If you were to behave according to the rational choice model when confronted with a loss of $25 on the same day in which you receive an unexpected gift of $25, you would:a. value the loss of $25 more heavily than the gift of $25.b. value the gift of $25 more than the loss of $25.c. See the two events as exactly offseting and thereby of no consequence in your overall welfare.d. discount the loss and value the gain so that you feel you have gained welfare.
If you were to behave according to the rational choice model when confronted with a loss of $25 on the same day in which you receive an unexpected gift of $25, you would see the two events as exactly offsetting and thereby of no consequence in your overall welfare.
Having reason or understanding. : relating to, based on, or agreeable to reason : reasonable. Rational behavior refers to a decision-making process that is based on making alternatives that result in the optimal level of advantage or utility for an person. the belief of rational behavior means that human beings would instead take actions that advantage them versus movements which might be impartial or harm them.
This concept states that people use their self-interests to make selections that will provide them with the greatest gain. human beings weigh their options and make the choice they think will serve them first-rate. How people decide what is going to serve them high-quality is dependent on private options.
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Consider the following scenario to understand the relationship between marginal and average values. Suppose Dmitri is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns with Raphael's free-throw percentage for each game and his overall free-throw average after each game.
Game Game Result Total Game Free-Throw Percentage Average Free-Throw Percentage
1 8/10 8/10 80 80
2 6/10 14/20 3 1/5 15/25 4 3/5 18/30 5 8/10 26/40 On the following graph, use the orange points (square symbol) to plot Raphael's free-throw percentage for each game individually, and use the green points (triangle symbol) to plot his overall average free-throw percentage after each game.
Using marginal and average values the average must be falling.
Game Game result Total Free throw Average throw
1 8/10 8/10 80 80
2 6/10 14/10 60 70
3 1/5 15/25 20 60
4 3/5 18/30 60 60
5 8/10 26/40 80 65
The average is falling when the marginal is below average. When the marginal is higher than the mean, the mean is increasing. The Mc would cut the average from below and at the minimum of average if the two were equal.
Then the average must be falling.
When MC is above ATC, ATC must be rising
MC intersects ATC from below and at its minimum.
Marginal value- The value of the last unit of consumption to a consumer is known as marginal value. It is the value of the good to the consumer who purchased the good but receives the least value from consumption in an industry demand curve. That is, the consumer value of the first unit that would no longer be purchased if the price increased.
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When a member of a limited liability company guarantees payment of a loan to the firm, the member is personally liable for the obligation.a. Trueb. False
When a member of a limited liability company guarantees payment of a loan to the firm, the member is personally liable for the obligation. The following statement is true.
What is limited liability Short answer?Limited liability refers to the circumstance in which a business firm's owners (shareholders) liability for losses is restricted to the amount of capital they have invested in the company and does not include any personal assets.
A limited liability corporation member who personally guarantees repayment of a loan to the business is held accountable for the debt. A limited liability company member who commits fraud on the company's behalf is unlikely to face personal culpability.
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Supermarkets typically display merchandise on four shelves. Heavy, bulky items are stocked on the ____ for safety reasons.
Supermarkets typically display merchandise on four shelves. Heavy, bulky items are stocked on the a. bottom shelf for safety reasons.
Supermarkets need to store merchandise in such a manner that it is visible to the customers and also safe enough. For this purpose, the superstores have shelves that have four compartments.
The heavy, bulky assets or items are always stocked on the bottom shelf. This is because to prevent the upper shelves from breaking and damaging the shelves underneath. Also, heavy items are most likely to get fallen when being taken. Hence, in order to prevent other items in the supermarket from damage, heavy items are displayed on the bottom most shelf.
Although a part of your question is missing, you might be referring to this question:
Supermarkets typically display merchandise on four shelves. Heavy, bulky items are stocked on the ____ for safety reasons.
a. bottom shelf
b. top shelf
c. third shelf
d. second shelf
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everglades's opportunity cost of producing 1 pound of pistachios is of chinos, and glacier's opportunity cost of producing 1 pound of pistachios is of chinos. therefore, has a comparative advantage in the production of pistachios, and has a comparative advantage in the production of chinos.
Opportunity cost is the difference between the value of a different option and the value of the one that is selected.
Opportunity cost is a notion used in decision-making to assist people and organisations in making better decisions, primarily by taking the alternatives into account.
What are the advantages of opportunity costs?
