Business, 22.09.2020 14:01 luischavolla10

Lester Company transferred the following assets to a newly created subsidiary, Mumby Corporation, in exchange for 40,000 shares of its $3 par value stock: Cost Book Value
Cash $40,000 $40,000
Accounts Receivable 75,000 68,000
Inventory 50,000 50,000
Land 35,000 35,000
Buildings 160,000 125,000
Equipment 240,000 180,000
The following are the answers for Depreciation - how did they come up with those answers, if the questions doesn't give you more details?
Accumulated depreciation-Buildings 35,000
Accumulated depreciation-Equipment 60,000

Answers: 2

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Answers

Answer from: minecraftpro64p7t123

Lester Company

The accumulated depreciation amounts for buildings $35,000 and for equipment $60,000 were obtained as the differences between the costs and the book values of the assets. The cost of a long-term asset is usually reduced to its book value by the total amount in the accumulated depreciation account. The accumulated depreciation account shows the progressive amounts set aside annually as a write-off of the asset, showing its use over the period in accordance with the accrual concept and matching principle. The accrual concept and matching principle require cost to be matched to the revenue it helps to generate.

Explanation:

Transferred Assets:

Cost Book Value Difference Explanation

Cash $40,000 $40,000 $0

Accounts Receivable 75,000 68,000 $7,000 (doubtful accounts)

Inventory 50,000 50,000 $0

Land 35,000 35,000 $0

Buildings 160,000 125,000 $35,000 (depreciation)

Equipment 240,000 180,000 $60,000 (depreciation)

Answer from: Quest

The answer should be a.

Answer from: Quest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

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Lester Company transferred the following assets to a newly created subsidiary, Mumby Corporation, in...

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