Answer:
Part a
Debit : Profit and loss $0
Debit : Cash $15,100
Debit : Accumulated depreciation $35,900
Credit : Cost $ 51,000
Part b
Debit : Profit and loss $2,200
Debit : Cash $15,100
Debit : Accumulated depreciation $35,900
Credit : Cost $ 51,000
Part c
Debit : Cash $15,100
Debit : Accumulated depreciation $35,900
Credit : Cost $ 51,000
Debit : Profit and loss $2,200
Explanation:
the journal entry for the disposal of the truck are shown
Answer:
Effect on income= $115,000 decrease
Explanation:
Giving the following information:
Fixed costs= $45,000
Number of units= 20,000
Unitary contribution margin= $8
<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= decrease in fixed costs - decrease in contribution margin
Effect on income= 45,000 - 20,000*8
Effect on income= $115,000 decrease
Answer:
total weight of debt = 0.343 or 34.3%
Explanation:
stock's market value = 17,500 x $69 = $1,207,500
bond₁'s market value = $250,000 x 101.5% = $256,750
bond₂'s market value = $350,000 x 106.5% = $372,750
total market value of the firm = $1,837,000
weighted capital structure:
market value weight
stocks $1,207,500 0.657
bond₁ $256,750 0.140
bond₂ $372,750 0.203
total $1,837,000 1
total weight of debt = 0.343 or 34.3%
Answer:
B. Improved adjustment to technological changes.
Explanation:
Vertical Integration: It is a strategy to gain competitive advantage by taking complete control over a few stages of production or distribution. The company implements vertical integration to reduce the cost of production, reduce dependence on others, improve the quality of the product, etc.
In the given case, the company pursuing vertical integration can gain market power over its competitors through improved quality, reduction in cost, and reduction in operation cost, however, it does not improve adjustment to technological changes.
Answer:
An expense account normally has a debit balance.
