Question

Anne's best friend, Cathy, publishes a local magazine. During 20X7, Anne agreed to trade the use of The Pavilion in exchange for advertising in Cathy's magazine. The advertising ran in the spring of 20X7 and would have cost $4,850. The magazine used The Pavilion two Sundays in September. The rental rate would have been $1,500 per Sunday. The transaction was not recorded in the financial statements.

Answer 1

The subject of this question is Business, and it involves a trade agreement between Anne and Cathy. The value of the trade is calculated by considering the cost of advertising and the rental rate of The Pavilion.

Step-by-step explanation:

The subject of this question is Business.

It involves a trade agreement between two individuals, Anne and Cathy, where Anne provides the use of The Pavilion to Cathy in exchange for advertising in Cathy's magazine.

The transaction was not recorded in the financial statements.

To calculate the value of the trade, we need to consider the cost of the advertising that was provided and the rental rate of The Pavilion.

The advertising would have cost $4,850 if payment was made, and The Pavilion was used for two Sundays in September, which would have cost $1,500 per Sunday.

Therefore, the total value of the trade is $4,850 + ($1,500 * 2) = $7,850.