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deff fn [24]
1 year ago
8

wilson corporation exchanged land and $4,500 cash for material handling equipment. the land had a book value of $45,000 and a fa

ir value of $58,000. assume the exchange has no commercial substance
Business
1 answer:
77julia77 [94]1 year ago
7 0

Book Value Of Asset 58500000. Book Value of Assets is the asset's value in the books of records of a company or an institution at any given instance.

Assets Book Value Formula = Total Value of an Asset – Depreciation – Other Expenses

Book Value Of Asset  is$4,500(58,000 - 45,000) and the fair value of asset exchanged is58500000. As there is a change in the value, this substance exists in the transaction.

Commercial substance exists in business transactions where the outcome is anticipated to change the company's cash flows in the future and is considered only when there is a significant alteration in the risk of cash inflow, the timing of cash inflow, and the amount paid as a result of the transaction.

Learn more about Asset from

brainly.com/question/25746199

#SPJ4

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1. Tells whether a company can pay all its current liabilities if they become due immediately 2. Measures a company's success in
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Answer: Incomplete question.

Match the following terms to there definition.

Explanation:

1. Tells whether a company can pay all its current liabilities if they become due immediately - Quick Ratio

2. Measures a company's success in using assets to earn income - Return on Assets

3. The practice of comparing a company with other companies that are similar - Benchmarking

4. Indicates how rapidly inventory is sold - Inventory turnover

5. Shows the proportion of a company's assets that is financed with debt - Debit Ratio

6. Tells the percentage of a stock's market value that the company returns to stockholders annually as dividends - Dividend Yield

7. Measures a business's ability to pay interest on its debt - Interest coverage ratio

8. Measures a company's ability to collect cash from credit customers -

Account Receivable Turnover

3 0
3 years ago
The balanced scorecard does not use financial or nonfinancial measures. incorporates financial and nonfinancial measures in an i
Evgen [1.6K]

Answer:

<em>The correct answer is:</em> incorporates financial and nonfinancial measures in an integrated system.

Explanation:

The balanced scorecard can be defined as an approach to measuring and managing an organization's performance.

Because it is a flexible method, it can be adapted to different companies and situations.

The method uses financial and non-financial measures in an integrated system so that managers can monitor and control by means of indicators whether the planning outlined for the company is actually being effective for the achievement of objectives and goals. In the balanced scorecad, the indicators are analyzed from 4 perspectives: <u>Financial, Customer, Internal Processes and Learning and Growth. </u>

This method assists in a more active management, aimed at a greater vision of business systems and the possibility of managing strategic actions so that the company remains competitive and innovative in the long run.

6 0
3 years ago
Emco Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined ove
Andru [333]

Answer:

B. overstate the predetermined overhead rate.

Explanation:

As we know

The Predetermined overhead rate would be equal to

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours or machine hours)

In the given question, the direct labor cost is used for computing the predetermined overhead rate which is already wrong.

To find out the predetermined overhead rate, we always use the indirect cost instead of direct cost

This error could overstate the predetermined overhead rate as it would increase the indirect labor due to which overhead is also increased. So, automatically the rate would also be increased.

8 0
3 years ago
If the Federal Reserve increases the reserve requirement, what effect will this have on the nation’s money supply? a. Increase t
dem82 [27]
The correct answer is c)
3 0
3 years ago
A portfolio with a 30% standard deviation generated a return of 15% last year when T-bills were paying 6.0%. This portfolio had
jarptica [38.1K]

Answer: 0.3

Explanation:

The Sharpe ratio is simply used by organizations and investors in order to compare the return on an investment to its risk.

From the question, we are informed that a portfolio has a 30% standard deviation generated a return of 15% last year when T-bills were paying 6.0%.

The Sharpe ratio will be:

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= 0.09/0.3

= 0.3

4 0
4 years ago
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