Answer:
The gain on the transaction is $5,500
Explanation:
Gain on Transaction = Fair Value of Truck - Cash Paid - Note Payable - carrying value of car exchanged
= $25,000 - $4,000 - $10,000 - ( $8,000 - $2,500)
= $25,000 - $4,000 - $10,000 - $5,500
= $5,500 Gain
Answer:
In a perpetual inventory system:
<em>1)Merchandising transactions are recorded as they occur</em>
<em>3) Entries are made in the Cost of Goods Sold account whenever merchandise is purchased or sold</em>
<em>4)The need to take physical inventory is eliminated</em>
Explanation:
In a perpetual inventory system: Merchandising transactions are recorded as they occur.
In periodic system :No effort is made to record the Cost of Goods Sold until year-end. Entries are done at the year end.
In a perpetual inventory system:Entries are made in the Cost of Goods Sold account whenever merchandise is purchased or sold. Costs are assigned to the cost of goods sold each time a sale occurs in a perpetual inventory system.
In a perpetual inventory system:The need to take physical inventory is eliminated.But still it is done to assure the ending inventory.
In periodic system : the physical count cannot be eliminated.
Answer:
$17.18
Explanation:
D1=(1*1.2)=1.2
D2=(1.2*1.1)=1.32
D3=(1.32*1.1)=1.452
Value after year 3=(D3*Growth rate)/(Required rate-Growth rate)
=(1.452*1.02)/(0.1-0.02)
=18.513
Hence current value=Future dividend and value*Present value of discounting factor(rate%,time period)
=1.2/1.1+1.32/1.1^2+1.452/1.1^3+18.513/1.1^3
=$17.18(Approx).
I think that the answer is 3. I hope this helps!! :)
