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katrin2010 [14]
3 years ago
13

As part of the initial investment, Ray Blake contributes equipment that had originally cost $96,100 and on which accumulated dep

reciation of $72,075 has been recorded. If similar equipment would cost $164,400 to replace and the partners agree on a valuation of $47,900 for the contributed equipment, what amount should be debited to the equipment account
Business
1 answer:
Delicious77 [7]3 years ago
7 0

Answer: $47,900

Explanation:

From the question, we are told that part of the initial investment, Ray Blake contributes equipment that had originally cost $96,100 and on which accumulated depreciation of $72,075 has been recorded.

We are further told that assuming similar equipment would cost $164,400 to replace and the partners agree on a valuation of $47,900 for the contributed equipment, we are told to calculate the amount that would be debited to the equipment account.

It should be noted that in a partnership, when the partners contribute an asset, during the recording of the asset in the partnership book, it is recorded based on the agreed valuation price.

In this case, the partners agree on a valuation of $47,900 for the contributed equipment. Therefore, the amount that should be debited to the equipment account will be $47,900.

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Megan's salary for three consecutive years, along with other values, are presented in the table below.Year
garik1379 [7]

Answer:

242.65

Explanation:

Data provided in the question:

year                                       2011          2012          2013

Salary                                 $65,000   $72,000    $76,000

Consumer Price Index          226           230            235

Real Interest Rate                 2.5%          2.7%           1.8%

Nominal interest rate for 2013 = 7.3%

Now,

Rate of inflation for 2013 = Nominal rate - Real rate

= 7.3% - 1.8%

= 5.5%

Therefore,

CPI in 2013 = Consumer Price Index in 2012 × (1 + inflation )

= 230 × ( 1 + 0.055 )

= 242.65

3 0
3 years ago
Serine wants to improve her knowledge about stocks. Which statement will help her understand the effect of demand and supply on
Serga [27]

Answer:

B

Explanation:

7 0
2 years ago
Read 2 more answers
Brown Fashions Inc.'s December 31, 2014 balance sheet showed total common equity of $4,050,000 and 290,000 shares of stock outst
Illusion [34]

Answer:

$15.17

Explanation:

Given that;

Beginning book value = $4,050,000

Net income = $450,000

Dividends = $100,000

Ending book value = Beginning book value + Net income - Dividends

Ending book value = $4,050,000 + $450,000 - $100,000

Ending book value = $4,400,000

Book value per share = Ending book value / Number of shares

Book value per share = $4,400,000 / 290,000

Book value per share = $15.17

3 0
3 years ago
Journalize the following transactions in the accounts of Canyon River Medical Co., a medical equipment company that uses the dir
Luba_88 [7]

Answer:

  • Jan. 19

Dr Accounts receivable $ 6,400

Cr Sales $ 6,400

Dr Cost of Goods $ 3,000

Cr Inventories $ 3,000

  • June 2

Dr Cash $ 500

Cr Accounts receivable $ 500

Dr Bad Debt Expense $ 5,900

Cr Accounts receivable $ 5,900

  • Oct. 23

Dr Accounts receivable $ 5,900

Dr Bad Debt Expense $ 5,900

Dr Cash $ 5,900

Cr Accounts receivable $ 5,900

Explanation:

Jan. 19 Sold merchandise on account to Dr. Kyle Norby, $6,400. The cost of goods sold was $3,000.  

Dr Accounts receivable $ 6,400

Cr Sales $ 6,400

Dr Cost of Goods $ 3,000

Cr Invetories $ 3,000

June 2 Received $500 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible.  

Dr Cash $ 500

Cr Accounts receivable $ 500

Dr Bad Debt Expense $ 5.900

Cr Accounts receivable $ 5.900

In the direct Write-Off method, bad debts are directley cancel at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount.

Oct. 23 Reinstated the account of Dr. Kyle Norby that had been written off on June 2 and received $5,900 cash in full payment.  

Dr Accounts receivable $ 5,900

Dr Bad Debt Expense $ 5,900

Dr Cash $ 5,900

Cr Accounts receivable $ 5,900

8 0
2 years ago
If we observe a decrease in price of a good & an increase in the amount of the food bought & sold this could be explaine
Goryan [66]

Answer:

Penetration pricing

Explanation:

Penetration pricing is a marketing strategy that is used to draw customers to a particular good or service by lowering its price. The reasons why companies use penetration pricing is to introduce a new product into the market by creating awareness and also to draw customers away from competitors that  have their prices on the high side.

So, if we observe a decrease in price of a good & an increase in the amount of the good bought & sold this could be explained by <u>penetration pricing</u>.

The goal of this is to draw attraction from customers to the product and also keep them once the prices have been returned to their normal levels.

3 0
3 years ago
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