One of the key advantages of opportunity costs is that they make you contemplate the fact that, when choosing between possibilities, you lose something in the one that is not chosen. Considering your opportunity cost also gives you the ability to assess the relative costs and advantages of other options, which is a crucial advantage. Choose the option that delivers the best overall value for your money by comparing the total costs of each.
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ryder loses her job because sales are slow at her firm, due to a general slowdown in the entire economy. this is an example of ____ unemployment.
Due to a broad slowdown in the global economy, Ryder loses her job as a result of slow sales at her company. An illustration of cyclical unemployment is this.
What one of the following best describes frictional unemployment?If an individual leaves their work voluntarily or is dismissed, they are considered to be frictionally unemployed. Frictionally unemployed people include recent graduates looking for their first job as well as other new workers.
What does economic cyclical unemployment mean?Cyclical unemployment is the amount of overall unemployment that is specifically brought on by periods of economic expansion and contraction. Typically, unemployment rises during recessions and falls during expansions.
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When a project starts with a high priority but it is canceled because its rank erodes or crashes during its project life cycle. This is an example of what type of project closure?
Changed priority
When a project starts with a high priority but it is canceled because its rank erodes or crashes during its project life cycle. This is an example of Changed priority.
About project closureIn closing a project that is implemented, not all projects end exactly as scheduled, a project may be terminated for several reasons.
There are 5 conditions for ending a project, namely normal, premature, perpetual, failed, and change priorities.
Normal – A project that ends normally is a project that finishes according to the original plan. The scope of the project was achieved with the established cost, quality and schedule, although there may be some variations and modifications in the course of the implementation of the project. The completed project will be handed over to the sponsor and will then be released for use by the customer, the end of the project will be marked with celebration and appreciation for the work done by the people involved. Premature – At certain times, the project team may be encouraged to finish the project early even though the product or system may not include all the features and functionalities planned at the start. Even though there is pressure to finish the project early, the risks of this decision must be carefully considered by all stakeholders of the project. Perpetual – Sometimes it will appear that the project will continue as long as the system or product lasts, which means that the project will not end. Perpetual projects may be the result of delays in project implementation or scope and MOV that were never clearly defined or agreed upon from the outset of project implementation. Then, the sponsor or team may try to add some features or functionality to the product or system, which may then lead to an extension of time or additional required resources, thus increasing the costs to be incurred by the organization. Failed – Sometimes, some projects do fail. In general, projects fail when adequate attention is not paid to either the process, the technology, or the people involved. Even though the MOV of a project may have determined the project's value to the organization, costs and time will beat that value when the costs incurred to complete the project are greater than the benefits that will be provided. Changed Priorities – In some circumstances, a project may be terminated as a result of changing priorities. Economic and financial reasons may indicate that resources are no longer available for project completion, or management has decided to shift resources to a higher priority project.Learn more about project closure at https://brainly.com/question/29612824.
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Firms that adopt software as a service actually buy a system's software and hardware, so these systems become a fixed operating expense.a. Trueb. False
"Firms that adopt software as a service actually buy a system's software and hardware, so these systems become a fixed operating expense." This statement is True.
the software program is a hard and fast of laptop applications and associated documentation and data. this is in comparison to hardware, from which the device is constructed and which in reality plays the work. the software program is fixed of commands, facts or packages used to operate computer systems and execute specific responsibilities. it's miles the opposite of hardware, which describes the bodily factors of a laptop. software is a conventional term used to refer to applications, scripts and programs that run on a device.
There are distinct varieties of software that could run on a computer: device software, utility software program, and alertness software program.
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Which of the following are the factors involved in deciding the right mode of transportation?
a. The cost of inventory while in transit
b. The cost related to transportation itself
c. The service requirements related to speed, and availability
a. The cost of inventory while in transit.
b. The cost related to transportation itself.
c. The service requirements related to speed, and availability.
What is transportation?⇒ Transport, also known as transportation in American or British English, is the deliberate movement of people, animals, and goods from one place to another. There are many different ways to travel, including air, land (rail and road), water, cable, pipeline, and space. Infrastructure, vehicles, and operations are three categories that apply to the field. Human trade is necessary for the advancement of civilizations, and transportation makes this possible.The term "transport infrastructure" refers to both permanent structures, such as roads, railways, airways, waterways, canals, and pipelines, as well as termini, which include airports, railway stations, bus terminals, warehouses, trucking terminals, refueling depots (including fueling docks and fuel stations), and seaports. Both the exchange of passengers and cargo as well as maintenance can be done at terminals.
