Answer: REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.
Explanation: Real Estate Investment Trust
Company
A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and commercial forests. Some REITs engage in financing real estate.
Answer: No gain or loss will be recognized since the exchange lacks commercial substance.
Explanation:
Based on the information given, the amount of gain that John will recognize on the exchange will be nothing.
In this case, we are given the information that the exchange lacks commercial substance. Commercial substance refers to the transaction which brings about the change in the cash flow of the entity.
In this case, since there isn't ant commercial substance involved, then there will be no gain or loss recognized.
The resources that helped in operating the businesses are also known as economic resources.
<h3>What is production?</h3>
Production is the process used by businesses to make varied products by converting the raw materials into finished ones.
Economic resources are those which are used by the firms in manufacturing goods and services. The goods are then available in the market for purchase by the consumers. The production can't be carried out if these resources are not present.
Therefore, economic resources are the important resources that help the business to operate.
Learn more about the economic resources in the related link:
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Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $768,000
Service Charge Expense A/c $32,000
To Accounts Receivable A/c $800,000
(Being the cash is received and the remaining balance is debited to the cash account )
The computation of the service charge expense is shown below:
= Accounts Receivable × service charge percentage
= $800,000 × 4%
= $32,000