Business, 30.11.2019 05:31 asianpatriot7375

Xcompany and y company, operating on opposite sides of the country, manufacture equipment that is virtually identical except for a higher grade of metal used by x company. as a result, the costs and fair values of one piece of equipment to x and y are: cost fair market value x company $ 75,000 $ 105,000 y company $ 65,000 $ 91,000 x company received an order from a customer in y’s state and y received an order from a customer in x’s state. in a transaction that lacks commercial substance, to avoid the cost and effort of shipping the equipment across the country, x and y exchanged equipment and, essentially, x shipped to y’s customer and vice versa. due to the difference in metals, however, y paid x $14,000 in cash.
how much profit will x company recognize as a result of the exchange?
$0
$4,000
$14,000
$30,000

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 17:10, hartzpeyton136

Which term refers to the amount of products generated divided by the inputs necessary to create that output? a. performance b. industry ranking c. productivity d. organizational performance e. organizational effectiveness

Answers: 1

continue

Business, 22.06.2019 03:20, limelight11

Yael decides that she no longer enjoys her job, and she quits to open a gluten-free, dairy-free kosher bakery. she pays a monthly rent for her store of $2,000. her labor costs for one month are $4,500, and she spends $6,000 a month on nut flours, sugar, and other supplies. yael was earning $2,500 a month working as a bank teller. these are her only costs. her monthly revenue is $14,000. which of the following statements about yael’s costs and profit are correct? correct answer(s) an accountant would say she is earning a monthly profit of $1,500. her implicit costs are $2,500 a month. an economist would tell her that she is experiencing a loss. her total costs are $12,500 a month. her explicit costs include the labor, rent, and supplies for her store. her economic profit is $1,500 a month.

Answers: 3

continue

Business, 22.06.2019 17:40, lukecoupland4401

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.

Answers: 3

continue

Business, 22.06.2019 18:30, saneayahsimmons

What historical context does wiesel convey using the allusion of a fiery sky? he compares the sky to hell. the fires from air raids during world war ii the cremation of jews in the concentration camps the outbreak of forest fires from bombs in world war ii

Answers: 1

continue

You know the right answer?

Xcompany and y company, operating on opposite sides of the country, manufacture equipment that is vi...