Answer: $70,000
Explanation:
Impairment is said to exist if the Carrying amount of an Asset exceeds it's value of Future cashflows.
Calculating the Carrying amount therefore gives,
= Cost - Accumulated Depreciation
= 500,000 - 175,000
= $325,000
$325,000 > $300,000.
The Carrying Value is greater than the future cashflows so Impairment exists.
Impairment is calculated by,
= Carrying Amount - Fair Value
= 325,000 - 255,000
= $70,000
The amount of impairment loss recognized should therefore be $70,000.
Answer:
Explanation:
Despite the fact that it seems jerry can easily take a bow of the discussion with Lucy and forge ahead in selling the car to Roberta, he had certain restrictions that he should respect. Accepting $100 from Lucy, Jerry entered into what we know as an “Option” contract, giving an option to Lucy to buy the car in the next two weeks.
Irrespective of Lucy’s financial status, jerry should respect the contract that he has entered into. As a back-up, he can hold discussions with Roberta and can request her to wait for 2 weeks when the option period expires and he can sell the car to her at an outright payment
I know customer tracking system is a way a business helps it's customers out by keeping track of their shipped product.
Answer:
TRUE
Explanation:
Often financial statements may confuse a potential buyer looking to develop an objective assessment of the company.
- As part of the assessment phase, a purchaser will review the seller's balance sheet to see if the asset book prices are appropriate.
- Evaluating a firm is an easy task, culminating in an accurate figure. The aim of assessing an enterprise's worth is to provide a baseline for use in determining the business ' price of the property, by this they attract a potential buyers.
for example, some times companies used to show their asset on the historical prices by this they can manipulate potential buyers.
Answer:
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