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mariarad [96]
3 years ago
15

Bloomington Inc. exchanged land for equipment and $2,700 in cash. The book value and the fair value of the land were $105,400 an

d $89,900, respectively. Assuming that the exchange has commercial substance, Bloomington would record equipment and a gain/(loss) on exchange of assets in the amounts of: Equipment Gain/(loss) a. $ 87,200 $ 2,700 b. $ 105,400 $ (2,700 ) c. $ 87,200 $ (15,500 ) d. None of these answer choices are correct.
Business
1 answer:
erica [24]3 years ago
5 0

Answer:

The answer is c. Equipment: 87,200; Gain/(loss): (15,500).

Explanation:

Since the exchange has commercial substance,

- Fair value of the equipment is equal to: Fair value of the land - Cash consideration receipt = 89,900 - 2,700 = $87,200.

- The disposal of land in the Balance sheet following the exchange needs to account for the differences between Book value of land and Fair value of land. Since Fair value is now smaller than Book Value, a Loss has to be recognized at the amount calculated as (Fair value - Book value) = (89,900 - 105,400) = $(15,500).

Thus, the answer is c. $87,200 $(15,500).

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What causes unemployment post-keynesianism?
Harlamova29_29 [7]

Answer:

<u>involuntary employment</u>

<u>Explanation:</u>

The Post-Keynesianism view is that effective demand is the main determinant of economic performance.

Thus, Keynesianism states that in an economy where there is a significant reduction in demand, it will affect the labor market which further leads to lower wages.

For example, an airline that has 100 workers is experiencing a sharp decline in demand (of flight bookings) because of a government lockdown may decide to cut down their staff capacity ad a result. leading to <u>involuntary employment.</u>

4 0
3 years ago
An amount of something left over when requirements have been met; an excess of production or supply over demand
harkovskaia [24]
The answer will be An excess of production.


Hope this helps!
8 0
4 years ago
Which of the following investors would likely prefer a cash dividend over a stock dividend?
Hunter-Best [27]

Answer:

d. Enrique subscribes to the "bird in the hand "theory when it comes to dividends

Explanation:

Cash that is ready to use is better than having other assets that need to be converted into cash to be enjoyed later. This is the simple explanation of the "bird in the hand" theory. An investor who subscribes to this theory will highly likely prefer a cash dividend over a stock dividend.

6 0
3 years ago
Are the costs of debt and equity observable in the capital markets? If not, how do you estimate that cost of capital?
Levart [38]

Depending on the supply and demand of equity, a bond’s price can vary, thus the premium or discount price.

For example, when the interest rate falls, older bonds may become valuable because they were sold in a higher interest rate environment and therefore with a higher coupon rate. Consequently, investors holding those bonds can commend a "premium" to sell equity. On the other hand, if the interest rate rises, older bonds may become less valuable. In order to get rid of them, investors may have to sell for less, thus the "discount” price.

Bond prices are quoted as a percent of the bond’s face value, and an easy way to learn the price of a bond is simply by adding a zero to the price quoted. For instance, when you hear a bond is quoted at 99, it means the price for the bond is $990 for every $1,000 of face value. Because the bond price is below the face value, it’s said the bond is traded at a discount. On the other hand, if the bond is trading at 101, it means you will pay $1,010 to get that $1,000 face value bond.

The dividend discount model (DDM) is a procedure for valuing the price of a stock by using the predicted dividends and discounting them back to the present value. If the value obtained from the DDM is higher than what the shares are currently trading at, then the stock is undervalued.

Learn more about   equity here

brainly.com/question/1957305

#SPJ4

3 0
2 years ago
Line graph labeled Business Cycle. Curve rises, falls, rises again, and begins to fall again. Point A marks top of first curve.
CaHeK987 [17]

The part of the business cycle given that shows a period of contraction is <u>Point B. </u>

<h3>Why does point B show contraction?</h3>

When the economy is in a period of contraction, the business cycle would show a fall from the peak to the trough.

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In conclusion, option B is correct.

Find out more on the business cycle at brainly.com/question/26086110.

5 0
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