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anyanavicka [17]
3 years ago
5

Flint Corporation traded a used truck (cost $21,600, accumulated depreciation $19,440) for a small computer with a fair value of

$3,564. Flint also paid $540 in the transaction. Prepare the journal entry to record the exchange, assuming the exchange lacks commercial substance
Business
1 answer:
lara [203]3 years ago
5 0

Answer:

Dr Computer 2,700

Dr Accumulated depreciation - truck 19,440

    Cr Truck - 21,600

    Cr Cash 540

Explanation:

Since the transaction lacked commercial substance, Flint must record the computer at the asset value of the truck plus the additional cash given (boot payment).

computer's basis = $21,600 - $19,440 + $540 = $2,700

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The answer is; Purchasing Power Parity.

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3 years ago
Which of the following is a step in the investment planning process?
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3 years ago
Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of busines
goblinko [34]

Answer:

                                         ADJUSTED BOOK BALANCE

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+ Deposit in transit      $4,250        Interest earned          $33

- Outstanding checks  <u>$2,075</u>        Bank service fees      <u>$18</u>

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balance

8 0
2 years ago
Andy compares mattresses. A twin sized NightSoft mattress at the large chain BuyRite costs $1,500. The BuyRite salesman and then
valentina_108 [34]

Non-price competition in a monopolistic-ally competitive market is Andy experiencing

Explanation:

The profitability of non-prices applies to the attempts of a dominant corporation to raise its sales and profits by variating goods and production rates instead of lowering the product prices.

Either by modifying the physical attributes or through changes to advertising schemes, a dominant rival may always change his goods.

Varying inventory and distribution prices reduce the company's demand curve and increase production costs.

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4 0
3 years ago
Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Pro
vlada-n [284]

Answer:

The mark up percentage on total cost is 13%.

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Mark up percentage on total cost refers to the profit as a percentage of the total cost.

Therefore, the mark up percentage on total cost can be calculated using the following formula:

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Where;

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Substituting the values into equation (1), we have:

Mark up percentage on total cost = ($143 / $1,100) * 100 = 0.13 * 100 = 13%

Therefore, the mark up percentage on total cost is 13%.

8 0
2 years ago
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