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mote1985 [20]
3 years ago
9

Assume that a company cannot determine the market value of equipment acquired by reference to a similar purchase for cash. Expla

in how the company determines the cost of equipment purchased by exchanging it for each of the following 3 items: Bonds having an established market price. Bonds that do not have an established market price. Common stock not having an established market price. Similar equipment having a determinable market value.
Business
1 answer:
Ghella [55]3 years ago
8 0

Solution :

Let us suppose that a company cannot predict the market value of an equipment that acquired by the reference to the similar purchase for the cash. Thus the company finds cost of purchased of the equipment by exchanging :

-- the market price of the bonds when they have an established price in the market.

-- the market price of the bonds when the common stocks does not have a established market price.

-- market price of the equipment when the similar kind of an equipment have a determinable value in the market.

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The way that a local water budget differs from the water budget of the whole Earth is that t<span>he local water budget is not balanced and the whole Earth is balanced.
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6 0
3 years ago
You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No div
Olin [163]

Answer:

Total Return = 10.45%

Explanation:

To calculate the return, we must first determine the appreciation in the value of the securities in terms of the US dollar.

The initial investment in terms of US dollar was of,

Initial Investment in USD = Investment in Pounds * Exchange rate

Initial Investment in USD = 2340 * 1.52

Initial Investment in USD = $3556.8

The current value of the investment in terms of USD is,

Current value of investment in USD = 2440 * 1.61

Current value of investment in USD = $3928.4

The formula to calculate total return is,

Total Return = (Current Value - Initial Value) / Initial Value

So, the total return based on US dollars was:

Total return  = (3928.4 - 3556.8) / 3556.8

Total Return = 0.10447 or 10.447% rounded off to 10.45%

6 0
3 years ago
Juniper Company uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30
kozerog [31]

Answer:

Amount of cash paid on Aug 16 = <u>$8,167.50</u>

Explanation:

As for the information provided the terms of purchase are,

1% discount if payment made within 10 days,

and a total credit period of 30 days without any discount beyond 10 days.

Here, inventory purchased on August 7 = $9,750

Less; Return on 11 August = $1,500

Net Purchases = $8,250

Since payment is made on 16 August that is within 10 days from purchase discount will be received

= $8,250 \times 1% = $82.50

Amount of cash paid on Aug 16 = $8,250 - $82.50 = $8,167.50

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3 years ago
During market testing, Rembrandt Cosmetics realized that the cosmetics industry was dominated by multiple, well-established bran
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<h3>What is strategic planning?</h3>

When the differences between two different strategic plans are identical, with other things being constant, such a situation is called as a strategic planning of equivalence.

Hence, strategic planning holds true regarding the given situation.

Learn more about strategic planning here:

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2 years ago
A popular television program called the swan aimed to turn less visually appealing people into more socially acceptable ones by
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