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Lorico [155]
3 years ago
13

On December 31, Slugger Batting Cages Company decides to trade in one of its batting cages for another one that has a cost of $5

00,000. The seller of the batting cage is willing to allow a trade-in amount of $12,000. The initial cost of the old equipment was $225,000 with an accumulated depreciation of $195,000. Depreciation has been taken up to the end of the year. The difference will be paid in cash. What is the amount of boot in this transaction?
Business
1 answer:
torisob [31]3 years ago
4 0

Answer:

There is a loss of 18,000

Explanation:

In this question, we are asked to calculate the amount of boot in this transaction.

We proceed as follows;

We must identify that to buy one asset, we exchanged one asset with another

Mathematically;

loss or gain = asset given up - Discount received in exchange

From the question we identify the following;

value of asset given up = 225,000 - 195,000 = 30,000

Discount received in exchange = 12,000

Thus, loss or gain is

= 30,000 - 12,000

So, there's a loss of 18,000

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Answer:

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Through fraudulent means, Frank induces Ethel to sign a contract to invest with him the profits from her business. When Ethel le
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Answer:

a. ​enforce the contract or recover what she invested with Finlay.

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Garcia company has 10,000 units of its product that were produced last year at a total cost of $150,000. the units were damaged
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Answer and Explanation:

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          (10,000 units × $2)  (10,000 × $5)

Less:

Additional

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Shalnov [3]

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