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zheka24 [161]
2 years ago
8

An asset was acquired on October 1, 2021, for $78,000 with an estimated five-year life and $13,000 residual value. The company u

ses units-of-production depreciation and expects the asset to produce 20,000 units. Calculate the gain or loss if the asset was sold on March 31, 2024, for $58,000. Actual production was: 2021 = 500 units; 2022 = 3,000 units; 2023 = 3,500 units; 2024 = 1,000 units.
Business
1 answer:
trasher [3.6K]2 years ago
3 0

Based on the information given  the gain or loss if the asset was sold on March 31, 2024 is $6,000 gain.

Depreciation per units= (Original cost - Residual value) ÷ (Estimated production units)

Depreciation per units= ($78,000 - $13,000) ÷ 20,000 units

Depreciation per units= $65,000 ÷ 20,000 units

Depreciation per units= $3.25 per units

Accumulated depreciation=(500 units × $3.25)+( 3,000 units × $3.25)+(3,500 units × $3.25)+( 1,000 units × $3.25)

Accumulated depreciation= $1,625 + $9,750 + $11,375 + $3,250

Accumulated depreciation= $26,000

Book value= Acquired value of an asset - Accumulated depreciation  

Book value= $78,000 - $26,000

Book value= $52,000

Gain or Loss= Sale value - Book value

Gain or Loss= $58,000 - $52,000

Gain or Loss= $6,000 gain

Inconclusion the gain or loss if the asset was sold on March 31, 2024 is $6,000 gain.

Learn more about depreciation here:brainly.com/question/14705084

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After 1989, Donna purchased series EE savings bonds for $2,500 at the age of 25. This year she redeemed the bonds for $5,000 and
Orlov [11]

Answer:

$1,000

Explanation:

Donna purchased series of savings bond for $2,500 at the age of 25

This year Donna redeemed the bond of $5,000

She paid $3,000 as expenses for her daughter education

The first step is the calculate the interest income

= $3,000/$5,000 × $2,500

= 0.6 × $2500

= $1,500

Therefore the interest that will be required by Donna to include in her gross income this year can be calculated as follows

= $2,500-$1,500

= $1,000

Hence Donna is required to include an interest of $1,000 in her gross income this year

3 0
2 years ago
Match the appropriate costing method to the description
sp2606 [1]

Answer:

  • a. Absorption costing only  --  8. Includes gross profit on the income statement
  • 2. Required by generally accepted accounting principles.
  • b. Variable costing only  --  6. Generally provides the most useful report for setting long-term prices.
  • 3. Treats fixed manufacturing cost as a period cost.
  • 5. Generally provides the most useful report for controlling costs.
  • 4. Operating income is impacted by changes in inventory level.
  • c. Both absorption and variable costing  --  7.May be used in a manufacturing company
  • 1.Treats fixed selling cost as a period cost.

Explanation:

  • The absorption costing includes that all the manufacturing costs which are given to the units produced and the cost of a finished product will be the cost of the direct material and labor.
  • Variable cost is a method that assigned the variables costs to the inventories and means that overall cost changes to expenses in a time of occurrence.
  • Both of these costs are related to the method of the production and costs that are incurred in the production and in which method the company uses to make.
8 0
2 years ago
Dahlia can earn​ $60,000 a year working at a relatively safe​ job, or​ $65,000 a year working at a riskier job. The probability
guajiro [1.7K]

Answer:

C) ​$6.25 million

Explanation:

Compensating wage differentials are paid to workers so that they accept tasks that are considered dangerous or hazardous.

A worker’s utility function is:

Utility = f (w, risk of injury)

Dahlia's safe job utility function = f(60000, 0.0002)

Dahlia's riskier job utility function = f(65000, 0.001)

A 400% increase in risk will increase Dahlia's salary by $5,000,

When you are using the compensation differential approach, you can determine the value of a life by dividing the compensating differential by the increased chance of death.

($65,000 - $60,000) / (1/1000 - 1/5,000) = $5,000 / 0.0008 = $6,250,000

5 0
3 years ago
What’s it called when you contact the public with unsolicited offers via a multitude of communication vehicles, and in high freq
Assoli18 [71]

Answer:

harassment

Explanation:

Based on the information provided within the question it can be said that this large magnitude of solicitation attempts classifies as harassment. This is because you are aggressively pressuring the potential buyer towards buying the product or service that you are offering through a large quantity of different advertisement methods.

7 0
3 years ago
When performing a job search, which two of the following tips should you employ in regard to the keywords you use? A. Use five o
abruzzese [7]

Answer:

B. Choose narrowed over broad keywords.

D. Use variations of keywords to broaden your results.

Explanation:

When performing a job search, you should employ the following tips in regard to the keywords you use;

Choose narrowed over broad keywords.

Use variations of keywords to broaden your results.

4 0
2 years ago
Read 2 more answers
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