A PP&E asset with an acquisiton cost of $300,000 and accumulated depreciation of $285,000 is sold for $35,000. What is the gain or loss on disposal that the company should record?
a. credit a $20,000 gain.
b. credit a $35,000 loss.
c. debit a $20,000 gain.
d. debit a $35,000 loss
Answers
A PP&E asset with an acquisiton cost of $300,000 and accumulated depreciation of $285,000 is sold for $35,000. The company should record a credit of $20,000 gain on the disposal of the PP&E asset.
To determine the gain or loss on disposal of the PP&E asset, we need to compare the selling price with the carrying value of the asset. The carrying value is calculated by subtracting the accumulated depreciation from the acquisition cost.
Given that the acquisition cost of the asset is $300,000 and the accumulated depreciation is $285,000, the carrying value is $15,000 ($300,000 - $285,000).
Since the asset is sold for $35,000, we can calculate the gain or loss by comparing the selling price with the carrying value. In this case, the selling price of $35,000 is greater than the carrying value of $15,000, resulting in a gain.
Therefore, the company should record a credit of $20,000 gain on the disposal of the PP&E asset. Option (a), which states "credit a $20,000 gain," is the correct answer.
Learn more about depreciation here :
https://brainly.com/question/8194979
#SPJ11
Related Questions
in texas, education, health, and human services expenditures account for what portion of the state’s budget? quizlet
Answers
Education, health, and human services expenditures account for a significant portion of Texas' budget, reflecting a commitment to invest in the well-being of its population.
In Texas, education, health, and human services expenditures account for a significant portion of the state's budget. These sectors represent crucial areas of investment to ensure the well-being of Texans and promote social development.
In terms of education, Texas allocates a substantial portion of its budget to support public schools, colleges, and universities. Funding is directed towards areas such as teacher salaries, school infrastructure, educational programs, and student services.
The state recognizes the importance of investing in education to prepare a skilled workforce and foster economic growth.
Healthcare and human services also receive a considerable share of the budget. This includes funding for Medicaid, a government program that provides healthcare coverage for low-income individuals and families.
The budget also supports initiatives related to mental health services, substance abuse treatment, child protective services, disability services, and other social welfare programs. The goal is to ensure access to quality healthcare and provide support for vulnerable populations.
While the exact percentage can vary from year to year based on budget priorities and economic conditions, education, health, and human services expenditures typically represent a substantial portion of the state's overall budget.
These investments reflect the commitment to address the needs of the population and promote the well-being of Texans.
For more question on commitment visit:
https://brainly.com/question/30507330
#SPJ8
9. The person who smokes cigarettes cannot possibly be thinking in terms of costs and benefits because it has been proven that cigarette smoking increases one's chances of getting lung cancer. Do you agree or disagree with the part of the statement that reads "the person who smokes cigarettes cannot possibly be thinking in terms of costs and benefits"? Explain your answer.
Answers
Explanation:
I disagree with the part of the statement that says "those who smoke cannot be thinking about costs and benefits" because although the phrase is correct in the logical and scientific context about the harm of smoking, it is also correct to state that the statement is liable to different interpretations according to each individual.
Therefore, I do not agree with this statement due to the fact that each person has a different concept of benefits and costs, for an individual to smoke, even though it is harmful to health, it is compensable for the sensation of pleasure it causes.
the main characteristics of a pure___are a single seller, no close substitutes, a price maker, blocked entry, and non-price competition.
Answers
A full monopoly, Correct Unavailable is characterized by a single seller, the absence of near substitutes, a price maker, barred entrance, and non-price competition.
Which market called price maker?There are no competitors in a market that is monopolistic. The monopolist, also known as the price maker, is able to set the price in the market due to the absence of close replacements and competitors. A seller who has sufficient pricing and market clout to affect market prices is said to be a price maker. In such a scenario, a company's capacity to successfully alter product and service prices determines its market and pricing power.
