Reference no: EM132056589
Question - On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to below as "Asset A," and Wiggins' is referred to as "Asset B." The following facts pertain to these assets.
Asset A -
Original Cost $96,000
Accumulated Depreciation (to date of exchange) $40,000
Fair Value at date of exchange $60,000
Cash paid by Hyde, Inc $15,000
Asset B -
Original Cost $110,000
Accumulated Depreciation (to date of exchange) $47,000
Fair Value at date of exchange $75,000
Cash paid by Hyde, Inc $15,000
Instructions:
(a) Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles.
(b) Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles.
|
Understanding of the industry
: Is it better to have risk management experience or an understanding of the industry?
|
|
Regional pizza restaurant chain
: Assume you have just been hired as a business manager of Bernie’s Pizza Plaza a regional pizza restaurant chain. Compute the value of the firms’ stock.
|
|
Write a biographical sketch explaining what you see
: Write a biographical sketch explaining what you see as his most notable actions and character traits that impacted Western civilization.
|
|
Primary means of estimating future losses
: In the 1990s, insurance companies and risk managers shifted away from historical losses as the primary means of estimating future losses.
|
|
Record the exchange for both hyde inc and wiggins inc
: Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc.
|
|
Primary investment objective is generating income
: Jerry, age 72, is retired. Jerry's primary investment objective is generating income. Based on the results of Jerry's risk tolerance questionnaire
|
|
Ways of improving existing products or finding new products
: Typically, a firm has what kind of department that searches for ways of improving existing products or finding new products?
|
|
Profit maximizing output level
: If the inverse demand curve a monopoly faces is p=100 -2Q, and MC is constant and always equal = 16, then at the profit maximizing output level
|
|
How might a recession combined with a financial crisis
: How might a recession combined with a financial crisis, as occurred in 2008-2009, complicate the job of policy makers?
|