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vazorg [7]
3 years ago
8

Flannery Corporation owns machinery with a book value of $520,000. It is estimated that the machinery will generate future cash

flows of $465,000. The machinery has a fair value of $415,000. Florence should recognize a loss on impairment of...(a)$0.(b)$50,000.(c)$55,000.(d)$105,000.
Business
1 answer:
Aleonysh [2.5K]3 years ago
5 0

Answer:

(d)$105,000.

Explanation:

Since the book value is more than the generated future cash flows so book value cannot be recovered. In this case, the generated future cash flows are ignored  

In this scenario, we compare the values between book value and the fair value of machinery, the difference would be the loss on impairment of the asset

In mathematically,  

= Book value of machinery - fair value of machinery

= $520,000 - $415,000

= $105,000

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olga_2 [115]

Answer:

21,000 units

Explanation:

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Number of units started during November in the department = units completed and transferred out + units in the ending work in process inventory - units in the Beginning work in process inventory

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Therefore we have applied the above formula.

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3 years ago
Explain how and why governments may want to regulate the price setting of a natural monopoly.
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Which of the following is a correct application of Marginal Analysis? a. You buying 4 pairs of shoes for $240 because you are wi
RoseWind [281]

Answer:

Option d is the right one.

Explanation:

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The other options aren't sufficient for the scenario provided. But that will be the best alternative for option d.

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Gannon Enterprises is in the midst of a major strategic change. To lessen resistance from some of thesenior managers who are opp
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Answer:

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Explanation:

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Which journal entry reflects the adjusting entry needed on December 31?:In November, BOC received a $5,000 cash deposit from a c
Kryger [21]

Answer:

No adjusting entry required

Explanation:

When the contract was formed and advance was received the company must had recorded the following entry:

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Correct entry is "No adjusting entry required"

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