1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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).

You might be interested in
A project team that operates with a full-time project manager as a separate unit from the rest of the organization is structured
Dennis_Churaev [7]

A project team that operates with a full-time project manager as a separate unit from the rest of the organization is structured as a ________ organization.

A. Functional

B. Balanced matrix

C. Weak matrix

D. Strong matrix

E. Project

A project team that operates with a full-time project manager as a separate unit from the rest of the organization is structured using<u> Project organization.</u>

Answer: Option E

<u>Explanation:</u>

Projectized or Project organization as the name suggests, focus on the projects and various process related to those projects. Project organization is different from the rest of the organizations in a sense that it works as a separate unit.

In this type of organizational structure the project manager is on the top and he is the sole decision maker regarding all the projects. The rest of the team members report to the project manager, whereas the roles and responsibilities are divided amongst the members.

4 0
3 years ago
How could government – sponsored grants for the private development of new technologies result in a lower national debt?
Svet_ta [14]

Answer: Making initial development private saves the government from funding all of the research.

Explanation:

A grant refers to an amount of money that is financial assistance thats given by the government or an organization to an individual or firm for a specific purpose. A grant is different from a loan as it isn't meant to be paid back.

Government award grants for the development of technologies, community projects, home insulation etc.

With regards to the question, a government – sponsored grants for the private development of new technologies may result in a lower national debt when the government makes the initial development private thereby saving the government from funding all of the research.

6 0
3 years ago
___ is the courts do not consider legitimate competitive behavior permissible if it results in the breaking of a contract.
grandymaker [24]

Answer:tortious interference

Explanation:

tortious interference is a law term that comes to mind when there is a breach of contract resulting from the competitor's actions. Tortious interference in Tort law(an area of law) deals with the situation in which there is damage to property emanating from intentional or negligent acts of the defendant, in this case the competitor in business. In which case the actions(competitive behaviour) of defendant is not justifiable and permissible and simultaneously breaches contract of plaintiff, it becomes tortious interference.

3 0
3 years ago
William installs custom sound systems in cars. If he installs seven systems per day, his total costs are $300. If he installs ei
Margarita [4]

Answer:

D. $100

Explanation:

Given: William install 7 system per day at the cost of $300.

           William install 8 system per day at the total cost of $400.

Remember, If the marginal cost curve is upward-sloping, this means that as output increase, marginal costs will also increase.

Marginal cost is an additional cost incurred in producing additional unit of output.

Now, finding additional payment that eighth customer has to pay.

Change in marginal cost= Cost\ incurred\ in\ installing\ 8\ system - cost\ incurred\ in\ installing\ 7\ system

⇒ Change in marginal cost=  \$400-\$300

∴  Change in marginal cost= \$ 100

Hence, there is an increase in marginal cost by $100 as output increases, therefore, William will install eight sound systems per day only if the eighth customer is willing to pay at least $100.

5 0
4 years ago
A company acquired an office building on three acres of land for a lump-sum price of $3,150,000. The building was completely equ
Furkat [3]

Answer:

$1,680,000

Explanation:

Based on the information given we were told that the fair value of the building was the amount of $1,680,000 which means that the amount that the company would record the building is the fair value amount of $1,680,000.

Therefore the amount that the company would record the building is $1,680,000.

6 0
3 years ago
Other questions:
  • Intel decides to issue new stock in order to build a new facility and expand its operations. The receipt of cash from this stock
    6·1 answer
  • An example of an ongoing cost is _____.
    7·2 answers
  • List the steps of the accounting cycle in their proper order.
    15·1 answer
  • While researching job boards and applying to companies ,which two of the following practices can help you stay organized ?
    10·1 answer
  • Although the discount stores in Goreville central shopping district are expected to close within five years as a result of compe
    8·1 answer
  • A broker took earnest money from a buyer. He deposited the money in the trust account, but when his electric bill was due, the b
    11·1 answer
  • Compare and contrast the roles of the federal government as both promoter and regulator of industrial development and market cap
    13·1 answer
  • A company's Office Supplies account shows a beginning balance of $630 and an ending balance of $460. If office supplies expense
    8·1 answer
  • What is an example of a flame?
    14·2 answers
  • One of the reasons service failures need to be addressed quickly is to: increase empowerment zones. avoid a situational ethics c
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!