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OlgaM077 [116]
3 years ago
13

In an exchange, archie gave up his fully depreciated business-use dump truck (fmv $15,000) and $5,000 for a newer business-use d

ump truck (fmv $20,000). what is the gain realized and recognized on the exchange?
Business
1 answer:
TiliK225 [7]3 years ago
5 0

Answer:

The realized gain is 0

Explanation:

The fair market value of the truck that archie gives up is $15,000 and the new truck he gets has a fair market value of $20,000. Archie also gives $5,000 in cash plus his old truck in order to buy the new truck.

Gain= Fair market value of new truck -Fair market value of old truck - Cash paid

Gain = 20,000-15,000-5,000

Gain = 0

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Answer:

Dividend paid to be paid to common  stockholder=$ 20,000

Explanation:

Common stock holders are the real risk bearers as they receive as dividends the residual amount after all other claims have been settled.

Preference shares entitles the holders to participate in a fixed dividend out of the profit made by the company. The divide is always a fixed percentage of the nominal value of the preference shares

Cumulative preference shares: Cumulative simply implies that should the company misses the payment of dividend in a particular year such unpaid dividend would be carried carried forward and paid in arrears in the following year/  

Preference dividends

2019 - 5.5% × $100 × 5,000=            $27500

2020 - 5.5% × $100 × 5,000 =            $27500

Total preferred to be paid in 2020 = 55,000

Dividends paid to common stock = Total dividend for 2020- Total preference dividend in 2020

Dividend paid to be paid to common  stockholder

= 75,000-55,000= 20,000

Dividend paid to be paid to common  stockholder=$ 20,000

5 0
3 years ago
Sometimes bonds currently sell for ghs 1,150. they have a 6.75% annual coupon rate and a 15-year maturity and are callable in 6
ipn [44]

The rate of return should an investor expect to earn if he or she purchases these bonds is 4.81%

<h3>What is rate of return?</h3>

A return in finance is a profit on an investment. It includes any change in the investment's value and/or cash flows received by the investor, such as interest payments, coupons, cash dividends, stock dividends, or the payoff from a derivative or structured product.

Annual Rate of Return: Definition and Calculation

For example, if an investment is worth $70 at the end of the year and was purchased for $60 at the start of the year, the annual rate of return is 16.66%.

A good return on investment is generally thought to be around 7% per year. Based on the historical average return of the S&amp;P 500 after correcting for inflation, this is the barometer that many investors utilize.

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4 0
1 year ago
Write a paragarph of 10 sentences or more describing three main employment sectors in your country
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Answer:

peaceful

Explanation:

kasi lahat Ng mga Tao soon ay Hindi nag aaway

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3 years ago
The justification for a company initially recording prepaid rent in either an income statement or balance sheet account is that:
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The justification for a company initially recording prepaid rent in either an income statement or balance sheet account is that a<u>t the end of each year, the</u><u> account balances </u><u>are revised so that they accurately represent the c</u><u>urrent situation.</u>

This is further explained below.

<h3>What is an income statement?</h3>

Generally, When a business first records its prepaid rent, it should do so in either an account on its income statement or one on its balance sheet.

The reason for this is because, at the end of each year, the balances of these accounts should be revised so that they more accurately reflect the situation at the moment.

In conclusion, An income statement, also known as a profit and loss account, is one of the financial statements that a business maintains.

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8 0
2 years ago
1. You are investing $100 today in a savings account at your local bank. Which one of the following termsrefers to the value of
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He earned 11$ interest on his 100$
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