Answer:
When two companies exchange an asset, the assets fair value is used as the price of the asset. In this case the company is paying 154,000 plus an old machine with a fair value of 140,000 so the cost of the new machine would be recorded as the sum of the cash paid and fair value of the old asset.
140,000+154,000= 294,000
Explanation:
I was going to say it's B, but I can also see A being the right answer.
Answer: 17,000
Explanation: nothing dont take my answer i guessed
Answer: decrease by $1,600
Explanation:
Charlotte withdraws $8,000 from her account. When she first paid in that $8,000, the bank had to keep some of it as a reserve requirement. That requirement was that they keep 20%.
Now that she is withdrawing the money, the bank would have to retrieve that 20% from the reserve requirement in order to give it back to Charlotte.
That 20% is:
= 20% * 8,000
= $1,600
To find Simon's maximum amount he can borrow against his home you will use the Home Loan Value Formula.
Home is worth: $400,000
Remaining balance: $175,000
Borrow: up to 75% on home
First, you'll want to take the market value of $400,000 and multiply it by 75% (.75) which gives you $300,000.
Then, you'll need to subtract what Simon owes on the home to find the amount he can borrow.
$300,000 - $175,000 = $125,000
Simon can borrow $125,000 against his home.