S) Barkley and James cannot attend training during the exercise. They must attend before 4 May or after 25 May. Identify the con

Answer:

Journal Entry for the partial year's depreciation on July 1, 2023:

Debit Depreciation Expense $7,500

Credit Accumulated Depreciation $7,500

1) When the machine is sold for $45,500 in cash:

Debit Cash $45,500

Debit Accumulated Depreciation $67,500

Credit Gain from Sale of Asset $8,000

Credit Machine Asset $105,000

(2) When the machine is sold for $25,000 in cash

Debit Cash $25,000

Debit Accumulated Depreciation $67,500

Debit Loss from Sale of Asset $12,500

Credit Machine Asset $105,000

Explanation:

Rayya Co. utilizes the straight-line depreciation approach, calculating the yearly Depreciation Expense using the formula:

Annual Depreciation Expense = (Cost of machine − Salvage Value )/Useful Life = ($105,000 - $0)/7 = $15,000

The machine was used for 6 months in 2023 (half a year)

Depreciation Expense = $15,000/2 = $7,500

The journal entry for partial year's depreciation on July 1, 2023 is recorded as follows:

Debit Depreciation Expense $7,500

Credit Accumulated Depreciation $7,500

By July 1, 2023, the total Accumulated Depreciation amounts to = $15,000 x 4 + $7,500 = $67,500

Carrying value of the machine = $105,000 - $67,500 = $37,500

(1) If the machine is sold for $45,500 cash:

Calculation of Sale Price minus Carrying Value = $45,500 - $37,500 = $8,000>0

=> Therefore, the company acknowledges a gain of $8,000 on the sale

Debit Cash $45,500

Debit Accumulated Depreciation $67,500

Credit Gain from Sale of Asset $8,000

Credit Machine Asset $105,000

(2) If the machine is sold for $25,000 cash

Calculation of Sale Price minus Carrying Value = $25,000 - $37,500 = -$12,500<0

=> Thus, the company records a loss of $12,500 on the sale

The entry needed is as follows:  

Debit Cash $25,000

Debit Accumulated Depreciation $67,500

Debit Loss from Sale of Asset $12,500

Credit Machine Asset $105,000

Response:

$20,000

Clarification:

At the issuance of the bond, the bond discount is calculated as follows:

= Value of Bonds issued -  [(Value of Bonds issued ÷ 100) × Issue price]

= 705,000 - [($705,000 ÷ 100) × 98]

= $705,000 - $690,900

= $14,100

Bond Payable equals $705,000

The unamortized bond discount is calculated as:

= Bond discount at issuance - Amortized amount

= $14,100 - $8,200

= $5,900

Redemption Value of Bond is determined by:

= Retired price of bonds × 7,050

= 102 × 7,050

= $719,100

Loss on retirement of the Bond is calculated as:

= Redemption Value of Bond - (Value of Bonds issued -  Unamortized bond discount)

= 719,100 - (705,000 - 5,900)

= 719,100 - 699,100

= $20,000

Answer: Nominal

Explanation:

The use of the Nominal measurement scale indicates that data is categorized into specific names or labels, which is the reason it is sometimes called Named data. For example, organizing dogs in a park by their breed such as Husky, American Bull, German Shepherd, etc.

This measurement scale does not involve numerical values and typically lacks any hierarchical arrangement.

In this case, the professor categorized her students based on their majors, with those majors serving as labels. Thus, she applied the Nominal measurement scale.

Response:

The total amount subject to tax will come to $7000

Thus option (d) would be the correct choice

Clarification:

According to IRS regulations, benefits received under a disability policy are fully taxable only if

The employee pays premiums on the policy entirely with pre tax dollars

In this instance, the premium was paid by the employee herself and is assumed to have been with pre tax dollars, thus it is fully taxable i.e 6500$

Consequently, the $500 sick pay from the welfare fund is categorized as earned income and is therefore fully taxable.

Thus the total taxable income amounts to $6500 + $500 = $7000

Consequently, option (d) will be the correct answer

Answer: II. premium price

A bond is classified as trading at a premium price when its market price exceeds its stated face value, indicating that buyers are willing to pay more for the bond.

IV. yield-to-maturity that is less than the coupon rate

This is accurate because a bond is priced over its face value when its yield to maturity, also known as the internal rate of return for the bond, is below the coupon rate. This implies that the bond is offering higher coupon payments than necessary to attract investors, leading them to pay a premium.

Explanation: