BUSINESS COLLEGE

Bylie Company has an old factory machine that cost $50,000. The machine has accumulated depreciation of $28,000. Bylie has decided to sell the machine. a) What entry would Bylie make to record the sale of the machine for $25,000 cash?

b) What entry would Bylie make to record the sale of the machine for $15,000 cash?

Answers

Answer 1
Answer:

Answer:

A)

Cash                                                        $25000 Dr

Accumulated depreciation-Machine  $28000 Dr

               Machine                                       $50000 Cr

               Gain on disposal                          $3000 Cr

B)

Cash                                                        $15000 Dr

Accumulated depreciation-Machine  $28000 Dr

Loss on disposal                                    $7000 Dr

               Machine                                             $50000 Cr

Explanation:

The net book value of the machine is cost - accumulated depreciation.

Thus, the NBV = 50000 - 28000 = $22000

a. The gain on disposal = Cash received - NBV

Gain on disposal = 25000 - 22000 = $3000 gain

b. The gain on disposal = 15000 - 22000 = -$7000 (loss on disposal)

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Assume a certain firm regards the number of workers it employs as variable but regards the size of its factory as fixed. This assumption is often realistic a. in the short run but not in the long run. b. in the long run but not in the short run. c. both in the short run and in the long run. d. neither in the short run nor in the long run.
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An investment has an expected return of 11 percent per year with a standard deviation of 26 percent. Assuming that the returns on this investment are at least roughly normally distributed, how often do you expect to earn less than -15 percent?

Answers

Answer:

P(X<-15)=P((X-\mu)/(\sigma)<(-15-\mu)/(\sigma))=P(Z<(-15-11)/(26))=P(Z<-1)

And we can find this probability using the normal standard distribution table or excel and we got:

P(Z<-1)=0.159

Explanation:

Previous concepts

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".  

Solution to the problem

Let X the random variable that represent the expected return, and for this case we know the distribution for X is given by:

X \sim N(11,26)  

Where \mu=11 and \sigma=26

We are interested on this probability

P(X<-15)

And the best way to solve this problem is using the normal standard distribution and the z score given by:

z=(x-\mu)/(\sigma)

If we apply this formula to our probability we got this:

P(X<-15)=P((X-\mu)/(\sigma)<(-15-\mu)/(\sigma))=P(Z<(-15-11)/(26))=P(Z<-1)

And we can find this probability using the normal standard distribution table or excel and we got:

P(Z<-1)=0.159

Kim received a one-third profits and capital interest in Bright Line, LLC, in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $30,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: sales-$150,000, cost of goods sold-$90,000, depreciation expense-$45,000, long-term capital gains -$15,000, qualified dividends-$6,000, and municipal bond interest-$3,000. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4? a. ($15,000).
b. $6,000.
c. $9,000.
d. $9,000.
e. $15,000.
f. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.

Answers

Answer:

f. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.

Explanation:

Note: Guaranteed payments have no effect on Kim's outside basis.

Bright Line LLC will be reporting on page 1 of Form 1065, an ordinary loss of $15,000 ($150000 - $90000 - $45000 - $30000)

1/3rd of $15,000 = $5,000. That is, $5,000 loss must be allocated to Kim on Schedule K-1. So, option f is the correct answer.

5. The role of brand names and advertising. Which of the following statements about expenditures on advertising is true? A. When a firm spends a large amount of money on advertising, advertising can be construed as a signal of quality.
B. When a firm spends a small amount of money on advertising, this signals that the quality of the good is high.
C. If a firm knows its product is of low quality, it will be willing to spend large amounts of money on advertising.

Answers

Answer:

A. When a firm spends a large amount of money on advertising, advertising can be construed as a signal of quality. 

Explanation:

When a firm spends a large amount of money in advertising its product, it means that the company is confident about its product and is willing to spend a lot because they know their product would be a success

I hope my answer helps you

There are ten firms in an industry. Five of the firms each have a market share of 12 percent and five of the firms each have a market share of 8 percent. The Herfindahl index is Group of answer choices 1,000. 1,040. 100. 920. none of the above

Answers

Answer:

1,040

Explanation:

The Herfindahl index is an index that is used to measure the size of firms in relation to the industry and it also shows the level of competition among the firms in the industry. The Herfindahl index is also known as Herfindahl–Hirschman Index (HHI).

The Herfindahl index is calculated by summing the square of the market share of all firms in the industry. For this question, it can be calculated as follows:

Herfindahl index = (12^2 * 5) + (8^2 * 5) = 720 + 320  = 1,040.

Revise the following wordy, unorganized paragraphs. Include an introductory statement followed by a bulleted or numbered list. Look for ways to eliminate unnecessary wording.Because all casual clothing is not suitable for the office, these guidelines will help you determine what is appropriate to wear to work. Slacks that are similar to Dockers and other makers of cotton or synthetic material pants, wool pants, flannel pants, and attractive dress synthetic pants are acceptable. Casual dresses and skirts hemmed at the knee and lower or slits at or below the knee are acceptable. Dress and skirt length should be at a length at which you can sit comfortably in public. Casual shirts and blouses, dress shirts and blouses, sweaters, tops, golf-type shirts, tunics, and turtlenecks are acceptable attire for work. Most suit jackets or sport jackets are also acceptable attire for the office. Conservative athletic or walking shoes, loafers, clogs, sneakers, boots, flats, dress heels, and leather deck-type shoes are acceptable for work.

Answers

Answer:

Revision of wordy, unorganized paragraphs

Our organization's dress code allows suitable office dresses.  Find below the guidelines for allowed dresses:

  • Slacks similar to Dockers
  • Casual dresses and skirts hemmed at the lower knee
  • Comfortable dress and skirt length
  • Casual shirts and blouses are acceptable
  • Suit and sport jackets
  • Conservative athletic or walking shoes

Explanation:

The use of bulleted or numbered lists can help to organize wordy paragraphs.  They also eliminate some of the unnecessary wordings that have been included, thereby reducing the overall length.

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Ignoring income tax considerations, prepare the appropriate journal entry, dated January 1, Year 3, to report this accounting change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answers

Answer:

Explanation: times all the number together
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