Answer & Explanation:
The fair value of our asset is $20000 and what we receive is a truck with $15000 market value and $5000 cash. So the transaction possesses commercial substance as the fair value and value received are same.
So assume if the transaction lacks the commercial substance (according to question) then the truck received must be recorded at fair value and must be offset against the truck which is exchanged for. The entry would be:
Dr Truck received @ Fair Value $15000
Cr Truck Sold $12000
Cr Profit on Disposal $8000
The above entry makes it clear that the entry to recognize the truck would be $15000. So the option D is correct.
The decision that must the government of a country make and choose between increasing military spending and subsidizing wheat farmers is an example of <span>a guns or butter issue.
</span>The phrase "guns or butter" refers and explains the relationship between two goods that are important for a nation's economic growth. I<span>ncreasing military spending and subsidizing wheat farmers are both important.</span>
Answer:
initial accounting cost of the machine = $32016
Explanation:
given data
Gross invoice price = $27,200
Sales tax = 1,760
Cash discount = 544
Freight = 960
Assembly of machine = 800
Installation of machine = 1,200
Repair of machine = 2,560
Tuning and adjusting machine = 640
to find out
initial accounting cost of the machine
solution
we get here initial accounting cost of the machine that is express as
initial accounting cost of the machine = Gross invoice price + Sales tax - Cash discount+ Freight+ Assembly of machine + Installation of machine + Tuning and adjusting machine ...................1
put here value we get
initial accounting cost of the machine = $27,200 + 1,760 - 544 + 960 + 800 + 1200 + 640
initial accounting cost of the machine = $32016
Answer:
This statement is true.
Explanation:
A market economy can be defined as an economic system in which economic decisions is taken by the market forces. The equilibrium prices and quantity are determined by the forces of demand and supply.
Market failure happens when these forces fail to efficiently allocate goods and services in the market.
The market fails to efficiently allocate goods and resources when the individual rational decisions in self-interest lead to inefficient outcomes for society.
Answer:
The correct answer is letter "A": Terminate the contract for default.
Explanation:
A termination for default takes place when one party on a contract is not able to fulfill the agreement conditions. The party who failed to fulfill the contract obligations can be sued and could be found liable for all the damages caused as a result of the breach of the agreement.