Answer: Gain of $12,000
Explanation:
First off, what was the Net book value of the old sailboat?
= Cost Price - Accumulated Depreciation
= 210,000 - 84,000
= $126,000
They paid $101,000 in cash and received a trade in allowance of $138,000 bringing the value to $239,000.
What they should have received as the trade in allowance was the NBV of $126,000. Since they didn't they got a gain of,
= 138,000 - 126,000
= $12,000
Because this transaction has commercial substance, the gain would be $12,000.
Answer:
The correct answer is (a)- asset.
Explanation:
An asset is a resource with value that someone owns with the intention of generating a future benefit (whether economic or not). In accounting, it represents all the assets and rights of a company, acquired in the past and with which they hope to obtain future benefits.
They have in common that they are the result of past events and are capable of generating economic returns in the future. All assets have the potential to bring money to the business, whether through use, sale, or exchange. Examples of assets are a premises, a van, a patent, a computer, raw materials, financial investments or collection rights.
A leverage by is one where there is.
Present value PV= FV(1/(1+r)^n)
PV = Present Value
FV = Future Value
r= rate
n= number of years
Just plug in the numbers and calculate.
Answer:
The equilibrium number of firms is 20.
Explanation:
Q = SH × b
= 2,400 × (1/20)
= 2,400 × 0.05
= 120
Also given, Q = S / n
120 = 2,400 / n
n = 20