What is price maker in monopoly and why is perfect competition a price maker?A monopolist is seen as a price maker since it has the power to determine the cost of the goods it sells. Demand, often known as consumer willingness & ability to buy the commodity, places restrictions on the monopolist.
Because competing firms pressure companies to accept the market's current equilibrium price, a perfect competition firm is referred to as a price taker. A company will lose every one of its sales to rivals if it increases the price of its item by even a penny in a highly competitive market.
To know more about Price Maker visit:
https://brainly.com/question/29218058
#SPJ4
what is a good reason why you got a answer wrong
Answers
Answer:
Click it by mistake
Explanation:
Consider an economy that is in the following situations: Situation CI с IG i(%) n (%) u (%) x(%) A 730 150 170 4 3 3 1 B 670 150 130 4 1 1 C 700 150 150 4 2 5 1 When the economy is producing at potential, the following values apply: Yn = 5%; rn = 2%; x = 1%; π² = 2%. 1000; un = a) In which situation(s) is the economy in medium run equilibrium? Explain. b) In the situations in which the economy is not in medium run equilibrium, what action must the central bank take to return to equilibrium? 3. Discuss the following statement: A fiscal expansion leads to an increase in the natural rate of interest.
Answers
a) The medium-run equilibrium occurs where the AD (aggregate demand) and AS (aggregate supply) curves intersect. The economy is in medium-run equilibrium when its short-run equilibrium is equal to the economy's potential output.
The AD and AS curves are constructed to establish the economy's price level and production capacity. In the table, the economy is in medium-run equilibrium in Situation C. The inflation rate, unemployment rate, and output gap are all equal to their potential values. The economy is not in medium-run equilibrium in Situations A and B because the output gap is non-zero.
b) The central bank has to take the following measures to achieve equilibrium:
Situation A: Since the output gap is positive, the central bank must increase the interest rate, which lowers aggregate demand and leads to a leftward shift of the AD curve. This action reduces inflationary pressure and, in the long run, lowers the price level to P0 and the output level to Yn.
Situation B: Since the output gap is negative, the central bank must lower the interest rate, which increases aggregate demand and leads to a rightward shift of the AD curve. This action raises inflationary pressure and, in the long run, raises the price level to P0 and the output level to Yn.
3. A fiscal expansion leads to an increase in the natural rate of interest. The natural rate of interest is defined as the real interest rate that equates investment and saving in an economy without inflationary or deflationary pressures. A fiscal expansion implies an increase in government spending and/or a decrease in taxes, which raises aggregate demand. The increased aggregate demand raises output and raises the demand for investment. The greater investment demand puts upward pressure on the natural rate of interest. Fiscal policy can alter the natural rate of interest indirectly through its influence on investment demand.
To know more about medium-run equilibrium visit:
https://brainly.com/question/31948958
#SPJ11
(02.10 LC) What strategy works best to get out of a rut?
A) Attitude
B) Belief
C) Flexibility
D) Selling out
Answers
Answer is C Flexibility because that's the only thing that goes in the exercise category.
Explanation: I hoped that Helped!!
Answer:
Flexibility.
Explanation:
Cognitive flexibility refers to the brain’s ability to transition from thinking about one concept to another. The quicker you are able to switch or “shift” your thinking from one dimension (e.g. color of an object) to another (e.g. shape of an object), the greater your level of cognitive flexibility.
determine the taxable income for a company that had a gross income of $44 million, earnings before interest and income taxes of $25.5 million, and depreciation of $8.8 million.
Answers
The taxable income for this company had a gross income of $44 million, earnings before interest and income taxes of $25.5 million, and depreciation of $8.8 million is $16.7 million.
To determine the taxable income for this company, we need to subtract the allowable deductions from the earnings before interest and income taxes. One of the allowable deductions is depreciation, which is the decrease in the value of assets over time. In this case, the depreciation amount is $8.8 million.
So, the taxable income for this company is calculated as follows:
Earnings before interest and income taxes: $25.5 million
Less: Depreciation: $8.8 million
Taxable income: $16.7 million
It's important to note that taxable income is the amount of income on which tax is calculated. Interest is not mentioned in this scenario, but it's important to know that it can be another allowable deduction from gross income when calculating taxable income.
