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Sliva [168]
2 years ago
8

Land originally purchased for $28,390 is sold for $74,057 in cash. What is the effect of the sale on the accounting equation

Business
1 answer:
Elodia [21]2 years ago
8 0

There is no effect on the accounting equation.

<h3>What is accounting equation?</h3>

Accounting equation is the one which states that a company's total assets are equal to the sum of its liabilities and its shareholders' equity.

Assets = owner's equity + liability

The above means that land is not depreciated, therefore assets decrease (-land) but also increase (+cash).

The elements of accounting equation are :

  • Assets
  • Liabilities
  • Shareholders' equity.

Learn more about account equation here: brainly.com/question/24401217

You might be interested in
The primary purpose of _________ behaviors is to enhance employees’ skills and to create positive work relationships among cowor
LiRa [457]

Answer:

relationship-oriented

Explanation:

The relationship oriented refers to building a good relation with the employees so that they gets the motivation that results the improvement in their work by giving their best effort to complete a task

Here, to enhance the employees skills and building a positive relation among coworkers represents the relationship-oriented and the same is to be considered

5 0
3 years ago
stock that has a current price of $25.00, a beta of 1.25, and a dividend yield of 6%. If the Treasury bill yield is 5% and the m
photoshop1234 [79]

Answer:

$30.2067

Explanation:

From the given question, using the dividend discount model

V_0 = \dfrac{D_1}{r - g}

where:

r is the Expected return on stock and be calculated as:

Expected return on stock = Risk free rate + Beta × (Expected Market Return - Risk free rate)

Expected return on stock = 5% + 1.25 × (14% - 5%) = 16.25%

However, the current price in this process will b used as the dividend price for all future expenses.

Dividend Yield = Current Dividend/The Share Price

Current dividend D0 = 6% × $25.00 = $1.50

D₁ = D₀ × (1 + g)

D₁ = 1.5 × (1 + g)

Thus, we can now employ the use of the growth dividend model (constant) to determine the value of g as follows:

25 = \dfrac{1.5 \times (1 + g)}{0.1625 - g}

By cross multiply, we have:

4.0625 - 25g = 1.5 + 1.5g

collect like terms, we have:

4.0625 - 1.5 = 1.5g + 25g

2.5625 = 26.5g

Divide both sides by 26.5, we have:

2.5625/26.5 = 26.5g/26.5

g = 9.67%

Similarly, suppose the value for the second year-end to be Y₂;

Then the constant growth dividend model can be computed as:

Y_2 = \dfrac{D_3}{r - g}

where;

D₃ = D₂ × (1 + g)

D₂ × (1 + g) = D₁ × (1 + g) × (1 + g)

D₁ × (1 + g) × (1 + g) = D₀ × (1 + g) × (1 + g) × (1 + g)

D₁ × (1 + g) × (1 + g) = D₀ × (1 + g) × (1 + g) × (1 + g)  = D₀ × (1 + g) × 3

D₃ = 1.5 × (1 + 9.67%) × 3

D₃ = $1.9876

Finally:

Y_2 = \dfrac{D_3}{r - g}

Y_2 = \dfrac{1.9876}{0.1625 - 0.0967}

Y₂ = $30.2067

7 0
3 years ago
(Advanced analysis) The following equations give information for a private open economy.
loris [4]

Answer: Trade Deficit ($10 Billion).

Explanation:

C=40+0.8Y

Ig=$40 billion

X=$20 billion

M=$30 billion

where,

Y - GDP

C - Consumption

Ig - Gross investment

X - Exports

M - Imports

Balance of trade or Trade balance = Exports - Imports

Since, Imports are greater than the exports, so the nation is experiencing a trade deficit.

Trade deficit = Imports - Exports

= $30 - $20

= $10 billion

6 0
3 years ago
the yellow company has a current ratio of 2.65 . The acid test ratio is 2.01 . The current liabilities of the are company $45,00
ivann1987 [24]

Answer:

Amount of inventory = $28,800

Explanation:

Given:

Current ratio = 2.65

Acid test ratio = 2.01

Current liabilities = $45,000

Prepaid expenses = $0

Find:

Amount of inventory

Computation:

Current ratio = Current assets / Current liabilities

2.65 = Current assets / 45,000

Current assets = $119,250

Acid test ratio = [Current assets - Inventory - Prepaid expenses] / Current liabilities

2.01 = [119,250 - Inventory - 0] / 45,000

90,450 =119,250 - Inventory

Amount of inventory = $28,800

5 0
3 years ago
Which of the following are considered characteristics of money? I. Portable II. Uniform III. Divisible IV. Acceptable a. I and I
pogonyaev

All options are considered characteristics of money. So the right option is E

Explanation:

Money is characterised by durability portability, divisibility, uniformity, limited supply, and acceptability.

Two representations of alternative forms of money can be compared:

  • A cow In various points in history, cattle were used as currency.
  • A stack of US$ 20 bills equal to one cow's worth.

1) Durability: A cow is quite safe, but a long journey on the market threatens the cow being sick or dead and can seriously reduce its worth.

2) Portability: Although the cow is hard to move to the market, it can easily be put into my pocket.

3) Divisibility: A 20-dollar bill can be exchanged for other denominations, say a 10, a 5, four 1s, and 4 quarters. A cow, on the other hand, is not very divisible.

4) Uniformity: Cows come in various sizes and shapes, with a different value for each; cows are not very standardized.

5) Limited supply: Money must have a limited supply to sustain its worth. Although cows are quite limited in supply, if they are used as income, ranchers should make every effort to increase the supply of cows that decreases their value. The Federal Reserve controls the rule and thus the interest of 20-dollar notes— and the currency as a whole— so that the money keeps the value over time.

6) Acceptability: Although the worth of cows is intrinsic, some might not consider bovine animals as property. Men, however, are more than willing to accept bills worth 20 cents. In fact, your right to use US currencies to settle bills is protected by the US government.

8 0
3 years ago
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