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asambeis [7]
3 years ago
15

The management of Petro Garcia Inc. was discussing whether certain equipment should be written off as a charge to current operat

ions because of obsolescence. This equipment has a cost of $900,000 with depreciation to date of $400,000 as of December 31, 2020. On December 31, 2020, management projected its future net cash flows from this equipment to be $300,000 and its fair value to be $230,000. The company intends to use this equipment in the future. Prepare the journal entry (if any) to record the impairment at December 31, 2020
Business
1 answer:
tigry1 [53]3 years ago
5 0

Answer:

Dec 31,2020

Dr Loss on impairment $270,000

Cr Accumulated depreciation-Equipment $270,000

Explanation:

Preparation of the journal entry to record the impairment at December 31, 2020

First step is to calculate the Loss on impairment

Cost $900,000

Less: Accumulated depreciation ($400,000)

Carrying Amount $500,000

Less: Fair value ($230,000)

Loss on impairment $270,000

Now let Prepare the journal entry

Dec 31,2020

Dr Loss on impairment $270,000

Cr Accumulated depreciation-Equipment $270,000

(To record the impairment)

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A metallurgist has one alloy containing 26%26% copper and another containing 69%69% copper. How many pounds of each alloy must h
Brilliant_brown [7]

Answer:

Ans. He must use 2,987.76 pounds of alloy X (Cu=69%) and 2,365.24 pounds of alloy Y (26%=Cu)

Explanation:

Hi, let´s call alloy X the alloy that contains 69% of Cu and alloy Y the one containing 26% of Cu. Since he needs to produce 5,353 pounds of alloy, the first equation that we need to use is the following.

X+Y=5,353

Now, we need this 5,353 pounds of the new alloy to be 50% Cu, therefore, we have to use a portion of alloy X and alloy Y. This is as follows.

0.69X+0.26Y=0.5(X+Y)

And we have already established that X+Y is equal to 5,353, therefore this equation should look like this.

0.69X+0.26Y=5,353*0.5

0.69X+0.26Y=2,676.5

And we solve for X this equation, this as follows.

0.69X=2,676.5-0.26Y

X=\frac{2,676.5-0.26Y}{0.69}

X=3,878.98-0.3768Y

Now, we use this result and substitute this for X in the first equation like this.

3,878.98-0.3768Y+Y=5,353

and then, we solve for Y

0.6232Y=5,353-3,878.98

Y=\frac{1,474.02}{0.6232} =2,365.24

So, he needs to use 2,365.24 pounds of alloy that contains 26% of Cu, this means that the rest (2,987.76 pounds) must come from the alloy that contains 69% of Cu.

We can check this result by finding the overall Cu obtained by this amounts of alloy, that is

Coppper FromX=2,987.76*0.69=2,061.55

Coppper FromY=2,365.24*0.26=614.96

That adds up to 2,676.51 pounds of pure Cu, and since the total weight of the new alloy is 5,353, this amount of copper makes up for:

PercentCu=\frac{2,676.51}{5,353} =0.5

50% of the total weight.

Best of luck.

7 0
3 years ago
Raphael Corporation’s common stock is currently selling on a stock exchange at $85 per share, and its current balance sheet show
konstantin123 [22]

Answer:

Total preference dividend = $7,500

Equity dividend = $11,500 - $7,500 = $4,000

Explanation:

Total of stockholder's equity = $280,000

Less: Retained Earnings = $150,000

Less: Equity = $80,000

Preference Capital = $50,000

Rate of preference capital = 5%

Preference Dividend if in arrears would have to be paid first in priority to Equity.

Total preference dividend in arrears = $50,000 \times 5% = $2,500 per year

For 2 years = $2,500 \times 2 = $5,000

In the current year also firstly preference will be paid, therefore current year preference dividend = $2,500

Total preference dividend = $7,500

Equity dividend = $11,500 - $7,500 = $4,000

8 0
3 years ago
Suppose that the required reserve ratio is 10 percent and you withdraw $25,000 from Comerical Bank.
exis [7]

The total decrease in deposits in the banking system is $250,000.

<h3>What is total decrease in deposits?</h3>

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves.

Decrease in deposits = amount withdrawn / required reserve ratio

$25,000 / 0.1 = $250,000

To learn more about reserve ratio, please check: brainly.com/question/6831267

#SPJ1

4 0
2 years ago
When pulling the owner's capital balance from the end-of-period spreadsheet into the statement of owner's equity, why is it also
ratelena [41]

Answer:

d.

Explanation:

Based on the information provided within the question it can be said that it is important to check this information because there may have been additional investments made during the year reflected in the balance. Therefore without knowledge of these investments the final balance may seem incorrect in the eyes of the accountant.

4 0
3 years ago
An agent of a broker-dealer that works out of a branch office during the week sends e-mails to customers about potential investm
koban [17]

Answer:

The correct answer is D. These e-mails must be retained for a minimum of 3 years.

Explanation:

One of the most comprehensive data protection laws in the United States is the (Health Insurance Transferability and Accountability Act (HIPAA). This federal law enacted in 1996 creates protections for health-related information specifically, HIPAA specifies who may have access to your health information.This information is generally only available to medical professionals who are using it for care and treatment coordination purposes. Information that is subject to protection includes the notes of your medical providers and records, records of your health insurer, information and conversations that your doctor has with other professionals about your care and treatment services.

5 0
3 years ago
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