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1 year ago

Question 9 of 10

1 answer:

Colt1911 [192]1 year ago

6 0

The correct option is OA. Selling to another company the right to make and market a product line is called spinning off.

Create a new corporation that is independent of the previous organization by spinning off something, like a company. [Firm] He saved the organization and eventually separated its textile sector into a different business.

A corporate spin-off, often referred to as a spin-out, starburst, or hive-off, is a sort of corporate activity in which a corporation "splits off" a segment as a different business or establishes a second incarnation, even if the first is still operating.

Learn more about spinning off here

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Bozeman sold equipment that it uses in its business for $80,000. Bozeman bought the equipment two years ago for $75,000 and has

Ad libitum [116K]

Answer:

Option (D) is correct.

Explanation:

Selling amount of equipment = $80,000

Purchasing price 2 years ago = $75,000

Depreciation expense = $20,000

Gain(Loss) = Cash proceeds - Book value

= $80,000 - ($75,000 - $20,000)

= $80,000 - $55,000

Capital gain = $25,000

Therefore, the amount and character of Bozeman's gain is $25,000.

3 0

3 years ago

In one or two sentences, describe why decisions are based on expected costs and benefits.

kow [346]

<span>Generally, man wants to engage in feasible business or investment that will bring profits or benefits. Because of this, before engaging in the business or purchasing of a product, he usually weights the costs and the benefits that will be derived. If the benefits are higher than the costs, he will usually be ready to engage in the business or buy the product, but if the reverse is the case, he will see no reason for engaging in such a business.</span><span />

7 0

3 years ago

Simpson and Homer Corporation acquired an office building on three acres of land for a lump-sum price of $3,350,000. The buildin

Volgvan

Answer:

Building = $1,340,000

Land = $1,675,000

Furniture and fixtures = $335,000

Explanation:

This is an example of Basket Asset Purchase whereby a number of assets purchased as one package.

Initial value of each asset is are determined by the Basket Asset Purchase based on their relative fair market value as follows:

Building = $3,350,000 × [$2,560,000 ÷ ($2,560,000 + $3,200,000 + $640,000)] = $3,350,000 × 0.4 = $1,340,000

Land = $3,350,000 × [$3,200,000 ÷ ($2,560,000 + $3,200,000 + $640,000)] = $3,350,000 × 0.5 = $1,675,000

Furniture and fixtures = $3,350,000 × [$640,000 ÷ ($2,560,000 + $3,200,000 + $640,000)] = $3,350,000 × 0.1 = $335,000

Therefore, the initial values of the building, land, and furniture and fixtures would be $1,340,000, $1,675,000, and $335,000 respectively.

6 0

3 years ago

A certain marble quarry provides a unique type of marble that is richly colored and strikingly veined. It has been used for chur

Digiron [165]

Answer:

a. The cost of the marble will be expensive because of the bargaining power of the supplier.

Explanation:

3 0

3 years ago

Yellowstone Corporation has just announced the repurchase of $125,000 of its stock. The company has 39,000 shares outstanding an

puteri [66]

Answer:

The price–earnings ratio after the repurchase is 22.18

Explanation:

First calculate Numbers of new shares

New Shares = Old Shares - ( Repurchased Shares / Price per share )

New Shares = 39,000 - ( $125,000 / $76.09 )

New Shares = 39,000 - 1,642.79

New Shares = 37,357.21 shares

New compute the old earning

Old Earning = EPS x Numbers of old shares = $3.29 x 39,000 = $128,310

New compute revised Earning per share

Revised EPS = Earning / New shares = $128,310 / 37,357.21 shares = $3.43

Now we need to calculate the Price earning ratio

P/E Ratio = Price per share / Revised earning per share = $76.09 / $3.43 = 22.18 times

7 0

3 years ago