Answer:
Everyone involved in the transaction
Explanation:
As an agent of the seller, the broker has a fiduciary duty with the seller (principal) to act of behalf of his/her best interest.
But the broker must also act honestly with the buyer, if the broker closes a deal using dishonest or unfair practices, e.g. forging documents, then the buyer might claim damages from both the broker and the seller.
And of course the broker should also make sure that his/her own rights are respected and his/her work is properly paid.
Answer:
1)
Some of the major reasons why Garden Haven might to choose to either invest in debt or equity securities are as follows;
- They want to generate earnings. It is better to earn money from excess cash than keep it idle.
- They invest in debt or securities because they provide liquidity. Investments in debt or securities can be sold through exchange the day decision is taken to see and convert it cash
.
- To meet cyclical cash needs.
- They may have policies as regard to quantum of cash that can be kept
.
2)
In terms of classification, Garden Haven's investment falls in short term investments.
Investments made for a period less than a year are classified as short term investments. Investments made for longer than one year are classified as long term investments. Since Garden Haven is making this investment for four months, this is be classified as short term investment.
Answer:
1350
Explanation:
(300 x 0.70) + (300 x 0.80) + (300 x 26)
= 210+240+7800
=8250
8250- (300 x 23)
8250-6900 = $1350
Therefore his total return for this investment is 1350
Answer and Explanation:
The computation is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($52,000 - $8,000) ÷ (4 years)
= ($44000) ÷ (4 years)
= $11,000
In this method, the depreciation is same for all the remaining useful life
a. The depreciation expense for 2019 is $11,000
b. The depreciation expense for 2020 is $11,000
c. The accumulated depreciation for year 2019 is $11,000
d. The accumulated depreciation for year 2020 is $22,000 ($11,000 + $11,000)
e. The book value is
= Original cost - accumulated depreciation
= $52,000 - $22,000
= $30,000
