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sergejj [24]
3 years ago
15

A company bought a new display case for $42,000 and was given a trade-in of $2,000 on an old display case, so the company paid $

40,000 cash with the trade-in. The old case had an original cost of $37,000 and accumulated depreciation of $34,000. If the transaction has commercial substance, the company should record the new display case at:
Business
1 answer:
nalin [4]3 years ago
4 0

Answer:

$42,000

Explanation:

If the transaction has commercial substance, the company should record the new display case at the original cost or fair value of the asset.

The fair value of the asset is $42,000 which involves

= Cash paid for display case + trade-in old display case

= $40,000 + $2,000

= $42,000

All other information which is given is not relevant. Hence, ignored it

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Answer:

The answer is C and I am sure about that, so choose C

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3 years ago
The aggregate demand curve would shift to the right as a result of A. tax increases. B. a drop in the price level. C. a drop in
UNO [17]

Answer:

. C) a drop in the foreign exchange value of the dollar.

Explanation:

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A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or
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A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years is the <u>Time period principle.</u>

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In its broadest sense, the time period principle holds that any enterprise may conveniently categorize its financial operations into discrete time intervals. That is to say, all cash inflows and outflows may be neatly categorised into separate and sequential accounting periods.

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To know more about Time period principle refer here:

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2 years ago
If you purchase a house worth $110,000 and make a 10% down payment, how much would 1 point cost at closing?
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4 years ago
Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 12 years to maturity that is qu
ahrayia [7]

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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3 years ago
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