1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
blondinia [14]
3 years ago
10

Salad Express exchanged land it had been holding for future plant expansion for a more suitable parcel of land along distributio

n routes. Salad Express reported the old land on the previously issued balance sheet at its original cost of $79,000. According to an independent appraisal, the old land currently is worth $150,000. Salad Express paid $23,500 in cash to complete the transaction.
Required
1. What is the fair value of the new parcel of land received by Salad Express?
2. Record the exchange.
Business
1 answer:
r-ruslan [8.4K]3 years ago
5 0

Answer:

1.  $173,500

2. $ 71,000

Explanation:

Requirement 1: Solution

We can calculate the fair value of new parcel of land just by adding the current market price with additional cash paid to complete the transaction

Fair Value = Current market price + cash paid additionally

Fair Value = $150,000+$23,500

Fair value = $173,500

Requirement 2: Solution

We need to calculate Gain/loss on exchange first in order to record them on books. This can be done by just subtracting the land's book value from the current market price of land

Gain/loss on exchange = Current market price - book value

Gain/loss on exchange = $150,000 - $79,000

Gain/loss on exchange = $71,000

Entries:               Debit                          Credit  

New land           $173,500

Old land                                                 $79000

Cash                                                       $23,500

Gain                                                        $71,000

You might be interested in
The Southern Bell Company manufactures 2,000 telephones per year. The full manufacturing costs per telephone are as follows:
Degger [83]

Answer:

The company should buy the units because it will save $10,000.-

Explanation:

Giving the following information:

Make in-house:

Unitary variable cost= 2 + 8 + 6= $16

Avoidable fixed cost= $8,000

Buy:

Unitary cost= $15

<u>First, we will determine the total cost of each option:</u>

Make in house= 2,000*16 + 8,000= $40,000

Buy= 15*2,000= $30,000

The company should buy the units because it will save $10,000.-

5 0
2 years ago
All else the same, if a bank's liabilities are more sensitive to interest rate fluctuations than are its assets, then ________ i
Bad White [126]

Answer:

A) an increase; reduce

Explanation:

All else the same ,if a bank liabilities are more sensitive to interest rate fluctuations than are its assets, then an increase in interest rates will reduce bank profits.

A bank is said to be sensitive towards to interest rates means that the bank revalue its liabilities on the basis of the change in the interest rates. Thus if the interest rates increases it means the liabilities of the bank has increased on which the bank is liable to pay higher interest which will automatically reduce the bank profits as the interest payable by the bank is an expense for the bank.  

6 0
3 years ago
Management in the News In April 2010, the explosion of British Petroleum’s (BP) Deepwater Horizon oil drilling rig and the accom
Firlakuza [10]

Answer:

Event Dimension BP stock prices falling 25% during the first month after the oil spill. <u>ECONOMIC. </u>

The Economic dimension of the environment deals with production in the economy which means that it deals with business entities and the financial system. Dimension BP stock price falling therefore falls under her.

Using deep-se submersibles to take pictures of the oil leak a mile below the surface of the water. <u>TECHNOLOGICAL. </u>

The Technological dimension of the environment refers to anything related to the use of technology and using deep-sea submersibles to take pictures of the leak below the surface of the water will definitely fall under technology.

People moving from Louisiana to Oklahoma to avoid the effects of the spill. <u>SOCIOCULTURAL. </u>

Sociocultural dimension deals with human beings and how they relate with themselves and the environment around them. People therefore moving from Louisiana to Oklahoma will fall under here.

3 0
3 years ago
King Mechanic is a very profitable automobile repair shop. The company is well known for its great service and involvement in th
Sophie [7]

Answer:

Social

Explanation:

Social responsibility refers to an individual or organization's obligations towards society to protect and preserve environment and natural resources. Organizations are supposed to earn profits without hampering the environment.

Here, King Mechanic earns profit but fails to fulfill social responsibility of disposing used oil safely as instructed in the environmental regulations.

4 0
3 years ago
You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money? A) Com
Allisa [31]
D) Compounding daily
................
4 0
3 years ago
Other questions:
  • On Jan. 2, Callie Company received a $700 payment from a customer previously billed for services performed. The journal entry to
    5·1 answer
  • Wyatt Co. has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the rang
    10·1 answer
  • Which of the following is NOT an advantage of​ e-tailing over traditional​ brick-and-mortar retailing? A. The ability to offer a
    9·1 answer
  • Sampson Co. sold merchandise to Batson Co. on account, $46,000, terms 2/15, net 45. The cost of the merchandise sold is $38,500.
    8·1 answer
  • Which of Graeter’s stakeholders are most affected by the family’s decision to take a long-term view of the business rather than
    6·1 answer
  • Suggest strategies to succeed in outsourcing its HR services
    7·1 answer
  • Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishi
    15·1 answer
  • A trader buys two July futures contracts on frozen orange juice. Each contract is for the delivery of 15,000 pounds.The current
    13·1 answer
  • A hospital arranges with a third-party payer to charge the third party 85 percent of its established billing rates. During Janua
    5·1 answer
  • What is the chief benefit to using a
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!