Solution :
We know that the exchange takes place when the FMV receive is equal to the FMV given up.
Where the FMV = fair market value
The commercial substance means the future cash flows exchange.
The non monetary exchange refers to the cash which is less than 25% of the fair value exchange.
The journal entries for the Santana Corp. when the exchange lack the commercial substance are reported as :
Transaction Debit ($) Credit ($)
Asset(new) 11,000
Accumulated depreciation(old) 9,000
Asset (old) 28,000
Cash 2000
The journal entries for Delaware Corp. when the exchange lacks the commercial substance.
Transaction Debit ($) Credit ($)
Asset(new) 16,000
Accumulated depreciation (old) 10,000
Loss 2500
Assets (old) 28,000
Answer:
c) Flow diagram.
Explanation:
Flow diagram also known as a flowchart can be defined as a visual representation or an activity diagram which is typically used to illustrate or demonstrate the simple sequence of actions or movements within a complex process and workflow. A Flow diagram would be best to draw out the movement of people or material.
Generally, a flowchart or flow diagram makes use of symbols such as rectangle, oval, diamond, arrow to represent the steps, flow or sequence of a complex system.
T<span>he equipment to plant, harvest, and transport grain used by the farmers in KS is powered by diesel fuel. Therefore, an increase in the price of the fuel will also increase the price of the bread. The main ingredients of the bread </span>are <span>coming from the farmers' harvest of grain. When the price of the fuel would increase, the farmers would be selling their grains at a higher price which would yield to a higher price of the bread.</span>
Answer:
3.96
Explanation:
A company's Time Interest Earned ratio shows us its ability to pay its debts.
The income before expenses is given as: $575000
The interest expenses = $145000
The question wants us to find time interest earned ratio. We get this by:
Company's initial income/interest expenses
= $575,000/$145,000
= 3.96
This is the correct answer to the question. The right answer was not listed in the options.