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In the above diagram, the correct multiplicities designated with the number 1 is which of the following? 0,11,10,*1,**,*
In the above diagram, the correct multiplicity designated with the number 1 is 1..1.
The variety of times a given component appears in the factored form of the equation of a polynomial is known as multiplicity. The 0 associated with this element, x=2, has multiplicity 2 because the aspect (x−2) happens two times. The x-intercept −1 is the repeated answer of thing (x+1)3=zero.
If the multiplicity is peculiar, the graph will cross the x-axis at that zero. this is, it will trade sides, or be on contrary facets of the x-axis. If the multiplicity is even, the graph will contact the x-axis at that 0. this is, it'll stay at the same facet of the axis.
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Posttest
You travel sometimes for work and pay for some of your expenses out of your own pocket. At the end of the month
you have to submit an expense report, including your receipts, so you can be paid back for the money you have
spent. You resent the time it takes to complete the expense report, because you have a lot of trouble finding your
receipts at the end of the month.
What is the best way to deal with this situation?
A) Submit an expense report at the end of every trip so that you do not forget your receipts.
B) Take some time to record your expenses and file your receipts in one place after each trip.
C) Schedule extra time at the end of the month to locate your receipts.
D) Try to reduce your expenses so that you will have fewer receipts to locate.
Take some time to record your expenses and file your receipts in one place after each trip.
What is an expense report?An expense report is a segmented and in-depth account of costs that were incurred on behalf of the business. This report helps the employer or financial team determine the amount of the expense that is authorized for reimbursement, as well as how much money was spent and what was bought. Create a method for keeping track of expenses, sending in receipts, and reporting business costs. For real-time updates and to add information like photos of receipts for complete transparency, use digital solutions like online or mobile apps for corporate cost reporting.
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Germany has an absolute advantage over Spain in the production of automobiles, then this results from
Germany's ability to sell automobiles in Spain for less than the cost to produce in Spain
Germany's ability to produce more automobiles than Spain
Spain's ability to produce more automobiles than Germany
Germany's ability to produce automobiles at a lower opportunity cost than Spain
In terms of producing both items, Germany has a clear advantage.
What competitive advantage does Germany possess?
The industry in Germany is focused on the creation and manufacture of complex products, particularly investment goods and cutting-edge production techniques. The economy's innovation is thought to be what fuels Germany's economic potential.
What is an unquestionable production advantage?
Advantage absolue having the capacity to generate more of a good or service than a rival. Comparative advantage: The capacity of a producer to create a commodity or service for less than a rival.
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a project manager needs to ensure that the cumulative amount of cash coming into the project either from internal budgeting or from customer payments meets or exceeds the demands for paying cash out.
A project manager needs to ensure that the cumulative amount of cash coming into the project either from internal budgeting or from customer payments meets or exceeds the demands for paying cash out. This is a true statement.
A formal method of managing a group of funds is a budget strategy. To ensure that their expenses do not exceed their income, many people use budgeting techniques in their daily lives. Others use budgeting techniques to achieve financial goals, such as buying a new car or setting aside a certain amount of money for retirement.
Strategic budgeting allows for flexible forecasting for ambitious revenue and expenditure goals. The goal is to divert attention away from the big picture and specific data. Companies use budgeting tools to manage resources more effectively and achieve certain long-term goals. A project management is responsible for project planning, procurement, implementation, and completion. The project manager is responsible for the entire enterprise and manages every aspect of it, including the scope of the project, the project team and the resources assigned to it.
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In a recent city meeting, it was agreed that the city was going to build a new town hall. Long-term bonds, intergovernmental transfers, and public donations will be used to construct and maintain the building. The major discussion was how to record the donations meant to fund ongoing maintenance costs. One group wants to set up a permanent fund for the principle of the investments and use a special revenue fund to account for the earnings of the investments and their use. The other group wants to use a private purpose trust fund for the principle and interest.
Long-term bonds and also other things are also the main things that have been accustomed to the long-term pattern of money and also everything.
What is the Long term bonds?Two main advantages of longer-term bonds are diversification from stocks and (ii) consistent returns. These traders do not require the benefit of diversification that longer bonds provide because of the little equities exposure in this sort of portfolio.
A longer-term bond entails a larger risk of falling in price due to higher interest rates overall as well as a greater chance that rising inflation could lower the value of payments. For the majority of long-term investors, bonds with maturities between one and ten years are sufficient.
