Answer:
Lein Theory.
Explanation:
Lien theory refers to the theory in which the buyer stops the property deed at the time of the mortgage. Also the buyer promised to pay all the payments so that the mortgage could become a lien on a property but at the same time the title would remain with the buyer but if all the payments are paid so the lien could be removed
Therefore in the given situation, it represents the lien theory
Answer:
$8,000
Explanation:
The computation of the monthly rental expense allocated is shown below:
Rent allocated to 1st floor:
= $30,000 × 2 ÷ 3
= $20,000
There is 50,000 square feet i.e. equally divided between first floor and second floor. so 25,000 square feet for each floor.
Now
Rent allocated to 10,000 square feet:
= ($20,000 ÷ 25,000) × 10,000
= $8,000
Answer:
$160,000
Explanation:
Calculation of the car dealership's profit
Using this formula
Profit= Total revenue- Amount Spend
Where,
Total revenue=$300,000
Amount Spend=$140,000
Let plug in the formula
Profit =300,000-140,000
Profit =160,000
Therefore the car dealership's profit will be $160,000
Answer:
D. $285,000
Explanation:
When a company is acquired by another company, the parent company (the new owner) must report the assets at fair market value - amortization.
FV = $300,000
amortizable value = $100,000
depreciation for 3 years (2017, 2018 and 2019) = ($100,000 / 20) x 3 = 415,000
reported value = $300,000 - $15,000 = $285,000
