Product organisation is the grouping of sales and production efforts of a business as per the line of products and services of the business. This kind of organisation is chosen by businesses when they have some different product lines and they require special expertise for marketing and distributing them.
Answer:
b. 253,589
Explanation:
According to the scenario, computation of the given data are as follows,
Present value of lease payment = $3,335,888
Payment in 2021 = $800,000
Interest rate = 10%
So, we can calculate the interest expense by using following formula,
Interest expense = (Present value of lease payment - Payment in 2021 ) × interest rate
Interest expense = ($3,335,888 - $800,000) × 10%
= $2,535,888 × 10%
= $253,588.8 or $253,589
In 2021, Pine should record interest expense of $253,589
Answer:
Option D Allowance for noncollectable Accounts.
Explanation:
The bad debt recovery recording is a two step process.
Step 1 Reverse the entry of bad debt with the amount received
Dr Trade Receivable $40,000
Cr Bad debts $40,000
Step 2 Now record the receipt of amount as a reduction in trade receivable and increase in cash asset.
Dr Cash $40,000
Cr Trade Receivables $40,000
The only account unconsidered here was Allowance for the noncollectable account.
You can tell that the costumer is impatient and appears to be after what they are looking for.
Answer:
a. A taxable dividend of $15,000
Explanation:
The relevant variables are the friar market value and the tax liability on the land.
The fair market value is the amount at which an asset or a company will be exchanged between a knowledgeable willing seller and a knowledgeable willing seller in an ordinary transaction in the market. Put simply, the fair market value of an asset gives an estimation of the price that a buyer would pay to the owner of the asset if the owner decides to sell the asset.
When a company distributes an asset as a dividend to the owner, any liability taken over on the assets will be deducted from the fair market value of the asset to arrive at the taxable dividend.
From the question, the $55,000 tax liability assumed by Troy will be deducted from the fair market value of the asset to obtained the taxable dividend as follows:
Taxable dividend = Fair market value - Tax liability on the land
= $70,000 - $55,000
= $15,000
Therefore, the taxable dividend is $15,000.