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assume that a company has a beta of .88 and the risk-free rate is 5%. if the market risk premium is 7%, calculate cost of equity capital, using the capital asset pricing model
The cost of equity capital for the company using the capital asset pricing model will be 6.51 percent.
The computation of the cost of equity capital of the firm can be done using the provided information, and the calculation of the same has been shown below using the given values into the generalized formula.
Cost of equity capital = (Risk-free Rate + Beta) x Risk Premium
Cost of equity capital = (0.05 + 0.88)×0.07
Cost of equity capital = 0.93x0.07
Cost of equity capital = 0.065
Therefore, the cost of Equity Capital will be 0.065.
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in texas the court of criminal focuses on criminal cases, while the texas court focuses on civil cases.
In Texas, the Texas Supreme Court is the state's highest court for civil cases, while the Court of Criminal Appeals is the state's highest court for criminal cases.
Which Texas court hears civil cases exclusively?An amendment to the Texas constitution in 1891 established the fundamental framework of the state's current judicial system. The amendment established the Court of Criminal Appeals, which renders the last decision in criminal cases, and the Supreme Court, which is the highest state appellate court for civil matters.
Which Texas courts have jurisdiction over both criminal and civil law?District courts have original jurisdiction over all felony criminal cases, divorces, property title disputes, lawsuits involving election contests, civil claims involving $200 or more in damages, and other cases for which jurisdiction has not been assigned to another trial court.
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one benefit of investing in a no-load fund over a load mutual fund would be (found in discussion of no-load funds):
A mutual fund that does not impose a commission or sales fee is known as a no-load fund. Due to the shares being distributed directly by the investment business rather than by a third party, there are no costs involved.
Load funds are mutual funds that levy a commission or sales fee. As long as you have your money invested for a certain amount of time, often five years, no-load funds typically don't charge any sales fees or commissions.
The argument for a load fund is that investors are paying a sales intermediary, such as a broker, financial planner, investment adviser, or other professionals, for their time and knowledge in choosing a suitable fund. Paying these fees annoys some investors.
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the demand for housing is characterized by a regular pattern of increasing to a peak, then falling. when the demand reaches a low point, it then repeats the pattern. this pattern usually takes place over a three- to five-year period. this is an example of which type of demand pattern? question 13 options: autocorrelation step change trend seasonality and cycles
Demand planning integrates inventory management, supply chain management, and sales forecasting to accomplish this goal.
What Is Demand Planning?To ensure that your company is able to meet client demand as efficiently as possible, demand planning involves examining sales as well as consumer patterns, historical sales data, and seasonality data.Demand planning integrates inventory management, supply chain management, and sales forecasting to accomplish this goal. It begins by predicting future demand using information from both internal and external sources. As a result, you can determine how much goods to buy or produce in order to satisfy that demand by using that projection to guide your sales and operations strategy.By assisting businesses in finding the ideal balance between adequate inventory levels and consumer demand, effective demand planning generates profit and increases customer happiness. That's not a simple objective, especially when it calls for cooperation throughout your entire firm. But the effects on business are important. Excess inventory restricts working capital, raises inventory carrying costs, and raises the likelihood that you'll be left holding low-value or outdated stock.To Learn more About Demand planning refer to:
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currency depreciation, on the other hand, is bad news if your company imports raw materials to manufacture finished goods. the cost of raw materials increases as currency weakens, which leads you to either raise the pricing of your completed products and risk the consequence of lower demand or bring down your profit margins.
Currency depreciation refers to a decline in its value when compared to other currencies. Economic fundamentals, interest rate differences, political unrest, or investor risk aversion are a few causes of currency devaluation.
Currency depreciation is typically a result of bad economic fundamentals in a nation, such as persistent current account deficits and high inflation rates. Currency depreciation, if controlled and progressive, increases a country's export competitiveness and may eventually reduce its trade deficit. However, a sudden and significant currency decline may frighten foreign investors who worry the currency could fall much further, prompting them to withdraw their portfolio investments out of the country. These steps will increase the currency's downward pressure.
One of the main reasons for currency depreciation is easy monetary policy, together with excessive inflation. A huge amount of money searches for the best yield while interest rates are low. Currency depreciation may start as a result of anticipated interest rate differentials. As excessive inflation might result in currency devaluation, central banks will raise interest rates to combat it.
