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stiks02 [169]
3 years ago
12

On January 1, 2017, a subsidiary sold equipment to its parent for $520,000. The subsidiary's original cost was $200,000 and as o

f January 1, 2017, $20,000 in depreciation had been recorded on the subsidiary's books. At the date of sale, the equipment had a 10-year remaining life, straight-line. It is now December 31, 2021 (5 years since the sale), and the parent still holds the equipment. In the consolidation eliminating entries for 2021, the equipment account (gross cost) is reduced by a net amount of A. $280,000 B. $300,000 C. $340,000 D. $320,000
Business
1 answer:
Mnenie [13.5K]3 years ago
7 0

Answer:

C. $340,000

Explanation:

Compute the Subsidiary's Unrealized Profit

This will help to determine, this will help us get the amount by which the Equipment Account will be reduced.

First, we calculate the Unrealized profit made on selling of the equipment

The equipment was sold for $520,000

The original cost to the Subsidiary was $200,000.

Furthermore, the Accumulated Depreicaiton of the Asset = $20,000

The Net Book Value of the Equipment = Cost - Accumulated Depreciation

The Net Book Value = $200,000 - $20,000 = $180,000

The Profit on Sale of the Equipment

= Sales Value - The Net Book Value

= $520,000 - $180,000 = $340,000

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Sandhill uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (
miskamm [114]

Answer:

$567,056

Explanation:

Cost :

Merchanidize available for sale

= Beginning inventory + Purchases + Freight in

= $386,000 + $1,975,000 + $125,000

= $2,486,000

Retails:

Merchandize available for sale:

= Beginning inventory + Purchases + Markups

= $590,000 + $3,220,000 + $68,000

= $3,878,000

Ending inventory at retail = Retail total -markdowns - Net sales

= $3,878,000 - $104,000 - $2,920,000

= $854,000

Cost to retail ratio = $2,486,000 ÷ ($2,920,000 + $854,000)

= $2,486,000 ÷ $3,744,000

= 66.40%

Ending inventory at retail = $854,000

And

Cost to retail ratio = 66.40%

Therefore,

Ending inventory at cost = $854,000 × 66.40% = $567,056

4 0
2 years ago
The time for the current iteration is up and one of the features isn't complete. What do you do?
VARVARA [1.3K]

Answer:

Stop working and add the incomplete feature back into the backlog.

Explanation:

In case a task could not be completed in the current iteration, it is best to add it to the backlog, so that in subsequent iterations it will be completed (giving it priority, of course).  

Of course, it is not convenient to extend the iteration time just to finish the incomplete task. Also, we should not add it directly to the next iteration because we would be altering its structure. So the most appropriate thing to do, is to leave it marked as a priority to be included in the next iterations.

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What is the danger of having a lot of debt?<br> (brainlyest)
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probably not paying it off in time or something

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Answer:

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The industrial organization (I/O) model suggests that environments is the key point for firms to earn above-average returns.

Explanation:

The airlines´ external and internal environments analysis is important because it is the first step in developing the frim´s strategic management process.

This analysis will establish the firm´s resources availability and capability, along with the core competencies looking forward setting commitments, making decisions, and taking actions aiming to reach competitiveness and to earn above-average returns.

The industrial organization, or I/O model, suggests that the  external environment is the key of a firm’s strategic actions as firms use the sources information of these continuously evolving "strategic inputs" to develop its vision  and mission and to formulate its strategy to respond to the challenging landscape brought by globalization and the resulting economy featuring rapid technological changes, and achieve strategic competitiveness and above-average returns.

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