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Ipatiy [6.2K]
2 years ago
11

Marigold Corp. purchased machinery for $1232000 on January 1, 2017. Straight-line depreciation has been recorded based on a $860

00 salvage value and a 5-year useful life. The machinery was sold on May 1, 2021 at a gain of $21500. How much cash did Marigold receive from the sale of the machinery
Business
1 answer:
Elenna [48]2 years ago
4 0

Answer: $260,300

Explanation:

Depreciation per year was = (1,232,000 - 86,000) / 5

= $229,200

In 2021 May 1, 4 years and 4 months would have elapsed. Depreciation would be;

= 229,200  * 4.3333

= $993,200‬

Net book value on date of sale is;

= 1,232,000 - 993,200

= $238,800

If Gain of $21,500 was realized, cash price was;

= 238,800 + 21,500

= $260,300

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<h3>What is opportunity cost ?</h3>

The opportunity cost of a particular activity option in microeconomic theory is the loss of value or benefit that would be incurred by engaging in that activity, as opposed to engaging in an alternative activity that offers a higher return in value or benefit.

The value of the next best alternative or option is referred to as the opportunity cost. This value may or may not be monetary. Value can also be measured using other criteria such as time or satisfaction. One formula for calculating opportunity costs could be the ratio of what you give up to what you gain.

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2 years ago
Carrie's Car Care receives more than 25% of its total sales revenues from operations outside of the United States. Carrie's woul
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The answer is: E) None of these.

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3 years ago
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