1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Arte-miy333 [17]
2 years ago
8

During the current year, Rayon Corporation disposed of two different assets. On January 1, prior to their disposal, the accounts

reflected the following:
Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line)
Machine A $55,000 $12,300 7 years $24,400 (4 years)
Machine B 15,800 2,700 5 years 7,860 (3 years)

The machines were disposed of in the following ways:

a. Machine A: Sold on January 2, for $35,100 cash.
b. Machine B: On January 2, this machine was sold to a salvage company at zero proceeds (and zero cost of removal).

Required:
Give the journal entries related to the disposal of Machine A and Machine B on January 2 of the current year.
Business
1 answer:
julsineya [31]2 years ago
7 0

Answer and Explanation:

The journal entries are shown below:

1) Journal entry

On Jan 2

No journal entry is required  

On Jan 2

Cash $35100  

Accumulated depreciation-Machine A $24400  

          To Gain on sale of machine A  4500

         To Machine A  55000

(Being the sale of machine A is recorded)  

2) Journal entry

On Jan 2

No journal entry is required  

On Jan 2  

Accumulated depreciation-Machine B 7860  

Loss on disposal of machine B 7940  

           To Machine B  15800

(Being disposal of machine B is recorded)  

You might be interested in
What does an effective business begin with?
Vilka [71]

Answer:

trust, rules and schedules, a plan on what your selling, those products

Explanation:

I'm just saying what I think makes an effective business

3 0
3 years ago
West Corp. leased a building and received the $36,000 annual rental payment on June 15, 2004.
Shtirlitz [24]

Answer:

$7,200

Explanation:

West should recognize 6 months of rent during 2004 = $36,000 x 6/12 = $18,000

So West will recognize the remaining $18,000 in rent during 2005, but it decided that the operation will be taxed completely during 2004.

Since the future taxable income will be less than the future pre-tax accounting income be $18,000, then they must report a deferred tax asset = $18,000 x 40% = $7,200

The current tax rate is lower than the future tax rate, but West has to record its tax asset based on the future tax rate, not the current one.

3 0
3 years ago
The required rate of return on the stock of Knight Titles is 8%. Its expected ROE is 10% and its expected earnings per share thi
tensa zangetsu [6.8K]

Answer:                   Ke = 8% = 0.08  

                              ROE = 10% = 0.10

             Expected EPS = $6

      Plowback rate ( b)  = 40% = 0.40

 Dividend per share (D) =  60%x $6 = $3.60

                                   Po =  D(1+g )/ke-g              

                                   Po = $3.6(1+0.04)/0.08-0.04

                                   Po = $3.744/0.04

                                   Po = $93.60

The current market price is $93.60

The price-earnings ratio = market price per share/Earnings per share

                                          = $93.6/$6

                                           = 15.6

The correct answer is C

Explanation: The price-earnings ratio is the ratio of market  price per share to earnings per share. In this scenario, it is important to obtain the market price per share using the above formula. Thereafter, the market price per share is divided by the earnings per share. There is need to calculate the dividend per share based on the retention rate of 40%. since the retention rate is 40%, the dividend pay-out rate will be 60%. Thus, dividend is 60% of the expected earnings per share. The estimation of growth rate (g) is based on Gordon's growth model, which is g = r x b. r represents return on equity while b denotes the plowback(retention rate).                

4 0
3 years ago
Explain the act you researched performed by a corporation that is legal but strikes you as wrong or unethical.
Yakvenalex [24]

It should be noted that an act that is legal but unethical is the payment of minimum wage to full-time employees.

<h3>Legal but unethical practices.</h3>

An act that is legal but unethical is the payment of minimum wage to full-time employees.

In this case, even though the minimum wage is legal and it's a federal law, those often for minimum wages usually run into debt when they are unable to meet their expenses.

Some companies take advantage of the minimum wage and pay their employees less wages when though they're aware that the employees deserve more wages. This is unethical even though it's legal.

Learn more about ethics on:

brainly.com/question/18401975

8 0
2 years ago
Peter, an analyst at Grotesque Tech (GT), models the stock of the company. Suppose that the risk-free rate rRF = 5%, the require
Vinvika [58]
I think it’s A but I do t really know cause I didn’t read anything
3 0
2 years ago
Other questions:
  • All else equal, a large increase in deferred revenue in the current period would be expected to produce what effect on revenue i
    14·1 answer
  • 1. Congress passed the Sarbanes-Oxley Act to ensure that investors invest only in companies that will be profitable.
    10·1 answer
  • What is income not used for consumption called?
    8·1 answer
  • The U.S. imposes substantial taxes on cigarettes but not on loose tobacco. When the tax on cigarettes went into effect, the dema
    14·2 answers
  • When going into a partnership, you should always:_________.
    11·1 answer
  • The tax on a property with an assessed value of $ 68 comma 000 is $ 550. Using a​ proportion, find the tax on a property with an
    9·1 answer
  • At June 1, 2022, Massoth Industries had an Accounts Receivable balance of $18,000. During the month, the company had credit sale
    14·1 answer
  • Green Corporation's assets are valued at $1,502,000 after payment of all corporate debts, except for $225,300 of taxes payable o
    14·1 answer
  • __________ is marketing research to better describe marketing problems, situations, or markets such as the market potential for
    9·1 answer
  • Butterfly Corp. manufactures products M1 and M2 from a joint process, which also yields a by-product, B1. Butterfly accounts for
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!