The cost of the land & building is split among the assets purchased in proportion to the market value of the assets as a whole in the case of a basket purchase
<h3>What is a
basket purchase?</h3>
It is called a lump sum acquisition because its involves the purchase of many assets as a group.
In this purchase, when an investor purchases an assets, it means the the investor is able to buy many assets as one group in a single transaction,
Read more about basket purchase
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i not sure but cyclical makes more sense.
Answer:
Assets increase by $5,000 increase, equity decrease by $5000
Explanation:
The accounting equation is expressed as below.
Assets = Liabilities + shareholders equity
- Assets are valuable items that the business owns.
- Liabilities are the debts of the business.
- Shareholder equity is the owner's capital, plus the retained earnings.
The transaction by Celery Company involves buying supplies valued at $5000 by cash.
- Since celery paid cash, no liabilities were incurred. The shareholder money (Equity) decreased by $5000.
- Supplies worth $5000 were acquired. The suppliers belong to the business; they are valuable items( assets) to the business.
Answer:
10%, 5%, 85%
Explanation:
This is the amount, in thousands, required to get 1%.
, therefore this is 85% (approximated)
, therefore this is 5%, and we'll call this number A
, and this is 10%!
Answer:
20%
Explanation:
Public Limited Companies pay Corporation tax rates, currently set at 20%, on their taxable profits. There are also tax-deductible costs and allowances that can be offset against the company profits for even greater tax savings.