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tatiyna
3 years ago
13

Dodson Company traded in a manual pressing machine for an automated pressing machine and gave $8,000 cash. The old machine cost

$93,000 and had a net book value of $71,000. The old machine had a fair market value of $60,000. Which of the following is the correct journal entry to record the exchange?
a. Equipment 68,000
Loss on Exchange 11,000
Accumulated Depreciation 22,000

Equipment 93,000
Cash 8,000

b. Equipment 68,000

Equipment 60,000
Cash 8,000

c. Cash 8,000
Equipment 60,000
Loss on Exchange 11,000
Accumulated Depreciation 22,000

Equipment 101,000

d. Equipment 123,000

Accumulated Depreciation 22,000
Equipment 93,000
Cash 8,000
Business
1 answer:
Tju [1.3M]3 years ago
4 0

Answer:

a. Dr Equipment 68,000

Dr Loss on Exchange 11,000

Dr Accumulated Depreciation 22,000

Cr Equipment 93,000

Cr Cash 8,000

Explanation:

Preparation of the correct journal entry to record the exchange

Based on the information given the correct journal entry to record the exchange will be

Dr Equipment 68,000

(60,000+8,000)

Dr Loss on Exchange 11,000

(71,000-60,000)

Dr Accumulated Depreciation 22,000

(93,000-71,000)

Cr Equipment 93,000

Cr Cash 8,000

(Being to record the exchange)

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Answer:

$8.78

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The first step is to calculate the rate of return using the CAMP model

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Therefore the current stock price can be calculated as follows

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Where Do= 0.75, g= 0.065, r= 15.6

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At your next meeting with the senior management team, you suggest this, and you're met with a lot of blank looks. The managers d
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Answer and explanation:

Under such a scenario, it is important to highlight that the SWOT analysis is useful to spot the internal Strengths and Weaknesses of the firm as well as the external Opportunities and Threats of the market. The SWOT analysis is a helpful tool that allows companies to understand what their core competencies are as well as the components that need improvement. At the same time, the SWOT analysis gives the firm an idea of what are the sectors of the market that could bring potential profits for the entity and which ones represent potential losses.

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a.

Date                  Account Titles and Explanation        Debit                 Credit

Dec, 31 2020   Cash                                                   $569,609

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Date                  Account Titles and Explanation           Debit             Credit

Dec, 31 2021     Interest Expense                                $350,000

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                           Cash                                                                             $569,609

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Answer:

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