Answer:
The correct option is C. Recognize $9 million Gross Profit in 2016.
Explanation:
IFRS-15 states that a 4-step approach should be followed when the performance obligation is satisfied over a period of Time. In-this case, the performance obligation will be satisfied within three years from 2016 to 2018.
4-step Approach:
1) First of all you have to calculate the over gain/loss of the project, and the result will decide the entries to be made. In this case, the contract price is $150m and the total costs (Costs incurred + Expected Costs) are $120m. This gives us a Profit of $30m.
2) In the second step, we have to determine the progress of the contract, It means that how much work have we done so far. There are two methods to calculate the progress: Input Method and the Output Method. Based on the data available, we will go for Input Method. To calculate progress under this method, simply divide the costs incurred by the total costs and multiply the result with 100 to get the percentage. 30% is the progress of the contract.
3) Revenue (150 * 30%) = $45m
COS (120 * 30%) = $36m
Gross Profit = $9m
* 120 is the Total Cost.
4) The last step involves determining Contract Assets and Liabilities. I won't go in to the detail because this step is not concerned with your question. You are open to ask questions regarding this step if you need.
Thanks.
Answer:
the quantity supplies increases, just like if the price decreases the supply decreases.
A stock buyback occurs when a company buys back its share from the marketplace.
Answer:
D. $650
Explanation:
Given that
15 DVDs sold at $10 = $150
10 DVD player sold at $50 = 500
Therefore,
Nominal GDP this is the addition of the two goods produced, sold at market prices.
Thus
GDP = 150 + 500
= $650
Answer:
D) Total spending will increase by $10 billion.
Explanation:
The computation is shown below:
As we know that
Multiplier = 1 ÷ 1 -MPC
= 1 ÷ 1 - 0.75
= 1 ÷ 0.25
= 4
When there is a decrease in tax so the total spending increase is $30 billion
And, the reduction in spending because of the reduction in the government expenditure is $20 billion
So, the increase in total spending is
= $30 billion - $20 billion
= $10 billions
hence, the correct option is D.
