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
A group of manufacturers of LCD screens for computers and cell phones met together monthly in private conference rooms in hotels
aleksklad [387]

Answer: a. ​The manufacturers had engaged in a per se violation of antitrust laws.

Explanation: The Sherman and Clayton Acts would apply to US companies. The group of manufacturers of LCD screens were not specified as US companies. But by virtue of the fact of colluding with Korean makers they would have per se been violating the the Monopoly Regulation and Fair Trade Act (MRFTA) of Korea.

3 0
2 years ago
Sue is a small business owner who often gives gifts to clients. She gives a $40 gift to her client, Mr. Smith, and his wife. Sue
PilotLPTM [1.2K]

Answer:

D) $801

Explanation:

Businesses can only deduct $25 per gift per client, in this case the client's wife is not an actual client, so Sue can only deduct $25 for the gift plus the wrapping expenses. She can also deduct the $400 spent in the calendars and the $370 watch.

Sue's total deductions = $25 + $6 + $400 + $370 = $801

8 0
2 years ago
Drew Enterprises reports all its sales on credit, and pays operating costs in the month incurred. Estimated amounts for the mont
Afina-wow [57]

Answer:

$312,000

Explanation:

Given that,

August Sales = $300,000

July sales = $330,000

Customer amounts on account are collected 60% in the month of sale and 40% in the following month.

Cash Receipts during August:

= (August Sales × 60%) + (July Sales × 40%)

= ($300,000 × 60%) + ($330,000 × 40%)

= $180,000 + $132,000

= $312,000

Therefore, the cash is budgeted to be received during August is $312,000.

8 0
2 years ago
Which of the following statements does not accurately describe the fair-value method of accounting?
Mama L [17]

Answer: Option (A)

Explanation:

Fair values mostly tends to exist for the marketable security but this in terms does not state that this method is applicable. For instance if investor tends to control the entity with the traded equity, therefore the investment is centralized and thereby, fair-value method of accounting is not being used.

Therefore, from the given options we can state that option (A) does not precisely describes the fair value method.

8 0
2 years ago
The productivity gains achieved by specialization are due to A. comparative advantage. B. lower opportunity costs from switching
Ronch [10]

Answer:

Comparative advantage.

Explanation:

Comparative advantage is the ability to produce good and services at a lower opportunity cost compared to others , leading to lower selling price and competitive advantage over others .

Specialization is about concentrating on producing a few products in order to

build brands , expertise and gain maximum productivity leading to a reduction in selling price and  a comparative advantage.

4 0
2 years ago
Read 2 more answers
Other questions:
  • Keeping your _____ and _____ in mind will dictate what you say and how you say it.
    10·2 answers
  • ________ is a nondedicated revenue account and is the state's primary operating fund.
    8·1 answer
  • Nicole Martins is the controller at UMC Corp., a publicly-traded manufacturing company. Last year, UMC had annual sales revenue
    10·1 answer
  • Net Foreign Factor Income $8 Corporate Profits 47 Gross Private Domestic Investment 73 Proprietors' Income 46 Dividends 13 Consu
    8·1 answer
  • An import quota is an example of a _________.A. tax on imported goods. B. quantity restriction. C. price floor. D. price ceiling
    7·1 answer
  • KaiLynn has total job benefits of $41,000 per year in her sales job. She pays $63 each month for a cell phone for work. She is a
    5·1 answer
  • All other things being equal, a company that sells multiple products should attempt to structure its sales mix so the greatest p
    9·1 answer
  • On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in th
    8·1 answer
  • Mechanistic vs. Organic Structures Managers taking a contingency approach must consider numerous factors in designing the best k
    10·1 answer
  • Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are: M N OUnit sale
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!