Below is information relative to an exchange of similar assets by Grand Forks Corp. Assume the exchange has commercial substance. Old Equipment Cash Book Value Fair Value Paid Case A $ 49,900 $ 60,700 $ 14,800 Case B $ 39,400 $ 35,900 $ 7,400 In Case A, Grand Forks would record the new equipment at:
Multiple Choice

$75,500.


$49,900.


$60,700.


$64,700.

Answers

Answer 1

If each transaction  of the company has commercial substances . Grand Forks Corp would record the new equipment at A : $75,500.

New  Equipment

Equipment are  fixed assets and this fixed assets add value to a company  although equipment tend to wear out or depreciate . On the other hand commercial substance  occur when a company or an organization experience change in their cash flow.

We would be making use of this formula to determine or find the amount  that the  company equipment should be recorded .

Equipment = Book value of the assets + Fair value paid for the assets

Where :

Book value of the assets = $69,700

Fair value paid for the assets = $14,800

Let plug in the formula so as to find the equipment the company recorded :

Equipment :

Equipment = $60,700 + $14,800

Equipment = $75,500

Therefore the company would have to  record the new equipment in the amount of $75,700 since the company has no commercial substance.

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Related Questions

A setting of Gregorian chant with one note per syllable is called:
A. Melismatic
B. Modal
C. Syllabic
D. Neumatic

Answers

Answer:

C. Syllabic

Explanation:

Syllabic (Medieval period) is a text set with one syllable per note.

C. (Syllabic) is your answer

Which symbol stands for a low range of notes?
A. Treble clef
B. Time signature
C. Bass clef
D. Key signature

Answers

Bass clef stands for a low range of notes.

What is a bass clef?Seven fundamental musical notes—A, B, C, D, E, F, and G—make up the chromatic scale.Each one stands for a certain pitch or frequency.As an illustration, the "middle" A note has a frequency of 440 Hz, while the "middle" B note has a frequency of 494 Hz.Clefs provide information on the variety of pitches that can be expressed on the staff lines.For high pitches, a treble clef is utilized, and a bass clef is used for low tones.The bass clef line notes in order from the bottom are G, B, D, F, and A.Some individuals recall this information using the mnemonic Good Boys Deserve Fudge Always.

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how light and dark value are used to create mood?

Answers

Answer:

light and dark values are used to create mood because values can have psychological influences on the brain and automatic emotional associations as well as being socially universal due to it often matching real life lighting and colors.

Explanation:

for example, if one were to create a joyful mood, they would create a bright scene with light and saturated or pastel values because often light symbolizes positive or energetic aspects, while dark values often symbolize negative, low energy, or simply moody feelings, like a picture of a cafe at night being much more mellow with its dark values compared to a brightly colored cafe at day.

Poverty is a deep and disturbing human condition that lingers on the edge of society, but it does not have to be your reality. What can you do to protect yourself and your family against poverty?

Answers

The thing  you can do to protect yourself and your family against poverty is: To work.

What is poverty?

Poverty is when a person cannot afford the basic things of life or when a person find it hard to put food on their tables.

Poverty can be eliminated and be prevented when your work hard and as well do not have  poverty mentality. A hard working person with determination will be able to overcome poverty and will be able to afford all the basic things of life.

Therefore by working hard can tend to protect someone from poverty.

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On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available:



Sales, January 1 through July 8 $ 697,000
Inventory, January 1 131,000
Purchases, January 1 through July 8 648,000
Gross profit ratio 20 %

What is the estimated inventory on July 8 immediately prior to the fire?

Multiple Choice

$221,400.


$557,600.


$129,600.


$222,600.

Answers

The estimated inventory on July 8 immediately prior to the fire is A. $221,400.

How is the estimated inventory determined?

The estimated inventory can be determined by first calculating the cost of goods sold from the gross profit margin.

The margin of the cost of goods sold to the sales is 80% (1 - 20%).  This margin is applied to the sales revenue to obtain the dollar value.

The cost of goods available for sale can be found using the beginning inventory plus purchases or the cost of goods sold and ending inventory.

Sales, January 1 through July 8 = $697,000

Inventory, January 1 = $131,000

Purchases, January 1 through July 8 = $648,000

Cost of goods available for sale =  (Purchases + Beginning Inventory)

= $779,000 ( $131,000 + $648,000)

Gross profit ratio = 20%

Cost of goods sold ratio = 80% (1 - 20%)

Cost of goods sold = $557,600 ($697,000 x 80%)

Cost of goods sold = Cost of goods available for sale - Ending inventory

Estimated ending inventory = Cost of goods available for sale - Cost of goods sold

= $221,400 ($779,000 - $557,600)

Thus, the ending inventory before the fire was $221,400.

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