Answer:
Guaranteed residual value, Unguaranteed residual value and Rental payments.
Explanation:
I. Guaranteed residual value, II. Unguaranteed residual value, and IV. Rental payments will all be included in Lease Receivable account EXCEPT executory cost which is already included in the rental payment.
Executory cost refers to the cost of normal expenses associated with owning a leased asset, including insurance, maintenance, and taxes.
Executory costs are paid by the lessee and they are included as part of the rental payment or a pass through expense paid directly by the lessee.
Answer:
$200 (a deduction)
Explanation:
The accounting standard for inventories IAS 2 requires that inventory be carried at the lower of cost or net realizable value. Inventory will initially be recognized at the cost ( which includes the cost of the item and other associated cost such as freight ). However, its carrying amount must be reviewed to ensure it is not higher than the realizable value.
Given that the selling price is now $15 which is lower than the cost of $16, it means that the amount that can be realized from the sale of a unit is $15.
= $16 - $15
= $1
As such, an adjustment in form of a reduction of the carrying amount of $1 per unit is required. The amount of the lower cost of market adjustment the company must make as a result of this decline in value
= $1 × 200 units
= $200 (a deduction)
a. 50 cents
Contribution margin per unit is price per unit- variable cost per unit
1.75 - ($50,000/40,000 units)
1.75 - 1.25 = $ .50
b. $8750
Margin of safety is the expected sales - break even sales
(45,000 units * $1.75 per unit) - (40,000 *1.75)
78,750 - 70,000 = $8750
