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Tomtit [17]
3 years ago
7

Q.1Alexander Company purchased a piece of equipment for $12,000 and depreciated it for three years over a five-year estimated li

fe with an expected residual value at the end of five years of $2,000. At the end of the third year, Alex decided to upgrade to equipment with increased capacity and sold the original piece of equipment for $7,200. Calculate the gain or loss on the disposal at the end of the third year.
Business
1 answer:
bekas [8.4K]3 years ago
3 0

Answer:

gain of $3,200

Explanation:

The equipment cost $12,000.

The depreciable amount = Cost price - salvage value

=$12,000 -$ 2,000

=$10,000

The equipment was being depreciated over five years. The depreciation rate will be

=1/5 x 10=0.2

=20%

Depreciation per year will be

=20/100 x $10,000

=0.2 x $10,000

=$2,000 per year

Depreciation for 3 years

=$2,000 x 3

=$6,000

The book value of the equipment after three years will be

=cost price - accumulated depreciation

=$10,000 - $6,000

=$4,000

The equipment was sold for $7,200

the gains will be selling price - book value

=$7,200 - $4,000

=$3,200

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12–2. Offer and acceptance. Schmidt, the owner of a small business, has a large piece of used farm equipment for sale. He offers
Fiesta28 [93]

Answer:

Schmidt, the owner of a small business, has a large piece of used farm equipment for sale. He offers to sell the equipment to Barry for $10,000. Discuss the legal effects of the following events on the offer:  

• Schmidt dies prior to Barry’s acceptance, and at the time he accepts, Barry is unaware of Schmidt’s death.  

• The night before Barry accepts, fire destroys the equipment.  

• Barry pays $100 for a thirty-day option to purchase the equipment. During this period, Schmidt dies, and later Barry accepts the offer, knowing of Schmidt’s death.  

• Barry pays $100 for a thirty-day option to purchase the equipment. During this period, Barry dies, and Barry’s estate accepts Schmidt’s offer within the stipulated time period.

Explanation:

A contact is a binding agreement between two or more people.

Schmidt dies prior to Barry’s acceptance, and at the time he accepts, Barry is unaware of Schmidt’s death: Schmidt's death would normally null this offer but because Barry is unaware of his death at the time of acceptance, and the offer is not for a personal service, the offer holds.

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5 0
3 years ago
Dora earns 50,000 a year at her johs. when she was given a raise of 5,000 her spending increased from 50,000 to 54,000 calvulate
weqwewe [10]
Given:
ΔY = $5,000, the change in income
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By definition,
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MPC = 1.8

Answer:
MPS = 0.8
MPC = 1.8


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