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Assoli18 [71]
2 years ago
6

Wolf Computer exchanged a machine with a book value of $40,000 and a fair value of $45,000 for a very similar machine. In additi

on, Wolf paid $6,000 as part of the exchange. Wolf should recognize:
Business
1 answer:
fgiga [73]2 years ago
6 0

Answer:

gain of $5,000

Explanation:

Wolf's gain = fair market value - book value = $45,000 - $40,000 = $5,000

a company must determine the gain or loss of an exchange transaction using the asset's book value and comparing it against its fair market value. If the FMV is higher than the book value, the company will recognize a gain. If the FMV is lower than the book value, then the company will recognize a loss.

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Good Guy Foods wants to establish a trust fund that will provide $125,000 in scholarships each year for needy students. The trus
andrew-mc [135]

Answer:

Good Guy Foods

The amount that the firm needs to contribute to the fund, assuming that only the interest income is to be distributed is:

d. $1,724,138

Explanation:

a) Data and Calculations:

Distributable Trust Fund = $125,000

Rate of interest or return = 7.25%

The distributable trust fund is a product of total trust fund multiplied by the rate of return.

The total trust fund = $125,000/7.25%

= $125,000/0.0725

= $1,724,138

Check:

7.25% of $1,724,138 = $125,000

b) Good Guy Foods needs to contribute $1,724,138 in funds that will earn 7.25% annually and equal the scholarship amount of $125,000 annually.

5 0
2 years ago
Suppose that the market for candy canes operates under conditions of perfect competition, that it is initially in long-run equil
vova2212 [387]

Answer:

Positive economic profit

Explanation: In the economic profit, we have to consider the revenue earned and the cost of production including the opportunity cost. In the scenario above, the economic profit is positive, because, the average and marginal cost falls by $0.15 at a time when the sales price of the product is $0.20. The economic profit here is positive, due to the further reduction in the marginal and average price of an important material in the production process. In this scenario, due to positive economic profit, the New firms are attracted to the market.

6 0
3 years ago
Suppose the country of Lilliput exported $205 billion worth of goods and imported $449 billion worth of goods in the last calend
mart [117]

Lilliput's net exports are ($244 billion).  Therefore, Lilliput is running a trade deficit of $244 billion.

A trade surplus implies that Lilliput's exports are greater in value than its imports. A situation of <em>"neither a trade deficit nor a trade surplus"</em> exists when the exports are equal in value to the country's imports.

Data and Calculations:

Lilliput's exports = $205 billion

Lilliput's imports = $449 billion

Net exports for Lilliput = ($244 billion)

Thus, Lilliput is running a trade deficit of $244 billion because its imports <em>are worth more than its </em><em>exports.</em>

Learn more: brainly.com/question/25520478

4 0
2 years ago
The SOC categorizes occupations according to _____.
Solnce55 [7]

similar occupations in different industries require similar skills.

Hope it helps


3 0
3 years ago
because research is blank______, it is important to figure out beforehand exactly what problem needs to be solved.
KonstantinChe [14]

Expensive and time consuming, it is important to figure out beforehand exactly what problem needs to be solved.

Research expense must be budgeted before it is incurred so that the cost is available to be borne by the company.

<h3>What is research?</h3>

Research is expense carried by the company to develop a new product if the research meet the criteria it is capitalize as intangible and it will be amortize over its useful life once the development is available for use otherwise it will expense out in profit and loss statement.

#SPJ12

Learn more about research brainly.com/question/27899054

7 0
2 years ago
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