Answer:
Debit Estimated Warranty Liability $14,000; credit Merchandise Inventory $14,000.
Explanation:
The journal entry is shown below:
Estimated Warranty Liability A/c Dr $14,000
To Merchandise Inventory $14,000
(Being the customer warranties is settled)
Since we have to settle the customer warranties, so we debited the estimated warranty liability account and credited the merchandise inventory account
Hence, all other options are wrong except last one
Answer:
About 2,900 gallons of milk per year according to the internet
Answer: Esther does not recognize any gain or loss on the distribution and her remaining basis in EE is $15,000
Explanation:
Base on the scenario been described in the question, repayment of liabilities is treated as a cash distribution. Esther's share of the debt reduction is Since this amount is lower than her outside basis ($40,000) she does not recognize a gain or loss.reduces her outside basis by the $25,000, which leaves her $15,000 of outside basis in EE afterthe debt repayment.
Answer:
$20.38 buy
Explanation:
The computation of present value is shown below:-
Fair Value according to Gordon Model = Expected Div ÷ (Required Return - Growth rate)
= $1.63 ÷ (10.5% - 2.5%)
= $1.63 ÷ 8%
= $20.38
Fair Price = $ 20.38 and Actual Price = $18.00
As Fair Price is greater than the Actual Price so, the stock is under priced. Therefore advice to buy.
Answer:
= $490
Explanation:
<em>Under the </em><em>First-in-First-Out </em>( FIFO ) <em>method of inventory valuation, inventories are valued using the price of the earliest batch in stock until the batch is exhausted when the price of the next oldest batch is used and so on.</em>
Date sale units Workings Value
10 10 × $19 190
20 (10 × $19)+( 10 × $20) 390
The cost o he merchandise = $190 + $390
= $490