What language is this in ⊅ω↑⊂∡⊂⊃∩∅⊃ÉçœÄÈΠЫднеО
Answer:
$36,000
Explanation:
The first step is to calculate the fair value of the new truck
(List price-cash paid with trade)-(original cost -accumulated depreciation)
= (36,000-30,000)-(24,000-16,000)
= 6000-8000
= loss of $2000
Therefore the cost of the new truck for financial accounting purposes can be calculated as follows
(Original cost- accumulated depreciation)+cash paid with trade-loss
= (24,000-16,000)+30,000-2000
= 8,000 + 30,000 - 2,000
= 38,000-2,000
= $36,000
Hence the cost of the new truck for financial accounting purposes is $36,000
Answer:
(A) A wholly owned Subsidiary
Explanation:
A wholly owned subsidiary is a company that is completely owned by another company called the Parent/Holding Company. The parent company will hold all (100%) of the subsidiary's common stock.
A wholly owned subsidiary allows the parent company to diversify, manage, and possibly reduce its risk.
Some of the disadvantages of a wholly owned subsidiary include the possibility of multiple taxation, lack of business focus, and conflicting interest between subsidiaries and the parent company if not properly managed.
Answer:
To determine the closing balance of retained earnings
Explanation:
First and foremost, retained earnings are an important part of the shareholders' equity. In a bid to ascertain the correct position of total shareholders' equity at year-end, it is important that a statement of retained earnings reconciling the opening retained with net income and dividends declared during the year is prepared.
The balance at the end of the year is the total accumulated earnings which have not been distributed to shareholders as dividends or which may be used to finance projects that increase shareholders' wealth
Answer:
The maximum interest rate which the bank needs to offer the loan is 3%
Explanation:
The maximum interest rate which the bank needs to offer the loan is computed as:
Maximum interest rate = Amount received in one year - Amount invested today / Amount invested today
where
Amount received in one year is $6,180
Amount invested today is $6,000
Putting the values above:
Maximum interest rate = ($6,180 - $6,000) / $6,000
= $180 / $6,000
= 3%
So, the maximum interest rate is 3% which is needed to offer by banks
