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Finger [1]
3 years ago
5

Ryan exchanged a car that he used in his business for the past 3 years for a new truck with a FMV of $25,000. This transaction t

ook place at the end of the year. The adjusted basis of the car was $8,000 at the beginning of the year of disposition. Ryan paid $4,000 cash and assumed a note payable of $10,000 to be paid in $2,000 increments over the next 5 years. Ryan’s depreciation on the car for the year of disposition was $2,500. What is the gain (loss) recognized on the transaction?
Business
1 answer:
alexandr1967 [171]3 years ago
3 0

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

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The FabulousHI Company expects a constant growth in earnings and dividends of 2.5%/year into the foreseeable future. It is expec
Lunna [17]

Answer:

a. $26.67

b. 2.50%

Explanation:

a. Computation of the current value of the stock is given below:-

Price of stock ÷ Required rate of return - Growth rate

= $1.20 ÷ (0.07 - 0.025)

=  $1.20 ÷ 0.045

= $26.67

b. Computation of capital gains yield on this stock is shown below:-

= Required rate - Dividend yield

= 7% - ($1.20 ÷ $26.67)

= 7% - 0.04499

= 2.50%

7 0
3 years ago
The final step in active listening involves
kvv77 [185]

Answer:

The final step is responding.

6 0
2 years ago
Which of the following mortgages would you prefer to hold if you were a lender and you expected inflation of uncertain magnitude
Elodia [21]

Answer: Option C

                             

Explanation: An adjustable mortgage (ARM) is a borrowing form in which the rate of interest charged to the remaining balance varies all across the loan's lifetime. The new interest rate is set for an amount of time with an adjustable-rate mortgage, after which it resets regularly, often quarterly or even monthly.

The mortgage can be given at the normal variable rate/base rate of the lender. There may be a clear and statutorily defined relation to the applicable index, but if the creditor does not provide a specific link to the underlying market or index, the rate may be adjusted at the option of the lender.

8 0
3 years ago
The "act" part of the PDCA cycle for project meetings is: ​ a. perform in-between meeting tasks b. prepare an advanced agenda to
Lelu [443]

Answer: perform in-between meeting tasks(A)

Explanation:

The plan-do-check-act (PDCA) is a four-step method that is used in business and organizations for the control and improvement of the processes and products

A in PDCA stands for Act and it means to take action based on what one has learned in the study. In a case whereby the change does not work, own should go through the cycle again using a different plan.

In cases were one is successful, the person should incorporate what has been learned from the test into broader changes.

The "act" part of the PDCA cycle is used to perform in-between meeting tasks.

3 0
3 years ago
The net income reported on the income statement for the current year was $295,000. Depreciation recorded on fixed assets and amo
maksim [4K]

Answer:

The Net cash is 302.000

Explanation:

To get net cash flow using the indirect method we must make adjustments to the net income.

With the balance data,  we get the decrease or increase of the differents accounts.  

End Beginning Cash $ 50,000 $ 60,000  

Decrease in cash  -10000

Accounts receivable 112,000 108,000

Increase in accounts receivable 4000

Inventories 105,000 93,000

inventory increased 12000

Prepaid expenses 4,500 6,500

decreased Prepaid expenses -2000

Accounts payable (merchandise creditors) 75,000 89,000

accounts payable decreased -14000

It depends on the account if it is added or subtracted to net income. Below you will find the added account with a plus (+) and the subtracted ones with a minus (-)

Net income 295.000

Adjustment to reconcile the net income to cash

+ Depreciation expense 40.000

+ amortization of patents 5.000

- Decrease in cash (10.000)

- Increase in accounts receivable (4.000)

- inventory increased (12.000)

+  decreased Prepaid expenses  2.000

- accounts payable decreased (14.000)

 

Net cash 302.000

8 0
3 years ago
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