Manufacturers offer discounts usually to large quantity or bulk buyers. this encourages buyers to buy more because the businesses give them an opportunity to save more money. usually, it is the retailers who would buy from manufacturers in bulk orders

6 0

3 years ago

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The stock of Mulberry Corporation is owned by Archana (60%) and Anar (40%), who are mother and daughter. Pursuant to a plan of c

Phoenix [80]

Answer:

There is loss of $109,120

Explanation:

Lossrecognized=Marketvalue−Purchasevalue

=$1773200-1364000

Therefore, loss recognized by “M” Corporation is $409,200

Determine the gain or loss of A:

LossbyA=Purchasevalue−Liability−ActualbasisofM

=[($1364000-$1091200)×40%]−$218240

=$109120−$218240

=($109,120) loss

4 0

3 years ago

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On January 1, 2014, Borstad Company purchased equipment for $1,180,000. It is depreciating the equipment over 25 years using the

bezimeni [28]

Answer:

Explanation:

a)Purchase cost - 1,180,000

Useful life - 25

Annual depreciation = 47,200

Timeline - Jan 1 , 2014 - 2019 = 6 years

Accumulated depreciation = 47200*6=283,200

Carrying value at 2019 = (1,180,000 - 283,200)= 896,800

B) Annual cash flow - 400,000

Annual cash outflow - (295,000)

Net cash inflow= 105,000

Net cash flow for 8 years = 105000*8 = 840000

Since the net cash inflow is less than the carrying value , there is an impairment.

PV value of the net cash inflow at 12% discount for 8 years = 521,602

Impairment loss = $375,198

At December 21.2019

2.) Debit impairment loss - $375,198

Credit equipment - $375,198

4 0

2 years ago