Southern company owns a building that it leases to others. the building’s fair value is $2,150,000 and its book value is $1,400,000 (original cost of $2,750,000 less accumulated depreciation of $1,350,000). southern exchanges this for a building owned by the eastern company. the building’s book value on eastern’s books is $1,550,000 (original cost of $2,350,000 less accumulated depreciation of $800,000). eastern also gives southern $215,000 to complete the exchange. the exchange has commercial substance for both companies.

required:
prepare the journal entries to record the exchange on the books of both southern and eastern. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)

Pressure systems, inc., manufactures high-accuracy liquid-level transducers. it is investigating whether it should update certain equipment now or wait to do it later. if the cost now is $200,000, what will the equivalent amount be 3 years from now at an interest rate of 10% per year?

In general, as long as the number of firms that possess a particular valuable resource or capability is less than the number of firms needed to generate perfect competition dynamics in an industry, that resource or capability can be considered and a potential source of competitive advantage. answers: valuablerareinimitableun-substituta ble

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.