Answer:
Assets increase by $10,000
Total stockholders' equity increases by $10,000
Explanation:
Since in the question, it is given that, the purchase value of equipment is $100,000 and the exchanged value is $110,000
So, the difference of $10,000 ($110,000 - $100,000) would reflect that the assets would increase by $10,000 and the total stockholders' equity is also increased by $10,000
The exchange value is a combination of $70,000 in trade allowance and $40,000 was paid in cash
Answer: Answer is 1
Explanation:
In a market economy, a high price is a signal for producers to supply more and consumers to buy less.
Answer:
Regarding to Claim to income, the correct answer would be C-Bottom
Explanation:
Shareholders can be preferred or common and they have differents claims to income. Generally, preferred stock will be given preference in assets to common assets in case of company liquidation, nonetheless both will fall behind bondholders if asset distribution happen. If bankruptcy happen, common stock investors will receive any remaining funds after bondholders, then creditors and preferred stockholders are paid. That's why these investors often receive nothing after a bankruptcy. Preferred stock also has the first right to receive dividends. In general, common stock shareholders will not receive dividends until it is paid out to preferred shareholders, and that happen because they are at the bottom of the pyramid.
Answer:
$60000
Explanation:
Given: Sales = $300000.
Cost of goods available for sale= $270000.
The gross profit ratio= 30%
First finding the gross profit out of total sales.
Gross profit= 
Gross profit= 
∴ Cost of goods sold= 
Cost of goods sold= 
Cost of goods sold= 
Hence, cost of goods sold=
Now, finding estimated cost of the ending inventory.
Cost of ending inventory= 
⇒ Cost of ending inventory= 
∴ Cost of ending inventory= 
Hence, estimated cost of the ending inventory under the gross profit method would be $60000.
