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adell [148]
3 years ago
5

The Austin Land Company sold land for $85,000 in cash. The land was originally purchased for $65,000. At the time of the sale, $

40,000 was still owed to Regions Bank. After the sale, The Austin Land Company paid off the loan. Explain the effect of the sale and the payoff of the loan on the accounting equation. Enter all dollar amounts as positive numbers.
Business
1 answer:
kompoz [17]3 years ago
6 0

Answer:

The sale implies:

Reduction in asset-land by $65000

An increase in asset cash by $85000

An increase share capital by $20,000

The payment of mortgage means:

decrease in liability by $40,000

decrease in asset by $40,000

Explanation:

First of all, the sale of the land means a decrease in a non-current asset, land by $65,000 as well as an increase in a current asset cash by $85,000 while balancing amount of $20,000, gain on sale of land would increase  retained earnings and ultimately share capital equity.

The payoff of loan of $40,000 reduces long-term liability mortgage by $40,000 and also reduces current asset , cash by the same amount, in other words asset and liability reduce by $40,000 simultaneously.

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Where would revenue be maximized for a company facing a linear demand curve
Bond [772]

Answer:

at equilibrium point

Explanation:

equilibrium when price is reasonable to both sellers and buyers. They are willing to buy and sell at optimal quantity, so that firm can maximize revenue

3 0
3 years ago
An organization has recently suffered a series of security breaches that have significantly damaged its reputation. Several succ
Oliga [24]

Answer:

B.

Explanation:

Threat Modeling is the process of identifying and optimizing network security. This practice helps to find the possible threats to confidential information.

<u>Threat Modeling is used to protect the systems. In this practice, the consultant identifies the enterprise's assets and analyze the work of all applications. Then it sets the security profile on all applications and documenting adverse effects of it</u>.

In the given scenario, the consultant will use the tool or technique of threat modeling to identify the potential attackers.

So, the correct answer is option B.

8 0
3 years ago
Core Corporation reported current earnings and profits of $250,000. It distributed a buildingwith an adjusted basis to Core of $
Svet_ta [14]

Answer:

B. $140,000

Explanation:

An adjusted basis refers to the total cost of acquiring an asset. In include transportation, installing, commissions, and all other relevant fees. The fair market value represents the price an asset can fetch if sold in the market.  It is the amount that a company will receive if it were to dispose of an asset in the market.

Shareholders will be the fair market value adjusted for the mortgage balance.

=$ 230,000 - $ 90,000

=$140,000

8 0
3 years ago
The standard costs and actual costs for direct materials for the manufacture of 1,910 actual units of product are as follows: St
vesna_86 [32]

Answer:

$774 unfavorable

Explanation:

The computation of the direct material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $8.60 × (1,910 kilograms - 2,000 kilograms)

= $8.60 × 90 kilograms

= $774 unfavorable

Since it is unfavorable as it derives that actual quantity is more than the standard quantity and in the case of favorable, the actual quantity is less than the standard quantity

6 0
3 years ago
Your grandmother recently surprised you and gave you $15,000 expressly for the purpose of starting your retirement savings. Her
qaws [65]

Answer:

A. $115,291.30

B. $421,536.55

C. $1,471,502.67

Explanation:

The expression that describes the final amount of a $15,000 investment compounded annually for 35 years is:

A = \$15,000*(1+i)^{35}

A. 6% per year

i = 0.06

A = \$15,000*(1+0.06)^{35}\\A = \$115,291.30

B. 10% per year

i = 0.10

A = \$15,000*(1+0.10)^{35}\\A = \$421,536.55

C. 14% per year

i = 0.14

A = \$15,000*(1+0.14)^{35}\\A = \$1,471,502.67

3 0
3 years ago
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