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never [62]
4 years ago
12

Amble Inc. exchanged a truck with a book value of $12,000 and a fair value of $20,000 for a truck and $5,000 cash. The exchange

has commercial substance. At what amount should Amble record the truck received?a.$12,000b.$15,000c.$20,000d.$25,000
Business
1 answer:
klasskru [66]4 years ago
8 0

Answer:

B. $15,000

Explanation:

First, we should understand that there is a difference between the book value and the fair value. This difference will either be a gain or a loss.

Secondly, for the new truck/asset; it should be recognized based on the subtraction of the additional amount paid for the new asset from the fair value of asset exchanged.

Therefore,

The Value of the New Asset= Exchanged Asset's fair value - Consideration paid for the new asset

= The value of the new asset = $20,000 - $5,000= $15,000

The Amount to be recorded for the truck received is $15,000

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Suppose that the Fed has decided to utilize the Taylor rule to implement monetary policy. If the actual federal funds rate targe
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Answer:

The correct answer is:

A) monetary policy is very expansionary.

Explanation:

In this case the Taylor Rule states that the Fed must increase rates as the target of the inflation is up the Gross Domestic Product. Therefore, according to the expansionary policy, the central bank employs certain mechanisms in order to look with favor on the economy. The main idea of this strategy is to be able to lower the interest rates and also to increase the aggregate demand.

5 0
3 years ago
Joint products are:
s344n2d4d5 [400]

Answer:

The correct answer is option A.

Explanation:

Joint products are those products are manufactured through the same process using common inputs and are somewhat equal in value.

they cannot be produced separately.

For instance cream, butter and cheese are joint products made from milk.

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4 0
3 years ago
Luxere Hotels International, an American company, sells the rights to other hospitality companies globally to open hotels with t
Paha777 [63]

Answer: Franchising

Explanation:

Franchising is one of the type of marketing based method that helps in defining the various types of business strategy by implementing the intellectual properties and also the business structure.

It is basically refers to the licence that is obtained for the purpose of accessing the other business for selling the products with the name of same brand.

According to the given question, the luxere hotels is one of american based company that selling the products to other hotels by using their specific name of the brand.

 Therefore, Franchising is the correct answer.    

8 0
3 years ago
A company manufactures and sells a product for $124 per unit. The company's fixed costs are $72,760, and its variable costs are
exis [7]

Answer:

The break even point in units is 2,425.33.

Explanation:

The break even point is how many units you have to sell to pay the fixed costs. The selling price per unit is 124 and the cost per unit is 94. The contribution margin is 124-94 = 30. This means that per every unit you sell, you have $30 for paying the fixed costs. So, the total units for paying all the fixed costs are 72,760/30 = 2,425.33.

8 0
4 years ago
The Standards of Practice published by the American Society of Home Inspectors (ASHI) are quite inclusive and 
MissTica
The answer to the question is B
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3 years ago
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