Answer:
$10,000.
The investment is written down to fair value, and the impairment loss is recognized in net income.
Explanation:
Given that
Purchase value of the bond = $100,000
Decline value = $70,000
Decrease in fair value = $30,000
Credit losses = $10,000
Non credit losses = $20,000
Based on the above information, the before tax net income for year 2016 is reduced by $10,000 as Nicholds wants to hold the bond till maturity date. So the non credit part of decrease in fair value would not be adjusted
Therefore only credit losses should be relevant
As it is mentioned in the question that the debt investment fair value is to be considered as an available-for-sale investment and viewed as an other than temporary therefore the written down of investment to fair value and the loss of impairment should be recorded in the net income
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. <u>The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead. </u>
<u>First, we need to calculate the unitary fixed manufacturing overhead:</u>
Unitary fixed overhead= 85,400/2,440= $35
<u>Absorption costing income statement:</u>
Sales= 2,280*145= 330,600
COGS= 2,280* (49 + 17 + 17 + 35)= (269,040)
Gross profit= 61,560
Total selling and administrative= 22,800 + (2,280*10)= (45,600)
Net income= 15,960
Answer:
D. achieving competitive advantage(s).
Explanation:
- The strategic management at the primary levels involves the setting of the objectives and analyzing the competitive environment and the internal organization.
- Then evaluating the strategies and also ensuring that the management rules out those strategies across the organization. Thus makes to achieve a competitive advantage and hence plays a major role in the formation of the business with a high advantage.
Answer:
labor cost = 15,000
Explanation:
We are going to use the formula for applied overhead and solve for the cost driver, which in this case is labor cost.
labor cost * 0.70 = 10,500
10,500/0.70 = labor cost
labor cost = 15,000
