Answer:
2018: No pretax income or loss
2019: Income of $2,000.
Explanation:
Given that,
On December 27, 2018
Purchased Coca-Cola bonds at par = $700,000
sold the bonds on January 3, 2019 = $702,000
On December 31, the bonds had a fair value = $699,000
In 2018:
Fair value is less than the purchase value of bonds on 31st December. Therefore, the loss has to be reported under the other comprehensive income.
Hence, there is no income or loss in the year 2018.
In 2019:
Gain/loss on the sale of bonds:
= Sale value - Purchase value
= $702,000 - $700,000
= $2,000
Therefore, the amount of pretax earnings in the year 2019 is $2,000.
Answer:
Option B is correct ( $3,250)
Product Warranty Expense= $3,250
Explanation:
Option B is correct ( $3,250)
In order to find Blast debit Product Warranty Expense we will proceed as follow:
Formula we are going to use is:
Product Warranty Expense= Cost of repair defects under the warranty *Total sales
Total Sales= Price of 1 portable CD players * Total portable CD players Sold
Total Sales=$50 * 650
Total Sales=$32,500
Product Warranty Expense= 10% * $32,500
Product Warranty Expense= $3,250
Answer and Explanation:
The computation of the missing amounts are shown below:
Common Stock $3,180
Dividends $130
Net income (loss) $1,563 (($5,047 - $3,614) + $130)
Retained earnings, beginning of year $3,614
Retained earnings, end of year $5,047
Total assets $15,584
Total expenses $3,004 ($4,567 - $1,563)
Total liabilities $7,357
Total revenues $4,567
Answer: Option (B) is correct.
Explanation:
Capital contribution by David = $40,000
Interest of David in partnership = ![\frac{1}{5}](https://tex.z-dn.net/?f=%5Cfrac%7B1%7D%7B5%7D)
Total capital of the partnership after the admission of new partner:
= ![\frac{40,000}{\frac{1}{5} }](https://tex.z-dn.net/?f=%5Cfrac%7B40%2C000%7D%7B%5Cfrac%7B1%7D%7B5%7D%20%7D)
= $200,000
Total capital of partnership before decreasing of obsolete inventory:
= $140,000 + $40,000 + $40,000
= $220,000
Therefore, value of decrease in inventory:
= Total capital before decrease - Total capital after decrease
= $220,000 - $200,000
= $20,000
The reduction in value of inventory will be distributed in old partners in ratio of 3:1
Hence,
Capital balance of Allen after admission of David:
=
= $125,000
Capital balance of Daniel after admission of David:
=
= $35,000
The production would be a my a point inside the curve. The curve shows the possibility of producing with all possible materials so inside the curve is representative of one or more of the resources not being used to its full capacity.