Answer:
1. $173,500
2. $ 71,000
Explanation:
Requirement 1: Solution
We can calculate the fair value of new parcel of land just by adding the current market price with additional cash paid to complete the transaction
Fair Value = Current market price + cash paid additionally
Fair Value = $150,000+$23,500
Fair value = $173,500
Requirement 2: Solution
We need to calculate Gain/loss on exchange first in order to record them on books. This can be done by just subtracting the land's book value from the current market price of land
Gain/loss on exchange = Current market price - book value
Gain/loss on exchange = $150,000 - $79,000
Gain/loss on exchange = $71,000
Entries: Debit Credit
New land $173,500
Old land $79000
Cash $23,500
Gain $71,000
Answer:
two part pricing
Explanation:
A Two-part tariff (TPT) is a type of price gouging in which the price of a good or service consists of 2 sections-a rub-sum of the per-unit fee. Such a selling strategy generally occurs except in part or entirely monopolistic industries. It is built to allow the company to absorb more surplus value in a non-discriminatory pricing framework than it ever has before.
Two-part tariffs in open markets can also occur when customers are unsure regarding their final requirement. Consumers of fitness centers, for instance, may be unsure regarding their degree of potential dedication to an exercise routine.
True you should always suspect it and try to fix it
