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slava [35]
4 years ago
7

Sheridan Company received $135000 in cash and a used computer with a fair value of $318000 from Carla Vista Co. for Sheridan Com

pany's existing computer having a fair value of $453000 and an undepreciated cost of $420300 recorded on its books. The transaction has no commercial substance. How much gain should Sheridan recognize on this exchange, and at what amount should the acquired computer be recorded, respectively
Business
1 answer:
sammy [17]4 years ago
6 0

Answer:

The gain that  Sheridan should recognize on this exchange is $135000

Explanation:

Where Exchange Transaction lacks commercial substance, the asset that is acquired is measured at the <em>Carrying Amount or Undepreciated Cost </em> of the asset given up.

The gain will then include an <em>further consideration acquired</em> on the exchange of an asset.

<u>Entries to record the exchange are as follows :</u>

Cash $135000 (debit)

New Asset at undepreciated cost $420300 (debit)

Cost of Old asset given up $420300 (credit)

Gain on exchange $135000 (credit)

Conclusion :

The gain that  Sheridan should recognize on this exchange is $135000

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Use the information below to answer the following questions. Currency per U.S. $ Australia dollar 1.2377 6-months forward 1.2356
NikAS [45]

Answer:

Missing word <em>"a. What must the six-month risk-free rate be in Japan"</em>

<em />

a. Spot rate = 1 US $ = 1.2377 Aus.dollar

Forward rate = 1 US $ = 1.2356 Aus.dollar

<u>1.2356</u> = <u>(1 + i Ad)</u>

1.2377     (1 + 0.05)

0.9983 * (1.05) = 1 + i.Ad

1.048215 = 1 + i.Ad

i.Ad = 1.048215 - 1

i.Ad = 0.048215

i.Ad = 4.82%

b. Spot rate = 1 US $ = 100.3300 Japan Yen

Forward rate = 1 US $ = 100.0500 Japan Yen

<u>100.0500</u> = <u>(1 + i Ad)</u>

100.3300     (1 + 0.05)

0.9972 * (1.05) = 1 + i.Ad

1.04706 = 1 + i.Ad

i.Ad = 1.04706 - 1

i.Ad = 0.04706

i.Ad = 4.71%

4 0
3 years ago
Synopsis:
Tpy6a [65]

Explanation:

This is a complex issue that may reflect on the organizational culture of that company. As a leader, it is necessary to understand the situation and listen to both parties in order to find a favorable solution for the company and the employees. Since Marshall's work is important to the company, firing him at first may not be a favorable decision, what the leader can do is provide feedback to him about his interpersonal relationship at the company.

As an effective leader, it is necessary to constantly monitor the work and the relationship between employees, in which case it is necessary to understand the reason for Marshall's behavior and try to change the parameters and procedures that may be facilitating this behavior. It is necessary for him to understand that despite being an effective worker, the company is an integrated system that must be in perfect synchronicity for it to be successful in the market.

What the leader could do in this case then is to try to change the code of organizational ethics, seek training and psychological assistance for Marshall if necessary, talk to the workers who are part of the conflict to understand the situation in the best way, to seek a work redesign. , etc.

4 0
3 years ago
Is it true savings vehicles are never insured
enyata [817]
No it is not true savings vehicles can be insured.
7 0
3 years ago
Alpha Computing's Retained Earnings account had a zero balance at the beginning of 2018. What amount of dividends did the compan
MArishka [77]

Answer:

The company paid in dividends the same amount of the Net Income of the Year 2018

Explanation:

If the company keeps the retained gains at zero balance it means that each dollar the company gains during the year it's paid in dividends.

During the year the company gain money from its operations, the total Profit or Losses are reflected in the Financial Statements, if the company gains money and the Retained Earnings are zero, it means each dollar is paid in dividens, the amount available to paid is the Net Income of the Income Statement.

7 0
3 years ago
Please help me out with my question
telo118 [61]

Answer:

B. $8293.75  

Step-by-step explanation:

<em>On first $9 225:</em>

Tax =     $9225 × 0.10 = $  922.50

<em>On next $28 225: </em>

Tax = $28 225 × 0.15 =   4233.75

<em>On last $12 550</em>:

Tax = <u>$12 550</u> × 0.25 = <u>  3137.50 </u>

        $50 000             $8293.75

This isn't exactly the same as on your answer key.


4 0
3 years ago
Read 2 more answers
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