1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tatiana [17]
3 years ago
5

Two independent companies, Hager Co. and Shaw Co., are in the home building business. Each owns a tract of land held for develop

ment, but each would prefer to build on the other's land. They agree to exchange their land. An appraiser was hired, and from her report and the companies' records, the following information was obtained: Hager's Land Shaw's Land Cost and book value $384,000 $240,000 Fair value based upon appraisal 480,000 420,000 The exchange was made, and based on the difference in appraised fair values, Shaw paid $60,000 to Hager. The exchange lacked commercial substance. For financial reporting purposes, Hager should recognize a pre-tax gain on this exchange of
Business
1 answer:
zepelin [54]3 years ago
5 0

Answer:

Hager should recognize a pre-tax gain on this exchange of $12,000

Explanation:

In order to calculate the pre-tax gain on this exchange that should be recognized, we would have to calculate first the total gain as follows:

Total Gain=$480,000-$384,000

Total Gain=$96,000

Because the exchange lacks commercial substance and some cash was received a portion of gain is recognized=$60,000/$480,000=0.125

Therefore, amount of pre-tax gain=$96,000*0.125=$12,000

Hager should recognize a pre-tax gain on this exchange of $12,000

You might be interested in
The equilibrium between possible threats and prospective compensation is known as​ ________.
stiv31 [10]
The equilibrium between possible threats and prospective compensation is known as risk/return trade-off.
4 0
2 years ago
Gabe Industries sells two​ products, Basic models and Deluxe models. Basic models sell for $ 44 per unit with variable costs of
12345 [234]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Basic models sell for $ 44 per unit with variable costs of $ 25 per unit. Deluxe models sell for $ 52 per unit with variable costs of $ 25 per unit. Total fixed costs for the company are $1,323. Gabe Industries typically sells three Basic models for every Deluxe model.

First, we need to calculate the weighted sales participation:

Basic= 3/4= 0.75

Deluxe= 1/4= 0.25

Now, we need to calculate the weighted average selling price and variable cost:

weighted average selling price= (selling price* weighted sales participation)= (44*0.75 + 52*0.25)= 46

weighted average variable cost= (variable cost* weighted sales participation)= (25*0.75 + 25*0.25)= 25

Now, we can calculate the break-even point in units:

Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)

Break-even point= 1,323/ (46 - 25)= 63 units

4 0
3 years ago
Denise has $13,424 in a savings account with the District 113 Teacher's Credit Union. While economic conditions have caused the
coldgirl [10]

Answer:

Explanation:

$120= the amount to pay for the shoe

$20 paid for the month

Balance to pay = $100

Then 3% interest rate on credit card = 3% of $100=$3

Therefore amount to pay = $3+$100=$103

7 0
3 years ago
During the business model design process the entrepreneur should spend zero time focusing on the uncertainties and external risk
ad-work [718]

Answer:

The correct answer is false

Explanation:

The business model design process  consists of five phases; mobilize, understand, design, implement, and manage.

7 0
3 years ago
NaviCal Inc., a personal navigation system company, has contracted its manufacturing to a firm in Malaysia for five years. NaviC
tekilochka [14]

Answer:

Direct foreign investment

Explanation:

Foreign direct investment (FDI) is done in the case when the company controls the ownership in the other country of the business entity

Here the foreign company would be directly linked with the day to day operations that done in the other country this means that here not only the contribution of money matters but also the knowledge, skills, capabilities, techonology is also matter

Therefore the above represent the answer

5 0
3 years ago
Other questions:
  • Encouraging Ethical Conduct: Did Johnson openly acknowledge that his decision was based in ethics and morality? Did his apology
    14·1 answer
  • You want a seat on the board of directors of Four Keys, Inc. The company has 240,000 shares of stock outstanding and the stock s
    12·1 answer
  • Kingston Co. uses the percentage-of-receivables basis to record bad debt expense.
    8·1 answer
  • Kota Toy Corporation manufactures lizard dolls in two departments, Molding and Assembly. In the Molding Department, plastic is i
    12·1 answer
  • what is the money an investor receives above and beyond the money initially invested called?a) saving.b)liquidity.c)return.d)inv
    5·2 answers
  • Accounting for lean operations requires fewer transactions because
    9·1 answer
  • How long does negative information stay on your credit report
    8·2 answers
  • The risk-free rate of return is 10.5%, the expected rate of return on the market portfolio is 17%, and the stock of Xyrong Corpo
    14·1 answer
  • In 2017, Hurricane Irma had a significant, negative impact on the orange harvest in the state of Florida. The U. S. Department o
    6·1 answer
  • Use the following information (presented in random order) to complete an Income Statement and Balance Sheet. The name of the bus
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!