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Citrus2011 [14]
2 years ago
6

Crossroad chooses to report a financial asset at its fair value. The asset trades in two different markets; however, neither mar

ket is the principal market for the financial asset. In the first market, sales proceeds are $76, which is net of transaction costs of $6. In the second market, the sales proceeds are $80, which is net of transaction costs of $1. What amount should Crossroads report as the fair value of the asset
Business
1 answer:
Alex2 years ago
5 0

Answer:$81

Explanation:

The options given are:

a. $76

b. $80

c. $81

d. $82

If the principal market that is, the market that the greatest volume of activity can't be identified, then the most advantageous market would be used to determine the fair value of a financial asset.

The most advantageous market is the market that has the highest net price, after transaction cost has been considered even though the transaction costs is not included into the fair value. Therefore, the second market gives the highest net price of $80 after the consideration of the transaction costs, hence, it should be utilized for fair value purposes.

The fair value amount include the transaction costs, which give $80 + $1 = $81

The fair value amount is $81.

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Consider Frank’s decision to go to college. If he goes to college, he will spend $21,000 on tuition, $1,800 on books, and $11,
alex41 [277]

Answer:

b. $42,600

Explanation:

First, we calculate the total cost of college:

21000+1800+11000=33800

Now, we calculate the net income she would receive, if she didn't go to the college:

16000-7200=8800

Finally, the opportunity cost of going to college is the result of adding the total cost of college plus the net income that she would receive if she works instead of going to college.

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3 years ago
Is the externality positive or negative? Explain. Identify the socially optimum output. Explain how you determined your answer.
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4 0
2 years ago
Franklin Corporation bought equipment on January 1st, 2022 .The equipment cost $150,000 and had an expected salvage value of $30
Dima020 [189]

Answer:

$120,000.00

Explanation:

Depreciable cost is the amount of money that can be depreciated over time from the value of an asset. It is the total book value an asset loses for being in production in its useful life. Depreciable cost is important is calculating the annual depreciation.

Depreciable cost is a result of the cost of an asset minus its expected salvage value.

In case case: $150,000- $ 30,000

=$120,000.00

Depreciable value is $120,000

8 0
3 years ago
Are there any special fees or interest rates, or both for Chash Advances and Balance Transfers?Explain.​
jek_recluse [69]

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3 0
3 years ago
John's friend just gave him a pair of concert tickets to see his favorite rock group perform this weekend. Each ticket sells for
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Answer:

$80 lost for not working

Explanation:

Opportunity cost refers to the sacrificed benefits as a result of preferring on a particular option over another. As people make choices, the forfeit one option in favor of another. Opportunity cost is the missed value of the next best alternative.

For John, he has a choice between working or going to the concert.  He has two tickets worth $50. Working would mean her twice her regular income, which is $20 per hour. If he works for four hours, his total earning will be $80. If John chooses to go to the concert, he will miss the opportunity to earn $80. The opportunity cost will be the missed $80 that he would have received from working.

6 0
3 years ago
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