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
nydimaria [60]
4 years ago
7

Candy Co. exchanged inventory with Dandy Co. in a transaction that lacks commercial substance. Both Candy’s and Dandy’s inventor

y had fair values that exceeded their costs by 30%. Since Dandy’s inventory was more valuable, however, Candy paid Dandy cash to compensate for the difference. Who, if anyone, will recognize a gain on the exchange?
Business
1 answer:
nata0808 [166]4 years ago
3 0

Answer:

Dandy Co.

Explanation:

Both companies traded inventories without making a profit out of it. Since Candy Co. paid some extra money to Dandy because Dandy's inventory was more valuable, only Dandy should be able to recognize a gain from this transaction, if some gain existed. Remember that the trade was supposedly done without making profit, then the money should have only compensated Dandy, not generated a gain.

You might be interested in
Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual i
Alisiya [41]

Answer and Explanation:

The journal entries are shown below:

1. Inventory $1,800

        Accounts Payable $1,800

(Being purchased on account)

2. Inventory $50

     To Cash $50

(being freight paid)

3. Accounts Payable $51

     To Inventory $51

(being the returned calculator is recorded)

4. Accounts Receivable $670

       To Sales Revenues $670

(Being sales is recorded)

5. Cost of Goods Sold $460

      To Inventory $460

(Being cost of goods sold is recorded)

6.  Sales returns $40

         To Accounts Receivable $40

(being sales return is recorded)

7. Inventory $28.20

      To Cost of Goods Sold $28.20

(Being cost return is recorded)

8. Accounts Receivable $780

      To Sales Revenues $780

(Being the sales is recorded)

9. Cost of Goods Sold $560

      To Inventory $560

(Being the cost of goods sold is recorded)

5 0
3 years ago
At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $760. During the year, $120 of previ
Mekhanik [1.2K]

Answer:

=$140

Explanation:

At the beginning of the year, the account had a credit(positive balance of $760)

Previously bad debt that has been reinstated, $120

The new balance will be $760 + $120 = $860

adjusting for the written-off accounts

=$860 - $740

=$140

3 0
3 years ago
#20 Employers include __________ plan coverage in fringe benefit programs to retain high-quality employees and ensure productivi
harina [27]

Answer:

Group health

Explanation:

  • As a company it's the duty of owner and management to take care of their employees health
  • It's difficult to run individual healt programmes hence companies run group health programs
8 0
3 years ago
Rachel is on her way to an interview for the position of a project manager. She is trying to prepare for this interview by analy
anzhelika [568]

Answer:

B) she was very calm under pressure

Explanation:

A project manager is a designation in which the management and the responsibility of the entire project lie in the hands of an individual. The responsibilities of planning, running and the execution of the project is undertaken by the project manager.

From the given options, the soft skill of keeping very calm under pressure will be the most relevant for Rachel. All the other three options are the skills relevant for a specific proficiency in the technical field. To be a project manager, calmness, and efficiency to work under pressure is required.

6 0
3 years ago
I would rather have a job where I can focus on something rather than having many different things to do
Wewaii [24]
Is this a question or a statement? I suggest you should get a career rather than a job. It sounds better and should help you focus on that something
4 0
3 years ago
Read 2 more answers
Other questions:
  • The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost Production April $63,100 1,1
    7·1 answer
  • John Maynard Keynes described economics as an easy subject at which very few excel. Which of the following is not one of the rea
    8·1 answer
  • Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% × service years × final year's sa
    14·1 answer
  • Sam placed a limit order to sell 500 shares of stock at $14 a share. Which of the following does Sam know for sure?
    9·1 answer
  • A business's source documents:_____.A. Must be in electronic form. B. Include the ledger. C. Provide objective evidence that a t
    10·1 answer
  • Bank A offers to lend you money at 10 percent compounded monthly, Bank B at 11 percent compounded quarterly, and Bank C at 12 pe
    15·1 answer
  • Why might digital media be more effective than television ads?
    10·1 answer
  • Bryan invested in bryco stock when the firm was financed solely with equity. the firm now has a debt-equity ratio of .3. to main
    11·1 answer
  • A report by Bedell, Cohen, and Sullivan promotes the use of full-service case management as practice based on an analysis of a p
    11·1 answer
  • Gathering feature requirements from the customer about the new system primarily occurs during which sdlc phase?.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!