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konstantin123 [22]
3 years ago
15

If a fixed asset with a book value of $10,000 is traded for a similar fixed asset, a trade-in allowance of $15,000 is granted by

the seller and the transaction is deemed to have commercial substance, the buyer would report a gain on exchange of fixed assets of $5,000. (True/False)
Business
1 answer:
mr_godi [17]3 years ago
4 0

Answer:

FALSE

The statment is false, the gain is 15,000

Explanation:

When there is commercial substance the exchange of long-term assets will recognize a gain or a loss on exchange.

When there isn't the diference will be adjusted using the value of the new asset.

In this case <u>we have commercial substance,</u> so the buyer will report a gain on exchange for 15,000 which is the allowance made by the seller.

The value has 15,000 trade-in allowance. Which means it value is for 25,000

So the diference between the current fixed asset and the new one is 15,000

25,000 - 10,000 = 15,000

The statment is false, the gain is 15,000

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True or False: The cost per exposure of most online advertising channels is difficult to account for.
butalik [34]

Answer:

True, I just think this is a true thing due to exposure and costs of ads. And how many businesses go outta business.

7 0
3 years ago
The current exchange rate between U.S. Dollar and Euro is $1.355/.738. It means that:______a. one Euro can buy 0.738 Dollars.b.
Verdich [7]

Answer:

b. one Dollar can buy 0.738 Euros

Explanation:

Given that

The Current Exchange rate is

= $1.335 ÷ 0.738 Euro

The 0.738 represents the indirect exchange rate now transform it into direct exchange rate

Direct Exchange rate is

= $1 ÷ 0.738 Euro

= $1.3550

Now bid price for purchase one euro is $1.335 and ask price to purchase one euro is $1.355

But the person could purchased at ask price only

Therefore the option b is correct

4 0
3 years ago
Stadford Inc. is financed with 40 percent debt and 60 percent equity. This mixture of debt and equity is referred to as the firm
lesya692 [45]

Answer: Capital structure                            

Explanation: In simple words, capital structure refers to the proportion of different securities that an organisation uses as a combination to fund its operations. In other words, the amount of debt and equity in total capital in hand of the business is termed as capital structure.

Capital structure is of high importance to the investors as it directly impacts the liquidity and profitability of the organisation.

The ability of a company to bear its short term obligation is called liquidity and the ability to generate profit with given amount of resources is called profitability.

8 0
3 years ago
High Sierras, LLC is incorpated in Nevada, but is headquatered near Squaw Valley in Nothern California. High Sierra could be sue
serg [7]

High Sierra, LLC, which is incorporated in Nevada but headquartered in Northern California, could be sued in Nevada for its alleged defective product if <u>D. Sells its products</u> to Nevada residents using the USPS for delivery.

<h3>What is a defective product?</h3>

A defective product is one that causes injury to the consumer thereby incurring product liability.  Product defects can arise from:

  • Design
  • Manufacturing
  • Marketing.
<h3>Answer Options:</h3>

A. It maintains a sales agent with a small satellite office in Carson City, Nevada.

B. It runs radio ads advertising its product on a Las Vegas radio station.

C. Its sales representatives regularly fly out of Reno, Nevada when heading out on business trips.

D. Sells its products to Nevada residents using the USPS for delivery.

Thus, High Sierra could be sued in Nevada for <u>Option D</u>.

Learn more about defective products at brainly.com/question/26421253

4 0
2 years ago
We provide strategic consulting services. In 2011, we completed a consulting engagement for Clarent Corporation. We use normal a
Allisa [31]

Answer:

Estimated manufacturing overhead rate=  $0.00327 per engagement revenue.

Explanation:

We use normal absorption costing, with corporate overhead costs allocated to engagements using engagement revenues as the allocation base. The engagement expenses for Clarent was $1,219,990. Our estimated total 2011 engagement revenues equaled $373,000,000.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 1,219,990/373,000,000=  0.00327 per engagement revenue.

4 0
3 years ago
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