In conclusion, the taxable income for this company had a gross income of $44 million, earnings before interest and income taxes of $25.5 million, and depreciation of $8.8 million is $16.7 million.
For more information on gross income visit:
brainly.com/question/2194020
#SPJ11
Plastbolt, a company that manufactures and supplies plastic bottles, wants to acquire a smaller company. It plans to invest in two smaller plastic manufacturing companies and buy the one that it finds yields better returns. In this scenario, Plastbolt is most likely using
Answers
Answer:
options-based planning
Explanation:
Options-based planning is defined as one that focuses on what could go wrong in a given business venture. Resources are now used to mitigate the projected issues that can arise.
In the give scenario Plastbolt is trying to invest in two smaller plastic manufacturing companies and buy the one that it finds yields better returns.
So they have an option of going ahead with the venture that has better returns.
Someone who is __________ can recover from disappointments quickly.
A.
exciting
B.
flexible
C.
resilient
D.
intelligent
Answers
C. resilient
Explanation:
Resilient definition is able to withstand or recover quickly from difficult conditions.
Which product is more scarce (limited and desirable) A table or pizza? Why?
Answers
Answer:
A table could be scarce since its not on demand and not everyone wants a table while the pizza will be on demand since it is a popular fast food and everyone wants it.
The market for corn in Mexico has a large number of sellers and buyers, and there is no difference in the products sold by each seller. As a result, prices are determined by the
Answers
Answer:
Interactions between the sellers and buyers in the market.
Explanation:
laws of supply and demand in the Mexican corn market. When there is a surplus of corn, the price tends to decrease as sellers compete to sell their products. Conversely, when there is a shortage of corn, the price tends to increase as buyers compete to purchase the available products. Therefore, the prices are determined by the interactions between the sellers and buyers in the market.
The final rule on higher-priced loans (as defined under HOEPA regulations) requires an originating lender to establish and maintain an escrow (impound) account for property taxes and insurance for a minimum of ___ years. A-11
B-7
C-3
D-5
Answers
The final rule on higher-priced loans (as defined under HOEPA regulations) requires an originating lender to establish and maintain an escrow (impound) account for property taxes and insurance for a minimum of 5 years.
What is HOEPA?HOEPA is a federal law passed in 1994 that aims to address abusive lending practices in high-cost mortgage lending by providing additional consumer protections. Under HOEPA regulations, creditors are required to establish and maintain an escrow (impound) account for property taxes and insurance for a minimum of 5 years for higher-priced loans (as defined under HOEPA regulations).
The establishment of escrow (impound) account by the originating lender, as per HOEPA regulations, assists in preventing homebuyers from paying a lump sum payment when their property tax and insurance payment are due. The originating lender is responsible for arranging payment of property taxes and insurance on the borrower's behalf. As a result, the lender guarantees that the borrower's property taxes and insurance premiums are always paid on time to ensure that their property is adequately insured and taxes are up to date.
To know more about HOEPA regulations:
https://brainly.com/question/30773681
#SPJ11
dena, an accountant, contracts to perform services for equipment maker inc. dena acts in good faith and conforms to generally accepted accounting principles but makes an incorrect judgment. dena is most likely
Answers
The inverse relationship between a nation's money supply and short-term interest rates makes borrowing for consumers either more expensive or less expensive when all other factors are considered equal.
Therefore, interest rates fall when there is more money available. As a result, borrowing becomes less expensive.
What effect does money demand have on interest rates?The demand for money will rise as the interest rate decreases. The story will come to an end when it reaches the same level as the new money supply because there will no longer be any difference between the amount of money that people have and the amount that they wish to have. The interest rate is lowered in this manner and for this reason when the money supply grows.
