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Oliga [24]
3 years ago
14

Romanova Inc. decides to sell an old piece of equipment and receives $5,000 cash for it. The original cost of the equipment was

$50,000 and it had accumulated depreciation of $47,000 associated with it. Which of the following items would be increased by the sale of the old equipment?
a- Gain on Saleb- Net Incomec- Cash from Operating Activitiesd- Cash from Investing Activitiese- Total Assets
Business
1 answer:
denpristay [2]3 years ago
7 0

Solution :

The carrying value of the asset = 5000-47000

                                                    = 3000

Equipment that is sold for 5000, therefore, the profit is 2000.

The net income gain on the sale - increase, the company is getting a gain from the sale.

The cash from the investing activities-increased. Thus the proceeds from the sale of the assets are recorded as the cash inflow.

The cash from the operating activities -- no change. While we calculate the operating cashflow, the gain on the sale of the assets added back to the income. So there is no change in the total.

The total assets -- increased. The carrying value will be zero after the sale, however, the cash on the balance sheet is then increased and it also captures gain. Now in order to balance the both sides, the net income increases the retained earnings section.

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EB11.
Natasha2012 [34]

Answer:

The journal entry to record the factory wages of $25,000 incurred in the processing department is given below.

Debit   Processing Department (WIP Asset)      $ 25,000

Credit  Factory Wage (Liability)                           $ 25,000

The journal entry to record the factory wages of $15,000 incurred in the production department.

Debit   Production Department (WIP Asset)      $ 15,000

Credit  Factory Wage (Liability)                           $ 15,000

Please note that these work in process are asset accounts and the cost of inventory is expenses as goods are sold.

3 0
3 years ago
If a limited partner actively participates in day-to-day management of the business, he or she may forfeit limited partner statu
Tom [10]

Answer:

If a limited partner actively participates in day-to-day management of the business, he or she may forfeit limited partner status and lose limited liability for debts and liabilities: Given statement is a. True

Explanation:

A limited partner are also known as silent partners. They are part owners whose liability of the debts of the firm cannot exceed the amount that he invested in the company.

A limited partnership would have one general partner and at least one limited partner. The general partner is the one who manages the business from day-to-day.

Limited partners do not manage the day-to-day affairs of the business. In case they do, they are then treated as general partners. And would lose the limited liability for debts as stated in the statement. This, it is true.

7 0
3 years ago
Norway's government nationalized the country's oil resources, and it has been accumulating a massive sovereign wealth fund worth
kodGreya [7K]

Answer:

The correct option is D

Explanation:

Nationalization refers to when a company or industry is taken over by a government. And by doing so the government increases its revenue which is used in serving the state and its people.

8 0
3 years ago
Net Present Value Analysis [LO12-2] Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mi
pashok25 [27]

Answer:

NPV = $-56,153.55

The project should not be accepted because the NPV is negative

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

because it is the most profitable.

Cash flow in year 0 = $275,000 + $100,000 = $-375,000

Cash flow in year 1 = $ 120,000

Cash flow in year 2 = $ 120,000

Cash flow in year 3 = $ 120,000 - $40,000 = $80,000

Cash flow in year 4 = $ 120,000 + $65,000 = $185,000

I = 20%

NPV = $-56,153.55

The project should not be accepted because the NPV is negative

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

6 0
3 years ago
There are six printers at "Today's news" newspaper, each printing at the same constant rate. Working together, the six printers
MrRissso [65]

Answer:

Explanation:

Given:

Today:

Number of printers = 6

Work duration = 12 hours

Tomorrow:

Work duration = 8 hours

At the same rate of printing,

If 6 printer were used to print newspapers for 12 hours.

Only 1 printer will work for 12 × 6 hours at the same rate

But is the printers were 8, (12 × 6)/8

= 9 printers.

Initial number of printers = 6 printers

Additional printers to be purchased = 9 - 6

= 3 printers

3 0
3 years ago
Read 2 more answers
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