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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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Statement on Standards for Tax Services No. 1 establishes as a basic principle of providing tax services that the CPA:a. Must ha
ipn [44]

Answer:

a. Must have a good faith belief that the tax return position will be accepted by the IRS.

Explanation:

Certified Public Accountant (CPA) is a term used to refer to the state title of approved accountants in the Uniform Certified Public Accountant Examination. The CPA allows these professionals to issue opinion statements in financial reports, following a few rules. For example, the Tax Services Standards Statement No. 1 states that a basic principle of the provision of tax services that the CPA has is to have a good faith belief that the tax return position will be accepted by the IRS.

3 0
3 years ago
Two countries produce coffee and blueberries. Nicaragua can produce either 25 thousand pounds of coffee or 100 thousand pounds o
Gnom [1K]

Answer:

Columbia has more than 4 coffee & 1 more berry.  

2) Nicaragua has more than 2 coffee & (100-27)= 73 berry, so 1 more berry.

Explanation:

                     Coffee  Berry

Columbia          20             40

Nicaragua          25              100

So Columbia has Comparative ADVANTAGE in Coffee,  

So it specializes in Coffee,   & Nicaragua specializes in Berry  

Initial consumption levels:  

In Columbia ( Coffee, Berry)= (7,26)  

In Nicaragua, (7,72)  

so if Columbia trades 9 Coffee for 27 Berry  

it can have (20-9) = 11 coffee, with 27 Berry  

1) Columbia has more than 4 coffee & 1 more berry.  

2) Nicaragua has more than 2 coffee & (100-27)= 73 berries, so 1 more berry.

5 0
3 years ago
The film noir genre reinforces its dark criminal subject matter by using __________
Brut [27]

The film noir genre reinforces its dark criminal subject matter by using expressive lighting.

Sony corporation pioneered the art of video with the introduction of the first handheld video capture camera, the portapak, in 1965. video signals can be sent to multiple monitors for flexible presentations.

A pioneer in film technology and storytelling forms, D.W. Griffiths is known for his films' success in popularizing close-ups. for example, in one of Griffith's short films, the Lonsdale operator (1911), a character has a close-up wrench pretending to be a weapon.

Seurat utilizes this blending technique with shadows. In traditional painting, shadows are primarily black. following the principle of pointillism, Seurat allows shadows to be defined by the colors they touch.

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5 0
2 years ago
I cant find the right answer:
Whitepunk [10]

Answer : $4938.80

A sinking fund is a term that can be broadly used to describe putting a fixed amount of money aside at regular intervals for a given time frame and investing this money at a given interest rate with an objective of saving a desired amount of money at the end of the time period.

In finance it's referred to commonly as an annuity payment.

For this question, we can use the formula for Future Value of an annuity to arrive at the answer.

FVA = P\left [ \frac{(1+r)^{n}-1}{r}\right ]

where

FVA = future Value of an annuity

P = periodic payment

r = interest rate per period

n = number of periods

The following information is given in the question:

FV = $120,000

Interest Rate = 8% p.a

No. of years = 5 years

No. of compounding periods in a year = 4

So,

i = \frac{Annual Interest rate}{number of compounding periods in a year}

i =0.02

n = {number of compounding periods in a year} * no. of years

n = 20 ( 5 * 4)

Substituting these values in the FVA equation, we have

120000 = P\left [ \frac{(1+0.2)^{20}-1}{0.02}\right ]

120000 = P\left [ \frac{0.485947396}{0.02}\right]

120000 = P * 24.2973698

P= \frac{120000}{24.2973698} = 4938.806175.


6 0
3 years ago
Which of the following statements is correct concerning analytical procedures used in plan- ning an audit engagement?
nata0808 [166]

Answer:

b. They typically use financial and non-financial data aggregated at a high level.

Explanation:

The statement which is correct concerning analytical procedures used in planning an audit engagement is statement B  because the use of financial and non-financial data aggregated at a high level is commonly used during preliminary analytical procedures. Evaluations of financial knowledge gained by the research of PLAUSIBLE RELATIONSHIPS between both financial plus non-financial data. Typically use financial and non-financial data AGGREGATED AT A HIGH LEVEL, they are a Type of Audit Procedure as well as a Type of Evidence (usually practiced in alliance with different kinds of data) as the aforementioned that it is known as analytical procedures.

4 0
3 years ago
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