Terra corporation purchased equipment with a 10-year useful life and zero residual value for $100,000. at the end of the fourth year, the equipment is exchanged for new equipment worth $110,000. terra gets a trade-in allowance of $70,000 on the exchange, with the remaining $40,000 paid in cash. which of the following is true of the net effect of this transaction? assume the straight-line depreciation method is used. select all that apply: assets decrease by $10,000assets increase by $10,000liabilities increase by $10,000total stockholders' equity decreases by $10,000total stockholders' equity increases by $10,000

Assets increase by $10,000

Total stockholders' equity increases by $10,000

Explanation:

Since in the question, it is given that, the purchase value of equipment is $100,000 and the exchanged value is $110,000

So, the difference of $10,000 ($110,000 - $100,000) would reflect that the assets would increase by $10,000 and the total stockholders' equity is also increased by $10,000

The exchange value is a combination of $70,000 in trade allowance and $40,000 was paid in cash

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

answer; i believe the correct answer is (4.0);