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inn [45]
3 years ago
7

Woody Corporation acquired 70% of Buzz Company’s voting common stock on January 1, 20X3, for $158,900. Buzz reported common stoc

k outstanding of $100,000 and retained earnings of $85,000. The fair value of the noncontrolling interest was 68,100 on the date of acquisition. Buildings and equipment held by Buzz had a fair value that was $25,000 higher than book value. The remainder of the differential was assigned to a copyright held by Buzz. Buildings and Equipment had a 10-year remaining life and the copyright had a 5-year life on the date of acquisition.
On January 1, 20X5, Buzz sold equipment to Woody for $91,600. Buzz had purchased this equipment on January 1, 20X3 for $100,000 and depreciated it using straight-line depreciation over 10 years with an estimated residual value of $10,000. No change was made to the estimated economic life or residual value of the equipment as a result of the intercompany transfer. Woody uses a fully adjusted equity method.
What entry is needed to eliminate Buzz’s gain on the sale of equipment to Woody?
a.Dr. Gain on Sale 9,600
Dr. Equipment 8,400
Cr. Accumulated Depreciation 18,000
b.Dr. Gain on Sale 11,600
Dr. Equipment 8,400
Cr. Accumulated Depreciation 20,000
c. Dr. Accumulated Depreciation 18,000
Cr. Equipment 8,400
Cr. Loss on Sale 9,600
d. Dr. Equipment 8,400
Cr. Accumulated Depreciation 8,400
Business
1 answer:
Dvinal [7]3 years ago
5 0

Answer: a.Dr. Gain on Sale 9,600

Dr. Equipment 8,400

Cr. Accumulated Depreciation 18,000

Explanation:

Difference between following entries gives the elimination entry:

Actual: Equipment as actually recorded in the financial statements (Equipment Dr. 91600, Gain on sale Cr. 9600)

As if: Equipment as recorded in the financial statements as if it had not been transferred (Equipment Dr. 100000, Accumulated Depreciation Cr. 18000)

Difference of the above recorded entries would be: Equipment Dr. 8400, Gain on sale Dr. 9600, Accumulated Depreciation Cr. 18000

Thus, entry needed to eliminate Buzz’s gain on the sale of equipment to Woody would be:

.Dr. Gain on Sale 9,600

Dr. Equipment 8,400

Cr. Accumulated Depreciation 18,000

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Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.5 cus
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A) Single-server single-phase model (M/M/1).

\lambda=2.5 \,customers/hour\\\\\mu=6\,customers/hour

B) The goal is not met, as the average time waiting for service is 5.56 minutes.

C) The new mean service rate is 7.5 customers/hour.

In this case, the average time waiting for service is 4 minutes, so the goal is met.

Explanation:

A) This situation can be modeled as a single-server single-phase model (M/M/1).

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\lambda=2.5 \,customer/h

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B) The average waiting time for a customer can be expressed as:

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An the average waiting time for the service now becomes:

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Hutton Company reported a $750 unfavorable overhead variance on a recent performance report. This means that factory overhead wa
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Hutton Company reported a $750 unfavorable overhead variance on a recent performance report. This means that factory overhead was underapplied during the period.

<h3>What does an unfavorable overhead volume variance mean?</h3>

An unfavorable volume variance indicates that the amount of fixed manufacturing overhead costs applied (or assigned) to the manufacturer's output was less than the budgeted or planned amount of fixed manufacturing overhead costs for the same time period.

Unfavorable variance is an accounting term that describes instances where actual costs are greater than the standard or projected costs. An unfavorable variance can alert management that the company's profit will be less than expected.

To learn more about Unfavorable variance  visit the link

brainly.com/question/24064163

#SPJ4

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