Answer:
Net income is overstated by $28,000.
Explanation:
As the company forget to make the adjustment entry it didn't recognize any expense for the expired insurance.
From September to December 31th 4 month of insurance has expired:
42,000 x 4 month/6 months = 28,000 insurance expense
as the expense weren't post the income statement is overstated along with the assets of the company as it doesn't have a prepaid amount for 42,000 but for 14,000
Sherman, who owns property in a life estate, neglects the property, significantly diminishing its value. This is called a<u>n act of waste</u>.
The diminishing value technique assumes that the cost of a depreciating asset decreases extra within the early years of its effective life.
Basically, you take the number 2 hundred and divide it by the object's effective existence. For instance, 10 years, and specific that as a percentage (two hundred/10 = 20% in this example). The depreciation price applies to the faded cost of the asset after it's been depreciated every 12 months.
In the diminishing value approach, depreciation is calculated on the e-book cost of the asset at the start of the year rather than the precept amount with constant percent. on this, the percentage is identical however depreciation quantity steadily decreases as it's far completed on book value.
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Answer:
$118,000
Explanation:
We know the purchase price of land = $100,000
Also any kind of brokerage or commission is added to such cost as it is part of acquisition and one time expense, thus capital in nature.
Thus, $8,000 paid as brokerage will be added.
Also the one time expense in the capital nature being the demolishing expense will be added to cost.
Thus, net cost of land = $100,000 + $8,000 + $10,000 = $118,000
Some of the salvage sold results in an income for the company, and that shall form part of income statement, and has nothing to do with cost of land.
Thus, net historical cost = $118,000
Answer:
d
Explanation:
A change in price leads to two effects :
- The income effect
- The substitution effect
The income effect is the change in quantity demanded as a result of a change in real income which affects the consumes purchasing power.
A car constitutes a very large part of a consumers expenditure due to its cost. Thus, the income effect for a car would be the largest
The substitution effect is the change in demand as a result of change in the price of the good compared to the price of another substitute good.
Answer:$192.200
Explanation: sales revenue ($135 × 6,200) ................................................. $837,000 Variable cost: .......................................................................... Direct materials ($49 × 6,200) ........................................... $303,800 Direct labor ($38 × 6,200) .................................................. 235,000 Variable manufacturing overhead ($6 × 6,200) .................. 37,200 Variable selling and administrative ($11 × 6,200) ............. 68,200 644,800 Contribution margin ............................................................... $192,200
