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jok3333 [9.3K]
3 years ago
11

Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of $300,000 and accumulated deprecia

tion of $120,000. The new sailboat had an invoice price of $326,000. Hunter received a trade in allowance of $192,000 on the old sailboat, which meant the company paid $134,000 in addition to the old sailboat to acquire the new sailboat. If this transaction has commercial substance, what amount of gain or loss should be recorded on this exchange
Business
1 answer:
FinnZ [79.3K]3 years ago
8 0

Answer:

a gain of $12,000 should be recorded on this exchange.

Explanation:

Hint : <em>Treat the Old Sailboat as if it was Sold for an Amount equal to the trade-in allowance since the transaction has commercial substance</em>

<u>Journal Entry to record the Exchange of the Old Sailboat</u>

Trade - In Allowance $192,000 (debit)

Accumulated depreciation  $120,000 (debit)

Sailboat - Cost $300,000 (credit)

Gain on Exchange of Old Sailboat $12,000 (credit)

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According to the invisible hand concept, the best way for a society to encourage the creation of jobs and the production of the
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The correct answer is "Allow entrepreneurs personal freedom to follow their self-interest"

Explanation:

According to the invisible hand concept, the best way for a society to encourage the creation of jobs and the production of the products most wanted by consumers would be to allow entrepreneurs personal freedom to follow their self interest.

4 0
3 years ago
The interest rate a company pays on 1-year, 5-year, and 10-year loans is a function of:.
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A company will pay interest based on its credit rating and the length of time over repayment is scheduled to occur (1-year, 5- years, or 10 years).

<h3>How is interest decided?</h3>
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The interest paid will therefore be dependent on the credit rating of the company and the term of the loan that it took out as these show different types of risk.

In conclusion, option A is correct.

Find out more on maturity risk at brainly.com/question/24780094.

3 0
2 years ago
Corporations in other countries are often called:
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Answer:

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Public limited company (PLC) is a terminology used in commonwealth nations to refer to limited liability company whose shares are available to the general public. In the US and other countries, a PLC is referred to as corporation. PLC's shares can be acquired by any person through trading in the stock market or an initial public offer.

A PLC or corporation can be listed or not listed on a stock exchange.  Under law, a PLC is supposed to publish its true financial position so that shareholders can know the worth of the shares they hold.

5 0
3 years ago
Read 2 more answers
An individual employed part-time at a retail store that schedules her based on the busiest times and days throughout the year, w
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Answer: contingent

                         

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Unlike seasonal employment the these employments are non recurring and there is no time fixed for employment that an individual could expect.

Thus, from the above we can conclude that the given case is an example of contingent employment.

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3 years ago
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'There are two common measures of economic growth: increases in real GDP over some period of time and increases in real GDP per capita over some time period.

This statement is True.

Gross domestic product is a monetary measure of the market value of all final goods and services produced and sold by a country in a given period of time. Due to its complex and subjective nature, this indicator is often revised before being considered a reliable one.

GDP = private consumption + private gross investment + government investment + government expenditure + (exports – imports). GDP is usually calculated by a country's national statistical agency according to international standards.

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7 0
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