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Fiesta28 [93]
3 years ago
11

On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an initial cost of $310,000 an

d has accumulated depreciation of $260,000. Depreciation has been recorded up to the end of the year. Which of the following will be included in the entry to record the disposal?
a. Accumulated Depreciation, debit, $310,000
b. Gain on Disposal of Asset, credit, $50,000
c. Equipment, credit, $310,000
d. Loss on Disposal of Asset, debit, $260,000
Business
1 answer:
scoray [572]3 years ago
7 0

Answer:

c. Equipment, credit, $310,000

Explanation:

Whenever an asset is sold, the whole asset will be excluded from the balance sheet because it is no longer part of the assets of the business, hence the balance sheets linked to that asset will be reversed.

In this scenario, the carrying cost of $310,000 will be reversed and $310,000 will be credited to equipment

And, The accumulated depreciation with a credit balance will now be reversed and the debit of accumulated depreciation = $260,000 should be included.

Hence, the option c is correct

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You have $12,500 you want to invest for the next 30 years. You are offered an investment plan that will pay you 7 percent per ye
lubasha [3.4K]

Answer:

Balance after 30 years = $151,018.50

Explanation:

In order to calculate this, we will calculate the future value on an amount invested, gaining interest over the years of investment, and this is given by:

FV = PV (1 + r)^{t}

where:

FV = future value

PV = present value

r = interest rate

t = time in years.

Hence the future value is calculated as follows:

1. For the first 10 years at 7% interest:

7% interest = 7/100 = 0.07

FV = 12,500 (1 + 0.07)^{10}

FV = 12,500 (1.07)^{10}\\FV = 12,500 * 1.967 = 24,589.392

2. For the last 20 years at 9.5%(0.095) interest:

Note that for the remaining 20 years, the present value (PV) used = 24,589.392, as ending balance after the first 10 years

FV = 24,589.392 (1 + 0.095)^{20}

FV = 24,589.392 (1.095)^{20}\\FV= 24,589.392 * 6.1416\\FV = 151,018.496

Total Future value earned = $151,018.50

5 0
3 years ago
Lucky started a new business last year. Since it was the first year of operation, the business purchased $10,000 in machinery an
Jet001 [13]

Answer:

The answer is: A) The new machinery can be depreciated using the same method or different method than the previously purchased machinery

Explanation:

Their is no rule that requires a business to always use the same depreciation method for the assets they purchase.

The most common depreciation methods include:

  • Straight-line.
  • Double declining balance.
  • Units of production.
  • Sum of years digits.

Depending on the asset a business may consider one depreciation method that better suits it, and another depreciation method for their other assets.

6 0
4 years ago
Where did the indestrial revolution starts and why did it beinging there​
Marat540 [252]

Answer:

it began in 1760. it started there because of the new inventions that were made like the cotton gin, electricity and other inventions. More and more countries got access to these inventions and they became more and more industrialized and urban.

5 0
2 years ago
Why is it important to understand that the amount cash paid for taxes is different than the amount of income tax expense?
GarryVolchara [31]

Answer: To know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

Explanation:

Income tax expense could be described as what is calculated that the company owes in taxes according to accounting rules. They are reported on the income statement.

While Income tax payable is described as the actual amount the company owes in taxes based on the rules of tax code. They appear on the balance sheet of the company accounting documents until the bills are cleared off or paid.

The reason for understanding the difference is to know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

6 0
3 years ago
Why are cash flow statements useful in managing money?
sashaice [31]

Answer:

because it shows how much actual cash a company has generated.

Hope this helps mark me brainliest

3 0
3 years ago
Read 2 more answers
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