I would say that multinationals especially Canadian mining companies are anxious to set up operations in Mexico due to cheap labour, a government that favors foreign investment and rich mineral resources.
Answer:
$171,000
Explanation:
Fixed assets should be recorded in the books of purchaser at [Actual cost of purchase + Additional expenses incurred related to purchase}. Here, land was purchased for $171,000. and no other additional expenses given. so it should be recorded at $171,000
Answer:
12.2%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is presented below:
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
where,
The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.
= 5% + 1.2 × 6%
= 5% + 7.2%
= 12.2%
A.5
B.12
C.10
D.20
The answer is C.10
Answer:
False
Explanation:
Given:
Paula's cost of the stock = $75,000
Fair market value on the date of the transfer = $95,000
Selling cost of the stocks = $100,000
Now,
The gain recognized = Selling cost of the stocks - Paula's cost of the stock
or
The gain recognized = $100,000 - $75,000 = $25,000
for calculating the gain the cost at the time of buying will be considered not the market value at the time of transfer.
Hence,
the recognized gain of $5,000 is false.
The recognized gain is $25,000
