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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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Answer:

The firm willing to pay a worker chosen at random an amount of $38,000.

Explanation:

This can be calculated as follows:

Amount the firm is willing to pay = (40% × $50,000) + (60% × $30,000) = $20,000 + $18,000 = $38,000.

Therefore, the firm is willing to pay a worker chosen at random an amount of $38,000.

3 0
3 years ago
Blackwelder co. calls a meeting to announce to the media that it is hiring a new ceo and changing the company name to natural ba
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<span>Blackwelder co. calls a meeting to announce to the media that it is hiring a new ceo and changing the company name to natural basics. the company will distribute additional materials at this meeting, which is called a press conference.

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5 0
3 years ago
Kingbird, Inc. accounting records show the following at the year ending on December 31, 2022.
Sunny_sXe [5.5K]

Answer:

the cost of goods sold under the periodic system is $690,320

Explanation:

The computation of the cost of goods sold under the periodic system is as follows:

Cost of goods sold = Beginning inventory + Purchases - Purchases discount - Purchase return and allowance + Freight in  - Ending inventory

= $41,000 + $705,020 - $11,900 - $13,100 + $16,900 - $47,600

= $690,320

Hence, the cost of goods sold under the periodic system is $690,320

This is the answer but the same is not provided in the given options

7 0
3 years ago
For its fleet of trucks, Overland Transport, Inc., purchased 580 tires rated at 50 pounds each. The tires had a retail price of
Elden [556K]

Answer:

The amount of sales tax per tire = $3.825

The total sales tax = $2,218.50.

Explanation:

These can be be calculated as follows:

Sales tax per tire = Retail price per tire * Sales tax rate = $85 * 4.5% = $3.825

Total sales tax = Number of tire purchased * Sales tax per tire = 580 * $3.825 = $2,218.50

Therefore, the amount of sales tax per tire is $3.825 and the total sales tax is $2,218.50.

4 0
3 years ago
Company ABC makes kitchen appliances that have many features in great demand by professional chefs whose only interest is in the
weeeeeb [17]

Answer:

d. quality.

Explanation:

-Delivery area refers to the places in which the appliances can be delivered.

-Quantity refers to the amount of appliances that the company can produce and sell.

-Price refers to the amount of money that customers would pay for the appliances.

-Quality refers to the degree in which the appliances can meet the customer's requirements.

According to this, the answer is that based on its customers, ABC should try to dominate the market in quality because its products meet the expectations of professional chefs and that should be market to focus on as the company can have an important advantage by providing exactly what they need.

The other options are not right because professional chefs are interested on what they can do with this appliances and not on price, quantity or delievery area.

6 0
4 years ago
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