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Furkat [3]
3 years ago
15

A company sells a plant asset that originally cost $300,000 for $100,000 on December 31, 2012. The accumulated depreciation acco

unt had a balance of $120,000 after the current year's depreciation of $30,000 had been recorded. The company should recognize a: ______
a. $80,000 gain on disposal.
b. $50,000 loss on disposal.
c. $200,000 loss on disposal.
d. $80,000 loss on disposal.
Business
1 answer:
devlian [24]3 years ago
5 0

Answer:The company should recognize a: $80,000 loss on disposal--- D

Explanation:

The cost of the plant asset = $300,000

Depreciation for current year = $120,000

Book value of the plant = cost of the plant-Depreciation value

=$300,000 - $120,000

=$180,000

But the sale of Plant = $100,000

Therefore the profit /loss of plant = Sale of asset -  Cost of Asset

=$100,000 -$180,000

=-$80,000 which is a loss.

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Sergio [31]
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5 0
2 years ago
The Nixon Corporation’s common stock has a beta of 1.7. If the risk-free rate is 4.8 percent and the expected return on the mark
Archy [21]

Answer:

13.64%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.8% + 1.7 × (10% - 4.8%)

= 4.8% + 1.7 × 5.2%

= 4.8% + 8.84%

= 13.64%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium

6 0
3 years ago
An employee earns $5,550 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $127,200
omeli [17]

Answer:

The amount the employer should record as payroll taxes expense for the employee for the month of January is $695.75

Explanation:

According to the given, The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 4.4%.

The remainder are taken out of the employees' checks as part of their responsibility.

Therefore, to calculate the amount the employer should record as payroll taxes expense for the employee for the month of January we would have to make the following calculation:

Total payroll expense=($5,500 x 0.062) + ($5,500 x 0.0145) +($5,500 x 0.006) +($5,500 x 0.044)

Total payroll expense=$695.75

The amount the employer should record as payroll taxes expense for the employee for the month of January is $695.75

3 0
3 years ago
U.S. appliance manufacturers find that different customs about shopping must be used to determine product design. For instance,
kvv77 [185]

Answer:

U.S. appliance manufacturers would be more likely successful if they used a <u>Transnational</u> marketing strategy

Explanation:

Transnational marketing strategy is a more personalized approach to selling and marketing with target customers need, shopping preferences and specifications put into consideration in the designing of the goods and services.

This strategy applies to the U.S. appliance manufacturers selling to different countries.

Therefore, people in Northern Europe who shop only once a week will be presented with bigger refrigerators while Southern Europeans who shop daily can opt for smaller ones.

7 0
3 years ago
Yehle Inc. regularly uses material Y51B and currently has in stock 457 liters of the material for which it paid $2,619 several w
Sedaia [141]

Answer:

Option A is the correct answer,$5810

Explanation:

The relevant of the Y51B is the cost of replacement,which is the open market price as it is actively being used by Yehle Inc.

Besides, if the quantity currently in inventory is used it has to be replaced at open market price.

Disposal value would have been used if the material in question is not being used

The relevant of 700 liters is given below:

$5.81*1000=$5,810

1000 liters has to be bought not 700 liters as the least quantity available for sale is 1000 liters.

Above,it would be wrong to choose option D as 700 liters is not available

5 0
3 years ago
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