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Arisa [49]
3 years ago
9

If a company is considering the purchase of a parcel of land that was acquired by the seller for $87,000 is offered for sale at

$154,000, is assessed for tax purposes at $97,000, is considered by the purchaser as easily being worth $144,000, and is purchased for $141,000, the land should be recorded in the purchaser's books at:
Business
1 answer:
Vinvika [58]3 years ago
5 0

Answer:

$141,000

Explanation:

The company must record the land at the price at which it purchases it. In this case, the company purchased the land at $141,000, so following the historical cost principle (accounting principle), that is the value.

The historical cost principal (under US GAAP) states that any asset must be recorded at the price at which is was acquired even if their market value might be different.

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A firm’s liquidity level decreases when:_______.
katovenus [111]

Answer:

b) inventory is sold on credit.

Explanation:

Liquidity is defined as the a business to use its current assets to settle it's current liabilities.

This is calculated by using the working capital ratio.

Working capital ratio = Current assets ÷ Current liabilities.

Cash and inventory contribute to a business' liquidity.

When inventory is sold on credit, it does not result in immediate increase in cash as payment is in the future. So there is a reduction in the current asset of the company.

A reduction in the numerator of the working capital ratio results in lower value of the ratio (lower liquidity)

5 0
3 years ago
Your broker suggests that the stock of DUH is a good purchase at $25. You do an analysis of the firm, determining that the recen
jarptica [38.1K]

Answer:

The correct answer is "$28.03".

Explanation:

The given values are:

Good purchase,

= $25

Dividend,

= $1.40

Annually earning,

= 5%

Beta coefficient,

= 1.3

Treasury bills,

= 1.4%

Now,

= 1.4+1.34\times 8-1.4

= 1.34\times 8

= 10.244 (%)

hence,

The fair value will be:

= 1.4\times \frac{1.05}{.10244}-.05

= 28.03

Absolutely, the proposal including its brokerage must be adopted because as fair market value was almost $25.

5 0
3 years ago
Cragmont has beginning equity of $277,000, net income of $63,000, withdrawals of $25,000 and no additional investments by owners
MatroZZZ [7]
The ending equity is $315,000 This is just a matter of adding income and subtracting withdraws. So let's do it. "Cragmont has beginning equity of $277,000," x = $277000 "net income of $63,000" x = $277000 + $63000 = $340000 "withdrawals of $25,000" x = $340000 - $25000 = $315000
3 0
3 years ago
Getting the listener’s full attention, questioning him or her, and asking him or her to paraphrase the message are all technique
timama [110]

Answer:

poor listening

Explanation:

Based on the information provided within the question it can be said that this is done in order to overcome poor listening. This refers to individuals who get distracted when listening and hear/understand very little to nothing of what they were supposed to be listening to. By making sure their attention is on you and asking them to repeat what you just said allows the individual to pay more attention to what you are saying and helps the information stick.

3 0
3 years ago
Due to recent political and economic events, general prices of goods and services are expected to increase significantly over th
melomori [17]

Answer:

a. Inflation

Explanation:

In the context of economics, inflation refers to the increase in the price of goods and services

Moreover,  we also know that

(1 + Nominal rate of return) = (1 + real rate of return) × (1 + inflation rate of return)

According to the given situation, it is mentioned that The general goods and services prices are expected to rise substantially over the next five years which represents the concept of inflation

Hence, the option a is correct

5 0
3 years ago
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