Answer:
$378,756
Explanation;
The net present value of land will be =$450,000/1.09^2=$378,756
The land will be recorded in net present value of land by discounting the cost of land with interest rate of buying from the bank.
Answer:
$3,000
Explanation:
Warranty expense is an obligation on the business because business is liable to accept the claims of warranty. A estimated percentage of warranty expense is charges as an expense in each period.
Total Sales = $500 x 6,000 units = $3,000,000
Warranty Expense for the year = Sales units x 3% x warranty cost per unit
Warranty Expense for the year = 6,000 x 3% x $50 = $9,000
Recognised warranty cost in the year = 120 units x $50 = $6,000
Accrued Warranty expense = $9,000 - $6,000 = $3,000
Answer:
C) By lowering the price of the flower arrangements to increase demand.
Explanation:
According to the law of demand, the lower the prices, the higher the quantity demanded and the higher the price ,the lower the quantity demanded.
When prices are reduced, demand increases, revenue increases and net profit increases.
I hope my answer helps you.
Answer:
Explanation:
Since the fair value of the division is less than the carrying value of the division so the loss on impairment is recorded
The journal entry to record the impairment of the goodwill is shown below:
Loss on impairment A/c Dr $30,000
To Goodwill A/c $30,000
(Being loss on impairment is recorded)
The computation is shown below:
= Carrying value - fair value
= $300,000 - $270,000
= $30,000