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mr_godi [17]
3 years ago
5

On january 1, 2017, fishbone corporation sold a building that cost $250,000 and that had accumulated depreciation of $100,000 on

the date of sale. fishbone received as consideration a $240,000 non-interest-bearing note due on january 1, 2020. there was no established exchange price for the building, and the note had no ready market. the prevailing rate of interest for a note of this type on january 1, 2017, was 9%. at what amount should the gain from the sale of the building be reported? (round factor values to 5 decimal places,
e.g. 1.25124 and final answer to 0 decimal places,
e.g. 458,581.)
Business
2 answers:
kiruha [24]3 years ago
8 0

Answer: Gain = 21600

Explanation:

The Book Value = cost - accumulated depreciation

The Book Value = 250 000 - 100 000 = 240 000

The Book Value or Carrying Value = $ 240 000

Consideration received is a non interest bearing note of $240 000  to calculate the Gain on the sale of land should be calculated using the Fair Value of the note because there is prevailing market rate of 9% which means there is an active market for the considering therefore we can calculate the Fair Value/Market value of the consideration

The exchange Price for the sale of land = 240000 x 1.09 = 261600

Gain = 261600 - 240000

Gain = 21600

polet [3.4K]3 years ago
7 0
I am quite having trouble with this one too!
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Digiron [165]

Answer and Explanation:

In the given situation, it is mentioned that while travelling to another country you have two choices for paying at the time of booking or at the time of checking out. Now at Jan the person made a reservation for staying at Italy and completed the stay as on April 30th so here the change in inflation would be matters whether it is increasing or decreasing. It is better to pay off at advances as there is a chances that the price could rise in near future

3 0
3 years ago
In a suburban community outside a city in Alabama, a retail store opened that specialized in dancewear for children and adults.
Masja [62]

Answer:

a. the sociocultural segment

Explanation:

Since in the question it is mentioned that the retail store is opened that deals in dancewear for children and adults. Also, it became successful for five years but after that in the local newspaper it makes an expose that it was selling briskly to a specific clientele with respect to the scanty lingerie due to which it lost most of its customers and therefore it is closed

So in this given situation, it is a sociocultural segment as the company's wants to take care of the society along with its business or there should be a corporate social responsibility. Also the trust of the customers, goodwill cannot bring back, etc

Therefore the correct option is A.

8 0
3 years ago
Sustainable Growth Rate You have located the following information on Rock Company: debt ratio = 46.5%, capital intensity ratio
Sliva [168]

Answer:

The correct answer is 10.72% ( Approx.).

Explanation:

According to the scenario, the given data are as follows:

Debt ratio = 46.5%

Capital intensity ratio = 2.51 times

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Formula to calculate sustainable growth rate ae as follows:

Sustainable growth rate = (Earnings retention rate × Return on equity ) / ( 1 - (ROE × RR)

where, Retention rate =(1 - dividend payout rate)

= (1-0.38) = 0.62

ROE = Profit margin × Total asset turonver × Equity multipler

= Profit margin × 1/capital intensity ratio × 1/(1-debt ratio)

= .21 × (1/2.51) × 1/(1-.465)

= .21 × 0.398 × 1.869

= 0.1562

=15.62%

So, Sustainable growth rate = (0.1562*0.62) / 1 - (0.1562*0.62)

= 0.096844 / 0.903156

= 0.1072

= 10.72% (approx.)

Hence, the correct answer is 10.72% (approx.).

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4 years ago
Which of the following promotion mix approaches involves a producer promoting a product to different channel members who in turn
bulgar [2K]

Answer:

Push strategy

Explanation:

A Push strategy is originated from the push and pull concept in the logistics. This strategy refers to the concept of producers pushing their products into different channels and then those channels will further market and advertise their products. This strategy is one of the various channel strategies that is used by producers.

One of the example would be Walmart which uses push strategy over pull.

I hope the answer is helpful. Thanks for asking.

6 0
3 years ago
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yan [13]

Integrated is a close corporation.

<h3>What is corporation?</h3>
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<h3>What is a close corporation?</h3>
  • A close corporation is a business that has fewer shareholders than the statutory limit and is not a public company.
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Learn more about corporation here:

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5 0
2 years ago
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