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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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oee [108]

Answer:

45.62 days

Explanation:

For computing the average number of days receivables, first, we have to calculate the account receivable ratio. The formula is shown below:

Account receivable ratio = Net credit sales ÷ Average accounts receivable

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Average account receivable = (Beginning account receivable balance + ending account receivable balance) ÷ 2

Now put these values to the above formula

So, the answer would be equal to

= $480,000 ÷ ($40,000 + $80,000 ÷ 2)

= $480,000 ÷ $60,000

= 8 times

Now, the average level of​ receivables equals to

= Total number of days in a year ÷ Account receivable ratio

= 365 days ÷ 8

= 45.62 days

5 0
3 years ago
If there is an unanticipated increase in aggregate demand, which of the following is most likely to occur?
emmasim [6.3K]

Answer:

A. an increase in the price level (inflation)

Explanation:

When there is an unanticipated increase in aggregate demand it usually result in the general increase in the price level of that good demanded (inflation). This is because when there is an unpredicted increase in demand for a good, the demand becomes higher than the supply for that good at that particular period. Because the supply is now less than the aggregate demand, the prices of the commodity is then increased to discourage demand. The increase in the price of the commodity (inflation) therefore is a direct result from the increase in the aggregate demand for that commodity.

4 0
3 years ago
O’Connell & Co. expects its EBIT to be $83,000 every year forever. The firm can borrow at 11 percent. O’Connell currently ha
andrew11 [14]

Answer:

1. $3,59,666.66

2. $4,10,066.66

Explanation:

1. The computation of value of firm is shown below:-

As the Earning before interest and tax given remains the same, this impact that there is no growth rate in the earnings to consider.

= Earning before interest and tax × (1 - Tax) ÷ Cost of equity

= $83,000 × (1 - 0.35) ÷ (0.15)

= $53,950 ÷ 0.15

= $3,59,666.66

2. The computation of value of levered firm is shown below:-

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= 3,59,666.66 + ($144,000 × 35%)

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3 years ago
What is the amount of the payments that Ned Winslow must make at the end of each of 8 years to accumulate a fund of $90,000 by t
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Answer:

Amount to be paid annually by Ned Winslow = $8461.35

Explanation:

Fv = <u>A ( 1 + r)∧n  - 1 </u>

              r

90,000   =   <u>A  ( 1 + 0.08)∧8  - 1</u>

                         0.08

90,000 =   <u>A ( 1.8509 - 1)</u>

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90,000  =   10.6366A

A =     90,000/10.6366

=   $8,461.35

3 0
3 years ago
Read 2 more answers
You are writing a recommendation report on which vendor of audiovisual services to hire for your company's annual conference. Th
amm1812

Answer:

I suggest you delay your choice until you learn more of Zenith's current management

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The management is just a position that doesn't carry the same character. Every manager carries different values and principles and one person might be satisfactory to you while another might not be. The new management may have some characters which might be off-putting to you and might ruin the company's conference. Best to go with what you know than what you don't.

4 0
3 years ago
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