Que Horton Stores exchanged land and cash of $4,400 for similar land. The book value and the fair value of the land were $90,000 and $100,400, respectively. Assuming that the exchange has commercial substance, Horton would record land-new and a gain/(loss) of: Table 1-59 Land Gain/Loss A. $ 94,400 $ 10,400 B. $1,04,800 $0 C. $ 94,400 $0 D. $1,04,800 $ 10,400 Caption
Q: Tutor help
A: When calculating depreciation for a piece of equipment using the double-declining balance (DDB)…
Q: 5-3: Today is January 2, 2022, and investors expect the annual nomination risk-free interest rates…
A: Yield to Maturity for a Two-Year Bond (maturing at the end of 2022)For a two-year bond maturing at…
Q: I am looking at the yield curve and under the pure expectations theory, I want to find out what are…
A: Detailed explanation: Understanding the Problem: Forward Rates under Pure Expectations TheoryThe…
Q: Which of the following represents the time value of money concept? a) Money today is worth more than…
A: Explanation of Time Value of Money:The time value of money (TVM) is a financial concept that…
Q: ??
A: Here's the step-by-step breakdown of how to calculate the monthly amortization payment for the loan:…
Q: please solve step by step
A: Step 1: Future Value of Cash Flow After 1 YearYou receive $100 at the end of 1 year and reinvest it…
Q: Please correct answer and don't use hand rating
A: 1. The yield to maturity is always equal to the coupon rate.The yield to maturity (YTM) is only…
Q: Rebecca would like to set up an account to supplement her parents’ retirement income for the next 15…
A: The problem involves the determination of the present value of annuity. Present value refers to the…
Q: General Accounting Question Solution
A:
Q: How does the Arbitrage Pricing Theory (APT) differ from and complement the Capital Asset Pricing…
A: Explanation of CAPM:The Capital Asset Pricing Model (CAPM) is a financial theory that explains the…
Q: None
A: Current expected earnings: $100,000Growth rate without new investment: 6%New investment cost:…
Q: Problem 4-27 (Algo) Percent-of-sales method [LO4-3] Owen’s Electronics has nine operating plants in…
A: First, we need to calculate the projected sales for next year. This is done by increasing the…
Q: Suppose you purchase a 10-year bond with 5% annual coupons. You hold the bond for four years and…
A: You acquired a 10-year bond with a 5% yearly yield and kept it for four years, selling it soon after…
Q: You purchase 100 shares of a stock at $50 per share and sell them one year later for $60 per share.…
A: Explanation of Initial Investment:The initial investment is the total amount of money spent to…
Q: You currently own 6 percent of the 3 million outstanding shares of Webster Mills. The company has…
A: Part 1: Ownership Position After Rights Offering1. Initial Ownership: - You own 6% of 3,000,000…
Q: None
A: Based on the information provided, I'll calculate Apple Inc.'s Free Cash Flow (FCF) for the fiscal…
Q: How does the increasing prevalence of high- frequency trading (HFT) systems employed by Goldman…
A: Explanation of High-Frequency Trading (HFT):HFT refers to the use of complex algorithms and advanced…
Q: None
A: Basic EPS = Earnings available to common shareholders / Weighted average number of common shares…
Q: To get the worst case scenario, we assign the least favorable value to each item. This means to…
A: In finance, a worst case scenario is a concept in risk management wherein the planner, in planning…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: Step 1: Let's break down the given information: Current date: October 25, 2020Issue date: July 1,…
Q: Help
A: An independent appraiser has valued the land at $2,000,000. This is considered the fair value of the…
Q: If a bond with a face value of $1,000 pays an annual coupon of $50 and is currently selling for…
A: Explanation of Face Value:Face value, also known as par value, is the amount the bond issuer agrees…
Q: Answer this question correctly
A: First Part: Number of Shares OutstandingTotal shares issued: 65,000 sharesShares reacquired…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: Approach to solving the question: I choose formula that suitable for the question being ask .
