Answer:
Journal Entry for disposal (or) sale of Truck
Explanation:
- Truck (asset) sold for cash, bank, or on credit {On loss}
Cash ac dr (or) Bank ac (or) Debtor ac (Or) ac ... dr
P & L ac ... dr
to Truck ac ... 32000
- Truck (asset) sold for cash, bank, or on credit {On gain}
Cash ac dr (or) Bank ac (or) Debtor ac (Or) ac ... dr
to Truck ac ... 32000
To P & L ac
Answer: income effect of a price change.
Explanation: The income effect is known as the effect on real income when price changes, it can however be positive or negative. The income effect expresses the impact of increased purchasing power on consumption.
In this scenario, spending $10 for lunch, and you would like to purchase two cheeseburgers. When you get to the restaurant, you find out the price for cheeseburger has increased from $5 to $6, so you decide to purchase just one cheeseburger, this scenario best illustrates the income effect of a price change.
Answer:
Number of units to be sold = 150000
So option (b) is correct option
Explanation:
We have given net income = $400000
Unit sales price = $20
Unit variable cost= $12
Total fixed cost $800000
Units must be sold to earn net income of $400,000 =
So number of units to be sold = 150000
So option (b) is correct option
<u>Answer: </u>Wrongful interference with a contractual relationship requires the existence of enforceable contract, third party knowledge, and intentional inducement.
<u>Explanation:</u>
All the business consist of information which is invaluable and wants the employees to keep it within the business and not sell it to competitors. As they are the successful objectives of the business.
Contractual relationship is the relationship bound by legal requirements where there are two or more parties who agree with same terms through enforceable contract. Intentional inducement is where an individual causes damage to contractual relationship with third party. The damage can be of monetary basis.
Answer:
<em>Run a recoverability test and then a fair value test.</em>
Explanation:
Business assets with a loss of value are subject to impairment tests to assess and identify the magnitude of the loss.
<em>Measuring the magnitude of the loss requires two steps:</em>
- Performing a recoverability check is to decide whether an impairment loss occurred by determining whether the future value of the undiscounted cash flows of the asset is less than the asset's book value. If the cash flow is less than the value of the book, the loss will be assessed.
- Measure the cost of damage by measuring the difference between the book value and the asset's market value.
