Answer:
$20 million
Explanation:
Data provided in the question:
Book value of assets in 2005 = $1,200 million
Fair value of assets in 2005 = $955 million
Book value of assets in 2006 = $720 million
Fair value of assets in 2006 = $700 million
Now,
Impairment Loss = Fair value - Carrying value of Net assets
or
Impairment Loss
= Fair value of assets in 2006 - book value of assets in 2006
= $700 million - $720 million
= - $20 million [ Here, the negative sign means a loss]
Hence,
Impairment loss of $20 million
Answer:
482.500
Explanation:
With the direct write-off method all accounts when detected as uncollectible, the amount of the client's debt is charged to the expense, while an estimate is made with the allowance method (this method is the most accepted accounting)
The direction of these methods in this case is translated in this way
allowance method 3,250,000 X 1% = 32,500.
Direct writte off 27,800
The difference between these values, which is 4,700, corresponds to a higher forecast, therefore, to a higher expense for the year, so that the net result will be reduced
Net result 487,500 minus 4,700 = 482,800
Answer:
17%
Explanation:
The actual return which stockholder receives on the average common equity is return on common stockholder's equity.
Return on Common Stockholder Equity = (Net Income - Preferred dividend) / Average common stockholders equity
Return on Common Stockholder Equity = ($298,000 - (10,000 x $100 x 6%) / ( ( $1,200,000 + $1,600,000 ) / 2 )
Return on Common Stockholder Equity = ($298,000 - $60,000) / $1,400,000
Return on Common Stockholder Equity = 0.17 = 17%
Hi there
First find the book value of the truck
Book value=
Cost-accumulated depreciation
36,000−30,000
=6,000
disposed of for $5,000 cash
Book value 6000
So the answer is
Loss of 1000 (5000-6000)
Good luck!
Answer:
D) No impact on the accounting equation.
Explanation:
- Nothing would happen since the amount to be received would remain the same i-e $20,000, so there is no chance for increase in liabilities. Moreover, the there is no new services so that asset should be impacted.
- What there has been done is just classifying the payment which the Delta thought that they would receive earlier, but now it is being realized that it will take long, so just to not make any mistake or confusion for future this was done.
