Answer:
always involve the acquisition of long-lived assets
Explanation:
Capital expenditures can be regarded as the investments that is made by
companies in order to grow or maintain their business operations.
It can as well be regarded as capital expense and it's explained as money that is been spent by an organization or corporate entity in buying, maintaining as well as improving its fixed assets, these asset could be buildings, equipment, vehicles or land.
It should be noted that Capital expenditure decisions always involve the acquisition of long-lived assets
Answer:
1 USD= 1.1 Euros
Explanation:
As per Purchasing power parity, the exchange rate between two countries is determined by the rate of inflation prevailing in the two countries.
Purchasing power parity is given by the following equation:
=
wherein, FR = 1 year forward rate of Euro per USD
SR= Spot rate of today Euro per USD
Inf= Inflation rate
Price of textbook next year in France= Euro 60 × (1 + .10)= Euro 66
Price of a textbbo in USA= $60
spot rate= 1 $= 1 euro i.e 60$ being equal to 60 euros
Forward exchange rate( Euro per dollar)= 1 ×
Forward Exchange rate will be 1 USD= 1.1 Euros
Answer:
Dr Cash 16,000
Dr Loss on Sale of Stock investment 6,000
Cr Stock Investments 22,000
Explanation:
Preparation of the Journal entry to record the sale
Based on the information given we were told that the Corporation sells shares of 400 common stock which is being held as a short-term investment in which the shares were been acquired 6 months ago at the amount of $55 per share which means that if Cooke sold the shares for the cost of $40 per share. The entry to record the sale will be :
Dr Cash 16,000
(400*40 shares)
Dr Loss on Sale of Stock investment 6,000
(22,000-16,000)
Cr Stock Investments 22,000
(400*55 shares)
(Being to record sales)