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il63 [147K]
3 years ago
7

Amble, Inc. exchanged a truck with a carrying amount of $12,000 and a fair value of $20,000 for a truck and $5,000 cash. The fai

r value of the truck received was $15,000.
At what amount should Amble record the truck received in the exchange assuming the exchange lacks commercial substance?
A. $7,000
B. $9,000
C. $12,000
D. $15,000
Business
1 answer:
katrin [286]3 years ago
4 0

Answer & Explanation:

The fair value of our asset is $20000 and what we receive is a truck with $15000 market value and $5000 cash. So the transaction possesses commercial substance as the fair value and value received are same.

So assume if the transaction lacks the commercial substance (according to question) then the truck received must be recorded at fair value and must be offset against the truck which is exchanged for. The entry would be:

Dr Truck received @ Fair Value $15000

Cr                     Truck Sold                      $12000

Cr                     Profit on Disposal           $8000

The above entry makes it clear that the entry to recognize the truck would be $15000. So the option D is correct.

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Assume that you live in California and are on vacation, traveling by car from California to Texas. You are injured in a motel ro
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Answer:

a. No.  A state court will do a better job in this case because it exercises unlimited jurisdiction.  Moreover, you can only bring your case to a federal court if the amount of your claim is up to $75,000 or the issue is exclusive to the federal court.  This is not the case here.

b. Yes and No.  We need some additional information about the accident location to help answer this question definitively.

c. No. You should not consider accepting the offered settlement.  The jury award is meant to pay for your medical bills and also to help you recover financially as though the accident did not happen in the first place.  Accepting any lesser amount after the judgment is rendered is in bad taste.  The other party should have negotiated to settle out of court before the final judgment was rendered.  But it did not.  So, go with the jury award.

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Missed work for 15 weeks

Total medical bills incurred = $50,000

Total lost wages incurred = $15,000

Jury award = $100,000 ($50,000 for medical, $15,000 for lost wages and $35,000 for punitive damages)

Settlement offer = $50,000

7 0
3 years ago
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Andreas93 [3]

Answer:

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Product bundling may be targeted to a particular item on the bundle or both. Due to the discount offered, product bundling increases the revenues from the products on offer. It also can increase the market share for each of the products on offer. In this case, a haircut and a conditioning treatment are complementary services. Bundling them together encourages consumption for both.

7 0
4 years ago
Which pharmaceuticals company has decided to expand its vaccine business in the United Kingdom with an investment of £240 millio
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Which pharmaceuticals company has decided to expand its vaccine business in the United Kingdom with an investment of £240 million?

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ruslelena [56]

Answer:

d. a private corporation.

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A private corporation is a limited company that is owned by a few numbers of shareholders.  The shares of a private corporation are not publicly traded in the securities exchanges, neither are they issued through an initial public offer.  Ownership of a private corporation is transferable but is restricted to the founders who, in most cases, are family members, close friends, or associates.

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