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atroni [7]
3 years ago
14

Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance

. Old Equipment Cash Book Value Fair Value Received Equipment A $ 73,400 $ 81,100 $ 11,800 Equipment B $ 60,600 $ 54,400 $ 9,500 For Equipment A, Pensacola would record the new equipment at:
Business
1 answer:
gayaneshka [121]3 years ago
7 0

Answer:

$69,300

Explanation:

The computation of the amount of the new equipment for equipment A is shown below;

Since the transaction has the commercial substance and also the cash is received

So, the amount of the new equipment is

= Fair value - cash received

= $81,100 - $11,800

= $69,300

Hence, the amount of the new equipment is $69,300

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In the "finding, evaluating, and interpreting source material" stage of the research process, finding means:
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The research process consists of multiple steps in order to find a solution or answer to a particle problem or question. In the stage of the research process which involves "<span>finding, evaluating, and interpreting source material", this means analyzing how your source materials can be applicable to your question or problem.</span>
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3 years ago
Control Inc. has no debt and a total market value of $100,000. EBIT are projected to be 6,000 if economic conditions are normal.
Zinaida [17]

Answer:

$3.12

Explanation:

For expansion:

EBT = EBIT - Interest

       = [6,000 + (30% × 6,000)] - $0

      = $7,800

Net income = EBT - Tax

                   = $7,800 - $0

                   = $7,800

Earning per share for the case of strong expansion period before any debt is issued:

= Net income ÷ Number of shares outstanding

= $7,800 ÷ 2,500

= $3.12

5 0
3 years ago
Zwick Company bought 25,000 shares of the voting common stock of Handy Corporation in January 2021. In December, Handy announced
sp2606 [1]

Answer:

$125,000

Explanation:

Zwick company bought 25,000 shares of Handy corporation

In 2021 Handy corporation reported $208,100 net income

The cash dividend reported is $5.00 per share on all its 208,000 shares

Therefore the Zwicks company dividend revenue from Handy corporation in December 2021 can be calculated as follows

= 25,000 shares × $5.00

= 125,000

Hence Zwick's dividend revenue from Handy corporation is $125,000

8 0
3 years ago
Read 2 more answers
At year​ end, Rebos​ Company's financial statements showed sales of​ $820 million, net income of​ $425 million, total assets of​
Dafna11 [192]

Answer:

total sales $820 million

net income $425 million

total assets $750 million

total liabilities $735

1.2 million outstanding common stocks

an offer was made to buy their assets at $742.5 million

<u>company's book value per share:</u>

= (total assets - total liabilities) / total number of outstanding common stocks

= ($750,000,000 - $735,000,000) / 1,200,000 = $12.50 per stock

<u>company's liquidation value per share:</u>

= (total offer - total liabilities) / total number of outstanding common stocks

= ($742,500,000 - $735,000,000) / 1,200,000 = $6.25 per stock

4 0
3 years ago
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