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Natali5045456 [20]
3 years ago
12

On January 10, 2017, a fire destroyed a warehouse owned by NP Company. NP’s adjusted basis in the warehouse was $530,000. On Mar

ch 12, 2017, NP received a $650,000 reimbursement from its insurance company. In each of the following cases: Determine NP’s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. NP’s board of directors decided not to replace the warehouse. Determine NP’s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. On January 2, 2019, NP paid $700,000 to acquire a warehouse to store its inventory. Determine NP’s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. On February 8, 2020, NP paid $700,000 to acquire a warehouse to store its inventory.
Business
1 answer:
OLEGan [10]3 years ago
3 0

Answer:

A. $120,000

B. $0

C. $120,000

Explanation:

A. Calculation to Determine NP’s recognized gain

Using this formula

Recognized gain =Insurance reimbursement-Adjusted basis

Let plug in the formula

Recognized gain =$650,000-$530,000

Recognized gain=$120,000

B. NP will not recognize the realized gain of the amount of $120,000 ($650,000-$530,000) reason been that NP have spent the amount of $650,000 on the replacement of property.

C. NP will have to recognize the whole amount of the gain realized gain which is $120,000 ($650,000-$530,000) reason been that replacement property was not acquired within the taxable year when the gain was been realized

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Answer:

The present value of the future cash inflows from this investment is $19,740

Explanation:

Profitability Index is a useful tool for ranking project because we can know the amount/ value created by per unit of investment.

Profitability Index = Present value of future cash flow/ Initial Investment

↔ 0.329 = Present value of future cash inflow/ $60,000

↔ Present value of future cash inflow = 0.329 * $60,000 =$19,740

8 0
3 years ago
What is the main goal of a six sigma implementation?
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Overall improvement of quality.

The goal is to Increase profits by eliminating existing product variability, defects and waste that are undermining customer loyalty.

I found a diagram on google that’s colorful and looks helpful if you’d like to doodle it in your notes ☺️

5 0
3 years ago
A credit sale is made on July 10 for $900, terms 1/15, n/30. On July 12, the purchaser returns $100 of goods for credit. Give th
balu736 [363]

Answer:

                                      Dr.      Cr.

July 19

Cash                            $792

Discount expense      $8

Account Receivable              $800

Explanation:

The term 1/15, n/30 mean there is a discount of 1% is available on the sales value, if payment is made within 15 days of sale with credit term of 30 days.

The sale of $900 was made on July 10 and discount period is until July 25.

On July 12 goods amounting $100 was returned and now the amount due from the customer is $800 ( $900 - $100 ).

The payment made on July 19 is actually in the discount period and it is eligible for the discount as it is made before July 25.

Discount = Amount due x Discount rate

Discount = $800 x 1% = $8

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5 0
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Observe the Sales Budget and determine which primary responsibility the managerial accountant uses todetermine which quarter gen
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Answer:

"Directing" seems to be the right response.

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Therefore the method above is the right one.

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Suppose the typical Buffalo Bills fan has the following demand curve for Bills football games: P = 120 – 10G where G is the numb
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Answer:

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4 0
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