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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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8 0
1 year ago
uppose the annual demand function for the Honda Accord is Qd = 430 – 10 PA + 10 PC – 10 PGwhere PA and PC are the prices of the
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Answer:

Qd = 400 units

elasticity of demand of the Accord with respect to the price of Camry = 0.5

elasticity with respect to the price of gasoline = -0.075

Explanation:

Solution:

The annual demand function for the Honda Accord is:

Qd = 430 – 10 PA + 10 PC – 10 PG

Where,

PA = Price of Honda Accord

PC = Price of Honda Camry

PG = Price of Gasoline per gallon.

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Qd = 430 - 200 + 200 - 30

Qd = 430 - 30

Qd = 400 units

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dQd/dPC = 10

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Qd = 400

So,

Cross Price = 10* 20/400

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b) Elasticity with respect to the price of gasoline?

Elasticity =  (dQd/dPG)*(PG/Qd)

dQd/dPG = -10

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