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Irina18 [472]
3 years ago
7

Glen Inc. and Armstrong Co. have an exchange with no commercial substance. The asset given up by Glen Inc. has a book value of $

72,000 and a fair value of $96,000. The asset given up by Armstrong Co. has a book value of $120,000 and a fair value of $114,000. Boot of $24,000 is received by Armstrong Co.What amount should Armstrong Co. record for the asset received
Business
1 answer:
Marina CMI [18]3 years ago
8 0

Answer:

the amount that should be recorded as the asset is $96,000

Explanation:

The computation of the amount that should be recorded as the asset is given below:

Book value of assets given up = $72,000

Add : cash paid in exchange. $24,000

Amount recorded as an asset should be $96,000

We simply added the book value and the cash paid amount for an exchange

Therefore the amount that should be recorded as the asset is $96,000

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Squeaky Clean Car Wash has a goal of increasing its repeat customers by 30% over the next year. It began by looking at ways to s
Alex_Xolod [135]

Answer:

C) situation analysis

Explanation:

Situation Analysis are methods used by managers to evaluate their internal and external environment to understand challenges faced by the business, and opportunities to exploit.

At Squeaky Clean was a situation analysis was done and it was discovered that high turnover of wash attendants was affecting customer confidence in their business (internal environment).

Also a competitor had an additional service, that is frequent cleaner card (external environment).

The management will use this information to better serve their customers, so that they would achieve their goal of increasing its repeat customers by 30% over the next year.

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3 years ago
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Don’t click on links people send on Brainly it’s a virus
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3 years ago
Bert's Car Sales is a new firm that is still in a period of rapid growth. The company plans on retaining all of its earnings for
DaniilM [7]

Answer:

The correct choice is C)

The most logical thing to do would be to calculate the value of the stock in 5 years time.

Explanation:

This speaks to ones understanding of dividend growth stock valuation models. These tools are used to establish a fair value for a stock by discounting the present value of its future dividends. A commonly used model is the constant growth dividend discount model.

The formula for the DDM, which assumes constant growth in dividends, is provided below.

P0 = D1/(r-g)

Where,

P0 = intrinsic value of stock

D1 = dividend payment one year from today

r = discount rate

g = growth rate

Identifying the correct answer entails establishing a timeline of the expected cash flows. We are given the following information:

t0 = $0

t1 = $0

t2 = $0

t3 = $0

t4 = $0

t5 = $0.20

t6 = $0.20 * 1.035

Given a rate of return, we could use the constant growth dividend discount model to establish the fair value of the firm at t5 (five years from today). Incidentally, to determine today's value, we'd discount it back another five years.

Based on the information above,  we are able to prove that the answer is '5'.

Cheers!

3 0
3 years ago
Which of the following is the formula for break-even point in sales dollars? A : Fixed costs divided by contribution margin rati
ruslelena [56]

Answer:

B. Fixed costs divided by unit contribution margin

Explanation:

In sales dollars, Break-Even point = Fixed Costs ÷ Contribution Margin.

Break-Even point in (units) = Fixed Costs / (Sales price per unit - Variable costs per unit).

The Break even point is a measure of which a company can determine if when the product its manufactured or produced will start to be profitable.

8 0
3 years ago
The quantity of newspapers sold will decline if a. magazine prices rise. b. prices are reduced. c. the printers' union makes wag
FinnZ [79.3K]

Answer:

The quantity of newspapers sold will decline if

d. newsprint becomes more expensive.

Explanation:

The reason for this is the demand curve. The demand curve is the relationship between the price of newspaper and the quantity demanded. As price rises, people would have less capacity and willingness to buy newspaper therefore reducing the quantity sold.

Why not other options:

a. magazine prices rise- magazine is a substitute of newspaper and if price of  magazine rises then people will start buying more newspaper and therefore increasing the sales of newspaper instead of declining.

b. prices are reduced- If the prices are reduced, more and more people will have capacity to buy newspaper thus increasing sales instead of reduction.

c. the printers' union makes wage concessions- If cost of manufacturing newspaper is decreased(union takes low salaries now), selling price will also be lowered. This will result in increase of sales of newspaper rather than reduction

8 0
3 years ago
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