Peter Owns the Train Store Which He Is Trying to Sell

question 56

Multiple Choice

Peter owns The Train Store which he is trying to sell so that he can retire and travel. The Train Store owns the building in which it is located. This building was built at a cost of $427,000 and is currently appraised at $575,000. The display counters and fixtures originally cost $87,000 and are currently valued at $49,000. The inventory is valued on the statement of financial position at $289,000 and has a retail market value equal to 1.4 times its cost. Peter expects the store to collect 97 % of the $48,041 in accounts receivable. The firm has $11,200 in cash and has total debt of $167,400. What is the market value of this firm?

• A) $771,000
• B) $907,800
• C) $919,000
• D) $945,800
• E) $957,000

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Definitions:

Challenges

Difficulties or obstacles that require effort and determination to overcome.

Perceived Inequity

The feeling or belief that the fairness of one's treatment in comparison to others is lacking.

Tension

A mental or emotional strain, often resulting from challenging or demanding circumstances.

Herzberg's Motivator

Factors identified by Frederick Herzberg that increase job satisfaction and motivation among employees, such as achievement, recognition, and personal growth.