A business model is a method of doing business by which a company can generate revenue to sustain itself

Ivan was interested in buying a 40 acre parcel of commercially zoned property offered for sale by Land Co. He thought he might build a professional office complex, but would not know for sure until he consulted with soil engineers and architects. To make certain that the property was not taken off the market or sold to another buyer while he was deciding, he gave Land Co. $15,000 to keep the offer open for 3 months. This is an example of a __________________

a. Merchant's firm offer b. Option contract c. Preliminary negotiation d. Bargained for exchange

Assume equipment was purchased by Pet Food Manufacturing on January 1, 2016, for $10,000 . This equipment uses the straight-line depreciation method and has a 5 year useful life with no salvage value

The equipment is sold to Carter Foods on December 31, 2019 for $4,000 . Pet Food Manufacturing records its 2019 expense prior to the sale. Required: a. What are the journal entries that Pet Food Manufacturing and Carter Foods make at the date of the intercompany sale of the equipment? b. What is the worksheet elimination in journal entry format?