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
Dafna1 [17]
3 years ago
13

Marigold Corp. is indebted to Ivanhoe under a $960000, 13%, three-year note dated December 31, 2019. Because of Marigolds financ

ial difficulties developing in 2021, Marigold owed accrued interest of $124800 on the note at December 31, 2021. Under a troubled debt restructuring, on December 31, 2021, Ivanhoe agreed to settle the note and accrued interest for a tract of land having a fair value of $870000. Marigolds acquisition cost of the land is $720000.
Required:
1. Ignoring income taxes, on its 2021 income statement, what should Marigold report as its gain on disposal and restructuring gain?
Business
1 answer:
exis [7]3 years ago
6 0

Answer:

$150,000 and $214,800

Explanation:

The computation is shown below:

Gain on disposal = Fair value of the land - cost of the land

= $870,000 - $720,000

= $150,000

Now the restructuring gain is

= Loan amount + accrued interest - fair value of the land

= $960,000 + $124,800 - $870,000

= $214,800

We simply applied the above formulas so that the gain on disposal and restructuring gain could come

You might be interested in
The opportunity cost of holding money is ______.
Contact [7]

The opportunity cost of holding money is the interest forgone on an alternative asset.

<h3>What is asset?</h3>

An asset is any resource held or controlled by a business or economic entity in financial accounting. It is anything that has the potential to provide positive economic value. Assets represent ownership value that may be transformed into cash.

A business asset is something that has current or future economic worth to the company. In essence, assets for businesses encompass anything controlled and held by the company that is today valuable or has the potential to give monetary advantage in the future. Patents, machines, and investments are some examples.

Depreciation is the systematic distribution of an asset's depreciable amount throughout its useful life. The depreciable amount of an asset is equal to the asset's cost or another number substituted for cost, less its residual value.

To know more about asset follow the link:

brainly.com/question/25746199

#SPJ4

5 0
1 year ago
What is a pain point of operations as a Freelancer that Fiverr helps alleviate?
kicyunya [14]

The pain point of operations as a Freelancer that Fiverr helps alleviate is financial constraint and looking or lack of job.

<h3>What are financial constrain?</h3>

This is known to be when a person or firm lacks money to run their basic activities.

Note that Fiverr has eliminate the stress of looking for a job and as such, The pain point of operations as a Freelancer that Fiverr helps alleviate is financial constraint and looking or lack of job.

Learn more about financial constraint from

brainly.com/question/14140096

#SPJ1

5 0
2 years ago
A birthday party at the skating rink costs $ 60 to reserve a party area and $ 2. 50 per guest for skating and skate rental. How
frez [133]
<h2>Cost:</h2>

Costs are the expenses incurred by a company or an individual in<u> order to</u> produce goods and deliver services or buy products.

<h3>The computation:</h3>


\text{The cost} = 60 + (2.50 × 15)

\text{The cost} = 97.5 \text{ dollars}

Therefore, the birthday party will cost $97.5 if 15 guests are<u> invited.</u>

<u />

For more information regarding the sums, refer below:

brainly.com/question/14107176

3 0
3 years ago
Read 2 more answers
If a stock is correctly priced, then you know that ____________. A. the dividend payout ratio is optimal B. the stock's required
german

Answer: the sum of the stock's expected capital gain and dividend yield is equal to the stock's required rate of return

Explanation:

Stock are the investment that are made by individuals or firms into a public company.

When a stock is correctly priced, it means that the sum of the stock's expected capital gain and dividend yield is equal to the stock's required rate of return

8 0
3 years ago
The company purchased $15,000 of equipment on January 1. The equipment has a three-year useful life and a $600 salvage value. Th
Alexeev081 [22]

Answer:

$1,200

Explanation:

Cost of the equipment purchased = $15,000

Useful life of the machine = 3 years

Salvage value = $600

Now,

Using the straight line method of depreciation

Annual depreciation = \frac{\textup{Cost-Salvage value}}{\textup{Useful life}}

= \frac{\textup{15,000-600}}{\textup{3}}

or

= $4,800 per year

Now total duration from January 1 to March 31 = 3 months or \frac{3}{12} years

= 0.25 year

Therefore,

The accumulated depreciation = Annual depreciation × Duration

= $4,800 × 0.25

= $1,200

3 0
4 years ago
Other questions:
  • These are selected 2022 transactions for Bramble Corporation:
    15·1 answer
  • Kevin Bacon is thinking about buying an investment. The investment option that he is thinking about buying is a written pledge b
    15·1 answer
  • What is an embargo? user: what is human capital?
    9·1 answer
  • Beacon Industries disclosed the following minimum rental commitments under non-cancelable operating leases in its 2017 annual re
    9·1 answer
  • Q 6.6: niles industries is a merchandising company. it currently holds $6,000 in consignment goods for martin corporation. in ad
    9·1 answer
  • If government policy allows a country's currency to be determined in the exchange rate market, then that currency will be subjec
    7·1 answer
  • Rundle Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Rundle has bu
    12·1 answer
  • According to the government, employees have a right to understand the risks associated with the materials they work with. A) Tru
    11·1 answer
  • When a student is given two seemingly different problems to solve, but the problems have the same underlying logical requirement
    7·1 answer
  • During a recent shopping trip to Target, Carlie noticed that the store offered many Glad products, including many different type
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!