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DaniilM [7]
3 years ago
11

On January 1, 2020, a company purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck

has a useful life of eight years and an estimated residual value of $8,000. On December 31, 2022, the company sold the truck for $30,000. What amount of gain or loss should the company record on December 31, 2022?
Business
1 answer:
lianna [129]3 years ago
8 0

Answer:

a loss of $3,000

Explanation:

A company makes a gain on the disposal of an asset when the amount received from the disposal is higher than the net book value or carrying amount of the asset.

The netbook value of the asset is the difference between the cost and the accumulated depreciation of the asset. The accumulated depreciation is the total depreciation over the used life of the asset and the depreciation is the result of the cost less residual value divided by the estimated asset life.

In light of the above,

Annual depreciation = ($48,000 - $8,000)/8

= $5,000

Between January 1 2020 and December 31 2022 is 3 years,

Accumulated depreciation at December 31, 2022

= 3 * $5,000

= $15,000

NBV at December 31, 2022

= $48,000 - $15,000

= $33,000

Gain/(loss) on disposal = $30,000 - $33,000

= ($3,000)

The company would record a loss of $3,000

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Answer:

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6 0
3 years ago
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5 0
2 years ago
Five consumers have the following marginal utilities of apples and pears: Consumer Marginal Utility of Apples Marginal Utility o
Leokris [45]

Answer:

Options C and E

Only Nick and Jake are optimising over his choice of fruit?

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We obtain this simply by dividing the marginal utilities for each fruit by their price, and comparing them.

Dmitiri:

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ololo11 [35]

The answer is negotiable order of withdrawal or short for the acronym NOW. The acronym NOW, when it is used in terms of financial institutions, in stands for Negotiable Order of Withdrawal, it is a type of interest-grossing checking account wherein a patron or customer is allowed to create drafts against cash held on deposit or in short words, the owner of the account can write an unlimited amount of checks for drafts or to be used.

5 0
3 years ago
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Georgia [21]

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