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Alja [10]
3 years ago
6

A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500. The property has just been sold at a f

oreclosure auction to a speculating investor for $88,000. Assume that all costs of the foreclosure sale are included in these balances. Which of the following statements is FALSE regarding the distribution of funds?
Business
2 answers:
Oksanka [162]3 years ago
8 0

Answer: Please refer to the explanation section

Explanation:

The question is incomplete, the statement which we much choose from are not given in the question we will explain the question and provide a clear solution to make it easier for the student to single out a false statement.

Property acquisition was financed by two mortgage Bonds, First Mortgage Bond was $60 000 and the second mortgage bonds was $23 500. Ignoring interest rate we can assume that the Value of the Property is $83500 ($60 000 + $23 500).

Property was sold for $88000, There is a profit on sale of the property. Profit earned amounted to $4500 ($88000 - $83500). The profit on sale of property ($4500) will reported on the income statement. The property Value will be derecognized from long term assets in the the balance sheet statement.

The profits on sale of the property will form part of the net income for the year. Net income is distributed to shareholders in the form of dividends. We can therefore conclude that a portion of Profits on sale of property, if not all will be distributed to the share holders as dividends

valina [46]3 years ago
8 0

Answer:

Regardless of who initiated and forced the foreclosure process, the proceeds form the foreclosure will be divided as follows:

  1. the holder of the first mortgage will receive $60,000 (full payment)
  2. the holder of the second mortgage will receive $23,500 (full payment)
  3. the borrower (former owner) will receive the remaining amount = $88,000 - $60,000 - $23,500 = $4,500
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Nat2105 [25]

Answer:

Cost of goods manufactured= $3,120

COGS= $2,750

Explanation:

<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

Cost of goods manufactured:

beginning WIP= 0

direct materials= 2,200

Direct labor= 1,000

Factory overhead= 520

Ending work in process= 600

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<u>Now, we can determine the cost of goods manufactured:</u>

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

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3 years ago
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Ilya [14]

Answer:

The correct answer is (A)

Explanation:

Soft drink manufacturing industry faces a high threat of substitutes. Not many soft drink brand exit the market but many new companies and brand enter. Similarly, that is the reason why prices of soft drink do not fluctuate as compare to other food items. The competitive environment in the soft drink industry creates a high threat of substitutes.

6 0
3 years ago
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BaLLatris [955]

Market penetration achieves company growth by increasing sales of current products to current market segments without changing the product.

<h3>What is market penetration?</h3>

In economics, the term market penetration is used to denote the extent to which the people in the market would recognize and also have to buy a particular product. It is the successful selling of the product in the market by the produces to the consumers of the product.

Hence we can say that Market penetration achieves company growth by increasing sales of current products to current market segments without changing the product.

Read more on market penetration here: brainly.com/question/1172265

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slava [35]

Answer:

d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.

Explanation:

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A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.

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A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.

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