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choli [55]
4 years ago
10

Campbell Corp. exchanged delivery trucks with Highway, Inc. Campbell's truck originally cost $23,000, its accumulated depreciati

on was $20,000, and its fair value was $5,000. Highway's truck originally cost $23,500, its accumulated depreciation was $19,900, and its fair value was $5,700. Campbell also paid Highway $700 in cash as part of the transaction. The transaction lacks commercial substance. What amount is the new book value for the truck Campbell received?
Business
1 answer:
iragen [17]4 years ago
3 0

Answer:

equipment    3,700

Explanation:

First we calcualte the values of the machine given up:

<u>traded-out assets</u>

purchased  23000

depreciation <u>20,000 </u>

book value   3,000

fair value   5,000

gain on disposal   2,000

This gain would be recognzie if there was commercial substance. In this case we don't have commercial substance. So it is deffered.

Value given up forthe new equipment:

cash                   700

traded-out        <u>5,000 </u>

total value         5,700

We subtract the deffered gain on disposal to get the accounting value for the new equipment:

deferred gain       (2,000)

accounting value 3,700

The machine will enter the accounting with 3,700

journal entry

equipment    3,700

acc del        20,000

   equipment            23,000

  cash                             700

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a. Fall

b. Shift the long-run aggregate supply curve to the right

Answer:

b. Shift the long-run aggregate supply curve to the right

Explanation:

Indeed, in the long run the aggregate supply or the number of available unemployed workers in the economy would increase, due to an increase in the number of those looking for jobs, since they stand to get reduced unemployment benefits.

This change would be clearly visible if plotted on a labor supply graph. In a sense, the unemployed no longer want to remain unemployed because of reduced unemployment benefits.

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4 years ago
at a small company, one person prepares the paychecks for employees and another person reviews the check amounts and signs the c
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At a small company, one person prepares the paychecks for employees and another person reviews the check amounts and signs the checks. this is an example of creating checks and balances approach to combatting destructive leadership.

<h3>What is company?</h3>

The term "company" refers to legal entities that are lawfully registered under the Company Act. The company's major goal is to increase profits while maintaining goodwill. With the assistance of management, the organization was flawlessly run. Employees are compensated by the company.

According to the small company, one authorisation figure checks the other's work being done, and thus maintains balance. The destructive leadership is checked and balanced.

As a result, the is an example of creating checks and balances approach to combatting destructive leadership.

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4 0
1 year ago
Refer to the above data. At its profit-maximizing output, this firm's total revenue will be:______
ValentinkaMS [17]

Answer:

The question is incomplete. The complete is given below

OUTPUT PRICE MR TC MC

1                  100         100 100 30

2                     90 80 63 26

3                    80 60 52.67 32

4                     70 40 49.5 40

5                    60 20 49.6 50

6                      50 0 50 52

7                    40 -20 52.29 66

8                    30 -40 55.75 80

9                    20 -60 60.67 100

The total revenue is $280

Explanation:

Profit is maximized at the level of output where marginal revenue (MR) is equal marginal cost (MC).

Marginal revenue is the extra revenue made from selling one additional unit of a product. It is the increase in total revenue as result of selling one more unit. It is given in the third column above.

Marginal cost: It is the increase in total cost as a result  of producing extra one unit- it is given in the last column

Profit maximizing-output: The optimal level of output where marginal revenue is equal to marginal cost. It is the ascertained to be 4 under the first column above. At this level  MR $40 = MC $40

Profit maximizing price:  The selling price at the profit-maximizing output. It is $70 here.

Total revenue that maximized profit= profit-maximizing price × Profit maximizing-output

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6 0
3 years ago
Which of the following will happen when the economy makes the transition from its short-run equilibrium to its long-run equilibr
Nesterboy [21]

Answer:

C. The equilibrium interest rate will rise.

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Therefore the option c is correct and the rest of the options are wrong

7 0
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