Answer:
$65,000
Explanation:
Borasco was the person who purchased the land for $65,000 in which the land was later transferred to Alvo. Therefore no gain or loss is been recognized in this liquidation because it subsidiary is been liquidated by the parent which is why the basis of land is said to be carryover basis of $65,000 at the end of the transaction.
Answer:
a) Disclose in the notes
b) no Disclosure
c) Record a liability
Explanation:
There are three scenarios to be considered
1) It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable
First, premise is that Huprey Co. is facing a lawsuit and the possibility of a loss is most possible. If Huprey Co is able to recognize the amount of loss, then he would have been able to record a liability but the inability to estimate the loss means, the company can o<u>nly make appropriate disclosure in notes</u>
2)Huprey is being used for damages of $2 million. It is very unlikely (remote) that Huprey will lose the case.
This second premise is also a lawsuit on damages for $2 million, however, it is most reasonably acceptable that Huprey will win the lawsuit. As such there is no loss, that way there will be no disclosure in Huprey Co's books.
3. Huprey can reasonably estimate that a pending lawsuit will result in damages of $1.25 million, it is probable that Huprey will lose the case.
The probability of losing a case means that there will be a loss to be recorded in the books and since the damages are already estimable to be $1.25 million. Huprey Co should record a liability
Answer:
a. N = 7, I/Y = 4, PV = -37,000
Explanation:
In financial calculator % is already written in the calculator so we have to write only number in calculator.
Option b incorrect because it has included a number with % ( 4% ) sign that we dint do usually in calculator.
Option c is incorrect because it has taken pv as positive
Option d is incorrect because it has written 4% that we don't put in calculator as well as it has inserted positive pv which is also wrong.
Answer:
Reorder point is 40
Explanation:
Reorder point is the level of inventory which trigger the purchase of new inventory.
The formula for Reorder point is
Annual demand * Leadtime + Safety Stock
Reorder Point = 1040 / 365 * 14 days + 0
= 40.
The lost sales cost is $50 in goodwill, Furnco should keep a safety stock of at least 30 chairs in order to meet demand level.
Answer:
$2.25
Explanation:
sale volume of company = 30,000 unit
total fixed cost are = $30,000
total variable cost $45,000 for 30,000 unit
1 unit = 45000/30000 = $ 1 . 5
for the sale of 40,000 unit
the total expected cost
= Fixed cost + Variable cost
= $30,000 + 40,000×$1.50
= $30,000+$60,000
= $90,000
Cost per unit:
= $90,000/40,000
= $2.25
