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amid [387]
3 years ago
10

The Cromwell Company sold equipment for $35,000. The equipment, which originally cost $120,000 and had an estimated useful life

of 10 years and $20,000 residual value, was depreciated for four years using the straight-line method. Cromwell should report the following on its income statement in the year of sale:
A. A $25,000 gain.
B. A $45,000 loss.
C. A $45,000 gain.
D. All of these answer choices are incorrect.
Business
1 answer:
Alla [95]3 years ago
5 0

Answer:

B

Explanation:

Original Cost -$120,000

Useful life -10 years

Residual Value - $20000

Annual depreciation - $(120,000-20000)/10 = $10,000

Accumulated depreciation for 4 years = 10*4= $40000

Book value at disposal = $120,000-$40000= $80000

Sales value = $35,000

Loss on disposal = $80,000-$35000= $45,000

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Campbell Corp. exchanged delivery trucks with Highway, Inc. Campbell's truck originally cost $23,000, its accumulated depreciati
iragen [17]

Answer:

equipment    3,700

Explanation:

First we calcualte the values of the machine given up:

<u>traded-out assets</u>

purchased  23000

depreciation <u>20,000 </u>

book value   3,000

fair value   5,000

gain on disposal   2,000

This gain would be recognzie if there was commercial substance. In this case we don't have commercial substance. So it is deffered.

Value given up forthe new equipment:

cash                   700

traded-out        <u>5,000 </u>

total value         5,700

We subtract the deffered gain on disposal to get the accounting value for the new equipment:

deferred gain       (2,000)

accounting value 3,700

The machine will enter the accounting with 3,700

journal entry

equipment    3,700

acc del        20,000

   equipment            23,000

  cash                             700

3 0
3 years ago
VWhat is a commodity? A. Something that producers are unable to sell to consumers B. A resource that is available in unlimited q
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The definition of commodity is D. Some examples are gold, silver and copper.
4 0
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Sanders Inc. claims that it only uses organic cleaning products in its janitorial services. In reality, the company buys whateve
labwork [276]

Sanders Inc. claims that it only uses organic cleaning products in its janitorial services. In reality, the company buys whatever is cheapest in bulk. This is an example of greenwashing.

Greenwashing is the system of conveying a false impression or supplying deceptive facts approximately how an agency's products are more environmentally sound. Greenwashing is taken into consideration by an unsubstantiated claim to lie to purchasers into believing that a agency's merchandise is environmentally friendly.

Greenwashing additionally called "green sheen", is a form of advertising and marketing spin wherein green PR and green advertising is deceptively used to influence the general public that an agency's merchandise, ambitions, and rules are environmentally friendly.

A traditional instance of greenwashing is when Volkswagen admitted to dishonest emissions tests by becoming diverse cars with a “defect” tool, with a software program that might discover whilst it changed into undergoing an emissions test and altering the overall performance to reduce the emissions degree.

Learn more about greenwashing here brainly.com/question/21992794

#SPJ4

6 0
2 years ago
When you use multiple worksheets in Excel and you retrieve information from one to go to into another
scoundrel [369]

Answer:

A. Start by using the = in the cell where you wish to put the information.

Explanation:

Click the cell you want to place the information, then enter the " = " sign in it. Move the cursor to the sheet from which you want to retrieve information and click the cell with the information you want to retrieve. Automatically excel displays that information on the first sheet.

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A premium is____
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Answer:

I think it is a

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