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Answer:
The total liability will decrease by $159000
Explanation:
Below is the calculations:
Assets = Liabilities + Equity
Since the asset is the sum of liabilities and equity so the decrease in assets will be subtracted from the asset and an increase in the liability will be increased in the equity.
Assets = Liabilities + Equity
Assets - $88000 = (Liabilities-159000) + (Equity + 71000)
Assets - $88000 = (Liabilities + equity) - 88000
Thus the total liability will decrease by $159000
Answer:
b. $(6,800)
Explanation:
The computation of the gain or loss recorded for the equipment B is shown below:
Fair value of old equipment $54,800
Less: book value of old equipment $61,600
Pensacola would record a gain /(loss) (-$6,800)
Since the book value is more than the fair value so the Pensacola would received a loss of -$6,800
Hence, the correct option is B.
Answer: D
Explanation: Another name for Statement of Financial Performance is a Balance Sheet and it shows the Financial Position of firms as at a particular date and with the appropriate currency.