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sashaice [31]
3 years ago
9

intext:"If a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000, is offered for

sale at $150,000, is assessed for tax purposes at $95,000, is considered by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at"
Business
1 answer:
valkas [14]3 years ago
8 0

Answer:

the seller must record the land at the purchase price = $137,000

Explanation:

Fixed assets like land must always be recorded at historical cost. This is specially important regarding land because it doesn't depreciate and its carrying value will always be the purchase cost since it cannot be adjusted if the fair market value changes.

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Suppose Ford Motor Company issues a five year bond with a face value of $5,000 that pays an annual coupon payment of $150.
blondinia [14]

Answer:

interest rate =  15%

value of the bond will decrease

Explanation:

given data

face value = $5,000

time = 5 year

annual coupon payment = $150

solution

we get here interest rate on the borrowed funds that will be as

interest rate = \frac{annual\ coupon}{face\ value/time}  × 100

put here value we get

interest rate =  \frac{150}{\frac{5000}{5} }  × 100

interest rate =  15%

and

when bond issued at interest rate =  3 %

but market interest rate 4%

so seller will reduce price of bond less than the face value

because we will look for atleast 4% payout when bond matures

so value of the bond will decrease

6 0
3 years ago
A case comes before a Wisconsin state trial court on the subject of free speech on the Internet. It is a case of first impressio
sp2606 [1]

Answer:

The correct answer would be option B, Judge's own personal feelings about the internet.

Explanation:

When a case comes to a court, it is the responsibility of a judge to see every aspect of the case and analyze it on the basis of given evidence or set rules or standards, or in the light of decisions made on the same case by other courts. But in this question, it is said that the case which was brought to the court was the first in its kind, it means no such type of case has been ever submitted in any court before. The freedom of speech on internet is a sensitive issue. So all aspects should be kept in mind while proceeding the case, and it would not be considered proper for the judge to bring his person feelings about the internet into the case. His personal feelings should be set aside and the case should be solved on the basis of evidences and solid views.

3 0
3 years ago
Alexa has a commercial laundry service that has been growing rapidly. She wants to continue to grow the business, but she needs
Contact [7]

Answer:

Incorporating

Explanation:

4 0
3 years ago
The February contribution format income statement of XYZ Corporation appears below: Sales $ 169,500 Variable expenses 96,000 Con
Liono4ka [1.6K]

Answer:

degree of operating leverage= 4.742

Explanation:

Giving the following information:

Contribution margin 73,500

Net operating income $ 15,500

<u>To calculate the degree of operational leverage, we need to use the following formula:</u>

degree of operating leverage= Total contribution margin / operating income

degree of operating leverage= 73,500 / 15,500

degree of operating leverage= 4.742

4 0
3 years ago
Requirement 1. Identify each account as an asset​ (A), liability​ (L), or equity​ (E). Asset (A), Liability (L), or Equity (E)?
motikmotik

Answer:

a. Interest Revenue

Identification: Asset

Increases with: Debit

Normal Balance: Debit

b. Accounts Payable

Identification: Liability

Increases with: Credit

Normal Balance: Credit

c. Calhoun, Capital

Identification: Equity

Increases with: Credit

Normal Balance: Credit

d. Office Supplies

Identification: Asset

Increases with: Debit

Normal Balance: Debit

e. Advertising Expense

Identification: Liability

Increases with: Credit

Normal Balance: Credit

f. Unearned Revenue

Identification: Liability

Increases with: Credit

Normal Balance: Credit

g. Prepaid Rent

Identification: Asset

Increases with: Debit

Normal Balance: Debit

h. Utilities Expense

Identification: Liability

Increases with: Credit

Normal Balance: Credit

i. Calhoun, Withdrawals

Identification: Equity

Increases with: Debit

Normal Balance: Debit

j. Service Revenue

Identification: Asset

Increases with: Debit

Normal Balance: Debit

5 0
3 years ago
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