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Andru [333]
2 years ago
6

The entity’s manufacturing division, whose assets constituted 75% of its total assets at September 30, Year 5 (end of year), was

sold on November 1, Year 5. The new owner assumed the bonded indebtedness associated with this property. How should this event be presented in the financial statements?
Business
1 answer:
belka [17]2 years ago
5 0

The event should be presented in the financial statements as follows:

1. The assets side of the balance sheet will be reduced by 75%, with its accompanying accumulated depreciation.

2. The bonded liability on the balance sheet is eliminated by the relevant amount.

3. The journal entry should debit the Bonded Liability and accumulated depreciation, while the assets worth 75% are credited.

4. If the bonded indebtedness is more than 75% of the assets, the company records a profit on disposal on the income statement. Otherwise, it records a loss. If they are equal, there is no profit or loss.

Thus, the difference between the debit and credit entries constitutes either profit or loss on disposal.

Learn more: brainly.com/question/17329408

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Moyas corporation sells a single product for $20 per unit. last year, the company's sales revenue was $300,000 and its net opera
lianna [129]
Net operating income was $24000
Fixed expenses=$96000
Sales=$300000
cost per unit=$20
unit sales=$15000 units
CM=$120,000
CM per unit=$8
BE units=FC/CM per unit=96000/8=12,000 units
5 0
3 years ago
Read 2 more answers
Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $440,000. Shipping costs totaled $30,000. Foundat
Yakvenalex [24]

Answer:

d. $489,500

Explanation:

The capitalized cost will include all the costs incurred by Holiday laboratories to readily make the asset for use.

Therefore,

Capitalized cost = High speed industrial centrifuge + Shipping cost + Foundation cost + Equipment cost + Labor and testing cost + Material cost

= $440,000 + $30,000 + $8,600 + $3,000 + $5,300 + $2,600

= $489,500

7 0
3 years ago
Suppose there is a decrease in the price of butter. What do we expect to happen to the demand for bread? Assume that bread and b
dimulka [17.4K]

Suppose there is a decrease in the price of butter.There will be an increase in demand for bread.

<h3>Option (B) is correct</h3>

<u>Explanation:</u>

Bread and butter are complementary goods. They are demanded and consumed together. So their demand are positively correlated which means an increase in demand of one will lead to the same increase the demand of other

If the Price of butter decreases,  it will lead to an increase in the demand for butter. With the increasing demand for butter, the demand for bread will automatically increase. Both demands will move in the same direction.

3 0
3 years ago
A customer who is long 1 oex may 315 call exercises the contract on this day. the customer will receive:________
Nutka1998 [239]

A customer who is long 1 OEX may 315 call exercises the contract on this day. the customer will receive $58.00. Option A

This is further explained below.

<h3>What is called exercises?</h3>

Generally,  If you possess a call option and the current stock price is greater than the strike price, it makes financial sense for you to execute your call option at this time.

You are able to make a profit by purchasing the stock at a lower price so that you can either instantly resell it to the market at a higher price or keep it for the long term.

In conclusion, On this day, a client who is long 1 OEX and has a 315 call option on the contract may execute it. The total amount that the client will get is $58.00. Alternative A

Read more about call exercises

brainly.com/question/14763313

#SPJ1

3 0
1 year ago
Your employees have an average salary of $37,000 per year. Their benefits, health insurance and a retirement plan, are worth $22
const2013 [10]

Answer:

i think that answer 15%percentage

4 0
2 years ago
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