Answer:
$8,000
Explanation:
The following compensation cost shall be recognised in the accounts of the Company as at December 31, Year 1 in respect of employee share options:
5,000*8*1/5=$8,000
In the above calculation, 5000 represents number of share granted to employee,8 represent the fair value of the option at the grant dated and 1/5 represent first year of the 5-year requisite service condition for the exercise of share options.
Answer:
$157,986.11
Explanation:
Given that
Amount = $75,000
Number of years = 3
Interest rate = 20%
The computation of the present value is shown below:-
Here we will use the P/A factor which is here
Present value = Amount × (1 + Interest rate)^number of years - 1 ÷ (Interest rate × (1 + Interest rate)^Number of years
= $75,000 × ((1 + 20%)^3 - 1) ÷ (0.20 × (1 + 0.20)^3)
= $75,000 × (0.728 ÷ 0.3456)
= $75,000 × 2.106481481
= $157,986.1111
or
= $157,986.11
Therefore for computing the present value we simply applied the above formula.
Answer:
The adjustment to record bad debts for the period will be:
Debit Bad debt expense ($20,000 - $3,000) $17,000
Credit Allowance for doubtful accounts $17,000
<em>(Bad debt expense required)</em>
Explanation:
Bicylce Company adopts the aging of accounts receivable method. The aging of accounts receivable is a criterion for apportioning the balance in the accounts receivable into different buckets (aging), for example: Not due, 1 - 30 days, 30 - 60 days, over 60 days, based on historical information and assigning a credit loss percentage to each bucket.
Since the Allowance for Doubtful Accounts has a $3,000 credit, to calculate the required bad debt expense, we need to back out this amount from the amount that is deemed uncollectible, that is $20,000 - $3,000 = $17,000.
Answer:
Opportunity cost
Explanation:
The theory of comparative advantage represent that if there is any benefit from the international trade so it does not only show the absolute advantage at lesser cost but it also represent the comparative advantage and generating at a lesser opportunity cost as the theory of comparative advantage says that the product and services should be produced at lower opportunity cost
