This are the record of both the sale on the books of Garth Company and the purchase on the books of Kyle Enterprises
Journal entry on Gerth Company Books
Dr Account receivable 1,100
Cr Sales 1,100
Cr Cost of goods sold 600
Cr Inventory 600
Journal entry on Kyle’s books:
Dr Inventory 1,100
Cr Account payable 1,100
Your answer is 2730!!!!!!
Answer:
The slope of the CML = (13% - 7%)/25% = 0.24
Explanation:
Given that:
expected rate of return of 17%
standard deviation of 27%.
The T-bill rate is 7%.
You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an expected rate of return of 13% with a standard deviation of 25%.
The slope of the CML is
Slope of the CML = (Expected return of Market - Risk free return)/Standard deviation of market
The slope of the CML = (13% - 7%)/25% = 0.24
= (0.13 - 0.07) /0.25
= 0.24
Answer:
$200,000 and $500,000
Explanation:
The computations are shown below:
For gain recognized:
= Fair market value of the received land - corporation basis
= $500,000 - $300,000
= $200,000
For land basis received by Red Blossom corporation:
= $500,000
It records only the fair market value of the land, not the land basis for tea Company so only $500,000 would be considered
