Answer:
Gain= $90,000
Explanation:
Giving the following information:
Selling price= $1,000,000
Original price= $5,220,000
Accumulated depreciation= $4,310,000
<u>First, we need to calculate the book value:</u>
Book value= purchase price - accumulated depreciation
Book value= 5,220,000 - 4,310,000
Book value= $910,000
<u>Now, if the selling price is higher than the book value, the company gain from the sale:</u>
Gain/loss= selling price - book value
Gain/loss= 1,000,000 - 910,000
Gain= $90,000
Answer:
a. Freeman estimates that it is reasonably possible but not likely that it will lose a current lawsuit. Freeman's attorneys estimate the potential loss will be $4,500,000.
- Describe the situation in a note to the financial statements.
Since the event is possible but not likely, it should be disclosed in the footnotes of the financial statements.
b. Freeman received notice that it was being sued. Freeman considers this lawsuit to be frivolous.
Since this is a frivolous lawsuit, there is no need to disclose it.
c. Freeman is currently the defendant in a lawsuit. Freeman believes it is likely that it will lose the lawsuit and estimates the damages to be paid will be $75,000.
- Record an expense and a liability based on estimated amounts.
Since the negative outcome is probable and you were able to quantify your losses, you must record the expense for $75,000 and include the amount as a current liability.
Explanation:
First, Depository institution
Institution that collect money from people and pay interest . You may can deposit your cash and withdraw it anytime . If you put longer they pay interest. Interest may be fixed or variable. On other words, from that institution you can send your money to other people ,can get credit or debit card to withdraw or shopping. They gave you loans. Such institution are:
Commercial bank , Saving institution,credit union and so on.
In last remember that those who pay you interest ,give loan facilities, business transaction and collect your money they are Depository. They have 3 types of account for people who want to deposit their money. 1. Current account 2. Saving Account 3. Fixed
Non Depository institution
Where you cannot put your money and withdraw it . You would not get interest. They are intermediary between borrowers and saver. They are:
Mutual funds: where you buy scheme in units. It like investment . Then they pay you bonus and even you can sales it on market. Don't confuse mutual funds collect money from public invest it on market and share their profit.
Insurance companies: they insure your belonginess. They pay when your things goes beyond the normal level. Like. Car theft,goods damage.
Pension fund:
Security firms: investment companies ,broker house.
Answer:
0.75 wheat
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
the opportunity cost of producing cars, is the quantity of wheat that would have to be forgone to produce one car
18 / 24 = 0.75 wheat
Answer:
1. Break even points in units will be = 2,700 units
2. Break-even point in dollar sales = $56,700
3. In case fixed expense increase by $600 then Break even point in unit sales = 2,900 units
Explanation:
Break even point = 
Fixed Cost = $8,100
Contribution per unit = Sale Price - Variable Cost = $21 - $18 = $3
1. Break even points in units will be
= 
2. Break-even point in dollar sales
= Break even point in units X Sale price per unit
= 2,700 units X $21 = $56,700
3. In case fixed expense increase by $600 then Break even point in unit sales
= 
= 2,900 units
Final Answer
1. Break even points in units will be = 2,700 units
2. Break-even point in dollar sales = $56,700
3. In case fixed expense increase by $600 then Break even point in unit sales = 2,900 units
