Answer:
D) Property's fair value at the date of the investment.
Explanation:
When new business is formed from closing the old one, all assets are recorded at fair value.
Thus, all the assets other than cash shall be recorded at their respective fair values in the new business which is a partnership, as the cost or historical value will not display their proportional contributions properly.
Therefore, correct statement is
D) Property's fair value at the date of the investment.
Answer:
$51,790
Explanation:
Amrein Corporation Manufacturing Overhead Budget
August
Budgeted direct labor-hours 2,500
Variable manufacturing overhead rate $5
Variable manufacturing overhead $12,500
($2,500×$5)
Fixed manufacturing overhead $43,010
Total manufacturing overhead $55,510
($43,010+$12,500)
Less depreciation 3,750
Cash disbursement for manufacturing overhead $51,790
Therefore the August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be $51,790
a balance achieved between two desirable but incompatible features; a compromise.
When allocating their assets bankers take into account their reserve equipment. Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated.
