Answer:
gain on disposal 30,000
Explanation:
First we do the numbers for the old truck:
Asset 140,000
Acc Dep 80,000
Book Value 60,000
Now, becuase there are commercial subtance we will recognize the dgain or loss at disposal.
Total given-up for the tow truck
bake tow truck 100,000
cash <u> (10,000) </u>
Baker valuation of our truck 90,000
book value (60,000)
gain on disposal 30,000
<u>journal entry</u>
tow truck 100,000
acc dep delivery truck 80,000
cash 10,000
delivery truck 140,000
gain on disposal 30,000
Answer:
Consumption ( C ) = $325 million
Explanation:
Given:
GDP = $900 million:
Government Purchases ( G ) = $250 million
Taxes minus Transfer Payments ( T ) = $325 million
Investment ( I ) = $275 million
Find:
Consumption ( C )
Computation:
GDP = C + I + G
$900 million = Consumption ( C ) + $250 million + $325 million
Consumption ( C ) = $900 million - [$250 million + $325 million]
Consumption ( C ) = $325 million
Answer:
$15,000
Explanation:
Calculation for the amount that should be report as goodwill
Fair Market Value of common stock issued for acquisition $400,000
(10,000 shares×$40 fair value)
Less Fair Market Value of Net Assets of Web $385,000
(ASSETS: Cash and receivables $60,000+ Inventory $175,000 +Patented technology (net) $200,000+ Land $225,000+Buildings and equipment (net)$ 75,000 - LIABILITIES $350,000)
GOODWILL $15,000
($400,000-$385,000)
Therefore the amount that should be report as goodwill will be $15,000
Answer:
The fact the investment opportunity has a positive cash flow means that the project should be accepted since it is value-adding
Explanation:
We can evaluate the acceptability of the project using the net present value approach. The net present value is the present value of future cash flows discounted at the 11% required rate of return.
Present value=future cash flow/(1+required rate of return)^n
n is the year in which the cash flows are expected, it is 1 for year 1 cash flow and 2 for year 2 cash flow
NPV=$1,000/(1+11%)^1+$15,000/(1+11%)^2-$13,000
NPV=$75.24
Answer:
b) it is impracticable to determine some period-specific effects.
c) it is impracticable to determine the cumulative effect of prior years.
Explanation:
According to the actual normativity these are the two options more consistent with the exercise.
