Answer:
$0
Explanation:
There is no reason why Carey Company should increase their land account in 2015. As long as the company owns the land they should not modify the land account, since land doesn't depreciate. Even if they build something new on the land site, that will increase the land improvements account or buildings account, not the land account.
If they decide to sell the land then the original purchase value will serve as the basis for calculating capital gains taxes.
Answer:
Discount on note receivable and deferred charge.
Explanation:
The present value of the notes receivable has to be recorded by Jole Co. The reason this should be recorded as discount on note receivable is that the $10,000 will not be paid immediately but will be due for payment 3 years from the date the note was issued.
A deferred charge is an expense paid in advance and it is recorded and carried forward yearly in the balance sheet as an asset until when it is totally consumed or used. The 10% discount received by Jole Co. in the exchange agreement is a payment in advance and it will be recorded by Jole Co. as deferred charge. The reason is that it is a discount on the future purchase from the supplier over the next three years of a given amount of merchandise from the market price list.
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Answer:
a. $425,000
Explanation:
<em>Calculation of compensated absences expense for the year</em>
Closing balance of compensated absences = $150,000
+ Payments made for compensated expenses = $400,000
- Opening balance of compensated absences =<u> - $125,000</u>
Compensated absences expense for the year = $425,000
Answer:
$72,996.20
Explanation:
PV=X(1+i)^n
i=8/100 = 0.08
X=$46,00
n=6
PV=46000 ( 1 + 0.08)^6
Pv=46000(1.08)^6
Pv=46000(1.586874)
Pv=72996.204
Pv=$72996.20
The present value of $46000 invested for six years at 8% is $72,996.20
Answer:
$42,000
Explanation:
Calculation for the amount borrowed
Amount borrowed=$1,260/(12% x 3/12)
Amount borrowed=$1,260/0.03
Amount borrowed=$42,000
Note that October 1, 2016 to 31 December 2016 will gives us 3 months
Based on the above calculation $42,000 which is the amount borrowed x 12% x 3/12 = Interest expense amount of $1,260
Therefore the amount borrowed is $42,000
