Answer:
$400,000
Explanation:
Since at December 31, Year 5, Tedd's tax advisor believed that an unfavorable outcome was <u>probable</u>. And a <u>reasonable estimate </u>of additional taxes was $400,000 but could be as much as $600,000.
Although after the Year 5 financial statements were issued, Tedd received and accepted an IRS settlement offer of $450,000.
Tedd should have included an amount of $400,000 as accrued liability in its December 31, Year 5 balance sheet
The reason is that according to the International Financial Reporting Standards, a PROVISION must be made as long as the conditions below were obtainable at year end.
- Existing Condition (which in this case is the tax dispute with the IRS)
- Probable Cash Outflow (which Tedd's Tax adviser confirmed)
- Reliable Estimate of Outflow ( which the scenario stated ''A reasonable estimate of additional taxes was $400,000'')
Hence, such 'reasonable estimate is the appropriate amount for inclusion in the financial statements.
Answer:
The final value is $106,607.35.
Explanation:
Giving the following information:
n= 10 years
i= 16%
Annual deposit= $5,000
To calculate the final value we need to use the following version of the final value formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,000*{(1.16^10)-1]}/0.16= $106,607.35
Answer:
The correct answer is A
Explanation:
Designer worksheet is the one such document which states the work or the potential in the designer or the person. It is that document which contains or comprise of the portfolio of the designer, having or shown the previous work which is done by the designer or the person in his or her last company and the few or some of the sample designs which provide an idea to other person regarding the potential or taste of the designer.
Answer: In managing a political risk, the first thing to do is to go on a research, to determine the type of political risk that is likely to occurs in the country or state, and the level of influence this risk has on your business. If the risk is manageable, then investment can start, but before start, you should get a political risk insurance certificate, from a national insurance body or an international insurance body. If at a time the risk becomes higher, that it is likely to affect the production of my profit. The business will be incorporated with a government owned business. So as to sustain the business profit, because no Government will want to establish any law that will have big negative effect upon its own business. If the high risk is as a result of the host community, then the business should be incorporated with the community, so that their will see a sense of belonging to the business.
Explanation:
The political risk found in managing any business are the influences government policies have on that business, this includes taxes,spending,regulation,currency valuation,trade tariffs, minimum wage and environmental regulation.
Answer:
LaShawn's neighbor mows his lawn during the night.
DEPENDING ON HOW OFTEN LASHAWN'S NEIGHBOR MOWS HIS LAWN, A PRIVATE BARGAINING MIGHT BE USEFUL. IF THIS HAPPENS ONCE A MONTH, THE NEED OF INTERVENTION IS NOT SIGNIFICANT. BUT IF THIS HAPPENS MORE OFTEN, PROBABLY THEN BOTH MEIGHBORS WILL NEED TO BARGAIN AN OPTIMAL SOLUTION.
Opening an Apple store in a mall causes overall sales in the mall to increase by 10%.
THIS IS A POSTIIVE EXTERNALITY, THEREFORE, ANY TYPE OF INTERVENTION WILL PROBABLY MAKE THE SITUATION WORSE.
The production of steel results in pollution that affects millions of residents in the surrounding area.
IN THIS CASE, YOU NEED GOVERNMENT INTEREVENTION. POLUTION IS SOMETHING THAT AFFECTS THE GEENRAL PUBLIC, THEREFORE, IT MUST BE ADDRESSED BY THE EPA. IN CASE THE EPA AND OTHER GOVERNMENT INSTITUTIONS DECIDE TO DO NOTHING, THEN YES, PRIVATE BARGAINING WILL PROBABLY BE NECESSARY.
