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notsponge [240]
3 years ago
6

Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. Land A and Buildin

g A were acquired from a predecessor corporation. Thompson paid $732,500 for the land and building together. At the time of acquisition, the land had a fair value of $65,600 and the building had a fair value of $754,400. Land B was acquired on October 2, 2019, in exchange for 2,200 newly issued shares of Thompson’s common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $17 per share. During October 2019, Thompson paid
Business
1 answer:
frozen [14]3 years ago
7 0

Answer:

He will not pay any depreciation during October.

Explanation:

Depreciation is charged only on building equipment and machinery. It is not accounted for land as land is an asset whose value does not depreciate over the years.

Depreciation for Building A would be zero  for the month of october as depreciation is computed from the first of the month of acquisition to the first of the month of disposition.

The depreciation expense will be computed on 1st of November.

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Diversification is important and investing because
Lelechka [254]
You don't want all of your eggs in one basket. If one stock and/sector of the market sinks, hopefully it will be offset by your diversification.
6 0
3 years ago
All sales are made on account. Collections from customers are normally 70 percent in the month of​ sale, 20 percent in the month
Taya2010 [7]

Answer:

The expected ending balance on November 30 will be $134,500

Explanation:

Sales Collected (165,000*70%)                  $115,500

Expenses paid                                            ($36,000)

Cash Opening                                               $55,000

Cash ending Nov 30                                    $134,500

5 0
3 years ago
Read 2 more answers
A taxpayer must receive voting common stock to be eligible for deferral in a Section 351 exchange. True False
hodyreva [135]

Answer:

True

Explanation:

Section 351 (a) establishes that no gain or loss should be recognized when property is transferred to a corporation:

  • in exchange of stock in that corporation (might receive common stock or share class stocks)
  • as soon as the exchange is complete, the new stockholder must be in control of the corporation.

Not all common stocks have the same voting rights, that is why they are divided into share classes which assign separate voting rights or powers. Section 351 does not include preferred stocks.

3 0
3 years ago
Large membranous sacs are more prevalent in plant cells and some protozoa than in animal cells. These sacs in plant cells might
Olenka [21]

Answer:

Vacoule

Explanation:

vacuole can be regarded as membrane-bound organelle. They can be found in cell of fungi as well as plant, I could also be found in some of the bacteria and protist cell.Those that are found in animal cell do sequester waste products in the cell, and those in plant cell helps in maintaining water balance. In plant cell, just single vacoule could take up so much space.It should be noted that Large membranous sacs are more prevalent in plant cells and some protozoa than in animal cells. These sacs in plant cells might function in vacoule.

4 0
3 years ago
Big Dom’s Pawn Shop charges an interest rate of 27.4 percent per month on loans to its customers. Like all lenders, Big Dom must
Makovka662 [10]

Answer:

Annual percentage rate: 328.8%

effective rate: 1728%

Explanation:

APR: Annual Percentage Rate

as the month is monthly we must multiply by 12 to convert into annual

27.4 x 12 = 328.8%

<u>The effective rate will have into consideration the compounding effect:</u>

(1+r_m)^{12}  = 1 + r_e

(1+0.274)^{12}  -1 = r_e

re = 1728%

3 0
3 years ago
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