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
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

You might be interested in
Which of the following items would be a way to manipulate the cash flow from operating activities amount on the statement of cas
AysviL [449]

Answer:

<em>C. Recording an item that should be recorded as an operating activity as an investing activity. </em>

Explanation:

<em>Hope it helped</em>

6 0
3 years ago
Read 2 more answers
what was the role of Winnie madikizela-mandela in the struggle against apartheid in the 1950s to 1970s​
dangina [55]
Winnie Mandela emerged as a leading opponent of apartheid during the latter part of her husband's imprisonment. Due to her political activities, she was regularly detained by the National Party government. ... While in exile in Brandfort, she, and those who attempted to assist her, were harassed by the apartheid police.
6 0
2 years ago
Which of the following is an example of a cost that varies in total as the number of units produced changes? a. property taxes o
fenix001 [56]

Answer:

b. direct materials cost

Explanation: The cost of production of a product is determined by the sum of different factors needed for the production, these factors include direct and indirect labor force cost, amortized costs of the machinery and supplies. the depreciation of the machinery on factory equipment depends on the lifetime of the machinery, not in the daily use of the same equipment. in that case, it does not vary according to the units produced.

The property taxes on factory buildings are applied to the total properties belonged by the company, it is not affected by the production levels.

The salary of a production supervisor is a constant cost that does not change per the production level, in this specific case, the supervisor is nor being paid per unit, so the payment will be the same every month.

In the case of direct materials cost, as the company is producing more products it is necessary to increase the supplies used for the specific product, as an example if you want to produce 20 dolls you will need 20 toy heads, but if you want to produce 50 dolls you will need 50 toy heads; in this case the cost of the materials varies according to the units that the company wants to produce

7 0
3 years ago
Read 2 more answers
Based on your knowledge of word parts, complete the sentence with the correct word. sam had to mix __________ parts of the two c
AURORKA [14]
The answer for this question is. Sam had to mix equal parts of the two chemicals for the experiment. When we say equal, the same in number or amount. If equitably, dealing fairly or equitably with everyone. If equation, a complicated situation or issue. So the right answer is equal. 
0 0
3 years ago
Read 2 more answers
On February 1, 2020, Pat Weaver Inc. (PWI) issued 7%, $1,200,000 bonds for $1,500,000. PWI retired all of these bonds on January
OLEGan [10]

Answer:

$55,200 gain

Explanation:

Calculation to determine How much gain or loss should be recognized on this bond retirement

First step is to determine the Book value on date of sale

Book value on date of sale=$1,200,000+$127,200

Book value on date of sale=$1,327,200

Second step is to calculate the Retired value of bonds

Retired value of bonds =$1,200,000*106

Retired value of bonds=$1,272,000

Now let determine the Gain on bonds retirement

Using this formula

Gain on bond retirement=Book value on date of sale-Retired value of bonds

Let plug in the formula

Gain on bond retirement=$1,327,200-$1,272,000

Gain on bond retirement=$55,200 gain

Therefore the amount of gain that should be recognized on this bond retirement will be $55,200 gain

5 0
2 years ago
Other questions:
  • How can poor education facilities be improved
    6·1 answer
  • Suppose you have a balance of $3000 on a credit card. Using the formula from Part G, consider the following scenarios:
    6·1 answer
  • Victor works for a company that highly values performance-oriented traits, such as achieving a certain level of sales and increa
    15·1 answer
  • In a response to public outcry over the Internal Revenue Service’s (IRS) extent and abuse of power, the Federal government has d
    8·1 answer
  • Government agencies are which of the following?
    13·2 answers
  • Andy Pearson ran PepsiCo Inc. for nearly 15 years, driving revenues from $1 billion to $8 billion. In 1980, Fortune named him on
    10·1 answer
  • Gelb Company currently manufactures 40,000 units per year of a key component for its manufacturing process. Variable costs are $
    11·1 answer
  • Two securities have a covariance of 0.022. If their correlation coefficient is 0.52 and one has a standard deviation of 15%, wha
    15·1 answer
  • A satellite radio company is the sole supplier of a brand-new service providing commercial-free music that competes with existin
    13·1 answer
  • Cho plans to manage the business, which means that she will have to quit her current job. Suppose that the interest rate (or rat
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!