False.
The business wants to upgrade the phone system, not rebuy the same one.
Answer: $200,100
Explanation:
Given that,
Units sold = 15,000
Sales Revenue = $510,000
Purchases (excluding Freight In) = $310,500
Selling and Administrative Expenses = $36,000
Freight In = $15,900
Beginning Merchandise Inventory = $42,500
Ending Merchandise Inventory = $59,000
Cost of goods sold = Beginning Merchandise Inventory + Purchases + Freight In - Ending Merchandise Inventory
= $42,500 + $310,500 + $15,900 - $59,000
= $309,900
Gross Profit = Sales Revenue - Cost of goods sold
= $510,000 - $309,900
= $200,100
Answer:
analyzer
Explanation:
This strategy is used by companies wishing to gain market share. It is a moderate aggressive strategy, as it presents low aggregate risks, and innovation is not a very relevant factor in companies that use the analyzer strategy. Companies seek to provide a production of goods already in the market, with modifications and differentiations.
Answer:
Option B: $30,000 Impairment Loss of Machinery
Explanation:
IAS 36 – Impairment of Assets states that an asset is considered to be impaired if the Carrying Amount of an asset is greater than the Recoverable Amount. Recoverable Amount of an asset is the higher of Fair Value less Cost to Sell and Value-in-Use.
Fair value less cost to sell is defined as the amount receivable from sale of assets less the cost of disposal, whereas Value in Use is defined as the present value of future cash flows from using an asset,
In case of Kohlman Company, recoverable amount of Machinery will be $350,000 i.e. Value in Use (future cash flows) as it is greater than the Fair Value of Machinery. The book value of machinery $380,000 exceeds the recoverable amount of $350,000. Therefore, the asset is considered to impaired and must be written down by $30,000 ($380,000 - $350,000 = $30,000). The impairment loss is charged to profit and loss account.
Journal Entry to record impairment loss:
DR Profit & Loss Account $30,000
CR Equipment $30,000
