In circumstances in which technology changes, employees may have to

A company purchased inventory on January 1, 20X2, for $600,000, and uses the FIFO method. On December 31, 20X2, the inventory ha

bagirrra123 [75]

Answer:

See below

Explanation:

It is to be noted that under IFR, inventories are carried at a lower of cost or net realizable value, which is $550,000 in this scenario.

Also, under the United states GAAP, inventories are carried at a lower of cost or market . Here, the replacement cost of $525,000 would be used because it is below NRV and its equal to the difference between NRV and normal profit margin.

7 0

2 years ago

Jay sold three items of business equipment for a total of $300,000. None of the equipment was appraised to determine its value.

olasank [31]

Answer:

Consider the following calculations

Explanation:

Step 1. Given information.

Asset Cost Adjusted Basis

--------------------------------------------------

Skidder 230,000 40,000

Driller 120,000 60,000

Platform 620,000 0

-------------------------------------------------

Total 970,000 100,000

Step 2. Formulas needed to solve the exercise.

Allocation for each asset = value sold * (adjusted basis / total)

Gain on sale = Sales price - Adjusted basis amount

Step 3. Calculation and Step 4. Solution.

Sales price is allocated on the basis of adjusted value.

Skidder = 300.000 * 40.000/100.000 = 120.000

Driller = 300.000*60.000/100.000 = 180.000

Platform = 300.000*0/100.000 = 0

Gain on sale = Sales price - Adjusted basis amount

= 300.000 - (40.000 + 60.000 + 0)

= 200.000

6 0

3 years ago

Della, the new CEO of Sky Advertising, has been with the firm for over 25 years. She was picked by the board to turn the 85-year

Lady_Fox [76]

Answer:

3. embedding culture

Explanation:

Based on the scenario being described within the question it can be said that the things that Della wants to do are all examples of embedding culture. This refers to implementing different aspects into an organizations existing culture with the hopes of improving the organization. Such as new values, beliefs and expectations that may help the organization perform better in modern times.

5 0

3 years ago

Read 2 more answers

On November 23, Elder Lift Corporation, a wholesaler of hydraulic lifts, acquired land in ex- change for 12,500 shares of $25 pa

Georgia [21]

Answer:

Journal Entry to be recorded

DR. Land $475,000

Cr. Common stock $312,500

Cr. Add-in-capital common stock $162,500

Explanation:

Number of Shares = 12,500 shares

Share Market price = $38

Share Par Value = $25

Total value of property to be recorded= 12,500 x $38 = $475,000

Common stock value at par = 12,500 x $25 = $312,500

Add-in-Capital common stock value = $475,000 - $312,500 = $162,500

Property will be recorded as the total value of exchange which is $475,000. On other other hand the common stock value will be recorded in two parts common stock at par value and add-in-capital common stock over par value.

7 0

2 years ago

On January 1, Year 1, Price Co. issued $190,000 of five-year, 6 percent bonds at 96½. Interest is payable annually on December 3

Tasya [4]

Answer:

a) Cash received = $183,350

b) Interest expense = $12,730

c) Carrying value = $186,010

Explanation:

As per the data given in the question,

a) Face value of bond = $190,000

Issued at =0.965

Cash received = $190,000 × 0.965

= $183,350

b) Discount on bonds payable = $190,000 - $183,350

=$6,650

Annual amortization of discount on bonds payable =$6,650÷5

= $1,330

Cash interest = $190,000×0.60

= $11,400

Interest expenses = $11,400+$1,330

= $12,730

c)

carrying value = $183,350 + ($1,330 × 2)

= $186,010

6 0

2 years ago