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iragen [17]
4 years ago
6

Maude exchanges a business machine for a new business machine. The adjusted basis of the old machine is $62,000 and the fair mar

ket value of the new machine is $70,000. The recognized gain or loss and the basis of the new machine is:
A. $0 and $0
B. $0 and $62,000
C. $0 and $70,000
D. $8,000 and $70,000
E. none of the above
Business
1 answer:
Sphinxa [80]4 years ago
8 0

Answer:

D. $8,000 and $70,000

Explanation:

Data provided as per the question:-

Old machine = $62,000

New machine = $70,000

The computation of recognized gain or loss is shown below:-

Realized gain = New machine - Old machine

= $70,000 - $62,000

= $8,000

Therefore, for computing the realized gain we simply deduct old machine from new machine the fair base value is $70,000, so it has been recorded.

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Answer:

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Explanation:

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3 0
3 years ago
Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.50 per share.Prepare Blue's jour
Ulleksa [173]

<u>Complete question:</u>

Fairbanks Corporation purchased 400 shares of Sherman Inc. common stock as an investment in trading securities for $13,200. During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $34.50 per share. Prepare Fairbanks's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment

<u>Solution:</u>

Given,

Total shares = 400

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Cash dividend = $3.25 per share

Sales price of stock = $34.50 per share

Note: The image attached shows the journal entries of all the transactions.

Dividend revenue is 400\times \$3.25=\$1300

Fair value adjustment is [(400\times \$34.50)-\$13,200]

The above values are entered in the journal transaction.

6 0
3 years ago
Cassandra's demand for orange juice is price elastic. a severe frost destroys much of the florida orange crop. cassandra​ ______
TiliK225 [7]
<span>Cassandra will experience increased cost in proportion to the reduction of supply experienced by the farmers . Cassandra will decrease her expenditures or find alternate suppliers of oranges.</span>
8 0
3 years ago
Mr. And mrs. Atoll are planning a party for 10 people and want to make sure they have enough soda for everyone to have two bottl
elena-14-01-66 [18.8K]

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Explanation:

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enyata [817]

Answer:

Unreachable

Explanation:

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So, even though the firm has developed the product and the service, which also addresses or has the needs of the particular, segment of substantial market, then their efforts might fail if the segment or the market is unreachable for them, because they could not able to sold their products.

3 0
4 years ago
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