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k0ka [10]
3 years ago
5

Sumner sold equipment that it uses in its business for $32,000. Sumner bought the equipment a few years ago for $79,000 and has

claimed $39,500 of depreciation expense. Assuming that this is Sumner's only disposition during the year, what is the amount and character of Sumner's gain or loss?
Business
1 answer:
astra-53 [7]3 years ago
7 0

Answer:

Loss= $7,500

Explanation:

<u>First, we need to calculate the book value of the equipment:</u>

<u></u>

Book value= purchase price - accumulated depreciation

Book value= 79,000 - 39,500

Book value= $39,500

<u>If the selling price is higher than the book value, the company made a profit by selling the equipment. </u>

<u></u>

Gain/loss= selling price - book value

Gain/loss= 32,000 - 39,500

Loss= $7,500

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he next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4.
Elan Coil [88]

Answer:

The Required Return is 10.82%.

Explanation:

The Dividends Model for the Constant Growth is given below:

                                          P0 = D1 / (Ke - g)

Arranging the above equation for "Ke", that is the Required Return:

                                      ⇒ Ke = (D1 / P0) + g

Putting Values and we get:

Required Return = Ke = (2.34 / 37) + .045 = .1082 = 10.82%.

Thanks!

8 0
3 years ago
Determine the ending inventory under the conventional retail method for the furniture department of Mayron Department Stores fro
Alisiya [41]

Answer:

$199,541.51

Explanation:

5 0
3 years ago
Carolina is the vice president of the environmental club at her high school. She is in charge of e-mailing members about upcomin
Basile [38]

Answer:

Downward communication

Explanation:

She is a higher up in the club, and conveys information to the rest of the club members, who don't have as much of an important position. Her job is to move information given to her to the rest of the members.

4 0
2 years ago
Suppose that interest rates decrease. Holding everything else constant, determine what happens to aggregate demand and its compo
RUDIKE [14]

Answer:

When interest rates decrease, It causes a ripple effect in the economy that stimulates growth and wealth creation. In the long run, it might cause inflation.

Explanation:

  • If interest rates decrease, consumption increases because there is more disposable income available in each household.
  • If interest rates decrease, investment increases since the cost of borrowing is cheaper.
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5 0
3 years ago
Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single p
Margarita [4]

Answer:

$93,600

Explanation:

The computation of the total contribution margin is shown below:

Given that

For 5,100 sales unit, the contribution margin is $91,800

So, for 5,200 sales units, the contribution margin would be

= Contribution margin × new sales units ÷ previous sales units

= $91,800 × 5,200 units ÷ 5,100 units

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All other information which is given is not relevant. Hence, ignored it

5 0
3 years ago
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