Answer:
$20,000 ordinary gain
Explanation:
Data provided in the question:
Cash proceeds from Selling of the equipment = $50,000
Purchasing cost of the equipment = $60,000
Depreciation expense = $30,000
Now,
The book value of the equipment
= Purchasing cost of the equipment - Depreciation expense
= $60,000 - $30,000
= $30,000
Since,
the amount of proceeds from sales is higher than the book value of the equipment
Therefore a gain will be recognized
The amount of Gain = proceeds from Selling - book value
= $50,000 - $30,000
= $20,000
Hence,
$20,000 ordinary gain
Answer:
Explanation:
The lunch plate industry in Oahu is a perfectly competitive industry.
This industry is also a decreasing cost industry. A decreasing cost industry can be defined as the type of industry where an increase in the number of firms in the industry causes the average production cost to decline.
The industry is currently in long-run equilibrium and has the price level at $5.
As the demand increases, the price level will initially increase. But this increase in the price will cause the profits to increase and thus attract potential firms to join the market.
As the number of firms increases the average cost of production will decrease. As a result, the supply in the market will increase more than the demand.
So the long-run equilibrium will be reestablished at a lower price than earlier.
Answer:
B) Long-term debt
Explanation:
Long term debts are loans that are due in more than 1 year, and generally bonds are due in several years.
- Revolving credit agreements is a revolving line of credit where the client uses the funds only when they need it.
- Commercial papers are short term promissory notes (due in less than 1 year).
- Trade credit is usually handed out by a company's vendors where you receive merchandise and pay for it later (usually in a month or two).
<span>As far as I remember, value-added network or VAN is t</span>hird-party business that provides networking services such as EDI services, storage, or email. VAN is needed to simplify the communications process between company and its partners or clients by reducing the number of contacts that company doesn't need to communicate.
