In case of an existing asset which is depreciable and is used in business and is sold for a price equal to its initial purchase price, the difference between the sales price and its book value is considered as recaptured depreciation and will be
taxed as ordinary income.
Indicate whether the statement is true or false
TRUE
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When assessing the service desk's performance, quality is the primary measure looked at, as it directly relates to customer satisfaction.
Answer the following statement true (T) or false (F)
Tanning Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $300,000 and credit sales are $1,000,000. An aging of accounts receivable shows that 5% will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Bad Debts account has a credit balance of $2,000 before the adjustment?
A) Bad Debts Expense 13,000Allowance for Bad Debts 13,000 B) Bad Debts Expense 15,000Allowance for Bad Debts 15,000 C) Bad Debts Expense 13,000Accounts receivable 13,000 D) Bad Debts Expense 15,000Accounts receivable 15,000
A business analyst describes his company's profit function as 3x2 + 6x - 200. If x is the output volume, what statements can you make about the price, fixed cost, and variable cost?
What will be an ideal response?
Revia and Bramin are European nations that signed a trade agreement with each other. The agreement stated that Revia would supply sugarcane to Bramin and Bramin would supply cloves to Revia. The agreement would benefit both nations and would even out some of the resource imbalances in the two nations. In this scenario, which of the following is most likely to have influenced the trade agreement between Revia and Bramin?
A. Reduced risk B. Ease of storage of goods C. Access to factors of production D. Inflow of innovation