<h2>Direct to the maintenance department</h2>
Explanation:
Jane here works only in the Maintenance department. The work that he does supports both Production as well as Research. We can calculate the expenses, only by associating the department of the employee.
So, the wages should be directly associated to the maintenance department only.
We cannot add one cost to multiple department and it is not the right approach of accounting system. So the below becomes invalid.
<em>Indirect to the production department Direct to the research department Direct to the production department Indirect to the research department</em>
Answer:
(d)$105,000.
Explanation:
Since the book value is more than the generated future cash flows so book value cannot be recovered. In this case, the generated future cash flows are ignored
In this scenario, we compare the values between book value and the fair value of machinery, the difference would be the loss on impairment of the asset
In mathematically,
= Book value of machinery - fair value of machinery
= $520,000 - $415,000
= $105,000
Answer:
<em>Gabrielle's economic decisions best relate to broad economic goals by still having a job during the evening and still pursuing on doing artistic projects..</em>
Answer:
b. Liability, $9,000,000; expense, $0.
Explanation:
An asset retirement obligation (ARO) refers to an obligation with respect to the acquisition , construction, development, etc. The liability should be recognized the liability at the present value that should be expected to be paid for settling the obligations
Here the $9,000,000 million represents the liability
Also the journal entry is
Asset Dr
To liability
(Being the asset placed is recorded)
There is no expense should be recorded in the income statement
Answer:
$6,480,000
Explanation:
The computation of the amount of the current liabilities is shown below:
Total assets of $11,200,000
Less: Noncurrent assets $1,480,000
Current Assets = $9,720,000
Now as we know that
Current ratio = Current Assets ÷ Current Liabilities
Current Liabilites is
= $9,720,000 ÷ 1.5
= $6,480,000
hence, the current liabilities is $6,480,000
