Answer:
Dr Land 125,000
Cr Gain on disposition of assets125,000
Dr Notes payable 600,000
Dr Interest payable 66,000
Cr Gain on troubled debt restructuring 216,000
Cr Land 450,000
Explanation:
Preparation of journal entry(s)
Based on the information given we were told that they group have agreed to settle Transit’s debt innexchange for land which have a fair value amount of $450,000 mean while the Transit purchased the land in 2017 for the amount of $325,000 which means that the Journal entry will be :
Dr Land 125,000
($450,000 – 325,000)
Cr Gain on disposition of assets125,000
Based on the information given we were told that Transit owed First City Bank Group the amount of $600,000 that has an 11% note which means that the Journal entry will be :
Dr Notes payable 600,000
Dr Interest payable 66,000
(11% x $600,000)
Cr Gain on troubled debt restructuring 216,000
Cr Land 450,000
Answer:I think delegating the task to your employees is the answer
Answer:
D. All of the choices could occur when using a single discount rate for all projects.
Explanation:
- The discount rate is the rate of return that is used to discount the cash flows analysis in determining the present and future values of cash flows.
- The discount rate also called the discounted cash flow analysis follows the valuation method based on the time concept of money the DFC helps to find out the variability of the project by calculating the present values by the discounted rate.
- <u>Thus if all the projects are assigned the same discount rates then the aim of revaluation of the project choices will be the same for all the projects like investing in standards assets like the bonds. </u>
The financial system sees commercial enterprise cycle fluctuations in preference to slow, easy boom is a crucial trouble of Economic shocks.
The required details for Economic shocks in given paragraph
An financial surprise refers to any extrude to fundamental macroeconomic variables or relationships that has a considerable impact on macroeconomic effects and measures of financial performance, which includes unemployment, consumption, and inflation. Shocks are regularly unpredictable and are generally the end result of occasions concept to be past the scope of regular financial transactions. Economic shocks have full-size and lasting outcomes at the financial system, and, in accordance to actual commercial enterprise cycle theory (RBC), are concept to be the foundation purpose of recessions and financial cycles. Economic shocks are random, unpredictable occasions which have a full-size effect at the financial system and are due to matters outdoor the scope of financial models.
Economic shocks may be labeled with the aid of using the financial area that they originate from or with the aid of using whether or not they mainly affect both deliver or demand. Because markets are connected, the outcomes of shocks can pass via the financial system to many markets and feature a main macroeconomic effect, for higher or worse.
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Answer:
diagonal spread
Explanation:
Spread is basically a sale and purchase of a call. So here the the types of spreads determine the relationship between the strike price and the expiration dates of all options involved in the trade.
In this example investor has sold 1 ABC Jan 50 Call and has bought 1 ABC Apr 60 Call. This means he bought the option ABC with the longer expiration date and with a higher strike price and sold the option ABC with the near expiration date and the lower strike price. Here both the expiration and strike price are different. So this is an example of diagonal spread.
The option horizontal spread is incorrect because it is a spread that depicts the difference in expiration dates but strike price is the same. Here both the expiration and strike price are different.
The option straddle is incorrect because it is a spread in which both options have the same expiry date and same strike price. Here both the expiration and strike price are different.
The option dialogue spread is not a valid option too.
The option Combination is also suitable because this is an example of Combination and combinations include option spread trades such as vertical spreads, horizontal spreads, and diagonal spreads.
So the most suitable option is diagonal spread which is an example of Combination.
