Answer:
D. brings buyers and sellers together
Explanation:
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:
18.52%
Explanation:
Calculation for the what would be the equity weight
Using this formula
Equity weight =E÷E+P+D
Let plug in the formula
Equity weight=$2,000,000×$27÷$2,000,000×$27+$1,000,000×$14.50+$10,000×.98×$1,000
Equity weight=$14,500,000÷$78,300,000
Equity weight=.1852×100
Equity weight=18.52%
Therefore what would be the equity weight is 18.52%
Answer:
Stock A will be preferable for the risk averse Investors.
Explanation:
The reason is that risk is the measure of the vulnerability of the returns on the investment made which means if the return on the investment has greater vulnerability of returns then it is highly risky. So the risk averse investor would prefer stock A with lower risk.
(Special comments:
It must be noted that the higher return shows that the investment is also highly risky because nobody is going to give you more with low risk associated investments. This means lower return on Stock B is also preferable here for the risk averse investor because it carries lower risks.)
Answer:
EAR = 5.01%
Explanation:
Given that
APR = 4.9% = 0.049
Loan amount = initial amount - deposited amount
= 17345 - 6000
= 11,345
PV = 11345
Frequency of compounding, m = 12
Recall that
EAR = (1 + r/m)^n - 1
Thus,
= (1 + 0.049/12)^12 - 1
= 1+ 0.049/12^12 - 1
= 1.0501 - 1
= 0.0501 ×100
= 5.01%
