The decision is made under the condition of Uncertainty, Because T<span>he goal is clear, but there is no clear solution to the problem
The condition of uncertainty occurs when the managers are required to take a certain decision which outcome couldn't be predicted by the Organization.
To handle this type of situation, the managers must willing to take the chance of failure that could damage the organization while providing the organization to advance at the same time.</span>
Answer:
Baxter
The amount of the Goodwill write-off required to be booked by Ajax at December 31, 2020 under the FASB rules effective in 2020 is:
= $130,000.
Explanation:
a) Data and Calculations:
Recorded Goodwill = $330,000
Book value of net assets = $400,000
Book value of all assets = $730,000 ($400,000 + $330,000)
Estimated fair value of company = $600,000
Goodwill impairment = $130,000 ($730,000 - $600,000)
b) The Goodwill impairment of $130,000 arose when the book value or the carrying amount exceeded the estimated fair value.
Answer:
a. Overstates Year 1 cost of goods sold.
b. Understates Year 1 net income
c. Understates Year 2 cost of goods sold
Explanation:
a. The formula for Calculating the Cost of Goods sold is;
<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>
If the closing inventory is understated, it will reduced the amount being subtracted from Purchases and Opening inventory which would means that Cost of Goods sold will be overstated.
b. The Cost of goods sold is deducted from sales to give Gross profit. If Cost of goods is overstated, it will reduce Gross Profit higher than it should. A lower Gross Profit equates to a lower Net Income.
c. Going by the formula in <em>a;</em>
<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>
In Year 2, the understated Year 1 closing stock will become the understated Year 2 Opening stock. With the opening stock understated, the Cost of goods will be understated as well because Opening stock is meant to increase Cost of goods sold as the formula shows. If it is understated, the amount that it will add will be understated as well.
Answer: Proposal C
Explanation:
The way to solve this is to calculate the Present Values of all these payments. The smallest present value is the best.
Proposal A.
Periodic payment of $2,000 makes this an annuity.
Present value of Annuity = Annuity * ( 1 - ( 1 + r ) ^ -n)/r
= 2,000 * (1 - (1 + 0.5%)⁻⁶⁰) / 0.5%
= $103,451.12
Proposal B
Present value = Down payment + present value of annuity
= 10,000 + [2,200 * ( 1 - ( 1 + 0.5%)⁻⁴⁸) / 0.5%]
= 10,000 + 93,676.70
= $103,676.70
Proposal C
Present value = Present value of annuity + Present value of future payment
= [500 * (1 - (1 + 0.5%)⁻³⁶) / 0.5%] + [116,000 / (1 + 0.5%)⁶⁰]
= 16,435.51 + 85,999.17
= $102,434.68
<em>Proposal C has the lowest present value and so is best. </em>
As the aggregate price level in an economy rises, A. interest rate increase.
<h3>What is interest?</h3>
It should be noted that the interest rate simply means the rate that's put on the money that's collected by an entity.
In this case, when there's an increase in the aggregate price level in an economy rises, the interest rate increase as well.
Learn more about interest on:
brainly.com/question/2294792
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