Loss of $97,600

Explanation:

From the question above a trucking company sold its fleet for $55,400

The truck original cost is $1,426,000

The depreciation is $1,273,000

The first step is to calculate the book value

Book value= cost-accumulated depreciation

= $1,426,000-$1,273,000

= $153,000

The next step is to subtract the book value from the cost to determine if it a gain or loss

= $55,400-$153,000

= -97,600

Since the value is negative then, the trucking company is at a loss of $97,600

4 0
3 years ago
Fama and French have suggested that many market anomalies can be explained as manifestations of ____________.A. regulatory effec
stiks02 [169]

Answer:

D. varying risk premiums

Explanation:

Fama and French has a total of three factors considered in the study:

Size of firms, book to market values, and the additional return on the market.

For all these market anomalies the study is based on the varying risk premiums assigned.

As for the market efficiency the out performance is explained by the risk and value that is of small stocks due to high cost of capital associated, and with that there is great business risk also associated.

7 0
3 years ago
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