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juin [17]
3 years ago
15

Under ASC 606, the transaction price generally should be adjusted for the effect of the time value of money when

Business
1 answer:
luda_lava [24]3 years ago
6 0

Answer:

B. The selling price of the product and the consideration promised in the contract differ significantly.

Explanation:

"While determining the transaction price, an entity shall adjust the amount of consideration with respect to the time value of money, if the timing of payment to be made by customer under the contract provides some significant benefit of financing to the customer or the entity for the transfer of goods or services to the customer. The Significant financing benefit could be explicit or implicit in the contract.

The idea behind the significant financing component is that entity should consider the revenue based on the price that a customer would have paid at the time of transferring the goods or services to the customer by the entity i.e. Cash Selling Price (If the payment was made immediately)."

Reference: Prasenjit. “ASC 606: Step 3 – Determining the Transaction Price.” RevGurus, 25 Mar. 2019

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3 years ago
Q1: In about 200 words, write an essay analyzing the below case study using the SWOT framework.
IrinaK [193]

Essay writing is given to students in order to test their writing and reading skills.

<h3>How to write an essay?</h3>

Based on the information given, the way to write the essay will be given. Firstly, it's important to decide on your topic. In this case, it is an essay analyzing the STEEPLE Module.

Research should be done on the topic and create an essay outline.  STEEPLE stands for social, technological, economic, environmental, political, legal, and ethical. Set your argument in the introduction and develop it with evidence.

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2 years ago
Following an active duty period of 45 days, when must an employee return to work or apply for reemployment?.
barxatty [35]

If your service lasts 31 to 180 days, you must return to work within 14 days of returning from completing your service requirements.

For deployments lasting more than 180 days, you must apply for re-employment within 90 days of the end of your service.

<h3>What is reemployment in central government?</h3>

Persons reemployed after resignation removal or dismissal provided they have not received any retirement terminal benefits for the pre-empolyed service .

Persons reemployed in posts the expenditure of which is not debitable to the civil estimates of the Union Government .

<h3>What reemployment means?</h3>

The act or an instance of employing or being employed again.

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1 year ago
On January 1, 2018, Friendly Farm Company purchased a new machine at a cost of $350,000. The machine has an estimated useful lif
schepotkina [342]

Answer:

Friendly Farm Company

Schedule of Straight-line, Units of Production, and Double Declining Balance:

                             Straight-line     Units of Production    Double Declining

Year 1 Book value   $350,000        $350,000                               $350,000

Depreciation Exp.     $80,000          $96,000 (30,000*$3.20)      $175,000

Year 2 Book value $270,000        $254,000                                 $175,000

Depreciation Exp.    $80,000           128,000 (40,000*$3.20)          87,500

Year 3 Book value $190,000         $126,000                                  $87,500

Depreciation Exp.   $80,000             64,000 (20,000*$3.20)          43,750

Year 4 Book value $110,000           $62,000                                  $43,750

Depreciation Exp.    80,000              32,000 (10,000*$3.20)         $13,750

Residual value       $30,000           $30,000                                  $30,000

Explanation:

a) Data and Calculations:

Cost of new machine = $350,000

Estimated useful life = 4 years or 100,000 hours

Residual value = $30,000

Usage of machine:

Year 1 = 30,000 hours

Year 2 = 40,000 hours

Year 3 = 20,000 hours

Year 4 = 10,000 hours

Units of Production = $320,000/100,000 = $3.20 per unit

Depreciable amount = $320,000 ($350,000 - $30,000)

Straight-line method, Depreciation per year = $80,000 ($320,000)

= 25% (100/4).

Depreciation expense, using Double-Declining Balance rate = 25% * 2 = 50%:

Year 1 = $350,000 * 50% = $175,000

Year 2 = $175,000 * 50% = $87,500

Year 3 = $87,500 * 50% = $43,750

Year 4 = $13,750 ($43,750 - $30,000)

b) These different methods still arrive at the same end result as shown above.  Note that depreciation is an accounting estimate which spreads the cost of an acquired long-term asset over its useful life.

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A carpenter who constructs a fence for a farmer is a straightforward illustration of a barter transaction.

The farmer might compensate the carpenter with $1,000 worth of crops or groceries rather than paying the builder $1,000 in cash for labor and supplies.

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7 0
2 years ago
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