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
What should a consumer consider when deciding whether to purchase health insurance?
sashaice [31]
C. Whether the deductible is higher compared to other policies. Sorry if I am wrong but this is my best answer.
7 0
2 years ago
Read 2 more answers
Ford conducted research that gave them insights into characteristics of Gen Z. Although Ford finds the information important, th
babunello [35]

Answer:

The correct answer is c. basic research.

Explanation:

Basic research or fundamental research, is the science or research that is carried out without immediate practical purposes, but in order to increase knowledge of the fundamental principles of nature or of reality itself.

By not throwing immediate benefits (economic or social), it could be seen as a simple exercise of curiosity (which is actually a basic human quality and one of the essential reasons for the scientific activity of all time). However, in a longer or shorter period the results of basic research find practical applications, in the form of commercial developments, new techniques or procedures in production or communications, or other forms of social benefit and knowledge.

The relationship between basic science and applied science (which is its opposite concept) is crucial for the interrelationship called "research and development" (R&D) or "research, development and innovation" (R&D), object of the studies of science, technology and society (STS).

6 0
3 years ago
Read 2 more answers
Suppose that there are three beachfront parcels of land available for sale in Asilomar and six people who would each like to pur
poizon [28]

Answer:

When the minimum price is 582,500, the forth parcel WILL not be sold because the willingness to pay is LESS and no one will purchase it from the seller for atleast the minimum price.

Explanation:

Bob 620,000

Sean 750,000

Yvette 660,000

The people that will buy one of the three beachfront parcels are Bob, Sean and Yvette because they are the ones willing and has the ability to purchase the beachfront parcel of land available for sale in Asilomar.

Cho, Eric and Gianny may as well have the desire to own the beachfront land in Asilomar, but they do not have the ability to pay the selling price.

Therefore when the minimum price is 582,500, the forth parcel WILL not be sold because the willingness to pay is LESS and no one will purchase it from the seller for atleast the minimum price.

3 0
3 years ago
Match each description with the corresponding group performance factor that best describes it.
Sladkaya [172]

Answer:

i b) Group cohesiveness

ii c) Group heterogeneity

iii a) Group norms

iv d) Social loafing

Explanation:

i b) Group cohesiveness (this terms refers to the strong link between members of a social group as a whole)

ii c) Group heterogeneity (Refers to inter functional collaboration, individuals from different fields will be working together)

iii a) Group norms (refers to the informal rules that a group adopts and regulate on its own)

iv d) Social loafing  (this terms refers to the idea that people are prone to exert less effort while working in a group, considering that others will take care of the work)

3 0
3 years ago
A company is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. Ho
Bumek [7]

Answer:

Value of company = $982.16

Explanation:

The free cash flow is the cash generated by a company that is not retained and reinvested. It is the cash flow available to all providers of capital . It is available to pay dividend or finance other project

The value of the company would be the present value of its free cash flow discounted at the weighted average cost of capital.

Value of company )year 4= 85/(0.12-0.065) = 1,545.45

Value of company (in year 0) = 1,545.45× 1.12^(-4)= 982.16

Value of company = $982.16 millions

7 0
3 years ago
Other questions:
  • In one or two sentences, describe how the first-come, first-served distribution method works.
    10·2 answers
  • Easy Appliances Inc. is considering a new inventory system that will cost $100,000. The system is expected to generate positive
    11·1 answer
  • Bretthauer Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of July. Prio
    5·1 answer
  • Mutual funds Group of answer choices provide diversification. Shareholders assume all of the risk associated with the mutual fun
    9·1 answer
  • Tara westmont, the proprietor of tiptoe shoes, had annual revenues of $205,000, expenses of $113,700, and withdrew $26,000 from
    12·2 answers
  • Earnings per share is a financial ratio that is used to measure
    12·1 answer
  • 1) Suppose at market opening on 10/24/2019, the market expects the bond that matures in 2034 ("the longer-term bond") to provide
    9·1 answer
  • The human resources perspective of management links motivation theories with _____. a. profit maximization b. efficiencies c. em
    5·1 answer
  • Following is the income statement for Nordstrom Company. Assume that the combined federal and state statutory tax rate is 37%. (
    8·1 answer
  • A cement manufacturer has supplied the following data:
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!