Answer:
The gain that Sheridan should recognize on this exchange is $135000
Explanation:
Where Exchange Transaction lacks commercial substance, the asset that is acquired is measured at the <em>Carrying Amount or Undepreciated Cost </em> of the asset given up.
The gain will then include an <em>further consideration acquired</em> on the exchange of an asset.
<u>Entries to record the exchange are as follows :</u>
Cash $135000 (debit)
New Asset at undepreciated cost $420300 (debit)
Cost of Old asset given up $420300 (credit)
Gain on exchange $135000 (credit)
Conclusion :
The gain that Sheridan should recognize on this exchange is $135000
Answer:
the annual pre-tax cost of debt is 10.56%
Explanation:
the beore-tax component cost of debt will be the actual market rate of the bonds, as they offer an interest rate of 11% but are selling at 104 points not at par thus, there is a difference between the rates.
We solve for the rate which makes the coupon and maturity 104
with excel or a financial calculator
PV of the coupon payment
C 5.500 (100 x 11%/2)
time 60 (30 years x 2 payment per year)
rate <em>0.052787474</em>
PV $99.4338
PV of the maturity
Maturity 100.00
time 60.00
rate <em>0.052787474</em>
PV 4.57
<em><u>Adding both we should get 104 which is the amount the bonds is selling:</u></em>
PV coupon $99.4338 + PV maturity $4.5662 = $104.0000
The rate is generated using goal seek or wiht a financial calculator.
This rate is a semiannual rate, so we multiply by 2 to get the annual cost of debt:
0.052787474 x 2 = 0.105574947
The cost of debt for the firm is 10.56%
Grocery stores are likely to hold<u> anticipation</u> inventory of candies to meet the extra demand during Halloween.
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Halloween, a contraction of All Hallows' Eve, a holiday discovered on October 31, the nighttime before All Saints' (or All Hallows') Day. The party marks the day earlier than the Western Christian dinner party of All Saints and initiates the season of Allhallowtide, which lasts three days and concludes with All Souls' Day.
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Learn more about Halloween here brainly.com/question/18459726
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The answer is<u> "net present value".</u>
Net Present Value (NPV) is the estimation of all future cash flows (positive and negative) over the whole existence of a venture limited to the present. Net Present Value examination is a type of natural valuation and is utilized widely crosswise over back and representing deciding the estimation of a business, speculation security, capital task, new pursuit, cost decrease program, and anything that includes income.
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Month - Lease cost - Machine hours
April: $15,000 - 800
May: $10,000 - 600
June: $12,000 - 770
July: $16,000 - 1,000
Using the high-low method, first, we need to determine the unitary variable cost. We need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (16,000 - 10,000) / (1,000 - 600)
Variable cost per unit= $15 per unit
Now, we can calculate the fixed costs:
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 16,000- (15*1,000)
Fixed costs= $1,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 10,000 - (15*600)
Fixed costs= $1,000
