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anygoal [31]
3 years ago
14

On December 31, 2013, Stable Company sold a piece of equipment that was purchased on January 1, 2008. The equipment originally c

ost $910,000 and has an estimated useful life of eight years. Stable uses the straight-line method of depreciation. What is the gain/loss on the sale of equipment that Stable will recognize if the equipment was sold for $257,000?
Business
1 answer:
LiRa [457]3 years ago
6 0

Answer:

The company should recognize a gain on disposal of $29500

Explanation:

The straight line depreciation method charges a constant depreciation expense per year through out the estimated useful life of the asset.

The straight line depreciation expense per year is,

(Cost - salvage value) / estimated useful life

Depreciation expense = (910000 - 0) / 8   =  $113750

The number of years till 31 December 2013 = 6 years

The accumulated depreciation till December 31, 2013 = 113750 * 6 = $682500

The carrying value of the asset at 31 December 2013 = 910000 - 682500 = $227500

The gain/loss on sale = 257000 - 227500  =  $29500 gain

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On Jan. 2, Callie Company received a $700 payment from a customer previously billed for services performed. The journal entry to
Lerok [7]

Answer:

Cash and equivalents $700 Debit*

Accounts Receivables $700 Credit*

Explanation: The cash represents a debit because we are receiving the cash from a sale already made and the credit is made accounts receivable, because the product was previously sold only that a payment term was given to the person who is currently fulfilling, then the account receivable becomes cash as part of the company's operating cycle.

7 0
3 years ago
What is the present value of the following series of cash flows discounted at 12 percent:
Ksju [112]

Answer:

The present value of the following series of cash flows discounted at 12 percent is:

$171,890

Explanation:

a) Data and Calculations:

Discount rate = 12%

$40,000 now;

$50,000 at the end of the first year;

$0 at the end of year the second year;

$60,000 at the end of the third year; and

$70,000 at the end of the fourth year

Future Value  Discount Factor   Present Value

$40,000                 1                      $40,000

$50,000                 0.893             $44,650

$0                           0.797              $0

$60,000                 0.712              $42,720

$70,000                 0.636             $44,520

Total present value                      $171,890

b) The present value is the discounted cash flow from series of future cash flows.  The discount factor is applied to the individual cash flows, based on the number of years before the cash flow occurs.

6 0
3 years ago
What type of bank account is best for everyday transactions?
Ilia_Sergeevich [38]

Answer:

money market account?

Explanation:

I'm not positive but you could try if nobody else has an answer haha

6 0
3 years ago
Read 2 more answers
The type of action that asks how and why performance deviated is called basic corrective action. corporate downsizing. profit di
asambeis [7]

Answer:

The type of action that asks how and why performance deviated is called BASIC CORRECTIVE ACTON.

Explanation:

Basic corrective action are Corrective action that looks at how and why performance deviated before correcting the source of deviation.

Basic Corrective Action - Essential restorative activity that takes a gander at how and why execution veered off before remedying the wellspring of deviation. It's not unusual for supervisors to legitimize that they don't have opportunity to discover the wellspring of an issue (fundamental restorative activity) and keep on ceaselessly "put out flames" with prompt remedial activity.

3 0
3 years ago
Tony is the owner of Tony’s Taqueria. Tony is a profit-maximizing owner whose firm operates in a competitive market. An addition
Lisa [10]

Answer:

(c) $5

Explanation:

Remember, To calculate marginal cost, we divide the change in production costs by the change in quantity.

In this example, the change in production cost is $200 (for hiring an additional worker) while the change in quantity of taco is 40 (increase in marginal productivity).

The marginal cost= $200/40

we get $5 as the marginal cost.

5 0
3 years ago
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