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LuckyWell [14K]
3 years ago
8

Two individuals who were previously sole proprietors form a partnership. Property other than cash that is part of the initial in

vestment in the partnership is recorded for financial accounting purposes at theA)Proprietors' book values of the property on the date of the investment.B)Proprietors' book values or the property's fair value on the date of the investment, whichever is higher.C)Proprietors' book values or the property's fair value on the date of the investment, whichever is lower.D)Property's fair value at the date of the investment.
Business
1 answer:
UNO [17]3 years ago
7 0

Answer:

D) Property's fair value at the date of the investment.

Explanation:

When new business is formed from closing the old one, all assets are recorded at fair value.

Thus, all the assets other than cash shall be recorded at their respective fair values in the new business which is a partnership, as the cost or historical value will not display their proportional contributions properly.

Therefore, correct statement is

D) Property's fair value at the date of the investment.

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Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different option
jekas [21]

Answer:

The correct answer is option (D).

Explanation:

According to the scenario, the most appropriate answer is option (D) because value-based based sales-oriented business shows the concept that the seller provides the service of the more value as regarding the money charged to the customer.  

While the other options are not correct because of the following reasons:

  • Option (A) is not correct because retailing oriented business shows that the seller establishes a shop for the sale and the buyer chooses the product as he likes it.
  • Option (B) is not correct because the market-oriented business shows the concept of selling according to the market needs.
  •  Option (C) is not correct because production-oriented business shows the concept of selling on the basis of production of the product.
7 0
3 years ago
Drawbacks of using variable or full costing to set transfer prices include ______. Multiple select question. suboptimization tha
Sergeeva-Olga [200]

Answer:

a lack of incentive to control costs because they are simply passed to another department

a lack of departmental profit for the supplying department

suboptimization that may occur as fixed costs per unit may push the transfer price above market price

Explanation:

The limitation that could come after using the variable or full costing in order to set the transfer price involved the lack of the incentive for controlling cost, lack of departmental profit and the supoptimization that could be arise when the fixed cost per unit force the transfer price i.e. over and above to the market price

Therefore the above statements should be considered

3 0
3 years ago
2. Mr Ralston, a retired postal worker, took his trolley to the check-out at Tip-Top Supermarket. When the cashier started to en
salantis [7]

Mr Ralston’s action didn't constitute a contract in this case,since he hasn't taken the goods away and the groceries haven't been tallied.

<h3>What is a contract?</h3>

It should be noted that a contract simply means an agreement between private parties that's enforceable by law.

In this case, Ralston’s action didn't constitute a contract in this case,since he hasn't taken the goods away and the groceries haven't been tallied.

The features of a contract that should be taken into consideration include acceptance and internation to create legal relations.

The supervisor would not likely succeed should he proceed with legal action.

Learn more about contract on:

brainly.com/question/5746834

#SPJ1

3 0
3 years ago
When prices rise , which of the following happens to income
katen-ka-za [31]

Answer:

It buys less.

Explanation:

4 0
3 years ago
Why do some auto insurance customers want medical coverage for their
velikii [3]

9514 1404 393

Answer:

  C.  To avoid having to pay for hospital bills resulting from an accident they cause

Explanation:

The purpose of any sort of insurance is to limit or eliminate the policy-holder's liability. Medical insurance in an auto policy pays for medical bills the policy-holder might otherwise be liable for as a consequence of an auto accident.

4 0
3 years ago
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