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A machine was purchased at a cost of $70,000. The equipment had an estimated useful life of eight years and a residual value of

RoseWind [281]

Answer:

Loss on sale of machinery = $8,000

Explanation:

Under Straight line depreciation method, depreciation is calculated as follows:

Depreciation to be charged per annum over the life of asset is given by the formula: = $\frac{cost\ -\ salvage\ value}{useful\ life}$

Depreciation = ($70,000 - $ 6,000) ÷ 8 years

Depreciation to be charged every year = $8,000

Now, total depreciation charged till the end of 6 years = 6 × $8,000 = $48,000

Book Value at the end of year 6 = $70,000 - $48,000= $22,000

Sale Value of the asset = $ 14,000

Loss on sale = $22,000 - $14,000 = $8,000

7 0

3 years ago

Due to political instability in the country of United Mapa, the strategic leaders at the headquarters of FT Supplies Inc. have d

Korolek [52]

Answer: (D) Corporate strategy

Explanation:

The corporate strategy is one of the type of strategic planning method that helps in achieving the main objective of the company and also improving the various types of business units in an organization.

The corporate strategy basically creating the values and also developing the various types the various types of unique advantages for selling the products and the services in the market.

According to the given question, due to some political instability the strategic leader of the company decided to divest in the business and this is known as the corporate strategy.

Therefore, Option (D) is correct answer.

3 0

3 years ago

On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $40,000 in cash and giving a short-term n

Norma-Jean [14]

Answer:

See below

Explanation:

The cost of land to be included in the balance sheet would not only include the price paid to acquire the land but also include cost or revenue received in the process while also include all activities required to bring the land to the stage in which it may be ready for usage.

With regards to the foregoing, the cost of land to be included in the balance is is

= Cash paid + short term note + legal fee + delinquent taxes + Fees paid to remove old building from the land - sales of materials salvaged from demolition of the building

= $40,000 + $306,000 + $1,665 + $13,100 + $22,500 - $5,200

= $378,065

Therefore, cost of land to be included in the balance sheet is $378,065

3 0

3 years ago

Although relative factor costs may make a country look attractive as a location for performing a manufacturing activity, the fir

wlad13 [49]

Although relative factor costs may make a country look attractive as a location for performing a manufacturing activity, the firm must also look at the political economy, where, for example, <span>regulations prohibiting foreign direct investment may eliminate this option. </span>
Polieymakers have periodically raised concerns pertaining to foreign investment in industries which affect national security or an essential na-tional interest.

3 0

4 years ago

Exercise 13-8 Payback Period and Simple Rate of Return [LO13-1, LO13-6]

andrew-mc [135]

Answer:

4 years

Yes

Explanation:

Payback period calculates the amount of time it takes to recover the amount invested in a project to be recovered from the cumulative cash flow.

Cash inflow for the period = Net income + Net cash deductions (depreciation expenses)

$60,800 + $19,200 = $80,000

Payback period = amount invested / cash inflow

$320,000 / $80,000 = 4 years

If the payback period is five years or less, the project would be accepted because the amount invested would be recovered in 4 years. Therefore, the company would purchase the new games.

I hope my answer helps you

5 0

3 years ago