Answer:
$72
Explanation:
To calculate the weighted contribution margin we can use the following formula:
[(sales price A - variable cost A) x proportional sales A] + [(sales price B - variable cost B) x proportional sales B]
= [($200 - $120) x 80%] + [($100 - $60) x 20%] = $64 + $8 = $72
Answer: $30,000
Explanation:
In accounting, the treatment of the Sale and Operating Leaseback operation is such that a gain is only recognized if the sales price is more than the fair value. In such a case the difference between the fair value and the carrying price is considered the Gain on Sale.
The Difference between the sales price and the fair value is to be amortized over the period of use.
Seeing as the selling price is more than the fair value, the Gain on Sale is therefore,
= Fair Value - Carrying Value
= 310,000 - 280,000
= $30,000
$30,000 is the amount of gain on sale of the property recognized by Alla on January 1, Year 1.
Answer:
D: $259,000
Explanation:
The computation of the paying amount which borrower can pay for a property is shown below:
= Mortgage loan amount for borrow ÷ loan-to-value ratio
= $220,000 ÷ 85%
= $258,823.53
= $259,000 round off
We simply divide the mortgage loan by the loan to value ratio so that paying amount could arrive which borrower can pay for a property.
