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Use the Following Company Information to Prepare a Schedule of Significant

question 69

Essay

Use the following company information to prepare a schedule of significant noncash investing and financing activities:
(a) Sold a building with a book value of $300,000 for $225,000 cash and sold land with a book value of $40,000 for $65,000 cash.
(b) Issued 15,000 shares of $10 par value common stock in exchange for equipment with a market value of $175,000.
(c) Retired a $100,000, 8% bond by issuing another $100,000, 7% bond issue.
(d) Acquired land by issuing a twenty-year, 5%, $73,000 note payable.

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Definitions:

Consumer Tastes

Preferences and inclinations of consumers towards certain products, brands, or services, often influenced by cultural, social, and personal factors.

Price-inelastic

Describes a market situation where the quantity demanded of a product does not change significantly when its price changes.

Price-sensitive

Refers to the degree to which the demand for a product or service is affected by changes in its price.

Unitary-elastic

A demand or supply situation where the percentage change in quantity demanded or supplied is exactly equal to the percentage change in price.

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