Answer:
The loss amount is "$3,000".
Explanation:
The given values are:
Sale amount,
= $16,000
Ice-cream equipment's cost,
= $90,000
Depreciation,
= $71,000
Now,
The book value will be:
= 
On substituting the values, we get
= 
= 
($)
The loss on the sale will be:
= 
= 
= 
($)
Answer:
c. nonrepudiation of the transaction
Explanation:
Based on the information provided within the question it can be said that the feature of digital signatures that is required is a nonrepudiation of the transaction. This refers to an assurance that the individual in question cannot deny that they made the transaction in question. This protects both the buyer and the seller as it prevents fraud and provides proof of the transaction.
Answer:
C. Price War
Explanation:
A price war is a situation that occurs between rival firms where one firm decides to reduce the price of its product in an attemp to gain a upper hand over its rival. The upper hand being targeted could be in form of capturing a greater market share, profitability or simply to push the rival out of the market.
In both situation both by Piwo and the response by Olut, the strategy is Price War. Piwo's new management's strategy to cut prices to gain larger market share and profit is a price war strategy. The response from Olut as well to cut its prices below margina costs to push Piwo out of business is also a Price War Strategy.
A cartel involves an agreement by a group of firms on market share as well as the price of products and every member is obliged to abide by this agreement while Price Leadership is a form of cooperation amongst firms, where a firm (the price leader) sets the price for the market and the rivals decides to follow the price set by the leader.
Answer:
<u>Part 1</u>
Replacement of motor on equipment - Capital Expenditure
Cost of Initial tune -ups - Capital Expenditure
Replacement filters on an air-conditioning system - Revenue Expenditure
Addition to a Building - Capital Expenditure
<u>Part 2</u>
Item 1
Debit : Equipment $42,000
Credit : Cash $42,000
Item 2
Debit : Truck $210
Credit : Cash $210
Item 3
Debit : Replacement expense $168
Credit : Cash $168
Item 4
Debit : Buildings $236,250
Credit : Cash $236,250
Explanation:
Capital Expenditure is any expenditure incurred to enhance the economic value of an asset. This include improvements or costs directly incurred to place the asset in the location and condition intended for use by the management.
Revenue Expenditure is any expenditure incurred to maintain daily operations of the company. This includes repairs and maintenance expenses.
