Answer: a. Only I
Explanation:
In a sell or process further decision, the only cost that is relevant is the variable production cost that is incurred after split-off.
It should be noted that a split-off is when the parent company of an organization uses specified terms to divests its business unit
e. of course it is a good goal; it meets all of the criteria discussed
This goal meets all the criteria for a SMART goal.
Answer:
$479,400
Explanation:
The preparation of the Cash Flows from Operating Activities - Indirect Method is presented below:
Cash flow from Operating activities - Indirect method
Net income $396,200
Adjustment made:
Add : Depreciation expense $61,250
Add: Loss on disposal of equipment $27,600
Less: Increase in accounts receivable -$9,000
Add: Increase in accounts payable $3,350
Total of Adjustments $83,200
Net Cash flow provide by Operating activities $479,400
Answer:
The amount of the impairment loss that should be recognized is:
$20,000.
Explanation:
a) Data and Calculations:
Undiscounted cash flows = $95,000
Carrying value = $100,000
Fair value = 80,000
Impairment loss = $20,000
b) Impairment loss for the asset group is the difference between the fair value and the carrying value. It is recognized when the fair value declines from the carrying value. This implies that the calculation to determine the impairment loss is achieved by deducting the fair value from the carrying value.
Answer:
$7.96
Explanation:
the first month's principal balance = $400 (initial purchase) - $20 (first payment) = $380
the second month's principal balance = $380 (carried over) + $18 (second purchase) = $398
the interest charged on the second month's principal = $398 x 2% = $7.96
