1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lemur [1.5K]
3 years ago
14

Omega Corp. has entered into a transaction with Lively Inc. Omega Corp will give its equipment to Lively Inc. in exchange for Li

vely's equipment. Omega Corp will also pay Lively Inc. $30,000 cash. Omega Corp's equipment originally cost $250,000 when it was purchased 2 years ago and currently has $80,000 of accumulated depreciation and an estimated fair value of $230,000. Lively's equipment has a cost of $212,000 and accumulated depreciation of $35,000. The fair value of Lively Inc's equipment is determined to be $260,000.
Required:

A. Prepare the journal entry for Omega Corp assuming the exchange has commercial substance.
B. Prepare the journal entry for Omega Corp assuming the exchange lacks commercial substance.
Business
1 answer:
Nadusha1986 [10]3 years ago
7 0

Answer:

Explanation:

A.

Equipment-from Lively    $260,000

   Accumulated Depreciation  Dr.$80,000

   Equipment-old                      Cr. $250,000

    Cash                                      Cr.$30,000

       Gain on Exchange                Cr.$60,000

B.    

Equipment-from Lively (212,000-35,000)      Dr.$177,000

Accumulated Depreciation                             Dr.$80,000

Loss on exchange (balancing figure)            Dr.$23,000

Equipment old                                                  Cr.$250,000

Cash                                                                   Cr.$30,000                                

You might be interested in
If a firm in a monopolistically competitive market lowers price, then Use letters in alphabetical order to select options
Valentin [98]

Answer: quantity demanded for the good will increase (D)

Explanation:

Monopolistic competition is an imperfect competition where there are many producers that sell products that are differentiated from each another e.g through quality or branding.

In a monopolistic competitive market, firms maximizes profits when marginal revenue equals to the marginal cost. The demand curve of a monopolistic competitive market is downward sloping which means that as price reduces, the quantity demanded for the good will increase.

3 0
2 years ago
Read 2 more answers
According to the enotes, what do you call inventory that is readily available on the retail shelf?
Tems11 [23]

Market Inventory is the inventory that is readily available on the retail shelf. Both the products that are on hand for sale and the raw materials required to make those products are considered inventory. On the balance sheet of an organization, it is categorized as a current asset. A business should generally avoid keeping a large volume of inventory on hand for an extended period of time.

The three different categories of inventory are raw materials, finished commodities, and work-in-progress. The first-in, first-out method, the last-in, first-out method, and the weighted average method are the three methods used to value inventory. As items are produced or acquired as needed, inventory management enables organizations to reduce inventory expenditures.

To learn more inventory, click here

brainly.com/question/15118949

#SPJ4

8 0
1 year ago
A free rider is a(n) Group of answer choices interest group that files an amicus curiae brief. person who enjoys the benefits of
SVETLANKA909090 [29]

Answer: Person who enjoys the benefits of a collective good, action, or service without any effort on their part.

Explanation:

In Economics, Free riders are people who benefit from resources and/or goods that are communal in nature and yet either do not pay or pay an insubordinate amount for enjoying same. Essentially they enjoy the benefits of a collective good without any effort on their part.

As a result, the good might become overused and degraded as it is not being maintained enough.

3 0
3 years ago
Sofia is a lesbian. she is an employee in the sales department of northern motors. her supervisor constantly tells her that she
Jobisdone [24]
Is it HARASSMENT!????
7 0
3 years ago
Emphasizing the negative consequences that may occur unless a consumer changes behavior is called ________.
Andre45 [30]

Answer:

a fear appeal

Explanation:

Fear appeal is the strategy that induces fear in an individual with the aim of preventing a particular behaviour.

Usually a risk is presented to person and the consequences of taking a particular action is highlighted.

Fear appeal emphasises the negative aspects of a situation to discourage the participants from acting a particular way.

It is an important tool in malong positive change in an individual's attitudes, intentions, and behaviours.

7 0
2 years ago
Other questions:
  • For which market structure do economists have the least precise model of price​ determination?
    12·1 answer
  • Greg, the CEO of Organic Market, wants managers and employees to instruct each other about the organization’s chosen values and
    9·1 answer
  • SSS is a local restaurant serving the needs of college​ students, faculty, and staff. The manager is considering adding a websit
    7·1 answer
  • The following transactions relate to the City of Middleton, which has a fiscal year end of December 31. The city adopts budgets
    9·1 answer
  • A customer invests $100,000 in a real estate limited partnership. In the first year of operations, the investor is allocated $20
    7·1 answer
  • Sharon and Roger decide to open a dry-cleaning business. They borrowed money from a bank and hired one employee. What is one adv
    15·1 answer
  • HELPPP PLEASE !
    13·1 answer
  • Direct materials $10 Direct labor $6 Variable manufacturing overhead $4 Fixed manufacturing overhead per year $220,000 Selling a
    9·1 answer
  • MCQ: An advantage of 'forced distribution method' is
    8·1 answer
  • 7. Constant growth rates One of the most important components of stock valuation is a firm’s estimated growth rate. Financial st
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!