Answer:
The entry to record this transaction will be,
Accumulated depreciation 16000
Cash 23000
Loss on disposal 1000
Machine 40000
Explanation:
The straight line method of depreciation charges a constant depreciation expense throughout the useful life of the asset. The formula to calculate depreciation expense per year under this method is,
Depreciation expense per year = (Cost - Residual value) / Estimated useful life of the asset
Depreciation expense per year = (40000 - 0) / 5 = $8000 per year
The net book value of the machine on 1 January 2016 = 40000 - (8000 * 2)
NBV = $24000
As the machine was sold for $23000, the loss on disposal will be,
Loss on disposal = 23000 - 24000 = -1000 or $1000 loss
The second last one.....<span>The Federal Reserve affects monetary policy.</span>
Answer:
1 suit
Explanation:
Danielle's consumption possibilities frontier is 6 pairs of new shoes or 3 suits.
- Her opportunity cost of consuming one extra pair of shoes instead of one suit = $50 / $100 = 0.5 suit or half a suit
- Her opportunity cost of consuming one suit instead of a pair of shoes = $100 / $50 = 2 pairs of shoes
If we want to calculate the opportunity cost of consuming 2 more pairs of shoes = 0.5 suit x 2 = 1 suit