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
Artyom0805 [142]
3 years ago
14

Santana Company exchanged equipment used in its manufacturing operations plus $2,000 in cash for similar equipment used in the o

perations of Delaware Company. The following information pertains to the exchange.
Santana Co. | Delaware Co.
Equipment (cost) $28,000 | $18,000
Accumulated depreciation 9,000 | 10,000
Fair value of equipment 14,000 | 16,000
Cash given up 2,000
Please indicate whether an account is an asset (A), liability (L), or equity (E) for journal entries, adjusting entries, and closing entries.
Prepare the journal entries to record the exchange on the book of Santana Co. and Delaware Co. Assume that the exchange lacks commercial substance.
Business
1 answer:
Ede4ka [16]3 years ago
7 0

Solution :

We know that the exchange takes place when the FMV receive is equal to the FMV given up.

Where the FMV = fair market value

The commercial substance means the future cash flows exchange.

The non monetary exchange refers to the cash which is less than 25% of the fair value exchange.

The journal entries for the Santana Corp. when the exchange lack the commercial substance are reported as :

Transaction                                           Debit ($)                 Credit ($)

Asset(new)                                           11,000

Accumulated depreciation(old)          9,000

Asset (old)                                                                       28,000

Cash                                                                                 2000

The journal entries for Delaware Corp. when the exchange lacks the commercial substance.

Transaction                                           Debit ($)                 Credit ($)

Asset(new)                                            16,000  

Accumulated depreciation (old)          10,000

Loss                                                                                      2500

Assets (old)                                                                           28,000                                  

You might be interested in
Which element of the marketing mix is the most visible and flexible?
Anestetic [448]
<span>the elements of product, price, place, and promotion which sport marketers manipulate to achieve marketing goals and objectives and are mostly visible and flexible. the price is in many ways one of the most visible, and for many organizations price is also potentially the most controllable and flexible element of marketing mix. The most visible element is price, and also it is seen to be possibly the most flexible element of the marketing mix, it is probably the most difficult to manage and it has to reflect the state of what matters is to understand that price does not stand alone, it interacts with the whole organization. Overall, price is very visible.</span>
4 0
3 years ago
You've been tasked with marketing a new line of plumbing services, but you have a set budget you can't exceed. Why is Google Ads
Cerrena [4.2K]

Answer:

d. Google Ads gives you control over your budget.

Explanation:

As the services work with daily budget the company can chose every day to change the amount of advertizement into the campain Making more ads at lauch and then decreasing overe the following days.

This is not posible in other methods as the radio fee or TV fee are purchase per broadcast or per month thus, the company either pays the fee or the product doesn't get the add.

On gogle add the company decide the amount. Which clearly is a better deal for small and medium firm and even larger firm as well.

7 0
3 years ago
Scenario: Technological Progress and Productivity Growth in Techland In Techland, from 1980 to 2010, holding technology and huma
andre [41]

Answer:

The growth of the real GDP per capita was 7.18%

Explanation:

It is important to establish that:

Future Value = Present Value × ((1 + r)^t), given that <em>r</em> is the <em>interest rate</em> and <em>t</em> is the <em>time period</em>  

Real GDP per worker increased from $40,000 to $320,000 in 30 years    

Therefore, we have;

320000 = 40000*(1+r)^30    

(1 + r)^30 = 8    

1 + r = 8^1/30    

1 + r = 1.0718    

r = 0.0718 = 7.18%

8 0
3 years ago
The practice of changing prices for products in real time in response to supply and demand conditions is referred to as
amm1812

Answer:

Dynamic pricing

Explanation:

In simple words, Dynamic pricing, often alluded to as rising rates, vibrant pricing as well as period-based pricing, relates to the pricing technique under which companies set variable prices for goods or commodities on the basis of existing consumer demands. A main benefit of competitive pricing seems to be the opportunity to increase the income with each consumer.

8 0
3 years ago
Soffia Inc. manufactures a moisturizing soap with anti-ultraviolet properties, which is sold under the brand name DewMist. The c
Lerok [7]

Answer:

Multibranding strategy

Explanation:

Multibranding strategy can be defined as a type of strategy in which a company gives its product a different brand name. It involves a producer selling different brands under the same product segment.

In Multibranding strategy there is no space for other competitors in the market. This strategy also strengthens the influence of these various products in the market.

A Multibranding strategy can lead to a great loss if it is not properly handled by the management of the organisation.

8 0
3 years ago
Read 2 more answers
Other questions:
  • A medical assistant is moving heavy medical equipment. To limit risk of injury, she should use proper body (fill in the blank)
    7·1 answer
  • According to Duffy-Deno (2003), when the price of broadband access capacity (the amount of information one can send over an Inte
    7·1 answer
  • Calculate the simple interest you would receive in five years on a savings account that earns 7.5% annual interest. your beginni
    14·2 answers
  • Define primary industry .<br>​
    7·1 answer
  • Firms that strive for mindshare think not about the speed of an individual products development and launch, but rather about cre
    10·2 answers
  • Within which time period must a Purchase Money Security Interest ("PMSI") creditor in goods, other than inventory or livestock,
    7·1 answer
  • On May 7, Hatch Company purchased on account 700 units of raw materials at $19 per unit. During May, raw materials were requisit
    8·1 answer
  • how does our ear know where a sound is coming from? And don't use go.ogle cause i didn't understand what is written there.​
    10·2 answers
  • What's the difference between a tax and a levy?
    5·1 answer
  • Principle states that inventory costs are expensed as cost of goods sold when inventory is sold
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!