Answer: $30,000
Explanation:
In accounting, the treatment of the Sale and Operating Leaseback operation is such that a gain is only recognized if the sales price is more than the fair value. In such a case the difference between the fair value and the carrying price is considered the Gain on Sale.
The Difference between the sales price and the fair value is to be amortized over the period of use.
Seeing as the selling price is more than the fair value, the Gain on Sale is therefore,
= Fair Value - Carrying Value
= 310,000 - 280,000
= $30,000
$30,000 is the amount of gain on sale of the property recognized by Alla on January 1, Year 1.
Answer:
Explanation:
gate City bank reconciliation statement as at December 31, 2018
Balance as per cash book 2400
Direct payment to the bank (loan) 520
Less bank charges (30)
Add bank interest 20
Adjustment 510
Adjusted cash book balance 2910
Balance as per bank statement 3,810
Less outstanding check (1300)
Add deposit in transit 400
Adjustment (900)
Adjusted bank statement balance 2,910
Answer:
C) Flexible
Explanation:
The whole concept behind budgeting is that future costs are estimated. As always when you estimate some future event, there is a fair chance that your estimate will be mistaken.
No matter how well thought, calculated and recalculated your budget is, it usually only serve as a parameter. The fact that budgeting is not exact is not always bad, since your business sales can be higher than expected, so your whole production and costs budgets will be wrong, but for a good reason.
That is why budgets must always be flexible and easily adaptable to changes, either good or bad changes.
<h3>
Answer :</h3>
<em>Less than</em>
(If a business has a negative cash flow, the revenue must be less than operating expenses.)
Answer:
$2,450 ; $1,430
Explanation:
The computation of the ending inventory using the periodic inventory system is shown below:
Under FIFO method
= 245 units × $10
= $2,450
We take the last units in this FIFO method
Under the LIFO method
= 205 units × $6 + 40 units × $5
= $1,230 + $200
= $1,430
We take the first units in this LIFO method
Hence, the closing inventory is come
