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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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Which of the following should be included in the acquisition cost of a piece of equipment?
topjm [15]

Answer: All of these choices are correct.

Explanation:

You didn't give the options to the question. The options include:

testing costs prior to placing the equipment into production

transportation costs

installation costs

All of these choices are correct.

Acquisition cost, is the total cost that is recognized by a company on its books for the purchase of an asset. These costs include the transportation cost, installation cost, shipping cost, testing costs, sales taxes, customs fees, etc.

Therefore, based on the explanation, the correct option is All of the choices are correct.

6 0
2 years ago
Specialty stores like Lids carry ________ with ________. A. wide product lines; shallow assortments B. narrow product lines; sha
4vir4ik [10]

Answer:

narrow product lines; deep assortments

Explanation:

product line is group of same type of product selling under a same brand name.

narrow and wide product line is defined on the basis of number of type of product being sold by a retailer.

Narrow product line is a retailing strategy which means that few type of products which is being sold by a retailer.

Example: Pizza hut which sells only limited number of eatables thus they have narrow product lines

Wide product line means very high number of different type of product is being sold by the retailer.

Example:wall mart which sells wide number of products

Assortment is strategy in retail which defines number of different brands of same type of product which is being sold by a retails.

It is of two types

shallow assortments: It means very few brands of same type of product is offered by a retailer.

deep assortment: It means large of number of different brand of same type of product is being sold by a retailer.

Specialty stores are store which sell only limited type of product but they offer wide variety of choices of brand for the products which they sell. In retail marketing term they keep narrow product line but deep assortments as mentioned in the definitions above

Since Lids is a specialty store the correct option would be narrow product line, deep assortments.

4 0
3 years ago
What is the impact of all the different emirates coming
Rasek [7]

Answer:

The Federal supreme council is the highest constitutional authority in the United Arab Emirates, being the highest legislative and executive body.[1] It establishes general policies and sanctions federal legislation. It is the First Federal Authority in terms of ranking in the hierarchy of the Five Federal Authorities prescribed in the Constitution: Federal Supreme Council, Federal President and Federal Vice President, Federal Cabinet, Federal National Council, Federal Judiciary.

mark as barinliest if it helps u :)

3 0
2 years ago
Which of the following is a difference between the financial statements of a merchandising company and a service company?
Nookie1986 [14]

Answer:

The correct option is (B)

Explanation:

Cost of goods sold the cost attributed to goods produced by the organization.  Cost of goods sold is incurred by organizations that manufactures a tangible product. Service firms do not incur any cost on goods sold as they do not need any raw material to manufacture goods.

Cost of goods sold is an expense and not an asset as it is a cost incurred to manufacture assets for the organization.

Therefore, correct option is (B)

6 0
3 years ago
Jim is in the market for a car that will last for the next 10 years and has saved up some money for the purpose of a car. What’s
Effectus [21]
I am going to say (C) That seems like the most obvious answer to me. 
3 0
3 years ago
Read 2 more answers
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