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VikaD [51]
2 years ago
7

Bren Company sold a car for $17,100. The cost of the car was $37,000 and the depreciation expense was recorded at 10% for five a

nd a half years. What was the gain or loss on disposal?
Business
1 answer:
fomenos2 years ago
3 0

The loss on the disposal of the car is $-16,200.

The first step is to determine the total depreciation on the car.

Depreciation expense = percentage depreciation x cost of the asset

$37,000 x 0.1 = $3700

The second step is to determine the book value of the car = cost of the car - depreciation

$37,000 - $3700 = $33,300.

The book value is greater than the selling price of the car, so there was a loss on the sale. The third step is to determine the gain on the sale.

Loss = $17,100 - $33,300  = $-16,200

A similar question was answered here: brainly.com/question/24357323

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Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment). The company prepares a
Alina [70]

Answer:

d. Debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200

Explanation:

allowance balance                           2,300 debit

estimated uncollectible accounts   31,900 credit

adjustment needed                         34,200 credit

We need to adjust the allowance to our estimated uncollectible account. Currently, it has 2,300 debit balance. We need to increase it to 31,900

If we think it in two steps:

We need to credit by 2,300 to have zero balance,

and then 31,900 to reach the expected uncollectible amount

in total a credit for 34,200 needs to be done

<u>The adjusting entry will be:</u>

bad debt expense                       34,200 debit

allowance for doubtful accounts                        34,200 credit

8 0
3 years ago
KPIs for social media are __________ traditional measures for advertising effectiveness.
Anna35 [415]

Answer:

D)Analogous to

Explanation:

7 0
2 years ago
he director of capital budgeting for See-Saw Inc., manufacturers of playground equipment, is considering a plan to expand produc
kicyunya [14]

Answer and Explanation:

The computation is shown below:

Debt = D ÷ (E + D)

= 0.8 ÷ (1 + 0.8)

= 0.4444

Now

Weight of equity = 1 - Debt

= 1 - 0.4444

= 0.5556

As per Dividend discount model

Price = Dividend in 1 year ÷ (cost of equity - growth rate)

40 = $2 ÷ (Cost of equity - 0.06)

Cost of equity = 11%

Cost of debt

K = N

Let us assume the par value be $1,000

Bond Price =∑ [(Annual Coupon) ÷ (1 + YTM)^k] + Par value ÷ (1 + YTM)^N

k=1

K =25

$804 =∑ [(7 × $1000 ÷ 100)/(1 + YTM ÷ 100)^k] + $1000 ÷ (1 + YTM ÷ 100)^25

k=1

YTM = 9

After tax cost of debt = cost of debt × (1 - tax rate)

= 9 × (1 - 0.21)

= 7.11

WACC = after tax cost of debt × W(D) + cost of equity ×W(E)

= 7.11 × 0.4444 + 11 × 0.5556

= 9.27%

As we can see that the WACC is lower than the return so it should be undertake the expansion

5 0
2 years ago
On June 1 of Year 1, a company paid $2,400 cash to rent office space for one year beginning immediately. Based solely on this in
Neporo4naja [7]

With an assumption that the company's accounting year is same as the calender year, the income statement would show $1,000 of rent expense.

<h3>What is an income statement?</h3>

An income statement refers to a financial statement that shows a firm's income and expenditures for an accounting year.

Rent expenses = $2,400 prepaid rent / 12 months

Rent expenses = $200 per month

Rent expenses = $200 rent expense per month x 5 months (in Year 2)

Rent expenses = $1,000 rent expense

In conclusion, with an assumption that the company's accounting year is same as the calendar year, the income statement would show $1,000 of rent expense.

Read more about income statement

<em>brainly.com/question/24498019</em>

7 0
2 years ago
Refer to the following selected financial information from our company. Compute the company's profit margin for Year 2.
Marianna [84]

Answer:

a. 14.1%

Explanation:

Year 2

Net Profit Margin = Earnings Before Tax / Sales × 100

                             = $ 67,250 / $478,500 × 100

                             = 14.05 or 14.1 %

3 0
3 years ago
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