Answer:
No impairment loss would be reported
Explanation:
The computation is shown below;
Impairment loss = carrying value - recoverable amount
Where,
The recoverable amount would be the higher amount of fair market value and value in use
So the recoverable amount would be $2,545,000
Now the impairment loss is
= $2,500,000 - $2,545,000
= -$45,000
Since the impairment loss comes in negative so no impairment would be recorded
The Peter Principle is an observation in most organizational hierarchies such as: That of the company is that each employee works his way up the hierarchy through promotions until he reaches the appropriate level of incompetence.
1. Lack of legal capacity, especially to testify or bring to trial. Also called "impossible". It can be caused by various kinds of disqualification, incapacity or incompetence. A court may appoint a guardian for a person found to be unsound by a formal hearing.
The definition of incompetent is a person or something that is unqualified, inadequate, or inadequate for a particular purpose. An example of incompetence is someone who is behind the wheel of a manual transmission car and does not know how to operate a stick shift. Lack of qualities necessary for effective action or action.
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Answer:
1. $550,000
Explanation:
1. It is given in the question that the stated interest rate and the market interest rate both are having the same rate, i.e, 12%.
Hence, the bonds are issued at the face value that is $550,000.
2. The Journal entries are as follows:
(i) On January 1,
Cash A/c Dr. $550,000
To bonds payable $550,000
(To record the bond issuance)
(ii) On December 31,
Interest Expense A/c Dr. $66,000
To cash A/c $66,000
(To record the first interest payment on December 31 assuming no interest has been accrued earlier in the year)
Workings:
Interest expense = $550,000 × 12%
= $66,000
The two primary varieties of price restrictions are known as price ceilings and price floors respectively.
<h3>What exactly are these pricing controls?</h3>
Price control is a technique that the government uses to guarantee that the price of a product or service on the market does not become too high or cheap.
Price controls may be broken down into two categories: price ceilings and price floors. Price floors and ceilings are used to determine the lowest and maximum amounts of a product's price, respectively. Price ceilings are used to determine the maximum amount of a product's price.
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Answer:
b)less than $500,000 today, but a positive amount.
Explanation:
By the virtue of the concepts of compounding and discounting, we understand that $1 today is worth more that $1 in the future.
Where Pv = Present value
Fv = Future value
r = discount rate
t = time
Fv = Pv ( 1 + r)^t
As such If a firm can earn a profit stream of $50,000 per year for 10 years, that profit stream is worth less than $500,000 today, but a positive amount.
