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umka21 [38]
3 years ago
8

Chadwick Enterprises, Inc., operates several restaurants throughout the Midwest. Three of its restaurants located in the center

of a large urban area have experienced declining profits due to declining population. The company’s management has decided to test the assets of the restaurants for possible impairment. The relevant information for these assets is presented below.
Book value $6.5 million
Estimated undiscounted sum of future cash flows 4.0 million
Fair value 3.5 million

(1) Determine the amount of the impairment loss.
(2) Determine the amount of the impairment loss assuming that the estimated undiscounted sum of future cash flows is $6.8 million and fair value is $5 million.
Business
1 answer:
zalisa [80]3 years ago
6 0

Answer:

1. $2.5 million

2. $0

Explanation:

1. 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  - fair value

= $6.5 million  - $4.0 million

= $2.5 million

2. In this case, the sum of future cash flows is exceeded than the book value. So, no impairment loss would be recognized i.e zero amount

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Your manager has asked you to recommend which one of two new types of digital camera to buy for your company's publications depa
Cerrena [4.2K]

Answer:

website

Explanation:

Based on the information provided within the question it can be said that the best source of information for this scenario would be a website. Any website that provides information regarding the specs and abilities of the cameras that you are considering purchasing would provide the most helpful information in your decision buying process.

7 0
3 years ago
The management of supply chain inventories focuses on: No Answer Selected
Dennis_Churaev [7]

Answer: both internal and external inventories

     

Explanation: In simple words, supply chain inventories refers to the  raw material, finished goods and work in process inventories like factors that together constitutes a supply chain.

Management of supply chain refers tot he process in which the organisation tries to control and maintain the flow of inventories from on stage to the other with the ultimate objective of keeping the supply of finished goods smooth throughout the period.

It starts from procuring the suitable raw materials in right quantity and right time after that it monitors the manufacturing unit so that production is done in appropriate time period and finally makes sure that finished goods will be supplied to the market as per the time period specified by the wholesalers or retailers.

7 0
3 years ago
Nicole has a contract to buy 14 cases of hammers from Tyler. Tyler breaches the contract. Even though she can get similar hammer
mario62 [17]

Answer:

B) No, because she can get similar hammers elsewhere.

Explanation:

When someone sues for specific performance he/she is asking the court to order the defendant to complete performance the contract. They are not suing to recover any damages that may have resulted from the breaching of the contract.

In this case, Nicole would have probably been able to sue Tyler for some type of compensatory damages, but since the hammers are such a common good, it would be very difficult for her to obtain an specific performance order.

4 0
2 years ago
The amount of the average investment for a proposed investment of $191,000 in a fixed asset with a useful life of 4 years, strai
sineoko [7]

$30300
Annual depreciation = (purchase price - salvage value) / useful life
Straight line depreciation = Annual depreciation / (purchase price -salvage value)
The steps in calculating a straight line depreciation are:
Find out how much the asset costs.
To determine the entire depreciable amount, deduct the asset's estimated salvage value from the asset's purchase price.
Find out how long the item will be useful.
To calculate the annual depreciation amount, multiply the total from steps (2) and (3) by the figure determined in steps (3).
i.e, = $191000-$30300 = $160700
an asset with a useful life of 4 =$160700/4 =$40 175
so the straight-line depreciation rate is at 4.7%
In 4 years Straightline depreciation will be $30300
To learn more about Straight line depreciation please refer to-
brainly.com/question/11974283
#SPJ4

6 0
2 years ago
Randolf, a wealthy connoisseur of arts, was invited to an art exhibition. He became very interested in one of the showcased pain
Citrus2011 [14]

Answer:

The answer is A. Mutual mistake

Explanation:

A contract is an agreement ( whether written or verbal ) between two parties that is legally binding.  

A mutual mistake occur in a contract when both parties to a contract are mistaken about a material fact. It is a situation where the parties to a contract have identical misconception about a material fact in the contract.

In the explanation given in the contract between Randolf and the Art gallery manager, it is obvious that the art painting that is to be bought and sold was not well clarified by both parties, and the art manager acted based on an invalid assumption.

Hence the correct answer to this question is  A. Mutual mistake

7 0
3 years ago
Read 2 more answers
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