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If a corporation pays $3 per share in annual dividends for each of the ten shares you purchase for $50 each what is the ROI
If a corporation pays $3 per share in annual dividends for each of the ten shares you purchase for $50 each then the ROI is 2$.
How is ROI calculated?An investment's return on investment (ROI) provides a general indication of its profitability. In order to calculate ROI, subtract the investment's initial cost from its final value, divide the result by the cost of the investment, and then multiply the result by 100.
What Constitutes a Solid ROI?For an investment in stocks, a yearly ROI of 7% or more is typically regarded as a respectable ROI. This also refers to the average annual return of the S&P 500 after accounting for inflation.
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Output Marginal Revenue Marginal Cost0 -- --1 $16 $92 16 63 16 84 16 105 16 14Refer to the data in the accompanying table. If the firm's minimum average variable cost is $11, the firm's profit-maximizing level of output would be Multiple Choice
4.
3.
0.
5.
If the firm's minimum average variable cost is $11, the firm's profit-maximizing level of output would be 4.
Variable costs are costs incurred when the quantity of goods or services produced by business changes. Variable cost is the sum of the marginal costs of all units produced. It can also be considered a normal expense. Fixed and variable costs form he two components of the total cost.
Variable costs are business costs that vary in proportion to the amount a business produces or sells. Variable costs increase or decrease based on a company's production or sales volume. It increases when production increases and decreases when production decreases.
Variable costs are costs that change with changes in quantity. Examples of variable costs include raw materials, parts labor, production materials, handling charges, shipping charges, packaging materials, and credit card fees. In some fiscal documents, the variable cost of production is called "cost of goods sold."
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help me pls
Suki has placed $800 in an account that pays 4 percent interest compounded quarterly. At the end of two years (eight quarters), the balance in the account will be $
. That means Suki will have earned $
in interest during that time. (Round your answers to the nearest cent.)
What will be the balance in the account at the end of two years (eight quarters)? How much interest will Suki have earned during that time? (Round your answers to the nearest cent
Answer:
The product of two consecutive negative integers is 600. What is the value of the lesser integer?
Explanation:
EDGE2021
Jones Corporation purchased merchandise inventory with a 10%, 120 day note payable for $10,000. The company uses the perpetual inventory system.
The entry to record the purchase of the merchandise with the note would be:
If Jones Corporation purchased merchandise inventory with a 10%, 120 day note payable for $10,000. The company uses the perpetual inventory system. The entry to record the purchase of the merchandise with the note would be: Debit Merchandise Inventory 10,000, Credit Notes Payable 10,000.
How to prepare the journal entry?Based on the given transaction we have to debit Merchandise Inventory and credit Notes Payable.
Now let prepare the journal entry
Jones Corporation
Debit Merchandise Inventory $10,000
Credit Notes Payable $10,000
(To record purchase of the merchandise)
Therefore the entry is Debit Merchandise Inventory and Credit Notes Payable .
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Retail stores are often classified on the breadth and depth of their merchandise assortment. The breadth of the merchandise is the number of different lines available. The merchandise breadth may be classified as ________ or ________.
narrow; broad
Retail shops are regularly labeled at the breadth and intensity in their merchandise assortment. The breadth of the products is the range of various strains available. The products breadth can be labeled as narrow or broad.
The required details about merchandise is mentioned in below paragraph.
Merchandising is any exercise which contributes to the sale of merchandise to a retail consumer. At a retail in-keep level, vending refers to showing merchandise which can be on the market in a innovative manner that entices clients to buy extra objects or merchandise.
In retail commerce, visible show vending way products sales using product design, selection, packaging, pricing, and show that stimulates clients to spend extra. This consists of disciplines and discounting, bodily presentation of merchandise and displays, and the selections approximately which merchandise have to be supplied to which clients at what time. Often in a retail setting, creatively tying in associated merchandise or add-ons is a excellent manner to trap clients to buy extra.
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Which of the following describes a mission?
an action plan to solve a problem
a benchmark set by an organization to measure progress
why an organization or business exists
a measurable achievement reached by following a set of steps
An action plan to solve a problem describes a mission. The correct option is a.
What is an action plan?An action plan can be defined as a document that lists what steps must be taken to achieve a specific goal.
The purpose of an action plan is to clarify what resources are required to reach the goal, formulate a timeline for when specific tasks need to be completed and determine what resources are required.
In project management, a well-developed action plan can serve as a blueprint for the project manager to break a large project down into smaller, more manageable SMART.
SMART stands for Specific, Measurable, Attainable, Realistic and Time-based goals.
