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
Leya [2.2K]
3 years ago
7

A company purchased equipment valued at $310,000. It traded in old equipment for a $121,000 trade-in allowance and the company p

aid $189,000 cash with the trade-in. The old equipment cost $300,000 and had accumulated depreciation of $180,000. This transaction has commercial substance. What is the recorded value of the new equipment?
a. $120,000.b. $121,000.c. $189,000.d. $309,000.e. $310,000.
Business
1 answer:
notka56 [123]3 years ago
5 0

Answer:

e. $310,000

Explanation:

If the exchange transaction has commercial substance the new equipment acquired is measured at the <u>fair value of the asset given up</u> plus  fair value of <u>any other assets transferred</u>.

Value of the new equipment = Trade in Allowance + Cash paid

                                                = $121,000 + $189,000

                                                =  $310,000

You might be interested in
Prepare journal entries to record the following four separate issuances of stock.
hram777 [196]

Explanation:

  • A.

                                                                    Debit            Credit

Cash                                                         $84,000

Common stock                                                                 $70,000

Paid-In Capital in Excess of Par Value                             $14,000

It's necessary to split the equity in two accounts because there is information about the par value

  • B.

Promotion Expenses                                $49,000

Common Stock                                                                  $3,500

Paid-In Capital in Excess of Par Value                             $45,500

It's necessary to split the equity in two accounts because there is information about the par value

  • C

Promotion Expensese                               $49,000

Common Stock                                                                   $49,000

It's not necessary to split the equity in two accounts because there is no information about the par value

  • D.

Cash                                                            $136,500

Preferred Stock                                                                   $87,500

Paid-In Capital in Excess of Par Value                                $49,000

It's necessary to split the equity in two accounts because there is information about the par value

5 0
4 years ago
My sister (laugh) at my story <br>​
Dvinal [7]

Answer:

no

Explanation:

5 0
3 years ago
Read 2 more answers
One reason why a blanket obligation for all employees to obey their employers no matter what is unreasonable is that the choice
Serjik [45]

Answer:TRUE

Explanation:COERCIVE FORCE is a force applied to a person or a group of persons in order to make them carry out an involuntary action or actions. It is used by employers of labor in order to mandate their employees to carry out certain activities. All Employees are required by their employers to obey the rules and regulations guiding the establishment even when it is not based on the interest of the employees.

3 0
3 years ago
Over the first four years of a company's life, it earned the following net income (loss):______.
Gelneren [198K]

Answer:

$700

Explanation:

The computation of the average dividend amount paid is as follows:

Total net income for first four years is

= $6,000 + $4,000 + $7,000 - $3,000

= $14,000

And, the ending retained earning balance after 4 years is $11,200

So, the dividend payment would be

= $14,000 - $11,200

= $2,800

For per year it would be

= $2,800 ÷ 4 years

= $700

5 0
3 years ago
The Dog House has net income of $3,450 and total equity of $8,600. The debt-equity ratio is .60 and the payout ratio is 30 perce
Snezhnost [94]

Answer:

21.29%

Explanation:

The computation of the internal growth rate is shown below:

But before that we need to determine the following calculations

Debt equity ratio js

= debt ÷ equity

The  debt is 0.6 of equity

So,

= 0.6 × $8,600

= $5,160

Now

Total assets = Total liabilities + Total equity

= $8,600 + $5,160

= $13,760

Return on assets = Net income ÷ Total assets

= $3450 ÷ $13760

 = 0.2507

Now  as we know that

Retention ratio = 1 - payout ratio

= 1 - 0.3

= 0.7

And, finally

The Internal growth rate is

= (Return on assets × Retention ratio) ÷ [1 - (Return on assets  × Retention ratio)]

= (0.2507 × 0.7) ÷ [1 - (0.2507 × 0.7)]

= 21.29%

6 0
3 years ago
Other questions:
  • The term ________ refers to a practice whereby a salesperson initially accepts a customer's offer, but then claims an error and
    12·1 answer
  • The market for milk is initially in equilibrium. milk producers engage in an advertising program to encourage milk drinking, whi
    11·1 answer
  • A comparable property sold four months ago for $287,000. If the appropriate adjustment for market conditions is -0.50% per month
    13·1 answer
  • Eva hires a well known pop singer to support the use of her new fashion label. which technique of advertising is Ava use here?
    5·2 answers
  • Riley is a 50% partner in the RF Partnership and has an outside basis of $56,000 at the end of the year prior to any distributio
    15·1 answer
  • All of the following are types of loans EXCEPT:
    9·1 answer
  • Under what condition would it be rational for the trading areas of two branch locations to completely overlap?
    10·1 answer
  • arasota Company obtained land by issuing 3,380 shares of its $12 par value common stock. The land was recently appraised at $146
    10·1 answer
  • Is Brainly acting stupid to me this app is just really dumb it wont let me see any answers or help with them
    11·2 answers
  • Presented below is information from Bramble Computers Incorporated. July 1Sold $20,000 of computers to Robertson Company with te
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!