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RideAnS [48]
3 years ago
10

On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,700,000 for $5,000,000. Rigsby appropriately uses the i

nstallment sales method of accounting for this transaction. Terms called for a down payment of $490,000 with the balance in two equal annual installments payable on December 15, 2019, and December 15, 2020. Ignore interest charges. Rigsby has a December 31 year-end. In 2019, Rigsby would recognize realized gross profit of:
Business
1 answer:
xxTIMURxx [149]3 years ago
5 0

Answer:

$127,400

Explanation:

Gross profit ratio = [(sale - cost) ÷ sale price] × 100

                           = [($5,000,000 - $3,700,000) ÷ $5,000,000] × 100

                          = 0.26 × 100

                          = 26%.

Gross profit on down payment is recognized in 2019:

= Down payment × Gross profit ratio

= $490,000 × 26%

= $127,400

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Answer with Explanation:

Following are some types of account investments that are better for emergency funds and the return on these investment varies depending upon the risk born by the investors:

  • Current Account Investments
  • Commodity Investments
  • Mutual Funds

If the inflation rate is below the return paid on the current account then it could be a better investment option as the money doesn't loose its value over time.

If the inflation rate is higher than the return paid on the current account then it is better to invest in commodities like gold, petroleum products, etc, that are often termed as speculative investments.

If the investor is risk seeking person, then it is better to invest in mutual funds as the return on such investments is higher because of the higher risk that the investor bears.

6 0
3 years ago
Logan Corporation has 30 employees, 10 in "A-line," and 20 in "B-line." Logan incurred $180,000 in fringe benefits costs last ye
fomenos

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Logan Corporation has 30 employees, 10 in "A-line," and 20 in "B-line." Logan incurred $180,000 in fringe benefits costs last year.

First, we need to calculate the allocation rate based on number of employees:

Estimated allocation rate= total estimated fringe costs for the period/ total amount of allocation base

Estimated allocation rate= 180,000/30= $6,000 per employee.

Now, we can allocate fringe costs to the A-line:

Allocated fringe costs= Estimated Estimated allocation rate* Actual amount of allocation base

Allocated fringe costs= 6,000*10= $60,000

3 0
3 years ago
One way to make it easier to track your progress toward success is A. offer stock to the public. B. improve your product. C. to
jok3333 [9.3K]
The correct option is D.
To progress in life and to achieve one's desires one has to set short and long term achievable goals which will drive one toward one's desires.
The goals should be very specific and it must has a time frame, it must be an achievable goal whose achievement will drive you towards achieving a greater one.<span />
7 0
4 years ago
Read 2 more answers
The process of evaluating and planning for long-term investments is called budgeting.
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Answer is Capital Budgeting
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Evaluating and planning for long term investments and risk of future cash flows is capital budgeting.
6 0
2 years ago
The Tradition Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required r
tekilochka [14]

Answer: $93.86

Explanation:

The break even price simply refers to the price that's required to make a normal profit. From the information given, the break even price will be:

= [($93-$44) × 2675)/2750) + 44] × ( 1 + 2.3%)

= [$49 × 2675)/2750)+44] × (1+0.024)

= [(49 × 2675)/2750)+44] × 1.024

= [(131075/2750) + 44] × 1.024

= (47.66 + 44) × 1.024

= 91.66 × 1.024

= $93.86

Therefore, the break even price is $93.86

6 0
3 years ago
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