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
I believe it is 75? I may be incorrect
A memo is a short written type of communication used in formal organizations. Memos should begin with a clear and to the point purpose statement. It is usually recommended that they do not exceed one page in length. A paragraph in a memo should not be longer than three to four sentences.
It is a modification is started by the acquirer to redress a preparing mistake. The mistake could be a duplication of an exchange or the consequence of a cardholder question. The acquirer charges or credits the dealer DDA represent the dollar measure of the modification.
Answer:
Net profit is more important.
Explanation:
Gross profit is the difference between revenue and costs of goods sold, which means you can have a positive gross profit but still because of other costs not be profitable. Whereas Net profit is the bottom line or profit after all the costs have been deducted from revenue. Net profit is more important because it takes into account all the costs and how much money the company is left with after all its expenditures where as gross profit only measures the difference between cost of goods sold and revenue. A company may have high gross profit because of low cost of goods sold but its interest payments maybe too high because of which it might not be making any net profit, so we cannot conclude much about success and profitability by only looking at gross profit.
