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lapo4ka [179]
3 years ago
9

City Auto Parts recently traded in store fixtures. The exchange had commercial substance. The old fixtures had a cost of $48,000

and accumulated depreciation of $14,000. City paid $101,000 for the new store fixtures. These new fixtures had a market value of $117,000. There is a loss of $18,000 on this exchange.True or False
Business
1 answer:
IRISSAK [1]3 years ago
5 0

Answer:

The correct option is true

Explanation:

The book value of the old fixtures at the date of exchange which is the cost less accumulated depreciation till date is computed thus:

Book value of old fixtures=$48,000-$14,000=$34000

Expected cash payable by the company for the new fixtures is the market value of the new fixtures minus the carrying value of the old fixtures.

Expected cash=$117,000-$34,000=$83,000.00  

Loss on the exchange =cash paid -expected cash payable=$101,000-$83,000=$18000

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3 years ago
The common stock of the Avalon Corporation has been trading in a narrow range around $40 per share for months, and you believe i
Sergeu [11.5K]

Answer:

$700

Explanation:

Given that

Price of a 3 month put option = $3

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4 0
3 years ago
Read 2 more answers
The annual dividend rates for a random sample of 16 companies in three different industries, utilities, banking, and insurance,
lubasha [3.4K]

Based on the information given, the results show that A.The annual dividend rate in the utility industry is significantly less than the annual dividend rate in the banking industry.

A dividend rate simply means a financial ratio that is important as it shows how much a company pays out in dividends every year relative to the stock price of the company.

In this case,  the 95% confidence interval shows an interval of 1.28 to 6.28 for the difference. This implies that the annual dividend rate in the utilities industry is significantly less than the annual dividend rate in the banking industry.

Learn more about dividends on:

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4 0
2 years ago
How do businesses and the society benefit from marketing?
Verdich [7]

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HAVE A GOOD DAY!

5 0
3 years ago
At a sales volume of 30,000 units, Carne Company's total fixed costs are $30,000 and total variable costs are $45,000. The relev
Anna [14]

Answer:

$2.25

Explanation:

sale volume of company = 30,000 unit

total fixed cost are = $30,000

total variable cost $45,000 for 30,000 unit

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for the sale of 40,000 unit

the  total expected cost

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3 years ago
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