Metro Auto Parts recently traded in store fixtures
The exchange had commercial substance. The old fixtures had a cost of $47,000 and accumulated depreciation of $15,000. Metro paid $102,000 for the new store fixtures. These new fixtures had a market value of $120,000. There is a loss of $14,000 on this exchange.
Indicate whether the statement is true or false
TRUE .Market value of assets received: $120,000
Less:
Book value of asset exchanged $32,000
Cash paid 102,000 134,000
Loss ($14,000 )
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a. warehouse b. shipping department c. billing department d. inventory control department
What is the maximum number of tiles in inventory under the current policy? Under the optimal policy?
Non-Slip Tile Company (NST) has been using production runs of 100,000 tiles, 10 times per year to meet the demand of 1,000,000 tiles annually. The setup cost is $5000 per run, and holding cost is estimated at 10% of the manufacturing cost of $1 per tile. The production capacity of the machine is 500,000 tiles per month. The factory is open 365 days per year.
In the chapter, the lease versus buy decision was called an unfair comparison. Why? What is the correct comparison?
What will be an ideal response?
On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds of $396,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the second interest payment is:
A. $396,400. B. $399,800. C. $400,000. D. $395,800. E. $396,200.