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romanna [79]
3 years ago
8

On December 31, 2018, AAA disposed an Equipment (Cost: $50,000, Salvage Value: $10,000, useful life: 4 years), which was purchas

ed on January 1, 2016. By disposing this equipment, AAA has a , and the amount is___________.
Business
1 answer:
levacccp [35]3 years ago
3 0

Answer:

A Loss of $10,000

Explanation:

To calculate the depreciation using the straight line method.

Depreciation = Cost - Salvage value/ no. of years

   

       $50,000   -   $10,000/ 4 = $10,000

Annual depreciation now is:    $10,000

Net book Value (NBV) for the year of disposal i.e 2018 will be:

Cost - Accumulated Depreciation = NBV

$50,000 - $30,000 = $20,000

NBV is $20,000

but was sold for $10,000 which is a loss of $10,000

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Inventory records for Marvin Company revealed the following:
lbvjy [14]

Answer:

Ending inventory= $5,592.45

Explanation:

Giving the following information:

Mar. 1: Beginning inventory= 1,090 units at $7.25

Mar. 10: Purchase: 510 units at $7.75

Mar. 16: Purchase: 397 units at $8.35

Mar. 23: Purchase: 510 units at $9.05

First, we need to calculate the number of units in ending inventory:

Ending inventory in units= total units - units sold

Ending inventory in units= 2,507 - 1,880= 627

Under FIFO (first-in, first-out), the ending inventory is composed of the cost of the last units bought.

Ending inventory= 510*9.05 + 117*8.35= $5,592.45

6 0
3 years ago
Excerpts from Dowling Company's December 31, 2018 and 2017, financial statements and key ratios are presented below (all numbers
Rus_ich [418]

Answer:

Option (A) is correct.

Explanation:

Given that,

2018:

Accounts receivable (net) = $20

Net sales = $115

Cost of goods sold = $60

Net income = $20

Inventory turnover = 5.22

Return on equity = Return on assets × Equity multiple

                             = 10.3% × 2.36

                             = 24.308% or 24.3%

Therefore, Dowling's return on equity for 2018 is 24.3%.

5 0
3 years ago
The following items are taken from the financial statements of Cullumber Company for 2022:
Doss [256]

Answer:

                                          Cullumber Company

                                          Balance Sheet

                                          As at 2022

Explanation:                      Amount in $

Current Assets

Accounts Receivable           12,500

Cash                                      13,000

Prepaid Insurance                  6,600

Supplies                                  4,600

Total Current Assets            36,700

Non-Current Assets

Equipment (225,000-36,900)  188,100

Total Assets                            <u>  </u><u>224,800</u>

Liabilities & Shareholders' Equity

Current Liabilities

Accounts Payable                10,600

Notes Payable                      65,000

Salaries Payable                      3,900

Total Current Liabilities           79,500

Equity

Common Stocks                      97,000

Retained Earnings (25,900+133,000-21,400-13,600-2,600-16,800-33,500-6,700)                                          64,300  

Dividends                                   (16,000)

 Total Equity                              145,300

Total Liabilities & shareholders' equity    <u>224,800</u>  

4 0
4 years ago
Niles Co. has the following data related to an item of inventory: Inventory, March 1 110 units @ $1.10 Purchase, March 7 210 uni
pantera1 [17]

Answer:

The value assigned to ending inventory if Niles uses "weighted average" is $320 ( to 160 units @ $2 )

Explanation:                  Number of units    Price per unit    Total

Purchases on March 1 =         110                     $1.10               $1,21

Purchases March 7      =         210                    $2.10              $441

Purchases March 16    =         110                     $2.70              $297  

Inventory on March 31 =        160                    $2.00             $320

Weighted Average Inventory value = Accumulated Value / Total Number of units

Weighted Average Inventory value = ( 121 + 441 + 297 ) / ( 110 + 210 + 110 )

Weighted Average Inventory value = 1.997674419 = $2.00

7 0
3 years ago
"A registered representative is a 15% participant in an investment club formed by members of the local Elks Club. The Elks Club
Alex787 [66]

Answer: D. The account is prohibited from buying the new issue

Explanation:

The options to the question are:

A. The account can buy the issue without restriction

B. The account can buy the issue if the branch manager approves

C. The account can buy the issue if the registered representative agrees not to share in the profit on the position

D. The account is prohibited from buying the new issue.

From the question, we are informed that a registered representative is a 15% participant in an investment club formed by members of the local Elks Club and that the Elks Club investment club has opened a securities account at ABC Brokerage.

We are further told that the account wishes to buy an IPO being offered by an underwriter, out of the options that were given, the correct option is that account is prohibited from buying the new issue.

6 0
3 years ago
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