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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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A company approves a large capital investment and implements a global computer system​ (for example, an Enterprise Resource Plan
SpyIntel [72]

Answer:

Structural

Explanation:

Due to supporting process and deeply infrastructure technology ERPs (Enterprise Resource Planning) are pillars that support all ongoing core and management process by providing all resources, information, energy and everything that is needed to produce value (products, services and projects) as part of the principal goal of any company.  

6 0
3 years ago
A firm concludes a counterpurchase agreement with a foreign country for which it receives some counterpurchase credits for purch
andrezito [222]

Answer:

This is an example of switch trading.

Explanation:

Switch trading is defined as a practice where one company goes into agreement with another company located in a different country to commit in the purchase of each company’s goods and services. This common practice is part of the countertrading category, which is the exchange of goods and services with other goods and services. Other examples of countertrading include barter, counter purchase, buyback, offset, and compensation trade.

5 0
3 years ago
Anthony’s rate of pay is $8.36 per hour. Last week, Anthony worked 33 hours, What is the gross pay for the week for Anthony?
velikii [3]
First to get the answer your self all you need to do is divide 7 in to how many hours then boom you got the answer
3 0
3 years ago
You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.32 per share and is tr
MrMuchimi

Answer:

The 1-year HPR for the second stock is <u>12.84</u>%. The stock that will provide the better annualized holding period return is <u>Stock 1</u>.

Explanation:

<u>For First stock </u>

Total dividend from first stock = Dividend per share * Number quarters = $0.32 * 2 = $0.64

HPR of first stock = (Total dividend from first stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($0.64 + ($31.72 - $27.85)) / $27.85 = 0.1619, or 16.19%

Annualized holding period return of first stock = HPR of first stock * Number 6 months in a year = 16.19% * 2 = 32.38%

<u>For Second stock </u>

Total dividend from second stock = Dividend per share * Number quarters = $0.67 * 4 = $2.68

Since you expect to sell the stock in one year, we have:

Annualized holding period return of second stock = The 1-year HPR for the second stock = (Total dividend from second stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($2.68+ ($36.79 - $34.98)) / $34.98 = 0.1284, or 12.84%

Since the Annualized holding period return of first stock of 32.38% is higher than the Annualized holding period return of second stock of 12.84%. the first stock will provide the better annualized holding period return.

The 1-year HPR for the second stock is <u>12.84</u>%. The stock that will provide the better annualized holding period return is <u>Stock 1</u>.

6 0
3 years ago
The price of diamonds is high, in part because the majority of the world’s diamonds are controlled by a single firm. This is an
kirill115 [55]

Answer:

Option (b) is correct.

Explanation:

This is a case of monopoly market condition where there is a single firm operating the whole market. The price of the products is set by the single firm and the buyers in this market are price taker. The monopolist can earn normal profit, losses and abnormal profit in the short run and can earn normal profit and abnormal profit in the long run.

In our case, the price of diamonds is high because there is only single firm in the whole market and there is no other competitors in the market. That's why they are charging the higher prices.

5 0
3 years ago
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