I believe the answer is a certification program. Hope it's right! :)
Answer:
C. $ 0.
Explanation:
Provided that
Book value of the old machine = $81,300
The Fair value of the old machine = $91,400
So, we can see that there will be a gain of
= Fair value - book value
= $91,400 - $81,300
= $10,100
But this gain would not be recognized in case of lacking commercial substance. So, there would be zero gain or loss
<span>b. false is my answer</span>
Answer:
The answer is letter A
Explanation:
Establishing a wholly owned subsidiary is generally the most costly method.
Answer:
In appraising, land is never depreciated, as are buildings.
Explanation:
Generally land and buildings are separable assets and are been accounted for separately, even when acquired together.
In the other hand, land asset is not depreciated, because it is considered to have an infinite useful life. This distinctively makes it unique amongst all asset types; it is the only one for which depreciation is prohibited.
Nearly all fixed assets have a useful life, after which they no longer contribute to the operations of a company or they stop generating revenue. During this useful life, they are depreciated, which reduces their cost to what they are supposed to be worth at the end of their useful lives (which is known as salvage value). Land, however, has no definitive useful life, so there is no way to depreciate it.
