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kondor19780726 [428]
3 years ago
6

Consider the relative liquidity of the following assets: Assets 1. A $5 bill 2. The funds in a savings account 3. A boat you own

4. A bond issued by a publicly traded company Select the assets in order of their liquidity, from most liquid to least liquid.
Business
1 answer:
Karo-lina-s [1.5K]3 years ago
8 0

Answer:

1, 2, 4, 3

Explanation:

To begin with, liquidity is simply defined as the relative ease and/or quickness an asset can be converted to cash, or any other potent medium of exchange.

Now, from the question, we are given the task to rank in order of liquidity.

Option 1 ranks as the most liquid. This is simply because it's already denominated as cash, and a potent means of exchange. Thus, it's readily available.

Option 2 ranks as the second most liquid. Although we are not given the amount involved in the saving account, the most defining feature here is that the saving account is already denominated in cash. It would therefore only takes few moments of processing to retrieve the cash. It ranks as the second most liquid.

Option 4 ranks as the second least liquid. A bond is a debt instrument a company uses to raise finance. A holder of such instrument is called a bondholder. This exercise is usually handled by a broker - a specialist skilled in the procedures. Thus, when an individual subscribe for a bond of a traded company, the processes may be complicated and and complex for some. Hence, it takes time - days or even weeks, and the eventual denomination of the fund into the requisite accounts.

A boat I own is the least liquid. This is simply because it could take days, weeks and even months to find a serious and interested buyer. Negotiations and all could also dictate if the cash receipts is also feasible. It ranks as the least liquid.

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Suppose you inherit an apartment building from your uncle. You anticipate making some income from the rent on
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Answer:

Would you cut back on making repairs and keeping the building in a safe and

livable condition?

No, I would maintain the building as good as posible.

How might you keep the building in good shape and still turn a profit?

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Is it possible to manage  the building or change it to make it both livable and profitable?

yes, What usually happens with rent control properties is that the landlords use the building for commercial or create condos use to avoid the law.

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3 years ago
Carlos purchased an apartment building on November 16, 2020, for $3,000,000. Determine the cost recovery for 2020.
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Depreciation Methods A delivery truck costing $22,000 is expected to have a $2,000 salvage value at the end of its useful life o
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a. $5,000

b. $5,500

c. $6,000

Explanation:

The computation of the depreciation expense for the second year is shown below:

a) Straight-line method:

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= ($22,000 - $2,000) ÷ (4 years)

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(b) Double-declining balance method:

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And, in year 2, the $11,000 × 50% = $5,500

(c) Units-of-production method:

= (Original cost - residual value) ÷ (estimated production)

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= ($20,000) ÷ ($100,000 miles)

= $0.2 per miles

Now for the second year, it would be

= Production units in second year × depreciation per miles

= 30,000 miles × $0.2

= $6,000

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