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omeli [17]
3 years ago
11

Abbott Landscaping purchased a tractor at a cost of $29,000 and sold it three years later for $15,700. Abbott recorded depreciat

ion using the straight-line method, a five-year service life, and a $4,000 residual value. Tractors are included in the Equipment account.
Required:
Record the sale of equipment.
Business
1 answer:
Luda [366]3 years ago
7 0

Answer:

Cash                                             15700 Dr

Accumulated depreciation         15000 Dr

   Equipment - Tractor                       29000 Cr

   Gain on sale - Equipment               1700 Cr

Explanation:

The straight line method of depreciation charges a constant depreciation expense per year throughout the useful life of the asset. The formula for depreciation expense under this method is,

Depreciation expense = (Cost - Residual value) / Estimated useful life of the asset

Depreciation expense per year = (29000 - 4000) / 5 = $5000 per year

As the asset was sold after three years, the accumulated depreciation on the asset would be = 5000 * 3 = $15000

The NBV or carrying value of the asset will be = 29000 - 15000 = 14000

The gain on sale of equipment will be = 15700 - 14000 = $1700

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7 0
2 years ago
A salesperson is offering promissory notes for a company selling coffee at drive-through kiosks. The notes pay a 13% interest ra
OverLord2011 [107]

Answer:

Legitimate promissory notes are marketed to sophisticated, corporate investors that have the ability to thoroughly research the company issuing the notes and determine whether the issuer will be able to repay principal and interest.   There have been many instances of "promissory note fraud" where unlicensed individuals push bogus promissory notes that are sold as investments that offer above-market fixed interest rates and safeguarding of principal - and most of there are frauds.  This is a major concern to state regulators.

To offer a promissory note, both the salesperson and the note must be registered in the state.  Only promisory notes that have maturities of 9 months or less, that are investment grade, and are sold in minimum increments of $50,000 are exempt from registration.  

Finally, the tell-tale sign of fraud are:

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4 0
3 years ago
The wall separating Henri from his manager made it hard to hear what his manager was saying. The wall is an example of a(n) ____
aksik [14]

Based on the information given the wall is an example of a(n) physical barrier.

Physical barrier is barrier that block or obstruct the flow of communication thereby making it difficult for the receiver to hear.

Physical barrier can tend to lead to ineffective communication between two or more people due to the disruption of failure in communication that occur as a result of the barrier.

Wall  is an example of physical barrier as they can prevent effective communication thereby by making it hard for the receiver to hear what the sender communicated to him or her.

Inconclusion  the wall is an example of a(n) physical barrier.

Learn more about physical barrier here:brainly.com/question/902393

8 0
2 years ago
In​ economics, the short run is the time frame in which​ ______ and the long run is the period of time in which​ ______. A. the
Marina86 [1]

Answer:the quantities of some factors of production are​ fixed; the quantities of all factors of production can be varied - D

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In the short run, some factors of production are fixed, which is usually the capital. Therefore for a company to increase output, it would need employ more workers, but would not increase capital.

Therefore in the short run, we can get diminishing marginal returns, which may cause marginal costs to start increasing quickly.

Also, in the short run, prices and wages fall out of equilibrium because a sudden rise in demand may lead to higher prices, and companies may not have the the capacity to respond and increase supply.

Long run

In the long run, usually greater than 6 months, all main factors of production are variable. The company has time to build a bigger one making it respond to changes in demand which means that a sudden rise in demand, would have a complimentary increase in supply to meet the demands and prices can be adjusted.

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6 0
3 years ago
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lukranit [14]

Answer:

C. Like-Kind exchange

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7 0
3 years ago
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