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ycow [4]
3 years ago
10

Assume Royal Palm Corp., an equipment distributor, sells a piece of machinery with a list price of $800,000 to Arch Inc. Arch In

c. will pay $850,000 in one year.
Royal Palm Corp. normally sells this type of equipment for 90% of list price.

How much should be recorded as revenue?
a. $720,000.b. $765,000.c. $800,000.d. $850,000.
Business
1 answer:
Alexandra [31]3 years ago
3 0

Answer:

a. $720,000

Explanation:

Since in the question, it is given that the equipment is sold at the list price

The list price is $800,000 and the selling percentage is 90%

So, the revenue should be recorded

= List price × selling percentage

= $800,000 × 90%

= $720,000

Simply we multiplied the list with the selling percentage so that the correct amount can come

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8 0
4 years ago
On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $24.50 per share. On March 1, a dividend of
Naddik [55]

Answer:

$2,435

Explanation:

Data provided in the question:

Number of shares sold = 100

Price of Lowe's stock  = $24.50 per share

Dividend paid = $3.20

Price of buying stock = $20.00 per share

Commission paid = 15 cents per share = $0.15 per share

Now,

Total cost of selling the shares = $24.50 × 100

= $2,450

Total commission = $0.15 × 100

= $15

Therefore,

Proceeds from the short sale = $2,450 - $15

= $2,435

8 0
4 years ago
Which category of risk is often managed by purchasing insurance?
____ [38]

Answer:

hazard risk.

Explanation:

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4 0
3 years ago
Darla owns a dress shop called Darla's Darling Dresses. During the past year, Darla sold some assets to upgrade her facility. Sh
Alexxx [7]

Answer:

Darla's amount realized on the sale is $800

Adjusted basis in the assets sold is $300

Producing a realized gain on the sale of $500

Explanation:

Amount realized = cash received + FMV of other property + buyer’s assumption of seller’s liabilities – seller’s expenses

Amount realized = 600 + 200 + 0 -0

= $800

Adjusted basis = initial basis – cost recovery deductions

Adjusted basis = 2500-2200 = $300

Gain or loss realized = amount realized – adjusted basis = 800-300

= $500

Therefore Darla's amount realized on the sale is $800 and the adjusted basis in the assets sold is $300, producing a realized gain on the sale of $500

8 0
3 years ago
If shuebke's review was conducted in good faith and conformed to generally accepted accounting principles, can superior hold shu
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