Answer:
A loss of $1400
Explanation:
The double-declining method uses twice the straight-line depreciation method rate in calculating the depreciation amount.
The asset has a useful life of 5 years. The straight-line depreciation rate = 1/5 x 100
=20%.
The double-declining rate will be 40%
The depreciation schedule for two years will be as follows.
Open. Bal Dep. rate Dep. Amount Book value
$27,500 40% $11,000 $16,500.00
$16,500 40% $6,600 $9,900.00
The equipment was sold for $8,500
net gain or loss will be the selling price - book value
=$8,500 - $9,900
=- $1,400
A loss of $1400
Answer:
Owners have limited liability.
Explanation:
A corporation is an entity , established by shareholders or individuals with the aim of making profit. It is a legal entity hence can enter into a contract, can also sue and be sued.
The legal process involved in the establishment of corporation is called incorporation. It contains the main reason why the corporation is in business, name and office address, types and number of shares to be issued.
Because the business is incorporated and also a legal entity, it means that the owners are protected personally should their be any litigation against the corporation. Moreover, the liability of the owners are limited to the investment in the corporation.
Reserve ratio was 15% at the balance sheet the whole commercial banking system rather than for a single <u>lend out or invest.</u>
<h3>What is
commercial banking ?</h3>
A financial institution that accepts deposits, provides checking account services, makes different loans, and provides fundamental financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses is referred to as a "commercial bank." Most people conduct their financial business at commercial banks.
Commercial banks generate revenue through making loans, including mortgages, vehicle loans, business loans, and personal loans, and charging interest on those loans. The money needed to fund these loans is provided by customer deposits to banks.
- Commercial banks provide basic banking services, such as deposit accounts and loans, to individuals and small to medium-sized businesses.
- Commercial banks profit from a range of fees as well as from the interest they get on loans.
To learn more about commercial banking from the given link:
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