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Ivenika [448]
3 years ago
11

On December 31, Strike Company sold one of its batting cages for $20,084. The equipment had an initial cost of $223,162 and had

accumulated depreciation of $200,846. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?
Business
1 answer:
Anna35 [415]3 years ago
8 0

Answer:

Loss on disposal = $2232

Explanation:

To calculate the amount of gain or loss on sale, we must first calculate the net book value or NBV of the asset. The net book value is the difference between the cost of the asset and the accumulated depreciation. The formula for NBV is as follows,

NBV = Cost - Accumulated depreciation

NBV = 223162 - 200846

NBV = 22316

If the sales proceeds are more than the NBV of the asset, the asset is sold on gain and vice versa.

Loss on disposal = 20084 - 22316 = - $2232 or$2232 loss

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A goal taking which of these lengths of time to achieve is most likely to be a
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The price of coffe beans use to make coffee has decreased. At the same time, the price of cream (a compliment good) has increase
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Answer:

The correct answer is:

Equilibrium price will decrease; the effect on quantity is ambiguous. (D)

Explanation:

First, note that if the price of coffee beans, used in the manufacture of coffee decreases, the price of coffee sold to consumers will decrease, because it takes a lesser amount in manufacturing than it used to, therefore this reduction in manufacturing costs is reflected in the selling price.

Next, it is hard to tell whether this reduction in equilibrium price will affect quantity demanded, because, at the same time, the price of cream ( a complementary good) increases, and since both goods are complementary, they are bought together, and the effect of the reduction in the price of coffee might not necessarily caused an increase in the quantity demanded because this effect is cancelled out by the increase in the price of cream, hence the effect on quantity is ambiguous.

7 0
3 years ago
In the computation of the manufacturing cost per equivalent unit, the weighted average method of process costing considers A. cu
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3 years ago
The manager of a store that specializes in selling tea decides to experiment with a new blend. She will mix some Earl Grey tea t
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Answer:

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4 years ago
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