Accounting questions
1. The interest on a 6%, 60-day note for $5,000 is $300. True or false?
1. On December 31, Reach It Batting Cages Company has decided to sell one of its batting cages. The initial cost of the equipment was $225,000 with an accumulated depreciation of $195,000. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $70,000. What is the amount of the gain or loss on this transaction?
|
a. |
Cannot be determined |
|
b. |
No gain or loss |
|
c. |
Gain of $40,000 |
|
d. |
Gain of $70,000 |
1. On December 31, Reach It Batting Cages Company has decided to sell one of its batting cages. The initial cost of the equipment was $225,000 with an accumulated depreciation of $195,000. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $10,000. What is the amount of the gain or loss on this transaction?
|
a. |
Gain of $10,000 |
|
b. |
Loss of $20,000 |
|
c. |
No gain or loss |
|
d. |
Cannot be determined |
1. The maturity value of a $15,000, 60-day, 5% note payable is:
|
a. |
$15,750 |
|
b. |
$750 |
|
c. |
$15,125 |
|
d. |
$125 |