Answer:
Answer:
Correct answer is letter B, $2,200
Explanation:
Using accrual basis method, revenue and expenses will be recognized when incurred whether paid (expenses) nor collected (revenues).
The $4,800 is a 24 months policy, therefore we must compute the insurance expense applicable for the year covering from February 1 to December 31 (11 months)
$4,800 divided by 24 months = $200 insurance per month multiply by 11 months expired portion (February 1 to December 31) = $2,200.
An adjusting entry to recognize the expire portion of the insurance must be done at the year end in the amount of $2,200.
($4,800 / 24 months = $200 x 11 months = $2,200)
Answer:
Cost basis will be equal to $93000
So option (d) will be correct answer
Explanation:
We have given purchased price of machine = $77000
overhaul costing is given $8000
Installation cost = $5000
And special acquisition fees is given $3000
We have to fond the cost basis
Cost basis will be sum of all purchased price, overhaul cost , installation cost and special acquisition fees
So cost basis will be equal to = $77000+$8000+$5000+$3000 = $93000
So cost basis will be equal to $93000
So option (d) will be correct answer
Answer:
C. Stafford
Explanation:
Grants are a form of of financial help that is given to another individuals / organizations for a certain cause. (could be things such as educations, activism, efforts to help victims of natural disasters, etc)
Financial aid that's given though Grants does not need to be paid back by the recipient.
Stafford on the other hand, is a form of loan that is given to people who need help for their education. Unlike grants, loans need to be paid back by the recipient.
Answer:
If volume reaches 500 units, net income will be: $715
Explanation:
When volume of sales was at 400 units:
Selling price per unit = Sales Revenue/400 = $1,600/400 = $4
Variable Cost per unit = Variable Cost/400 = $700/400 = $1.75
If volume reaches 500 units:
Total Sales Revenue = $4 x 500 = $2,000
Variable Cost = $1.75 x 500 = $875
Fixed Cost will not change = $410
Net income = Total Sales Revenue - Variable Cost - Fixed Cost = $2,000 - $875 - $410 = $715
