The correct answer is choice A.
A business with only one owner is called a sole proprietorship. This owner has rights to all of the profits and does not have to share them with anyone.
Answer:
$12,000 and $33,000
Explanation:
For computing the depreciation for year 2022 and the book value of the same year first we have to find out the depreciation expense for year 2021 and after that the book value which is shown below:
Depreciation expense for 2021 is
= ($45,000 - $5,000) × 4 ÷ 10
= $16,000
Now the Book value as on 1 January, 2022 is
= $45,000 - $16,000
= $29,000
And,
Depreciation expense for 2022 is
= ($45,000 - $5,000) × 3 ÷ 10
= $12,000
Book value as on December 31, 2022 is
= $45,000 - $12,000
= $33,000
This is the answer but the same is not provided in the given options
And, the 10 is come from
= 4 + 3 + 2 + 1
= 10
Answer:
The answer is put is bankruptcy if there aren't any choices
Answer:
The journal entry for the cash receipt and on that the sales tax is charged is as follows:
Explanation:
Cash A/c.................................................Dr $5,300
To Sales RevenueA/c.............................Cr $5,000
To Sales Tax Payable A/c......................Cr $ 300
Working Note:
So, the total of cash received will be = Sales Amount + Amount of sales tax payable
= $5,000 + $300
= $5,300
Answer:
Given statement is True that Leverage increases the total size of the gain or loss from an investment, not just the percentage rate of return on the part of the investment amount that was not borrowed
Explanation:
Leverage means using borrowed funds if one wants to buy a portion of the securities in a portfolio. This increases the return on investment.
If the return on investment is 'greater' than the cost of the funds that are borrowed then the investor is greatly affected. Leverage is profitable when the earnings are greater than the cost of borrowing.
But, leverage may fail in case returns are less than the borrowing costs. Leverage would bring both good and bad results. Thus, the given statement which says that leverage would increase either loss or gain from an investment is correct.
