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N76 [4]
2 years ago
8

China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave equipment. The fair value and book

value of the equipment were $22,000 and $12,000 (original cost of $45,000 less accumulated depreciation of $33,000), respectively. To equalize market values of the exchanged assets, China Inn paid $9,000 in cash to Midwest Chicken. At what amount did China Inn record the delivery truck? How much gain or loss did China Inn recognize on the exchange?
Business
1 answer:
m_a_m_a [10]2 years ago
4 0

Answer:

$31,000; $10,000

Explanation:

Given that,

Fair value of the equipment = $22,000

Book value of the equipment = $12,000

Original cost of the equipment = $45,000

Accumulated depreciation = $33,000

Fair value of delivery truck:

= Cash paid to Midwest Chicken for delivery truck apart from equipment + Fair value of equipment sold in exchange

= $9,000 + $22,000

= $31,000

Gain recognize on exchange:

= Fair value of equipment given in exchange - Book value of equipment

= $22,000 - $12,000

= $10,000

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Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: D0 =
Illusion [34]

Answer:

9.5%

Explanation:

The formula to compute the cost of common equity under the DCF method is shown below:

= Current year dividend ÷ price + Growth rate

In first case,  

The current dividend would be  

= Last year dividend + last year dividend × growth rate

= $0.80 + $0.80 × 8%

= $0.80 + $0.064

= $0.864

The other things would remain the same

So, the cost of common equity would be

= $0.864 ÷ $57.50 + 8%

= 0.015026 + 0.08

= 9.5%

6 0
2 years ago
Which of the following is NOT part of a successful quality​ strategy?
Romashka-Z-Leto [24]

Answer:

D. Minimize quality costs throughout the organization

Explanation:

  • A quality strategy is part of the organization's strategy to maintain quality standards and to maintain productivity at a higher significance level.
  • For the same various companies have a TQM total quality management systems in place that checks the quality must be maintained as a standard, the company must be aware and must show the participation in its implementation, must be of least cost and rewarding in nature.
  • Thus to build or forester an organization's culture of quality and to engage all employees in building these principles through a well-maintained standard of the organization.
7 0
1 year ago
Bob owns a warehouse that is used in business while rebecca owns land. bob exchanges the warehouse for the​ land, which will be
strojnjashka [21]
<span>A. Compute Bob's realized gain (loss) on the exchange. $320,000 + $40,000 + $80,000 = $440,000 - that is selling price $440,000 - $240,000(basis) = $200,000 - that is realized gain B. Compute Bob's taxable recognized gain. $200,000 / $440,000 = 45.45% ($40,000 + $80,000) * 45.45% = $54,544 C. Compute Bob's basis in the land. $(440,000-120,000) / $440,000 = 72.72% $240,000 * 72.72% = $174.545</span>
5 0
2 years ago
Gaur sells Jensen equipment under an arrangement whereby Gaur delivers the equipment on January 1, 2021 and receives payment on
S_A_V [24]

Answer:

B. Credit to sales revenue

Explanation:

As per revenue recognition principle, revenue should be recognized when it is earned and not when cash is received.

As per accrual basis of accounting, revenue is to be recognized when the ownership of the goods has been passed by the seller to the buyer and there is reasonable assurance that payment would be received.

When a sale is effected and goods are delivered with reasonable certainty that payment would be received, following journal entry is recorded:

Accounts Receivable A/C                                Dr.

     To Sales Revenue

(Being equipment sold recorded)

5 0
2 years ago
A 480 item pencil and paper standardized test of 20 personality dimensions used in selecting managers, sales associates and lead
11111nata11111 [884]

Answer:

Hogan Personality Inventory

Explanation:

The Hogan Personality Inventory (HPI) is commonly used to predict job performance by measuring normal personality dimensions. It is specially used to measure certain specific traits and abilities: leadership and planning. It is based on the Five-Factor Model and was specifically developed for working adults in the business industry.  

It is part of the Hogan Assessment tests used to predict job performance.

6 0
2 years ago
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