Q: fine
A: Step 1: Understand the ComponentsInterest Expense (Current Year):The company currently pays $110…
Q: Thanks for your help
A: For the first question about RST Company:RST Company issues common stock for $80,000 cash, and…
Q: Your insurance company is considering different strategies. Among the options that are being con-…
A: The Macaulay duration is a measure of a bond's sensitivity to interest rate changes. It is the…
Q: Look for two (2) problems or issues in the Banking & Financial Services sector. Conduct a…
A: After a thorough review of various resources, two significant problems in the Banking &…
Q: For each of the following, compute the present value: Note: Do not round intermediate calculations…
A: To compute the present value for each future value given the years and interest rates, we can use…
Q: You must use formulas and cell references PV of Payments when computing all values in the green…
A: Problem 1b: Calculate the Expected Price Change Step 1: Use the Duration Approximation Method The…
Q: ABC IS AN ALL-EQUITY FIRM THAT HAS 43,240 SHARES OF STOCK OUTSTANDING AT A MARKET PRICE OF $15.97…
A: Explanation of Debt Issuance:Debt issuance is the process of borrowing funds through instruments…
Q: please show how to solve this in excel and please show the formulas needed Two years ago, you…
A: Step 2: Monthly Mortgage Payment for Original LoanTo calculate the monthly payment for the original…
Q: The table below shows the time to maturity for 3 bonds, a 2-year, 3-year, and 5-year. Each annual…
A: So, the estimated percent changes in bond prices for a 10 basis point increase in interest rates…
Q: Which one of the following types of analyses is the most complex to conduct? Multiple Choice…
A: a. Scenario AnalysisScenario analysis involves examining future events by considering alternative…
Q: Advise BB Limited which project they should undertake, showing your calculations and assumptions…
A: With a positive Net Present Value (NPV) of $6,470,576 for the South African growth project, BB…
Q: Suppose a 10-year, $1,000 bond with a coupon rate of 8.5% and semiannual coupons is trading for…
A: Given:Coupon rate: 8.5% (annual, but semiannual payments mean 4.25% per period)Bond Price:…
Q: Please correct answer and don't use hand rating
A: To calculate the Yield to Maturity (YTM) and Yield to Call (YTC) for the bond, we need to use the…
Q: Helpp
A: Question: 1Explanation of Double-Declining Balance (DDB) MethodThe DDB method is an accelerated…
Q: If you invest $5,000 at an annual compound interest rate of 6% for 2 years, what will be the final…
A: Step 1: Identify the formula to be usedFormula for compounded interestF = P * (1 + r/n)ntwhere:F =…
Q: Please correct answer and don't use hand rating
A: Part B) The stock's expected can be calculated with the use of following formula:Expected Return =…
Q: Correct answer with Explanation (General Finance)
A: Explanation of Stocks:Stocks represent ownership in a company. When you purchase a stock, you become…
Q: A project has an initial cost of $72,000 and will produce positive net income for four years. The…
A: The Average Accounting Return (AAR) is typically calculated as the average net income divided by the…
Q: You are an employee of University Consultants, Limited, and have been given the following…
A: The first step is to calculate the loan amount. The loan amount is 70% of the asking price of the…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: The monthly payment for a $220,000 home would be $1,366.67 with a 20% down payment, a 15-year…
Q: Compute how much money you need to invest today in order to be able to have retirement income of…
A: FormulaThe present value of an annuity formula is:PV = PMT * [1 - (1 + r)^(-n)] / rWhere:PV =…
Q: Suppose you own 100 shares of IBM stock which you intend to sell today. Since you will sell it in…
A: The secondary market is where investors buy and sell securities they already own. It is what most…
Q: Suppose the interest rate is 4% and a 1-year bond with face value $1000 is priced at $975. If you…
A: Short selling is an investment strategy that speculates on the decline in a stock's price. If an…
Q: Gulf Shores Inn is comparing two separate capital structures. The first structure consists of…
A: Gulf Shores Inn is considering two distinct funding options for its business. While the second…
Q: ase Study Research: Your team has been hired to conduct academic research on a financial institution…
A: c. Once the review has been completed, your team has been mandated to provide at least five…
Q: CALCULATE CASH FLOW TO STOCKHOLDERS
A: Here is a breakdown of the calculations for cash flow to stockholders:Dividends:Dividends in FY24 =…
Please need answer the finance question
Step by step
Solved in 2 steps
- Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively. Assuming that the exchange has commercial substance, Horton would record land—new and a gain/(loss) on exchange of assets in the amounts of: Land Gain/(loss) a. $ 105,000 $ 0 b. $ 105,000 $ 10,000 c. $ 95,000 $ 0 d. $ 95,000 $ 10,000 Multiple Choice Option A Option B Option C Option D19I want correct answer
- Provide solution for this problemA company exchanged land and cash of $4,000 for similar land. The book value and the fair value of the land were $89,900 and $100,600, respectively. Assuming that the exchange has commercial substance, the company would record land-new and a gain on exchange of assets in the amounts of: a. b. C. d. Land $ 104,600 $ 104,600 $ 93,900 $ 93,900 Multiple Choice O O Option a. Option b. Option d. Option c. Gain $10,700 $ 10,700Bloomington Inc. exchanged land for equipment and $2,600 in cash. The book value and the fair value of the land were $105,500 and $89,100, respectively.Assuming that the exchange has commercial substance, Bloomington would record equipment and a gain/(loss)on exchange of assets in the amounts of: Equipment Gain/(loss) a. $ 86,500 $ 2,600 b. $ 105,500 $ (2,600 ) c. $ 86,500 $ (16,400 ) d. None of these answer choices are correct. Option C Option D Option A Option B
- Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $520,000 and a fair value of $740,000. Kapono paid $54,000 cash to complete the exchange. The exchange has commercial substance. Required: What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? Assume the fair value of the farmland given is $416,000 instead of $740,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? Assume the same facts as Requirement 1 and that the exchange lacked commercial substance. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? Assume the same facts as Requirement 2 and that the exchange lacked commercial substance. Assume the fair value of the farmland given is $416,000 instead of $740,000. What is the amount of gain or loss that…Peanut Corporation exchanged land and cash of $6,500 for equipment. The land had a book value of $45,000 and a fair value of $34,000. Assume the exchange has commercial substance.Required:Prepare the journal entry to record the exchange.The Bronco Corporation exchanged land for equipment. The land had a book value of $138,000 and a fair value of $186,000. Bronco pald the owner of the equipment $28,000 to complete the exchange whlch has commercial substance. Required: 1. What Is the falr value of the equipment? 2. Prepere the Journal entry to record the exchange. Answer Is complete but not entirely correct. Complete thls question by entering your answers In the tabs below. Required 1 Required 2 Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit Equipment - new Land - new 1 214,000 138,000 Cash 28,000 Gain on exchange of assets 48,000
- amount of P650,000 and a fair value P500,000. any exchanged a delivery truck costing Bronze Co P1.000,000 for a parcel of land. The truck had a carrying a The entity gave P600,000 in cash in addition to the truck as part of this transaction. It is expected that the cash flows from the assets will be significantly different. The previous owner of the land had listed the land for sale at P1,200,000. At what amount should Bronze record the land? a. 1,100,000 b. 1,250,000 c. 1,150,000 d. 1,200,000Two construction companies, Harglo and Kalman, are in the construction business. Each owns a tract of land being held for development, but each company would prefer to build on the other's land. Accordingly, they agree to exchange their land, and have the following information: Harglo's Kalman's Land Land Cost and book value $150,000 $100,000Fair value based upon appraisal $200,000 $160,000 The exchange of land was made, and, based on the difference in appraised fair value, Kalman paid $40,000 cash to Harglo. 3. For financial reporting purposes, Harglo would recognize a gain on this exchange in the amount ofa. $0b. $6,000c. $10,000d. $40,000 4. For financial reporting purposes, Kalman would recognize a gain on this exchange…Two construction companies, Harglo and Kalman, are in the construction business. Each owns a tract of land being held for development, but each company would prefer to build on the other's land. Accordingly, they agree to exchange their land, and have the following information: Harglo's Kalman's Land Land Cost and book value $150,000 $100,000Fair value based upon appraisal $200,000 $160,000 The exchange of land was made, and, based on the difference in appraised fair value, Kalman paid $40,000 cash to Harglo. For financial reporting purposes, Harglo would recognize a gain on this exchange in the amount of $6,000 After the exchange, Harglo would record its newly acquired land on its books ata. $120,000b. $102,000c. $136,000d. $166,000
