Answer:
By using the percentage-of-completion method the $64 million revenue should Parmac recognize in 2018
Explanation:
Percentage-of-completion method : Under this method,
First we have to calculate the percentage which is based on current period cost to total period cost.
After that, multiply the percentage with the revenue so that we get to know how much revenue is being recognized during an particular year.
In mathematically,
Estimated Cost percentage = current period cost ÷ total period cost
= $48 million ÷ $120 million
= 40%
Now,
Revenue recognized = Estimated cost percentage × Revenue
= 40% × $160 million
= $64 million
Hence, by using the percentage-of-completion method the $64 million revenue should Parmac recognize in 2018
Answer:
(d) Straight-line method (SL), the same convention as used in the first year of depreciation, ADS recovery period
Explanation:
The straight line method is the best to use, the convention to be used is the same as what was used in the first year of depreciation and the recovery period in 2019 is the ADS recovery period.
To decrease annual deduction, it is standardized that ADL is used with straight line method with 31 plus years for a recovery period that is longer.
Answer:
$189,000
Explanation:
The computation of total expense with regards to this payroll is shown below:-
Total expense = Salaries and wages earned by employees + Employer's portion of FICA taxes
= $180,000 + $9,000
= $189,000
Therefore for computing the total expenses with regards to this payroll we simply applied the above formula and we ignore all other values as they are not relevant.
Answer:
The correct answer to the following question will be "Consumption".
Explanation:
Investments, welfare spending, consumer spending are essential elements of GDP. That tells them what a nation is doing well. For every year, GDP is the world's total economic production.
Expenditure on resources consumption includes:
- Durable goods (Furniture, cars, etc).
- Non-durable goods (Oils. clothing, etc).
- Services (Education, health, etc).
Therefore, it's the right answer.
Answer:
$160,000
Explanation:
Data provided in the question:
Value of the building acquired = $170,000
Number of shares exchanged = 10,000
Selling price of the stocks = $16 per share
Now,
The amount for which the building will be recorded by Steak Company is the market value of the shares that has been exchanges to acquire the building.
Therefore,
The amount for which the building will be recorded by Steak Company
= Number of shares exchanged × Selling price of the stocks
= 10,000 × $16
= $160,000