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when a bank collects deposits during the day, then deposits them all after banking hours, it is using a reserve processing system.
When a bank collects deposits during the day, then deposits them all after banking hours, it is using a reserve processing system. The given statement is false.
In the world of finance, money kept at a financial institution is referred to as a deposit. When money is transferred to someone else to keep safe, the transaction is known as a deposit. A deposit is a sum of money used as security or collateral for the transportation of an awesome.
A deposit includes various, distinct meanings. One type of deposit entails the transfer of funds to another party for safekeeping. According to this definition, a deposit is the money that an investor deposits into a savings or checking account kept at a bank or credit union.
Most banks accept deposits of cash, checks, cash orders, or cashier's checks within the building.
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under the dva, when the crv is less than the agreed purchase price, the buyer can take all of the following actions except
When the CRV is lower than the agreed-upon purchase price, the buyer is allowed to waive any requirement that the seller accept the CRV price under the DVA.
What is a VA purchase's maximum LTV?Loans in excess of $144,000 are no longer restricted for eligible veterans, service members, and survivors with full entitlement. This means that you won't have to put down any money, and we promise to pay your lender up to 25% of the loan amount if you default on a loan worth more than $144,000.
Under what conditions is a VA credit probable?Loan that can be assumed. If the loan holder or the VA approves the creditworthiness of the purchaser(s), you may sell your home to someone who agrees to assume your loan for all VA Loans committed on or after March 1, 1988.
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The exchange of a company's common shares for non-cash consideration should be recognized at the _____ value of the goods or services received.
The fair value of the products or services acquired should be recognized when a company's common shares are exchanged for non-cash consideration.
Unless the fair value cannot be accurately determined, the fair value of goods or services received in exchange for a share-based payment is quantified directly. In this scenario, the fair value is calculated using the fair value of the stock instruments given as consideration.
The fair value of an asset or obligation is best determined by observing market pricing for comparable transactions. A fair value is determined by examining what a nearly identical item has previously sold for. Assets are documented at their current worth, not their historical cost, on the day the value is computed.
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alvarez company is preparing the company's statement of cash flows for the fiscal year just ended. the following information is available:
Free money drift (FCF) is the money a corporation generates after taking into consideration money outflows that help its operations and maintain its capital assets.
In other words, free cash drift is the money left over after a corporation will pay for its operating costs (OpEx) and capital expenditures (CapEx).
What is cash glide formula?Cash Flow = Cash from running activities +(-) Cash from investing activities +(-) Cash from financing things to do + Beginning cash balance. Here's how this formula would work for a organization with the following assertion of cash: Operating Activities = $30,000. Investing Activities = $5,000.
The money flow declaration must be prepared on a month-to-month foundation in the course of the first year, on a quarterly basis for the 2nd year, and yearly for the third year.
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https://brainly.com/question/735261#SPJ4Diaz Company owns a milling machine that cost $125,900 and has accumulated depreciation of $93,800. Prepare the entry to record the disposal of the milling machine on January 3 under each of the following independent situations.
1. The machine needed extensive repairs, and it was not worth repairing. Diaz disposed of the machine, receiving nothing in return.
Record the disposal of the machine receiving nothing in return.
2. Diaz sold the machine for $16,500 cash.
Record the sale of the machine for $16,500 cash.
3. Diaz sold the machine for $32,100 cash.
Record the sale of the machine for $32,100 cash.
4. Diaz sold the machine for $40,000 cash.
Record the sale of the machine for $40,000 cash.
The journal entries to record the disposal of the milling machine on January 3 will be as follows:
Journal entry: 1. Loss On Disposal Of Machine Dr $32,900 Accumulated Depreciation —Machine Dr $93,800 Machine Cr $125,900 2. Cash Dr $16,500 Loss On Sale Of Machine Dr $16,400 Accumulated Depreciation —Machine Dr $93,800 Machine Cr $125,900 3. Cash Dr $32,100 Accumulated Depreciation —Machine Dr $93,800 Machine Cr $125,900 4. Cash Dr $40,000 Accumulated Depreciation —Machine Dr $93,800 Gain On Sale Of Machine Cr $7900 Machine Cr $125,900.
Assets must be removed from the accounting records as part of the disposal process. To entirely erase every trace of an asset from the balance sheet, this is required (known as derecognition). In the reporting period in which the asset disposal occurs, a gain or loss may need to be recorded on the transaction.
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