Answer:
Debit to loss on sale of equipment of $20,000
Explanation:
Data provided in the question:
Selling cost of the equipment = $100,000
Cost of the equipment = $300,000
Accumulated depreciation of the equipment = $180,000
Now,
The book value of the equipment
= Cost of the equipment - Accumulated depreciation
= $300,000 - $180,000
= $120,000
Therefore,
Proceeds for selling
= Selling cost of the equipment - Book value of the equipment
= $100,000 - $120,000
= - $20,000
Here, the negative sign depicts a loss
Hence,
The company’s journal entry to record the sale of the equipment would include a Debit to loss on sale of equipment of $20,000
The company's journal entry would include a debit to Accumulated Depreciation, a debit to Loss on Sale of Equipment, and credits to Equipment and Cash.
The company would record the sale of the equipment with the following journal entry:
Debit: Accumulated Depreciation - $180,000
Debit: Loss on Sale of Equipment - (Sale Price - Book Value)
Credit: Equipment - $300,000
Credit: Cash - $100,000
The debit to Accumulated Depreciation reduces the accumulated depreciation on the balance sheet. The debit to Loss on Sale of Equipment records the difference between the sale price and the book value as a loss. The credit to Equipment removes the asset from the balance sheet. The credit to Cash reflects the cash received from the sale.
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Answer:
Break-even point (units)= 475,000/ (131 - 93)= 12,500 units
AA= 12,500*0.6= 7,500
BB= 12,500*0.4= 5,000
Explanation:
Giving the following information:
Wide Open Industries Inc. has fixed costs of $475,000.
AA
Selling Price= $145
Variable Cost= $105
Contribution Margin per Unit= $40
BB
Selling Price= 110
Variable Cost= 75
Contribution Margin per Unit= 35
The sales mix for products AA and BB is 60% and 40%, respectively.
Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)
weighted average selling price= 145*0.6 + 110*0.4= 131
weighted average variable expense= 105*0.6 + 75*0.4= 93
Break-even point (units)= 475,000/ (131 - 93)= 12,500 units
AA= 12,500*0.6= 7,500
BB= 12,500*0.4= 5,000
will happen to the new equilibrium price and quantity?
A) price increases; quantity increases
B) price increases; quantity is unknown
C)price decreases; quantity decreases
D)price decreases; quantity increases
E)price is unknown; quantity increases
B) the strategic fit test, the resource fit test, and the profitability test.
C) the barrier-to-entry test, the growth test, and the shareholder value test.
D) the attractiveness test, the cost-of-entry test, and the better-off test.
E) the resource fit test, the strategic fit test, the profitability test, and the shareholder value test.
Answer:
D) the attractiveness test, the cost-of-entry test, and the better-off test.
Explanation:
To judge a diversification change, an organization needs to pass the attractiveness tests, the entry cost test and the best situation test.
These tests will be decisive to analyze the potential that diversification will have to create added value for the shareholder.
The attractiveness test will list the ability that the market has to ensure that there is a safe return on investments.
The cost-of-entry will aim to ensure that when entering a new sector, the organization does not have higher costs that can influence the generation of profitability.
Finally, the better-off test will analyze whether the planned diversification will be so profitable that it will help to improve the performance of the integration of organizational businesses.
Answer:
OPTION d
Explanation:
b. provide specifics if further action is required.
c. omit the sender's name to avoid legal liability.
d. avoid repeating the information provided or referring to its use.
Answer: b. provide specifics if further action is required.
Explanation:
In a response message, one must be cordial and seek to promote GOODWILL with a customer. This can be done by simply referring to any provided information, providing specifics if any further action is required and including the sender's full contact information. Naturally there must also be a tone indicating a willingness to help but not with such cliché phrases such as, " Call me if you need any help". Such responses do not fit well in well written conclusions.
Answer:
Depreciation expense for 2018 was $880
Depreciation expense for 2019 was $2,640
Explanation:
The company uses straight-line depreciation method, Depreciation Expense each year is calculated by following formula:
Annual Depreciation Expense = (Cost of furniture − Residual Value )/Useful Life = ($31,000-$4,600)/10 = $2,640
Depreciation Expense per month = $2,640/12 = $220
Depreciation Expense for 2018 (from September 1, 2018 to December 31, 2018) = $220 x 4 = $880
Depreciation Expense for 2019 = $2,640
Answer:
This is true, the efficient market hypothesis only holds if all the investors are rational, for example if an investor is not rational and wants to make a loss instead of profit, then the efficient market hypothesis wont hold as the investor will be acting in a way that wont benefit him. When the investor acts irrationally, then he wont react correctly to the information he has and buy or sell stocks which he isn't supposed to buy or sell and this will change the price of the stock from what the price of the stock should be.
Explanation: