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Citrus2011 [14]
3 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:
Alex3 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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Kryger [21]

A professional sports team that earns more annual revenue than a small-market team is a big market team. This is further explained below.

<h3>What is a big market team?</h3>

Generally, a big market team is simply defined as Playing for a "big market" team usually means getting a lot more attention than you would if you were on a "small market."

In conclusion, big-market sporting teams have yearly revenues that are higher than those of smaller teams.

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8 0
2 years ago
A new investment project currently under consideration has a negative net present value of $85,000. The project has a life of 10
KIM [24]

Answer:

correct option is $12,668

Explanation:

given data

net present value = $85,000

time = 10 year

rate of return = 8%

solution

we apply here formula for  Present Value of annual additional cash flow that is

Present Value of annual additional cash flow = Annual cash flow × present value factor for an annuity      ............................1

put here value

$85,000 = Annual cash flow × 6.71

Annual cash flow = $12,668

so here correct option is $12,668

3 0
3 years ago
A general decrease in wages will result primarily in the _____ curve shifting to the _____. aggregate demand; left short-run agg
Archy [21]

A general decrease in wages will result primarily in the aggregrate demand curve shifting to the shifting to the right.

<h3>What is the impact in the decrease in wages? </h3>

When there is a decrease in wages, it becomes cheaper to hire labor. As a result, there would be an increase in the demand for labor. This would shift the demand curve for labor to the right.  

The decrease in wages, would shift the long run aggregrate supply curve to the left.

To learn more about the demand curve, please check: brainly.com/question/25140811

5 0
2 years ago
If the federal funds rate were above the level the Federal Reserve had targeted, the Fed could move the rate back towards its ta
Dmitriy789 [7]

Answer:

The correct answer is option b.

Explanation:

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4 0
3 years ago
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Zielflug [23.3K]

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2. Decide the name you want to use to advertise your business.

3. Register company name with the state, county and the federal if applicable.

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8 0
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