answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
saul85 [17]
1 year ago
14

Equipment costing $b0000 was destroyed when it caught on fire. At the date of the fire, the accumulated depreciation on the equi

pment was $100000. An insurance check for $300000 was received based on the replacement cost of the equipment. The entry to record the insurance proceeds and the disposition of the equipment will include a
a. credit to the Equipment account of $160000.
b. credit to the Accumulated Depreciation account for $100000.
c. gain on disposal of $140000.
d. gain on disposal of $40000.
Business
1 answer:
Musya8 [376]1 year ago
8 0

Answer: c. gain on disposal of $140000.

Explanation:

The cost of the equipment is $260,000.

When the fire occurred, the book value of the equipment was:

= Cost of equipment - Accumulated depreciation

= 260,000 - 100,000

= $160,000

A check of $300,000 was received from insurance. The gain on disposal is:

= Replacement cost - book value

= 300,000 - 160,000

= $140,000

This amount will be credited to the Gain on Disposal account because an increase is credited.

You might be interested in
An arm loan has a 4.00% start rate, and it is time for the first adjustment to be made. it has a periodic cap of 1% and a lifeti
Lena [83]

The rate after its first adjustment is 5%. The ARM adjustment would be controlled by the periodic cap, because the "true rate" or "fully-indexed rate" is 6.00% (1%+5%). Because the periodic cap prevents the start rate from moving any more than 2% at any given adjustment, the first move can only go as high as 5.00%.

5 0
2 years ago
An effective proposal should do all of the following except Group of answer choices showcase the writer's expertise and build cr
HACTEHA [7]

Answer:

The answer to this question is C. analyze findings, draw conclusions, and make recommendations intended to solve a problem.

Explanation:

A proposal is a plan or suggestion, especially a formal or written one, put forward for consideration by others. It is a write up that shows the intention of a writer and one seeks approval from others.

An effective proposal must showcase the writer's expertise and build credibility, get the reader's attention. analyze findings,  emphasize how the writer's methods and products will benefit the reader.

However a proposal is not a research work, therefore it should not include analysis of findings, drawing of conclusions and making recommendations intended to solve a problem.

Hence the right answer is C. analyze findings, draw conclusions, and make recommendations intended to solve a problem

3 0
2 years ago
5. Risk analysis in capital budgeting Projects differ in risk, and risk analysis is a critical component of the capital budgetin
stira [4]

Answer:

A. Market, or beta, risk

Explanation:

i.e when the CFO adjusts the cost per ton of processing the cardboard, the project’s NPV will decrease.

Solution 2 :- The correct answer is (B) I.e Corporate or with in firm risk

a project's risk to the corporation as opposed to its investors

Solution 3 :- Stand alone risk

Stand alone risk is measured by the variability of the project's expected returns - diversification is totally ignored

5 0
2 years ago
An antique cabinet is being sold by means of an English auction. There are four bidders, Gloria, Elise, Judy, and Arabella. Thes
fomenos

Answer and Explanation:

The English auction is a unique process of selling items, under which the auction starts at a low price and goes up to the maximum price and the item is sold to the highest bidder.

In this situation, Judi makes the highest bid which is worth $1,800, therefore, the cabinet will be sold to Judi at price $1,800 .

5 0
2 years ago
Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipment has a 3-year tax life,
Misha Larkins [42]

Answer:

cash flow  = $13090

Explanation:

given data

Equipment cost=  $70,000

Sales revenues = $42,500

operating costs = $25,000

Tax rate = 35.0%

solution

we know that MCAR for 7 % is

MCAR  = 7% of 70000 = $4900

and

sale rev is 42000

so

EBITDA = sale rev - operating cost

EBITDA =  42500 - 25000

EBITDA  = $17500

and

EBIT = 17500 - 4900

EBIT = 12600

and

tax is 35 % that is = 4410

and

PAT = EBIT - tax

PAT = 12600 - 4410

PAT = 8190

so

cash flow = 8190 + 4900

cash flow  = $13090

4 0
2 years ago
Read 2 more answers
Other questions:
  • Country A has an absolute advantage over Country B in the production of both soybeans and corn. Explain a scenario in which both
    7·1 answer
  • On april 1, griffith publishing company received $1,548 from santa fe, inc. for 36-month subscriptions to several different maga
    9·2 answers
  • How do you feel about airlines mining your in-flight data? is there any difference from companies mining your credit card purcha
    5·1 answer
  • Cusic Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $26,400
    12·1 answer
  • Jose Garcia agrees to contribute land with a fair market value of $10,000 in exchange for 200 shares of Damian Inc.'s common sto
    6·1 answer
  • The following data relate to direct materials costs for February: Materials cost per yard: standard, $2.00; actual, $2.10 Standa
    10·1 answer
  • A local university is considering changes to its class structure in an effort to increase professor productivity. The old schedu
    12·1 answer
  • In its proposed 2022 income statement, Hrabik Corporation reports income before income taxes $500,000, income taxes $100,000 (no
    8·1 answer
  • An operation that closes due to an imminent health hazard can reopen only after getting approval from what agency?
    14·1 answer
  • Price controls on rents are frequently implemented by governments in an effort to protect renters from high housing prices. Diff
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!