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never [62]
3 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]3 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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6 0
2 years ago
Suppose that a planet fitness studio has fixed expenses of $7500 per month and variable expenses of $4.99 per member per month.
natka813 [3]
Answer: $500

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6 0
3 years ago
Juniper Company uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30
kozerog [31]

Answer:

Amount of cash paid on Aug 16 = <u>$8,167.50</u>

Explanation:

As for the information provided the terms of purchase are,

1% discount if payment made within 10 days,

and a total credit period of 30 days without any discount beyond 10 days.

Here, inventory purchased on August 7 = $9,750

Less; Return on 11 August = $1,500

Net Purchases = $8,250

Since payment is made on 16 August that is within 10 days from purchase discount will be received

= $8,250 \times 1% = $82.50

Amount of cash paid on Aug 16 = $8,250 - $82.50 = $8,167.50

8 0
3 years ago
Treasury stock is:
VashaNatasha [74]

Answer:

a. Common stock acquired by the company in the open market & recorded as negative equity

Explanation:

A stock which is buy back from the market at market rate issued by the company. It reduces the total outstanding shares of the company. It is the difference of Number of share issued and Number of share outstanding. Its account is consider as contra equity account. So the correct option is a. Common stock acquired by the company in the open market & recorded as negative equity.

7 0
3 years ago
Read 2 more answers
How can you know if it's a good time to start your business?
Sonbull [250]

Answer:

The  good time to start your business is when When the economy is strong

<u>Explanation:</u>

Beginning a business is like starting a relationship; the appropriate time to establish a business is the point at which you have the opportunity to give your consideration about the business. The best time for beginning a company should not be affected by one’s age.

Individuals of all ages can start a business, and you might be astounded to realize that most entrepreneurs in the US are more seasoned; 51% of proprietors of independent companies have many years of operations and still successful.

6 0
3 years ago
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