Answer: A. $4,600,000; $3,900,000
Explanation:
Based on the information that have been provided in the question, the book value will be calculated as:
= Net working capital + Current liabilities + Net fixed assets
= $725,000 + $1,375,000 + $2,500,000
= $4,600,000
Market value will be:
= $1,900,000 + $2,000,000
= $3,900,000
Therefore, the answer is option A.
Answer:
The present value is $0.86.-
Explanation:
Giving the following information:
Future Value (FV)= $1
Number of periods (n)= 3 years
Interest rate (i)= 5% = 0.05
<u>To calculate the present value (PV), we need to use the following formula:</u>
PV= FV/(1+i)^n
PV= 1/(1.05^3)
PV= $0.8634
The present value is $0.86.-
Answer:
The answer is c. Equipment: 87,200; Gain/(loss): (15,500).
Explanation:
Since the exchange has commercial substance,
- Fair value of the equipment is equal to: Fair value of the land - Cash consideration receipt = 89,900 - 2,700 = $87,200.
- The disposal of land in the Balance sheet following the exchange needs to account for the differences between Book value of land and Fair value of land. Since Fair value is now smaller than Book Value, a Loss has to be recognized at the amount calculated as (Fair value - Book value) = (89,900 - 105,400) = $(15,500).
Thus, the answer is c. $87,200 $(15,500).
Bosses and political machines controlled the city governments using intimidation. Bribery and corruption were used and Assassinations happened. labor unions formed to control the local governments.
Explanation:
During the late 1800s, city bosses commonly assumed control over city governments. They did not gain power legally, and the bosses were not elected to office. They used blackmail and bribery to convince legal city officials to grant favors to and to follow the wishes of the city bosses.
Political machine, in U.S. politics is a party organization, headed by a single boss or a small autocratic group, that commands enough votes to maintain political and administrative control of a city, county, or state. Examples of such Political machine is Tammy Hall in New York city which provided housing facility to the immigrants and gained their loyal support.
