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nignag [31]
3 years ago
14

Porter Co. owned all of the voting common stock of Simi Corp. The corporations' balance sheets dated December 31, 2018, include

the following balances for land: for Porter – $416,000, and for Simi – $256,000. On the original date of acquisition, the book value of Simi's land was equal to its fair market value. On April 4, 2020, Porter sold to Simi a parcel of land with a book value of $65,000. The selling price was $83,000. There were no other transactions which affected the companies' land accounts during 2020. What is the consolidated balance for land on the 2020 balance sheet?
Business
1 answer:
Katena32 [7]3 years ago
3 0

Answer: $672,000

Explanation:

Porter sold land to Simi which means that their land balance reduces. Simi's however increases by the same amount. As Porter owned all the voting stock, the sale will be accounted for at the book value.

The Consolidated balance for land in 2020 will therefore be calculated as,

= (Porter land value - Sales price) + (Simi land value + Sales price)

= (416,000 - 65,000) + (256,000 + 65,000)

= 351,000 + 321,000

= $672,000

The book value of the Consolidated land will be $672,000 in 2020.

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Answer:

456 Gallons

Explanation:

The Optimal order quantity can be found using the following formula:

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EOQ= SquareRoot (2 * 50000 Gallons * $150 per order/ 0.48 Holding costs)

Economic Order Quantity = 456 Gallons

7 0
3 years ago
Sweet Sue Foods has bonds outstanding with a coupon rate of 5.02 percent paid semiannually and sell for $1,948.34. The bonds hav
Minchanka [31]

Answer:

5.15%

Explanation:

Following data provided in the question

Coupon rate = 5.02%

Present value of the bond = $1,948.34

Par value = $2,000

Time period = 17 years

By considering the above information, the current yield on the bond is

= (Par value × coupon rate interest) ÷ (Present value of the bond)

= ($2,000 × 5.02%) ÷ ($1,948.34)

= 5.15%

5 0
3 years ago
Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claim
SSSSS [86.1K]

Answer:

The correct answer is I and II.

Explanation:

Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claims in capital markets because of several reasons.  

The financial intermediaries such as commercial banks, mutual funds, insurance companies, pension funds, etc. are more diversified than individual investors. They provide a number of options for borrowing and lending.  

These intermediaries work on a larger scale than an individual investor. They are thus able to reap the advantages of economies of scale which an individual investor cannot.

8 0
3 years ago
When using project management software, estimates of work time should be entered only at the work package level; the rest of the
Inga [223]

Answer:Summary task

Explanation:

5 0
2 years ago
The selling and administrative expense budget of Gullette Corporation is based on the number of units sold, which are budgeted t
Andrej [43]

Answer:

Gullette Corporation

Gullette Corporation

Selling and administrative expense budget for April:

April Budgeted unit sales = 3,700

Variable selling and administrative expense per unit = $4.80

Variable selling and administrative expense = $17,760

Fixed selling and administrative expense =     $30,180

Total selling and administrative expense =     $47,940

Less Depreciation expense =                           ($3,450)

Cash disbursements for selling and

  administrative expenses                               $44,490

Explanation:

Data:

Budgeted units sales = 3,700

Variable selling and administrative expense = $4.80 per unit

Budgeted fixed selling and administrative expense = $30,180 per month

Depreciation in fixed expense = $3,450

Gullette Corporation

Selling and administrative expense budget for April:

April Budgeted unit sales = 3,700

Variable selling and administrative expense per unit = $4.80

Variable selling and administrative expense = $17,760

Fixed selling and administrative expense =     $30,180

Total selling and administrative expense =     $47,940

Less Depreciation expense =                           ($3,450)

Cash disbursements for selling and

  administrative expenses                               $44,490

b) Under the budgetary process, Gullette Corporation prepares its selling and administrative expense budget to include the variable and fixed elements.  The variable element of Gullette's selling and administrative expenses varies per unit with the volume of sales, while the fixed element remains relatively constant in total.  The total cash disbursements for selling and administrative expenses do not include depreciation.

6 0
3 years ago
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