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kozerog [31]
3 years ago
14

The purpose of the Splish Brothers Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated

with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be $440 million. Management has also received an offer to purchase the division for $335 million. All identifiable assets' and liabilities' book and fair value amounts are the same.
Required: Prepare the journal entry to record the impairment at December 3 2017.

Business
1 answer:
Ber [7]3 years ago
8 0

Answer: Please refer to Explanation.

Explanation:

Your question was incomplete so I attached the missing details.

The Carrying Amount of the Division has to be ascertained to move forward as it is needed in calculating the loss on Impairment. It is calculated by subtracting Goodwill from the Net Assets.

= 496 - 214

= $282 million

Calculating the Loss on impairment is done by the following formula,

= Market Price - Carrying Amount of the Division (net of Goodwill) - carrying value of Goodwill

= 335 - 282 - 214

= -$161 million.

Journal Entry

DR Loss on Impairment $161 million

CR Goodwill $161 million

(To record the loss on Impairment)

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Answer: d. Dynamic pricing strategy

Explanation:

The companies mentioned above are increasingly turning towards Dynamic pricing in order to maximize sales and therefore increase profitability.

Dynamic pricing refers to a strategy where goods are priced at the optimal price based on the conditions at the time. In other words, it involves trying to sell at a price that is cheapest for the customer based on factors such as consumer willingness to pay, competition and others.

Prices can therefore change multiple times in as little a period as a day just to ensure that customers buy the goods being offered.

8 0
3 years ago
Max separated the workers by gender and then asked only the men to work the evening shift from 5 P.M. to closing. This is an exa
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Answer:

D. Disparate treatment

Explanation:

Disparate treatment is a form of unlawful discrimination in the labour force. It's when a manager or leader gives unequal treatments to workers because of a certain characteristics. It is an intentional employment discrimination.

In this situation, the men suffers the evening shift just because they are men (certain characteristics).

Apart from gender another characteristics that is subjected to unequal treatments is race, where one race suffer more treatment than the other race.

5 0
3 years ago
Assess how the leadership team you designate will affect organizational performance in the short-term and the long-term.
My name is Ann [436]

Explanation:

A company's leadership team is an essential part of the company's strategic development and decision-making process.

Therefore, the leadership team will directly influence organizational performance in the short and long term, in the sense that this team will be responsible for the strategic planning that will contemplate the long term in the organization and help it to reach its goals and objectives.

The decision-making process, on the other hand, will impact the company in the short term and will be essential for the decisions made to be beneficial for the improvement of organizational processes and the achievement of competitive and financial advantages.

8 0
3 years ago
If a check correctly written and paid by the bank for $408 is incorrectly recorded on the company's books for $480, the appropri
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Answer:

The correct answer is add $72 to the book's balance.

Explanation:

Bank reconciliation is a way of identifying discrepancies between the cash book balance (company's books) and the bank balance (balance per bank statement). The discrepancies can be as a result of erroneous posting, deposit in transit, outstanding checks, etc.

In the instance of the question, there was an erroneous posting in the cash book of $72 ($480 - $408). Instead of crediting cash book by $408, it was rather credited by $480 - meaning that the credit was overstated by $72. <em>To correct this erroneous posting, we have to add back $72 to the cash book balance.</em>

8 0
3 years ago
Luciana, a nonshareholder, purchases a condominium for her employer for $85,000. The fair market value of the condominium is $12
krok68 [10]

Answer:

Luciana’s basis in the condominium is $120000.

Explanation:

The transfer or sale of property by the employer to the employee at less than the fair market value then it is considered as the compensation income or dividend income. However, it should be included in the income. The difference in cost and fair market value ($120000 - $85000 = $35000) is considered as the gross income which is taxable for the year.

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3 years ago
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