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gtnhenbr [62]
3 years ago
12

If a company is considering the purchase of a parcel of land that was acquired by the seller for $90,000 is offered for sale at

$160,000, is assessed for tax purposes at $100,000, is considered by the purchaser as easily being worth $150,000, and is purchased for $147,000, the land should be recorded in the purchaser's books at
Business
1 answer:
Lelechka [254]3 years ago
8 0

Answer:

$147,000

Explanation:

According to the historical cost principle, the assets of the company should be recorded at the purchase price or acquisition price in the financial statements

Since in the given situations many values are given with respect to the acquisition done by the seller, for tax turquoises, etc

But it is recorded at the purchase price i.e $147,000

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Oregon Outfitters issues 1,300 shares of $1 par value common stock at $21 per share. Later in the year, the company decides to r
Molodets [167]

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $27,300

(1,300 × $21)  

      To Common Stock $1,300  

       To Paid in capital in excess of par-Common Stock $26,000

(Being issue of common stock is recorded)

2.Treasury stock Dr, $5,000

(250 × $20)

        To Cash  $5,000

(Being repurchase of treasury stock is recorded)

3. Cash Dr, $6,750

(250 × $27)

      To Treasury stock $5,000

(250 × $20)

      To Paid in capital-Treasury stock $1,750

(Being reissue of treasury stock is recorded)

3 0
2 years ago
Which of the following statements about credits is true? A : Credits decrease both assets and liabilities. B : Credits increase
e-lub [12.9K]

Answer:

The correct answer is C. Credits decrease assets and increase liabilities.

Explanation:

A credit is a provision of money in the form of a loan, granted by a creditor (lender) to a debtor (borrower). For the creditor, the transaction gives rise to a claim on the borrower, under which he can obtain repayment of the funds and payment of remuneration (interest) according to a fixed schedule. For the borrower, whether it is a business or an individual, the credit establishes the existence of a debt (increasing liabilities) and opens the availability of a temporary financial resource.

7 0
3 years ago
An asset costing $50,000.00 with a residual value of $5,000.00 has an estimated useful life of 5 years. Using the declining-bala
Finger [1]
I think 10,800.000 hope this helps
4 0
3 years ago
I will pay 5$ to the who solve it
elena55 [62]

Answer:

a. The price that the company should sell the new toy at if it prices at cost plus profit at 100% profit markup is:

= $20.

b. The price that the company should sell the new toy at if it prices using competitive pricing is:

= $22.50 (average of competitors' prices)

c. The price that the company should sell the new toy at if it prices using penetration pricing is:

= $20 (lowest market price)

d. The price that the company should sell the new toy at if it prices using price skimming is:

= $25.

Explanation:

a) Data and Calculations:

Cost of producing a new toy = $10

Competitors' prices are:

Product A – $25

Product B – $20

Product C – $23

Product D–  $22

Total =          $90

Average price = $22.50 ($90/4)

Cost =   $10

Markup   10 ($10 * 100%)

Price = $20

b) An important consideration in the pricing of products is customers' and competitors' reactions to the firm's selling price.  The purpose of considering customers is to ensure that enough demand is generated to cover production cost and make profits.  Competitors can wage price wars to discourage new entrants into their markets.  Many pricing methods are in use, depending on the prevailing market realities.

4 0
2 years ago
T-account: Accounts ReceivableBeg. Bal. 188,400 105,800 18,090 63,990 5,490 14,790 19,290 Partial list of account balances at th
olganol [36]

Answer:

thats a hard one

Explanation:

7 0
3 years ago
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