Answer:
Rs 10,700
Explanation:
The closing balance will be
Opening prize Rs 100,000
Add
Donations received Rs 15,400
Interest received <u>Rs 4,000</u>
Total at hand <u>Rs 119,400</u>
less
amount on prizes <u>Rs 12,300</u>
closing balance <u>Rs 10,700</u>
Answer:
Barry Company must recognize a $5,000 gain resulting fro the disposal of the patent.
Explanation:
the patent's book value = acquisition cost - accumulated amortization = $120,000 - $100,000 = $20,000
gain from disposal of patent = selling price - book value = $25,000 - $20,000 = $5,000
Since patents are intangible assets, they are amortized, not depreciated. But accumulated amortization works in the same way as accumulated depreciation, they both reduce the asset's carrying value.
Answer:
$140,000
Explanation:
The difference between operating incomes under absorption costing and variable costing based on fixed expenses is shown below:
Variable costing:
Fixed manufacturing overhead in production $750,000
Absorption costing:
The Fixed cost would be
= Beginning fixed manufacturing overhead in inventory + Fixed manufacturing overhead in production - Ending fixed manufacturing overhead in inventory
= $190,000 + $750,000 - $50,000
= $890,000
So, the difference would be
= $890,000 - $750,000
= $140,000