To learn more about money supply here:
https://brainly.com/question/28891105
#SPJ4
active/passive she is watering the plants
Answers
Answer:
active
Explanation:
she "is" means she is currently watering the plants. if it was passive it would have been like this, "she watered the plants".
out of all colors which two go together
Answers
Answer:
turquoise and electric magenta
Explanation:
Which job in the Finance career cluster is ideal for a person with a master’s degree?
A. Bank Teller
B. Controller
C. New Accounts Clerk
D. Loan Officer
Answers
Answer:
i put d
Explanation:
Answer:
ddddddddddddddddddddddddddddddddddddddddddd
Explanation:
4. When approaching a vehicle from the rear that is about to make a left turn you may pass that vehicle on the right if the pass can safely be completed.
False
True
Answers
authority is defined as the multiple choice assignment of a task that an employee is supposed to carry out. expectation that employees will perform a job and report the status of their performance. assignment of additional responsibility to a subordinate at a lower level. legitimate right to make decisions and to tell people what to do. narration of a set of predicted future conditions.
Answers
Authority is defined as the multiple choice assignment of a task that an employee is supposed to carry out legitimate right to make decisions and to tell people what to do.
What is importance of authority?Any organisation or system must have authority in order to establish a clear chain of command and make decisions. It enables individuals or groups to decide on and take actions that are consistent with the goals and objectives of the organisation. Having authority helps to ensure that tasks are completed effectively and efficiently by providing structure and order. Additionally, it aids in ensuring that people are held accountable for their deeds and obligations. A positive work culture can be cultivated and increased trust and respect among coworkers by having clear authority within an organisation. In conclusion, authority is crucial because it promotes good decision-making, accountability, and direction.
To Know more about Authority visit:
brainly.com/question/14255769
#SPJ1
Sales taxes collected by a retailer are recorded by.
Answers
Answer:
There recorded by sales
Explanation:
Sales taxes collected by a retailer are recorded as credit to sales taxes payable under the current liabilities section on the balance sheet.
Sales taxes collected by a retailer are typically recorded by the retailer themselves for accounting and reporting purposes.
How is the sales tax collectedThis is done to ensure compliance with tax regulations and to accurately track the amount of sales tax owed to the appropriate tax authority.
Retailers usually use point-of-sale (POS) systems or specialized accounting software to record sales transactions and calculate the sales tax amount. These systems are programmed to apply the appropriate tax rate based on the location of the sale and the type of product or service being sold.
Read more on Sales taxes here https://brainly.com/question/30109497
#SPJ6
Operational data are commonly stored in many tables, and the stored data represents information about a given _____ only.
Answers
office administration.Prepare for filling in order.
Answers
This (office administration) simply means to arrange the above in alphabetical order like this;
An Apple SpotA1 TaxiDriveByFine Foods LtdFirst Caribbean BankMalcolm Stephens & SonsNorth Eastern Funeral AssociationPortsmouth Police StationSt. John's Primary School21 Century Printers.What is office administration?Within a company, office administration is a collection of day-to-day operations connected to the upkeep of an office building, financial planning, record keeping and billing, personal development, physical distribution, and logistics.
Finally, administrative abilities are connected to corporate operations and enhancing office productivity. Communication and organizational abilities, as well as project management, bookkeeping, and time management skills, are among them.
Learn more about office administration at:
https://brainly.com/question/4216255
#SPJ1
When you get in a business, make a lot of money, and then get out, it’s referred to as a(n)
A) easy-money business.
B) hit-and-run business.
C) failure.
D) missing opportunity.
Answers
Answer:
The answer is B. Hit-and-run business.
Explanation:
cookiesamichael12345678
Answers
Answer: ?
Explanation:
Girl what does that mean, either you can count right or thats a username
Need Help
Ted is a single guy who’s living the good life. The spreadsheet below shows Ted’s cash flow for a month.
Based on his monthly cash flow, explain what part of Ted’s financial plan might be missing and why.
Answers
Answer:
Ted's net cash flow is zero. Therefore, he might want to work on managing his income to get a positive net cash flow. There is no indication that Ted is putting any money in savings.
Hope it helps!
in the process of market segmentation, which of the following is the step that comes after grouping customers with similar need sets?
