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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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The equipment account had a $36,000 balance at the beginning of the year, and a $30,000 balance at the end of the year. The accu
MrMuchimi

Answer:1000

Explanation:

Equipment decreases $6000 ($10000-$4000). Accumulated depreciation decreases $9000 ($22000+4000-$17000). $10000 cost -$9000 accumulated depreciation = $1000 cash received from sale.

6 0
3 years ago
Adams Corporation's present capital structure, which is also its target capital structure is
kaheart [24]

Answer:

Task a:

The answer is $24,500.

Task b:

The answer is 17%

Explanation:

<h2>Task a:</h2><h3>What is the maximum amount of new capital that can be raised at the LOWEST  component cost of EQUITY?</h3><h3>Solution:</h3>

We already know the following:

Projected net income = $21,000

Payout ratio = 30%

Retention ratio = 70%

Debt share = 40%

Equity share = 60%

Maximum amount of capital to be raised at the lowest component cost of equity = Projected net income ×\frac{Retention ratio}{Equity share}

= $21,000 × \frac{0.70}{0.60}

= $24,500

<h3>Answer:</h3>

The maximum amount of new capital that can be raised at the lowest component of equity is $24,500.

<h2>Task b:</h2><h3>What is the component cost of equity by selling new common stock?</h3><h3>Solution:</h3>

k(e) (component cost of external equity) = [Dividend (D0)(1 + growth) / stock price(1 - flotation cost)] + growth

Formula:

k(e) = \frac{Do(1+g)}{P(1-0.20)} + 0.05

Where

Do = $2.00

G = 0.05

P = $21/88

= ($2.00(1 + 0.05) / $21.88(1-.20)) + 0.05

= ($2.10/$21.88(1-.20)) + 0.05

= ($2.10/$21.88(0.80) + 0.05

= 0.17 or 17%

<h3>Answer: </h3>

The component cost of equity by selling new common stock = 17%

5 0
3 years ago
With respect to engineering economics and the internal rate of return (IRR), Descartes’ rule of signs indicates there will be at
Alika [10]

Answer:

''there will be at most as many POSITIVE rates...''

Explanation:

The measure of investments' rate of return which excludes external factors such as inflation is known as Internal Rate of Return(IRR)

It is used in;

(1). Savings and loans.

(2). Liabilities

(3). Fixed incomes

(4). Private equity and capital management.

(5). Maximizing total present value and so on.

It can be calculate using the formula below:

NPV= C(n)/(1+r)^n = 0

That is internal rate of return can be use in solving NPV = 0.

Therefore, 'With respect to engineering economics and the internal rate of return (IRR), Descartes’ rule of signs indicates there will be at most as many POSITIVE rates of return as there are sign changes in the cash flow profile.''

4 0
3 years ago
Evelyn, who owns and operates Eve's Farm &amp; Garden Company, agrees to sell Hill &amp; Dale Produce, Inc., fifty bushels of ap
IrinaK [193]

Answer:

The answer is: A) breached

Explanation:

Evelyn breached her contract with Hill & Dale because she failed to perform her duties. In order for the contract to end, both parties must fulfill their duties or both parties must agree to cancel the contract. Any party involved in a contract can sue for damages, so Hill & Dale are entitled to sue Evelyn for compensatory damages.

5 0
3 years ago
Shane's buyers learned during the inspection that there was water damage around the fireplace and that the chimney needed new fl
MAVERICK [17]

Shane should just call the steeplejack.

  • Flashing serves as an additional layer of water protection; however, if you notice leaks, your flashing is damaged. You may experience water damage if you find rust, holes, or areas where the flashing has worn down. However, it would still be best to replace it.
  • Repointing your chimney brick mortar would be your first step. Repointing is the process of taking out the crumbly mortar, then replacing it with a new batch of mortar.
  • your chimney crown and flue serve as your extra protection against water. However, gaps may eventually appear after some time, allowing water to enter.
  • As a result of the water seeping in, it will damage not only the crown but also the flue. And caulking would be the answer to this chimney problem. Caulking is the process of sealing a gap using a sealant or a waterproof filler

learn more about water leaks here : brainly.com/question/681061

#SPJ4

8 0
1 year ago
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