Answer:
Arthur’s recognized gain or (loss) = $0
Ned’s basis in the land = $105,000
Explanation:
As the adjusted basis for Arthur was $145,000 and he sold it for $105,000 hence, there is no gain. Ned basis is the fair market value at which he purchased the tract of land.
Answer:
<u>used cars can have lower initial cost</u>
<u>Explanation:</u>
Remember, the term risk often refers to an unpleasant or unwelcome event such as a loss arising from a particular action.
Hence, since we are looking for what is not a loss (potential risk) of purchasing a used car, the best option that matches this is that used cars have a lower initial cost which ofcourse can be seen as an advantage.
Answer:
Material price variance <u>2830 unfavorable
</u>
Explanation:
Material price variance
<em>A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favourable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite
</em>
Standard material cost of 2 $
28,300 grams should have cost (28,300×$6.90) = 195270
but did cost (actual cost - 28,300×$7.00)= 1<u>98100
</u>
Material price variance <u> 2830 unfavorable</u>
<u />
Answer:
Reject Order Accept order Net Income
Increase (Decrease)
Revenues = $0 $105,000 $105,000
(3750 units x $28)
Costs-Manufacturing = $0 -$71,250 -$71,250
(3750 units x $19 (VC)
)
Shipping $0 -$3,750 -$3,750
(3750 units x $1)
Net Income $0 $30,000 $30,000
Pharoah Electronic would realize the net Income of $30,000 by accepting the special order. Hence, the special order should be accepted.
Answer:
By finding a factor that all have in common: that they are currently in the company and know how it works.
Explanation:
The manual that employees will have aboutthe new accounting system has to be the easiest to ready as possible. As the text mentions, in the company I have experienced accountants and others that are not and employees from different degree levels. Some might understand certain infromation and some might not.
However, what they all have in common is that they are all working in the company and know the current accounting system, because is something that concerns them, even though they have years working them, are new or are not going to last longer.
The best I can do is take advantage of that fact and show them the differences between the old accounting system with the new ones, by that way they will be able to land the information and understand it correctly.
