Answer:
b. the price was below the prices of comparable services.
Explanation:
In a market there are number of people providing the same services. Accordingly a fair rate for any service can be easily determined.
In the given instance, Big Dig made a fault by charging low fee as, that service demands particularly high fee.
Although Commercial Development Corporation can easily counter confirm the price of service in the market, and that it knows that the contract is certainly mistaken by Big Dig, it can and should ethically agree with the revised price, that is the correct price as per the prevailing market prices.
Answer:
Sum of Entries for the First Year
Land $ 276,000 (debit)
Cash $225,000 (debit)
Equity $501,000 (credit)
Explanation:
Jan 1
Cash $225,000 (debit)
Equity $225,000 (credit)
<em>5,000 × $45 per share = $225,000</em>
Dec 1
Land $ 276,000 (debit)
Equity $ 276,000 (credit)
<em>6,000 shares × $46 each = $ 276,000</em>
<em>Land is Initially Recognised at Cost in terms of IFRS (IAS 16)</em>
Sum of Entries for the First Year
Land $ 276,000 (debit)
Cash $225,000 (debit)
Equity $501,000 (credit)
Answer:
$32,300
Explanation:
With regards to the above, the amount of total assets is the addition of current assets + Fixed assets.
= Accounts receivables + Cash + Truck equipment
= $7,000 + $7,300+ $8,000 + $10,000
= $32,300
Therefore ,
Total assets = $32,300