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Mamont248 [21]
2 years ago
14

Horton Stores exchanged land and cash of $5,300 for similar land. The book value and the fair value of the land were $88,400 and

$100,800, respectively. Assuming that the exchange lacks commercial substance, Horton would record land-new and a gain/(loss) of: Land Gain/(loss) a. $ 106,100 $ 0 b. $ 106,100 $ 12,400 c. 93700 $ 0 d. $ 93,700 $ 12,400
Business
1 answer:
solmaris [256]2 years ago
6 0

Answer:

c.- 93,700  // 0

Explanation:

As it lacks commercial substance neither Horton nor the other parti will recognize gain/loss on the trade.

Horton will recognize the new land for the value traded without a gain/loss entry:

Land  93,700 (88,400 + 5,300 cash)  debit

   Cash              5,300 credit

   Land            88,400 credit

--to record trade of land without commercial subtance--

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The consumption schedule shows a.that households consume more when interest rates are low. b.that consumption depends primarily
Lelechka [254]

Answer: The consumption schedule shows the amounts households intend to consume at various possible levels of aggregate income.

Explanation: Consumption function, in economics, the relationship between consumer spending and the various factors determining it. At the household or family level, these factors may include income, wealth, expectations about the level and riskiness of future income or wealth, interest rates, age, education, and family size.

A consumption schedule is a table of numbers showing the relation between consumption expenditures and income for the household sector. The income measure commonly used is national income or disposable income. Occasionally a measure of aggregate production, such as gross domestic product, is used instead.

3 0
3 years ago
What is the purpose of NCUA Lending Regulations?<br> plato ❤️
wariber [46]

Answer:

The National Credit Union Association is a entity that monitors and regulate the Credit Unions which are organizations that are part of a cooperative and give credit to its members.

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5 0
3 years ago
Read 2 more answers
At December 31, 2011 the accounting records of Gordon, Inc. contain the following items: If the Notes Payable is $10,000, the De
Vadim26 [7]

The question is incomplete. The complete question is as follows,

At December 31, 2011 the accounting records of Gordon, Inc. contain the following items:

Accounts Payable 2500

Land 30000

Building 31250

Notes Payable ?

Retained earnings 125000

Accounts Receivable 18750

Cash ?

Equipment 40000

Capital Stock 12500

If the Notes Payable is $10,000, the December 31, 2011 cash balance is:

Answer:

Cash = $30000

Explanation:

The accounting equation states that the sum of total assets is always equal to the sum of total liabilities plus total equity. We can state the equation as follows,

Total Assets = Total Liabilities + Total Equity

So,

(30000 + 31250 + 18750 + 40000 + Cash) = (2500 + 10000) + (125000 + 12500)

120000 + Cash = 12500 + 137500

Cash = 150000 - 120000

Cash = $30000

6 0
3 years ago
You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50% and the maintenance ma
Misha Larkins [42]

Answer:

$50

Step by Step Explanation:

100 shares × $70 = $7,000

$7,000 × 0.5 = $3,500 (loan amount)

0.30 = (100P −$3,500)/100P

0.30×100P= 30P

30P = 100P −$3,500

30P- 100P= -70P

−70P = −$3,500

-3500/-70P = $50P

P = $50

The stock price level someone would get a margin call Assuming the stock pays no dividend is $50

4 0
3 years ago
A company with 108,000 authorized shares of $4 par common stock issued 33,000 shares at $12. Subsequently, the company declared
liq [111]

Answer:

$20,460

Explanation:

Data provided as per the question below:-

Common stock = 33,000 shares

Market price per share = $31

Stock dividend percentage = 2%

The computation of stock dividend is shown below:-

Price per share = Common stock × Market price per share

= 33,000 × $31

= $1,023,000

Stock dividend = Price per share × Stock dividend percentage

= $1,023,000 × 2%

= $20,460

8 0
3 years ago
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