Answers
Answer:
D
Explanation:
Most products in developed economies fulfill more than one need.
What are internal source and external source
Answers
please help
Why is engaging communication a two-way process?
Answers
Answer:
Two-way communication allows both participants to exchange ideas, they can develop a sense of mutual understanding. The result is a better relationship between them. Increase effectiveness
Effective communication depends on the proper understanding of the message by the sender and receiver.
Explanation:
Hope you can helpWhich change should she make in her outline?
O change step 2 to “click the format tab”
O change step 3 to “open chart title dialog box “
O change step 4 to “type in the chart title”
O change step 5 to “add the chart title”
Answers
Answer:
A
Explanation:
Answer:
B
Explanation:
in a newsvendor model, at the optimal order quantity (i.e., the newsvendor ordering quantity) the probability that demand is less than the order quantity is
Answers
At the optimal order quantity in a newsvendor model, the probability that demand is less than the order quantity depends on the desired service level or critical ratio.
In a newsvendor model, the optimal order quantity is determined by balancing the cost of excess inventory with the cost of lost sales. To calculate the probability that demand is less than the order quantity, one must consider the desired service level. The desired service level reflects the level of risk a company is willing to tolerate in terms of stockouts.
For example, if the desired service level is 90%, it means the company aims to fulfill 90% of customer demand without experiencing stockouts. The complementary probability, 10% in this case, represents the probability that demand will be less than the order quantity. This information helps in making informed inventory decisions and managing supply chain performance effectively.
You can learn more about newsvendor model at
https://brainly.com/question/24036247
#SPJ11
31.4X R. James drew up the following statement of financial position on 31 December 2017. Statement of Financial Position of R. James as at 31 December 2017 $ Non-current assets Furniture and fittings Motor vehicles Current assets Inventory Accounts receivable Cash at bank Less Current liabilities Accounts payable Net current assets Capital 1 January 2017 ⁸0 7,870 When checking the books, the following errors and omissions were found. (i) A purchase of fittings, $140, had been included in the ******ebook converter DEMO Watermarks******* purchases account. (ii) Motor vehicles should have been depreciated by $280. (iii) A debt of $41 included in accounts receivable was Required: (a) show your calculation of the correct net profit (b) draw up a corrected statement of affairs as at 31 December 2017.
Answers
(a) the corrected net profit is: Capital 1 January 2017 + Net current assets - Non-current assets = $7,870 + ($0 - $140) - $7,590 = $140 b) Total capital $8,010
a) To calculate the correct net profit, we need to adjust for the errors and omissions found. Firstly, the purchase of fittings that was included in the purchases account should have been included in the furniture and fittings non-current asset account.
Therefore, we need to deduct $140 from the purchases account and add it to the furniture and fittings account. Secondly, the motor vehicles should have been depreciated by $280, which means we need to reduce the value of the motor vehicles account by $280. Finally, the debt of $41 that was included in accounts receivable was not paid, so we need to deduct it from the accounts receivable account.
So, the adjusted statement of financial position is:
Non-current assets:
Furniture and fittings $140
Motor vehicles $7,590 (original value of $7,870 - $280 depreciation)
Current assets:
Inventory
Accounts receivable $0 (original value of $41 - $41 debt)
Cash at bank
Less Current liabilities:
Accounts payable
Net current assets:
Capital 1 January 2017
Therefore, the corrected net profit is:
Capital 1 January 2017 + Net current assets - Non-current assets = $7,870 + ($0 - $140) - $7,590 = $140
(b) The corrected statement of affairs as at 31 December 2017 is:
Non-current assets:
Furniture and fittings $140
Motor vehicles $7,590
Current assets:
Inventory
Accounts receivable $0
Cash at bank
Less Current liabilities:
Accounts payable
Net current assets: $0
Capital 1 January 2017 $7,870
Add: Corrected net profit $140
Total capital $8,010
For more such questions on net profit
https://brainly.com/question/28390284
#SPJ11