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Delvig [45]
2 years ago
5

Palepu Company owns and operates a delivery van that originally cost $38,080. Straight-line depreciation on the van has been rec

orded for three years, with a $2,800 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the third year, at which time Palepu disposes of this van.
a. Compute the net book value of the van on the disposal date.
b. Compute the gain or loss on sale of the van if the disposal proceeds are:

1. A cash amount equal to the van's net book value.

a. $13,000 cash.
b. $10,000 cash
Business
1 answer:
Readme [11.4K]2 years ago
4 0

Answer and Explanation:

The computation is shown below;

But before that the depreciation expense per year is

Depreciation per year = (Cost - Residual value) ÷ Useful life

= ($38,080 - $2,800) ÷ 6 years

= $5,880

1.Net book value as on disposal date is

= $38,080 - ($5,880  × 3)

= $20,440

2.

We know that

Gain on sales = (Sales - Book value)

Gain = $(20,400 - 20,400) = 0

a. Loss = $13,000 - $20,440 = -$7,440

b. Loss = $10,000 - $20,440 = -$10,440

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7 0
3 years ago
Suppose that instead of using a forward contract, you consider using options. A one-year call option to buy euros at a strike pr
Stells [14]

Answer:

Sell the put option. The put option is better and advantageous .

Explanation:

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The employees of Pi's Pizza, a local pizza restaurant, feel that the owners and managers really try to follow the ethical polici
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c. ethical climate.

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I hope you find this information useful and interesting! Good luck!

6 0
3 years ago
Explain the measures of customer service that are influenced by the structure of the distribution network.
Nikitich [7]

Answer:

1. Response time or Time Response

2. Product variety or variety of the products

3. Availability

4. The Customer experience

5.The Order visibility

6. Returnability

Explanation:

Below is the Explanation of the measures of customer service that are influenced by the structure of the distribution network.

We have 6 measures of customer service that are influenced by the structure of the distribution network and they are:

1.Response time can be defined as the time between when a customer places an order and when the customer receives the delivery.

2. Product variety can be seen as the number of different products that a customer wish and desires from the distribution network.

3. Availability can be defined as the probability or likelihood of a company or an organisation to have a product in stock when a customer order arrives or when a customer places an order.

4.Customer experience can be seen as the the ease that occur when a customer place and receive their order.

5. Order visibility can be defined as the ability of the customer to track their own order from the time of placement to delivery.

6.Returnability can be defined as the ease with which a customer return merchandise or product that they are unsatisfied with and the strength or the ability of the network to handle such returns.

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3 years ago
If the market wage decreases from 30 ($/hr) to 20 ($/hr), what is the decrease inthe net benefit achieved from working in the ec
igomit [66]

Answer:

Please see below

Explanation:

A. Decreasing the wage rate leads to an increase in the quantity of labor demanded. Which leads to increased production and ultimately can lead to an increase in a firm's profit if other factors are left constant.

B. The two factors at work is demand and supply.

8 0
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