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vazorg [7]
3 years ago
14

Toussaint Company issued 10,000 shares of its common stock in exchange for merchandise that it will resell. The merchandise had

originally cost the other party $250,000 and had a fair value of $300,000 on the date of the exchange. The retail value of the inventory is $520,000. Toussaint Company is not publicly traded and cannot precisely determine the fair value of its stock. It has used some industry averages, however, and applied Black-Scholes-Merton and estimates the fair value of its stock to be about $28 per share. At what amount should the inventory be recorded?
Business
1 answer:
Aleks [24]3 years ago
7 0

Answer:

The correct answer is $300,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

Original cost = $250,000

Fair value = $300,000

Retail value = $520,000

As Share based transaction of the organization record or issued always at fair value for which the goods or services are exchanged.

Here, Fair value is given.

So, the transaction will be recorded at fair value = $300,000

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stealth61 [152]

The arbitrage profit implied by these prices is $5.24.

<h3>Arbitrage profit</h3>

Given:

Future contract= 1645

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5 0
1 year ago
Which common saying best captures the concept of incentives (specifically, positive and negative incentives), which is one of th
lesantik [10]

Answer:

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Explanation:

This phrase clearly describes how advertising and promotions work:

If the carrot doesn't work: the tempting carrot refers to advertisement, and the doesn't work part refers to advertisement that is not able to change consumer habits and increase sales.

Try the stick refers to offering promotions or positive incentives like discounts or larger packs.

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6 0
3 years ago
"Ethan (single) purchased his home on July 1, 2009. He lived in the home as his principal residence until July 1, 2016, when he
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He is allowed to exclude = ($210,000 - $42,000)

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7 0
3 years ago
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3 years ago
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enyata [817]
He should set up an alert.
8 0
3 years ago
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