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Novay_Z [31]
2 years ago
8

Alamos Co. exchanged equipment and $18,000 cash for similar equipment. The book value and the fair value of the old equipment we

re $82,000 and $90,000, respectively. Assuming that the exchange lacks commercial substance, Alamos would record a gain/(loss) of: A. $26,000. B. $8,000. C. $(8,000). D. $0.
Business
1 answer:
Mila [183]2 years ago
4 0

Answer:

correct option is B. $8,000

Explanation:

given data

equipment = $18,000

book value = $82,000

fair value = $90,000

to find out

Alamos would record a gain/(loss)

solution

we know that When exchange have commercial substance we need to record the gain arising from transfer of old assets

so here Gain on transfer of old assets is

Gain on transfer of old assets =  fair value of the old equipment - book value of the old equipment     ................1

Gain on transfer of old assets =  $90,000 -  $82,000

Gain on transfer of old assets = $8,000

so here correct option is B. $8,000

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Following is the sales budget for Coore, Inc., for the first quarter of 2019.
gayaneshka [121]

Answer:

a. Sales for November = $192,666.67

b. Sales for December = $312,400,00

c. Total cash collections are as follows:

January = $200,580

February = $201,360

March = $191,750

Explanation:

a. Compute the sales for November.

Sales for November = (Accounts receivable balance at the end of the previous quarter - Uncollected sales from December) / Collection rate two months after the sale = ($107,000 - $78,100) / 15% = $192,666.67

b. Compute the sales for December.

Sales for December = Uncollected sales from December / (Collection rate one months after the sale + Collection rate two months after the sale) = $78,100 / (10% + 15%) = $312,400,00

c. Compute the cash collections from sales for each month from January through March.

Note: See the attached excel file for the schedule of cash collections from sales for each month from January through March.

From the attached excel file, total cash collections are as follows:

January = $200,580

February = $201,360

March = $191,750

Download xlsx
3 0
2 years ago
Marigold Corp. has begun and ending raw materials inventories of $64000 and $80000, respectively. If direct materials used were
blondinia [14]

Answer:

The answer is $126,000

Explanation:

Please find the attached file for the calculation.

7 0
3 years ago
National income is other wise called a) Real income b) nominal income c) Gross National product d) money income​
svetlana [45]

Answer:money income

Explanation: I think it’s money income not for sure though

8 0
3 years ago
Education benefits both students and the community. Suppose that those students who purchase education consider only their own b
nikdorinn [45]

Answer:

The correct answers are: greater; below

Explanation:

Education is a public good and a human right from which no one should be excluded. To conceive it as a right and not as a service, requires the State to ensure a compulsory and free education to all citizens, because the rights are not bought or traded, UNESCO establishes and defends.

However, the general benefit of education is greater than the sum of benefits that it provides to each individual. In this sense, four positive externalities are identified: (a) Individuals with more education, charge more and pay more taxes. (b) Kangaroo effect: the State from a young age takes care of the children and therefore, the woman can go to work and produce more income. (c) Production externality: an individual with more education will produce more production and therefore more income. (d) Cultural externality: a community with a strong cultural base can contribute to fostering values ​​such as tolerance and increasing social cohesion, contributing to the reduction of social conflict.

8 0
3 years ago
Different loan rates. Winthrop Enterprises is a holding company​ (a firm that owns all or most of some other​ companies' outstan
katovenus [111]

Answer:

7.52689%

Explanation:

Ervin Company:To break even with an 93% success rate, Ervin will need to recoup

$1/0.93=$1.0752689.

Hence:

Winthrop should charge a return greater than ($1.0752689/$1.00) -1

=($1.0752689)-1

=0.0752689×100

=7.52689%

Therefore th eloan rate Winthrop Enterprises should charge Ervin Company for​ loans will be 7.52689%

5 0
3 years ago
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