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vazorg [7]
3 years ago
8

Flannery Corporation owns machinery with a book value of $520,000. It is estimated that the machinery will generate future cash

flows of $465,000. The machinery has a fair value of $415,000. Florence should recognize a loss on impairment of...(a)$0.(b)$50,000.(c)$55,000.(d)$105,000.
Business
1 answer:
Aleonysh [2.5K]3 years ago
5 0

Answer:

(d)$105,000.

Explanation:

Since the book value is more than the generated future cash flows so book value cannot be recovered. In this case, the generated future cash flows are ignored  

In this scenario, we compare the values between book value and the fair value of machinery, the difference would be the loss on impairment of the asset

In mathematically,  

= Book value of machinery - fair value of machinery

= $520,000 - $415,000

= $105,000

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As a component of real estate value, the principle of substitution suggests that_________.
melisa1 [442]

Answer:

<em>If two similar properties are for sale, a buyer will purchase the cheaper of the two</em>

Explanation:

This principle states <em>a property's maximum value is usually determined by the cost of purchasing an equivalent substitute property having the same usage, design, and income.</em>

For instance, why would someone pay $1,000,000 for an apartment when they could buy a different but equally desirable house for just $750,000 in the same area?

3 0
3 years ago
Which of the following is a difference between a push and a pull strategy? Group of answer choices End consumers are targeted in
zheka24 [161]

The difference between a push and a pull strategy is that wholesalers are targeted in a push strategy, whereas end consumers are targeted in a pull strategy.

<h3>What is push Marketing?</h3>

Push marketing basically involves all promotional strategies in which companies use to approach consumer or people to buy their products.

Pull marketing on the other hand means implementing a strategy that naturally draws consumer interest in your brand or products

Learn more about push marketing here: brainly.com/question/13362246

#SPJ12

7 0
2 years ago
On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value
Ivanshal [37]

Answer:

Date            Description                                    DR                   CR

June 15      Dividend expenses                      $120,000

                 Dividend Payable                                               120,000

July 10        Dividend Payable                         120,000

                   Cash                                                                  120,000

Dec 15        Dividend Expenses                     146, 400

                  Dividend payable                                           146,400

Explanation:

when dividend is declared and cash is yet to be paid, dividend expenses account will debited while dividend payable account will be credited.

when cash is paid for the dividend, dividend payable account will be credited while the cash account will be credited.

As at June 30, total number of shares outstanding = 95,000 + 25,000 = 120,000

As at December 31, the total number of outstanding shares =  95,000 + 25,000 + 2,000 = 122,000

6 0
3 years ago
Viviano Corporation issued a new bond, and hired your bank as its underwriter. In an upcoming talk with its CFO, you are expecte
Flura [38]

Answer: d. decrease the market price

Explanation:

Interest rates and the prices of bonds are negatively correlated as one increasing means that the other is decreasing.

The reason is this: when market interest rates rise, investors will move away from bonds to other investments because bonds offer a fixed payment and so will be less attractive than other investments which would be offering higher returns based on the higher market rates.

The drop in demand for bonds will lead to their prices falling as per the rules of demand and supply.

8 0
3 years ago
Which are direct employers for people working in the Architecture and Construction career pathway? Check all that apply.
Tasya [4]

The answer would be:

-the state government

-the federal government

-the local government

-a private company

(2, 3, 4, 5,)

[CONFIRMED ON EDGE2020]

7 0
3 years ago
Read 2 more answers
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