There will be a higher equilibrium price and quantity if ____

On January 1, 2013, US Manufacturing purchased a machine for $ 830,000. The company expected the machine to remain useful for

inessss [21]

Answer and Explanation:

The computation and the journal entry is shown below:

1. For accumulated depreciation, first we have to find out the depreciation expense using the straight line method

= (Original cost - salvage value) ÷ (Useful life)

= ($830,000 - $60,000) ÷ (10 years)

= $77,000

Now the accumulated depreciation for 5 years is

= $77,000 × 5 years

= $385,000

2. Now the journal entry is

Cash $300,000

Loss on sale or disposal $145,000

Accumulated Depreciation - Machine equipment $385,000

To Machine equipment $830,000

(Being the sale of the machinery is recorded)

For recording this we debited the cash, loss and accumulated depreciation as it increased the assets, losses, and the accumulated depreciation balance and credited the machine equipment as it decreased the assets

3 0

4 years ago

A change in Accounting Method would be necessary because of which of the following circumstances?

charle [14.2K]

Answer:

b) A decrease in ownership percentage from 25% to 15%

Explanation:

There is change in accounting method when the shareholding is 20% or more.

Under Consolidation there are two methods:

Equity method: This is used when the shareholding is 20% or more, and there is significant influence. Under this method all the assets and liabilities are accumulated in the consolidated balance sheet.

Proportional Consolidation method: This is generally used when the shareholding is merely shown as an investment, and the balances of assets and liabilities are not accumulated.

Thus, there is a change in method of accounting when the shareholding is more than 20%. This is in case b as change is from 25% to 15% and thus, it will change from equity method to proportional consolidation method.

5 0

3 years ago

Ned is a head of household with a dependent son, Todd, who is a full-time student. This year Ned made the following expenditures

UNO [17]

Answer: D. $600 included in Ned's medical expenses

Explanation:

The amount that Ned can include in his itemized deductions will be the $600 that's included in Ned's medical expenses.

It should be noted that the medical expenses will be under the itemized deductions. On the other hand, the other options will be under the miscellaneous itemized deductions. Therefore, the correct option is D.

5 0

3 years ago

Under Title VII, employers who have had an incident of sexual harassment reported to them:

omeli [17]

Answer:

A) are required to take some action to investigate the complaint.

B) can be held liable in tort for their inaction.

Explanation:

Title VII of the Civil Rights Act of 1964 prohibits discrimination in any aspect of employment, e.g. race, color, gender, religion, etc.

Title VII states that sexual harassment is a form of discrimination.

Sexual harassment happens when, including but not limited to the following:

The victim as well as the harasser may be a woman or a man, they don't have to be of the opposite sex.
Any member of the organization may be a harasser, e.g. victim's supervisor, a co-worker, etc.
A person doesn't need to be specifically harassed but can be anyone affected by the offensive conduct.
Sexual harassment may occur without economic treat or damage to the victim.
The offensive conduct must not be welcomed nor reciprocate.

7 0

4 years ago

Based on the projections, Decker will have a. a financing deficit of $36 b. a financing surplus of $36 c. zero financing surplus

GalinKa [24]

Answer:

B, A financing surplus of $36

Explanation:

As the question is incomplete so firstly I am going to write the question for you first and its solution

Question: Decker Enterprises Below are the simplified current and projected financial statements for Decker Enterprises. All of Decker's assets are operating assets. All of Decker's current liabilities are operating liabilities. Income statement Current Projected Sales na 1,500 Costs na 1,080 Profit before tax na 420 Taxes (25%) na 105 Net income na 315 Dividends na 95 Balance sheets Current Projected Current Projected Current assets 100 115 Current liabilities 70 81 Net fixed assets 1,200 1,440 Long-term debt 300 360 Common stock 500 500 Retained earnings 430 650 Based on the projections, Decker will have

Solution :

We need to find total assets first

Current assets = 115

Net fixed assets = 1440

Total assets = 115+1440= 1555

Secondly, we need to find sum of liabilities and stockholder equities to compare them with Total assets.

Liabilities = current liabilities + long term debt

Liabilities = 81 + 360 = 441

Equity = Common stock + retained earnings

Equity = 500 + 650 = 1150

Total equity + liabilities = 1591

Financial Deficit/Surplus = Total assets - Total liabilities and stockholder equity

Financial Deficit/Surplus = 1555 - 1591

Financial Deficit/Surplus = -36 surplus

8 0

3 years ago

There will be a higher equilibrium price and quantity if _____.