An automobile costs $60,000 when new and has accumulated depreciation of $35,000. suppose the automobile is exchanged for a new automobile. the new automobile has a market value of $70,000 and we pay $45,000 in cash. assume the exchange has commercial substance. what is the result of this exchange?
(a) no gain or loss.
(b) gain of $5,000
(c) loss of $5,000
(d) gain of $45,000

The correct answer here would be A) no gain or loss .

Explanation:

As per the question it is given that the exchange has commercial substance , which means the automobile which cost $60,0000 and has accumulated depreciation of $35,000, will have the book value of $25,000 ( $60,000 - $35,000 ) .

Now the exchanged automobile has market value of $70,000, which means a total of $70,000 has to be given , so by exchanging the automobile we have paid $25,000 and then later by paying cash of $45,000, the full market value of $70,000 has been paid. So therefore there would be no loss or gain .

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answerpounds of plastic to purchase 200+60-20=(240);