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LUCKY_DIMON [66]
2 years ago
14

A company bought new heating system for $64,000 and was given a trade-in of $3,400 on an old heating system, so the company paid

$60,600 cash with the trade-in. The old system had an original cost of $57,800 and accumulated depreciation of $52,200. If the transaction has commercial substance, the company should record the new heating system at:
Business
1 answer:
zheka24 [161]2 years ago
7 0

Answer:

$64,000

Explanation:

The Cost price of the item Acquired is measured at fair value. When the Fair Value of Both the Asset Acquired and Asset given up can be determined reliably, the fair value of the asset given up will be used. Unless, the fair value of the asset acquired is more evident, that value may be used.

<u>Measurement of New Heating System :</u>

Cash                           $60,600

Add Trade In Value      $3,400

Total                           $64,000

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If, as your taxable income decreases, you pay a smaller percentage of your taxable income in taxes, then the tax is
guajiro [1.7K]

If, as your taxable income decreases, you pay a smaller percentage of your taxable income in taxes, then the tax is  Progressive tax.

<h3>What is meant by progressive taxes?</h3>

The average tax burden rises with income under a progressive tax. Low- and middle-income taxpayers bear a disproportionately tiny amount of the tax burden, compared to high-income families. A tax system that raises rates as taxable income rises is known as a progressive tax. Taxes on investment income, interest income, rental income, estates, and tax credits are a few examples of progressive taxes.

Based on the amount of tax you must pay relative to your income, taxes can be classified as regressive, proportional, or progressive. As your income declines, regressive taxes force you to pay a bigger proportion of your individual income in taxes. Tax reductions enhance people' discretionary income while reducing the government's revenue. Tax reductions typically refer to decreases in the percentage of income, commodities, and services subject to tax. Tax reductions serve as an illustration of an expansionary fiscal strategy since they give consumers greater discretionary income.

So, If, as your taxable income decreases, you pay a smaller percentage of your taxable income in taxes, then the tax is Progressive tax.

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5 0
1 year ago
Madrid Company plans to issue 9% bonds with a par value of $5,300,000. The company sells $4,770,000 of the bonds at par on Janua
ASHA 777 [7]

Answer and Explanation:

The journal entry are as follows

1. Interest expense $214,650

       To Cash $214,650

(Being the first interest payment is recorded)

The computation is shown below

= $4,770,000 × 9%  × 6 months ÷ 12 months

= $214,650

For recording this we debited the interest expense as it increased the expenses while on the other hand the cash is paid which reduced the cash balance so it is credited

2. Cash $530,000

      To Bond payable $530,000

(Being the cash sale of bond is recorded)

For recording this we debited the cash as cash is received that increased the cash balance and at the same time we credited the bond payable

5 0
3 years ago
Sarasota Company purchased a machine at a price of $103,200 by signing a note payable, which requires a single payment of $130,0
nlexa [21]

Answer:

-7.407%

Explanation:

Let interest rate be x%

Present value of payment = $130,002 * PV of discounting factor (rate%, time period)

$103,200 = $130,002 * 1.0x^3

1.0x^3 = $103,200 / $130,002

1.0x = ($103,200 / $130,002)^(1/3)

1.0x = 0.793834^(1/3)

1.0x = 0.92592660981

x = (0.92592660981 - 1) * 100

x = -0.07407*100

x = -7.407%

3 0
2 years ago
Chapter 44 discusses the "executive" and the "independent" administrative agencies. The primary distinction between the two type
MrMuchimi

Answers:

It won't be advisable to transform this executive agencies to independent agencies, because it will reduce the power of the president, and therefore reducing the ability of the president to carry on it's agenda.

ADVANTAGE OF THE TRANSFORMATION:

1) Their will discharge their duties without any political influence.

2) The president will not longer have strong influence on their decision.

3) Each head of the agency will have a specific time and duration for it plans to be achieved before the end of it's tenure.

DISADVANTAGE OF THE TRANSACTION:

1) It will develop fight for power and control in the decisions of the agency, between the president and the head of the agency.

2) it will take away harmony been seen between the president office and the agency.

3) it will reduce the power been invested in the president in carrying on a better administration.

Executive heads owe allegiance to the president, because their are appointed by the president, and can only be removed by the president. During appointment, the president usually appoints it's loyalist that is qualified to head the agency. This is why some of their heads resign, when their can no longer cope with the will of the president.

8 0
3 years ago
Mathew had purchased 100 shares of Blue Corporation for $100 per share. Currently, the stocks of Blue Corporation are trading at
solong [7]

Answer:

B) 50%

Explanation:

Matthew's total return on investment = (current price - original purchase price) / original purchase price

= ($150 - $100) / $100 = $50 / $100 = 0.5 or 50%

To be able to determine the annual rate of return we would need to know when did Mathew purchase the shares.

6 0
3 years ago
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