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disa [49]
3 years ago
8

An asset with a historical cost of $14,725 and accumulated depreciation of $10,000 was discarded, having no market value. How mu

ch will be recorded as a loss or gain on disposal?
a.loss of $4,725
b.gain of $4,725
c.no loss or gain
d.Cannot be determined.
Business
1 answer:
ale4655 [162]3 years ago
8 0

Answer:

a.loss of $4,725

Explanation:

As the asset has a historical cost of $14,725 and accumulated depreciation = $10,000, its carrying value shall be : $4,725

That is carrying value = Historical cost - Accumulated depreciation = $14,725 - $10,000

As it is provided that the asset is discarded with $0 market value, there is no amount received when the asset is discarded.

Thus, Sale price = $0

Carrying value = $4,725

Thus, loss = Sale price - Carrying value = $0 - $4,725

Loss = $4,725 as the value is negative.

Therefore, option a is correct.

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Consider the following financial statement information for the Sourstone Corporation:
DENIUS [597]

Answer:

A. 56.32 days

B. 40.38 days

Explanation:

The Operating cycle is the Inventory period + AR period

Inventory period= 365/(Cost of goods sold/Average inventory)

Average inventory= (Beginning Inventory + Ending Inventory)/2

Accounts Receivable period= 365/(Credit Sales/Average Accounts Receivable )

Average Accounts Receivable= (Beginning Accounts Receivable + Ending Inventory Accounts Receivable)/2

Calculated Inventory period= 42.58 days

Calculated Accounts Receivable period= 13.74 days

The Cash cycle is also called the Net Operating cycle which is the Inventory period + Accounts Receivable period- Accounts Payable period

Accounts Payable period= 365/(Cost of goods sold/Average Accounts Payable)

Average Accounts Payable = (Beginning Accounts Payables + Ending Inventory Accounts Payable)/2

Calculated Accounts Payable period= 15.94 days

5 0
3 years ago
Which of the following is true about the self-employed health insurance deduction? a. Medical insurance is allowed as a deductio
Luden [163]

Answer:

b. Long-term care insurance is allowed as a deduction, subject to a dollar limitation.

Explanation:

Long-term care insurance is designed to provide daily benefit to the holder when he is in need of assistance do some activities related to daily living such dressing, eating, bathing, and among others.

It is possible for self employed to qualify to deduct 100% of the premium paid for long-term care insurance subject to the maximum of 2020 age-based eligible premium amounts as provided below:

Age 40 and below = $430

Age 41 - 50 = $810

Age 51-60 = $1630

Age 61-70 = $4350  

Age 71 and over = $5430

3 0
3 years ago
Supply-side policies have proven that smaller government makes the economy more efficient. ​ Select one: True False
scoundrel [369]

Answer:

The given statement is "False".

Explanation:

  • Supply-side policies include those strategies that increase the economic ability of an enterprise as well as the ability to manufacture. To increase supply-side efficiency, there are also many specific steps that somehow an authority may undertake.
  • Any strategy that increases the economic capacity of a nation's infrastructure and therefore its ability to transfer should be under the supply-side legal framework.
3 0
3 years ago
LO 3.5If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of
Mamont248 [21]

Answer:

4.7

Explanation:

The computation of the degree of operating leverage is presented below:

= Contribution margin ÷ Net income

= $59,690 ÷ $12,700

= 4.7

where,

Contribution margin = Sales - Variable costs

And, the net income would be

= Sales - Variable costs - Fixed costs

The net income is also known as earning before interest and taxes

5 0
3 years ago
Cash receipts should be deposited on the day of receipt or the following business day. What is the most appropriate audit proced
BartSMP [9]

Answer:

The correct answer to the following question is option C) compare the daily cash receipts totals with the bank deposits.

Explanation:

When cash receipts are received by a company, it is often deposited in bank on the bank the same day they are received or they should be deposited the following business day. If a auditor or a manger or owner wants to make sure that the cash is promptly deposited everyday, then one way in which he or she can make sure that this is happening promptly is by comparing the daily cash deposits with the bank deposits or bank statements, through this procedures a person comparing them would come to know of any discrepancy in cash deposit, if it exist.

4 0
3 years ago
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