Answer:
Hie, the question you have provided is missing information relating to <em>Accumulated depreciation</em> or <em>book value of the furniture</em> as well as <em>profit</em> or <em>loss</em> on sale of furniture.
However, important principles are explained below :
The Furniture Disposal T - Account is used to calculate the cash received from the sale of furniture.
The Format of the Account is as follows :
Debits :
Record the Costs of the Furniture Sold. In this cases Cost is $75,900
Record the Profit on Sale of Furniture (if there was profit). The information is incomplete in this case.
Credits :
Record the Accumulated Depreciation on the Furniture. This figure is missing.
Record the Loss on Sale of Furniture (if there was a loss). The information is incomplete in this case.
The Balancing figure would be the Cash Received on sale of Furniture and to be recorded here.
Conclusion :
The Cash Received on Sale of Furniture is a Balancing figure of the Furniture Disposal T - Account.
Question lacks some precise information about the cash flow. However it would be inferred IBM has a positive future investment value.
Answer:
<u>IBM</u>
Explanation:
Remember, the answer depends on the discounted cash flow results irrespective of which offer has lower cost.
Since IBM offers the computers for a single payment of $55,000 due at the end of four years. The Hub could reach a decision if the present value of money calculated by means of discounted cash flow is higher than the current cost of the investment, the Hub could then purchase the computers from IBM.
Answer:
b.$995,000
Explanation:
Jensen Company
Direct materials used $345,000
Direct labor incurred 250,000
Factory overhead incurred 400,000
Product cost $995,000
Therefore Jensen Company's product costs is $995,000
Direct materials used $345,000 + Direct labor incurred 250,000 +Factory overhead incurred 400,000 =$995,000
Answer:
$232,500
Explanation:
The computation of the amount of expected cash outflows for selling and admin expenses is shown below:
Utilities expense $2,500
Administrative salaries $100,000
Sales commission ($800,000 × 5%) $40,000
Advertising $20,000
Rent on administrative building $60,000
Miscellaneous administrative expenses $10,000
Total budgeted cash sales and administrative expenses $232,500
We added those expenses which affect the cash balance i.e decrease in cash balance so that the correct amount could arrive
All other items are not relevant. hence,ignored it
Answer:
Homestead exemption of $25,000, which is a standard deduction
Explanation:
Homestead exemption is the regime which is legal in order to protect the home values of the residents from the creditors, property taxes and the situations arise from the death of the spouse.
In this case, Emma, is a widow and only has a fixed income of $11,000 per year, therefore, the exemption of the homestead allows a standard deduction of $25,000.
