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rosijanka [135]
3 years ago
11

On January 1, Year 1, Alla Co. sold a property to Mish Co. for $400,000 and simultaneously leased it back for 3 years. The carry

ing amount of the property was $280,000, and its fair value was $310,000. The leaseback was properly classified as an operating lease. What amount of gain on sale of the property was recognized by Alla on January 1, Year 1
Business
1 answer:
vichka [17]3 years ago
7 0

Answer: $30,000

Explanation:

In accounting, the treatment of the Sale and Operating Leaseback operation is such that a gain is only recognized if the sales price is more than the fair value. In such a case the difference between the fair value and the carrying price is considered the Gain on Sale.

The Difference between the sales price and the fair value is to be amortized over the period of use.

Seeing as the selling price is more than the fair value, the Gain on Sale is therefore,

= Fair Value - Carrying Value

= 310,000 - 280,000

= $30,000

$30,000 is the amount of gain on sale of the property recognized by Alla on January 1, Year 1.

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An employer can refuse to hire you if you refuse a drug screening test or background check.
solmaris [256]
True





The answer to this question is true
5 0
3 years ago
The primary participants in a market are A. firms who supply the product and consumers who buy​ it, but government policies such
MrRa [10]

Answer:

The correct answer is letter "A": firms who supply the product and consumers who buy​ it, but government policies such as taxes also play an important role in the operation of markets.

Explanation:

Primary markets are formed by buyers and sellers of a given product and the regulations the government imposes to promote fair competition. The term is mostly used in the stock market to define the place where firms sell securities directly to investors. These securities have been recently issued and are offered through Initial Public Offerings (IPOs).

5 0
3 years ago
Kennedy’s alliance of progress program provided $25 billion in aid to countries in?
Annette [7]

President Kennedy aimed to provide economic assistance, and consolidate democracy and social justice in Latin America.

Kennedy proposed, via the corporation for international improvement and the Alliance for progress, both launched in 1961, to mortgage greater than $20 billion to Latin American nations that would sell democracy and adopt significant social reforms, specifically in making land possession possible for more numbers.

The Peace Corps, a program that despatched younger volunteers to foreign places to assist those in want, turned into probably one of the high-quality-acknowledged New Frontier programs.

Learn more about President Kennedy here: brainly.com/question/13721861

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3 0
2 years ago
JCPenney Company is expected to pay a dividend in year 1 of $1.65, a dividend in year 2 of $1.97, and a dividend in year 3 of $2
arlik [135]

Answer:

c = $71.80.

Explanation:

So, from the question above, it is given that the dividend in the first year = $1.65, the dividend in the second year = $2.54, the dividend for the third year  grows at the rate of 8% and the appropriate required return for the stock = 11%.

The first thing to do here is to determine the terminal value. The terminal value can be calculated as below as;

Terminal value = [ 2.54 × ( 1 + 8/100) ÷ (11/100 - 8/100) ]  = 91.44

The value of the stock today can be calculate as be as:

The value of the stock today = 1.65 / (1 + 11/100 )¹ + 1.97 /  (1 + 11/100)² + 2.54 / (1 + 11/100)³ + 91.44 /  (1 + 11%)³ = $71.80.

Therefore,  stock should be worth $71.80 today.

7 0
3 years ago
Assume the stock return for the next month is a random variable that follows a Normal distribution with the mean 1.5% and the st
EleoNora [17]

Answer:

Check the explanation

Explanation:

The price of the original asset is the same amount as the expected future price which are being discounted at the risk-free rate.

Price of Customized Derivative= Probability of return>0.2%*Pay off+ Probability of Return<0.2%*Payoff/(1+r)^T

= 0.5*$4000000+0.5*$1000000/(1+0.002)^1

=2000000+500000/1.002

=2000000+499001.99

$2499001.99

8 0
3 years ago
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