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irakobra [83]
3 years ago
8

Pina Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $453,600. The estimated fair val

ues of the assets are land $86,400, building $316,800, and equipment $115,200. At what amounts should each of the three assets be recorded? (Round intermediate percentage calculations to 5 decimal places e.g. 18.25124 and final answers to 0 decimal places, e.g. 5,275.)
Recorder AmountLandBuildingEquipment
Business
1 answer:
ololo11 [35]3 years ago
5 0

Answer:

Land = $75,600

Building =  $277,200

Equipment = $100,800

Explanation:

For computing the recorded amount, first we have to determine the total assets fair value which is shown below:

= Land + building + equipment

= $86,400 + $316,800 + $115,200

= $518,400

Now the recorded amount would be

For Land:

= Land ÷ Total estimated fair value × cash payment

= $86,400 ÷  $518,400 × $453,600

= $75,600

For Building:

= Building ÷ Total estimated fair value × cash payment

= $316,800 ÷  $518,400 × $453,600

= $277,200

For Equipment:

= Equipment ÷ Total estimated fair value × cash payment

= $115,200 ÷  $518,400 × $453,600

= $100,800

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Y_Kistochka [10]
Some of the advantages of sole proprietorship
1. efficient decision making, by owner only
2. easy to set up, minimal cost, minimal fuss
3. low fixed cost (overhead), could be a home-office

I might have missed others, you could figure them out from the options
4 0
3 years ago
Which of the following are correct descriptions of large corporations? (You may select more than one answer. Single click the bo
erik [133]

Answer:

  • The corporation survives even if managers are dismissed.
  • Shareholders can sell their holdings without disrupting the business.

Explanation:

Large corporations are not as easy to dissolve as other types of companies because they have other resources that are able to keep them going if they lose some. One of those resources could be a manager. Should a manager be dismissed, the corporation will survive and simply replaced the dismissed manager.

Also with such corporations, the shareholders can simply sell their shares and the business's operation will not be disrupted as the shareholders do not have any direct say over the day to day running of the business.

4 0
3 years ago
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 16% and a standard devi
ElenaW [278]

The proportion of the optimal risky portfolio that should be invested in stock A is 0%.

Using this formula

Stock A optimal risky portfolio=[(Wa-RFR )×SDB²]-[(Wb-RFR)×SDA×SDB×CC] ÷ [(Wa-RFR )×SDB²+(Wb-RFR)SDA²]- [(Wa-RFR +Wb-RFR )×SDA×SDB×CC]

Where:

Stock A Expected Return  (Wa) =16%

Stock A Standard Deviation (SDA)= 18.0%

Stock B Expected Return  (Wb)= 12%

Stock B Standard Deviation(SDB) = 3%  

Correlation Coefficient for Stock A and B (CC) = 0.50  

Risk Free rate of return(RFR) = 10%

Let plug in the formula

Stock A optimal risky portfolio=[(.16-.10)×.03²]-[(.12-.10)×.18×.03×0.50]÷ [(.16-.10 )×.03²+(.12-.10)×.18²]- [(.16-.10 +.12-.10 )×.18×.03×0.50]

Stock A optimal risky portfolio=(0.000054-0.000054)÷(0.000702-0.000216)

Stock A optimal risky portfolio=0÷0.000486×100%

Stock A optimal risky portfolio=0%

Inconclusion the proportion of the optimal risky portfolio that should be invested in stock A is 0%.

Learn more here:

brainly.com/question/21273560

6 0
3 years ago
Wool Express (WE) has a capital structure of 30% debt and 70% equity. WE is considering a project that requires an investment of
KiRa [710]

Answer:

13.41%

Explanation:

Given:

Weight of debt =30% ; Weight of equity =70%; Coupon rate =12%

Risk-free rate, R_{f} =7% ; Expected market rate, R_{m}=14.5% ; Beta, \beta= 1.20; Tax-Rate, T_{r}=40%

We can calculate the following thus;

Return on bond = \frac{Coupon Interest}{Sales price of the bond} =\frac{0.12*1000}{980}=\frac{120}{980} = 12.24%

Cost of debt =Return on bond *(1-T_{r})=12.24% *(1-0.4)

                     =12.24%*0.6 = 7.35%

To compute the cost of equity capital K_{e}, we shall use the CAPM formula below

K_{e} =R_{f} +\beta (R_{m} - R_{f} )

                 = 7% + 1.2(14.5%-7.0%)

                  = 7% +1.20( 7.5%) = 7% + 9% = 16%

The Weighted Average Cost of Capital, WACC is worked out as

WACC= (Weight of debt*Cost of debt) + (Weight of equity *Cost of equity)

           = (30% *7.35) +(70% *16)

           = 13.405

           = 13.41%

7 0
4 years ago
The speed of your automobile has a huge effect on fuel consumption. Traveling at 65 miles per hour​ (mph) instead of 55 mph can
denis23 [38]

Answer:

The extra cost of gasoline is $16.65

Explanation:

Let’s write the complete question;

The speed of your automobile has a huge effect on fuel consumption. Traveling at 65 miles per hour (mph) instead of 55 mph can consume almost 20% more fuel. As a general rule, for every mile per hour over 55, you lose 2% in fuel economy. For example, if your automobile gets 30 miles per gallon at 55 mph, the fuel consumption is 21 miles per gallon at 70 mph.

If you take a 400-mile trip and your average speed is 80 mph rather the posted speed limit of 70 mph, what is the extra cost of fuel if gasoline costs $ 3.00 per gallon? your car gets 30 miles per gallon (mpg) at 60 mph.

solution;

In this question, we are to calculate the extra cost of gasoline resulting from exceeding the supposed speed limit on a trip by a car given the cost of gasoline.

We proceed as follows;

Driving the speed limit:

Speed: 70 miles per hour (mph)

Fuel efficiency: 30 * [1-(70-60)*(2%)]= 30* 0.8 =24 mpg

Fuel amout for you 400-mile trip: 400/24= 16.67 gallon

Cost of fuel: 16.67 * $3= $50.01

Cost of time: 400/70 = 5.71 hrs

Exceeding the speed limit:

Speed: 80 miles per hour (mph)

Fuel efficiency: 30 *[1- (80-60)*(2%) ]= 30* 0.6 =18 mpg

Fuel amout for you 400-mile trip: 400/18= 22.22 gallon

Cost of fuel: 22.22 * $3= $66.66

Now to find the extra cost of fuel, we simply subtract the cost of fuel while exceeding the speed limit from the cost of fuel while driving within the speed limit.

That would be $66.66 - $50.01 = $16.65

7 0
4 years ago
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