Production Capital, Human Capital, Resource Capital, and Intellectual Capital...
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Answer:
The Individual assets will be recorded by the buyer as :
Machine 1 = $25,250
Machine 2= $33,667
Machine 3= $42,083
Explanation:
On Initial measurement, IAS 16 requires assets to be measured at cost to the buyer.
Apportion the Cost of $101,000 ($100,000 + $1,000) using individual market values of the assets.
Machine 1 = $30,000 / $120,000 × $101,000
= $25,250
Machine 2= $40,000 / $120,000 × $101,000
= $33,667
Machine 3= $50,000 / $120,000 × $101,000
= $42,083
Answer:
Hence, the minimum transfer price = $2
Explanation:
Transfer price is the price at which goods are exchange between branches or divisions of the same group
Where a division is operating at the less than the existing capacity, to optimist the group profit, the minimum transfer price should be set as follows
Minimum transfer price = Variable cost
It is worthy of note that there is no opportunity cost associated with any transfer to the Cologne division because the Bottle division is currently having excess capacity- it can meets all demands both external and internal.
<em>Therefore, any offering price equal to or above the variable manufacturing cost of $2 would be acceptable and optimize the group profit</em>.
Hence, the minimum transfer price = $2
Answer:
The difference is $9,450,000
Explanation:
Market Value of Share = $27.50 x 530,000
=$14,575,000
Book Value = $5,125,000.
Difference = $14,575,000- $5,125,000.
=$9,450,000
The market value is greater than book value by $9,450,000
Answer:
Fixed Overheads Spending Variance = $5,000 Unfavorable(U).
Fixed Overheads Spending Variance = $20,000 Favorable (F).
Explanation:
Fixed Overheads Spending Variance = Actual Fixed Overheads - Budgeted Fixed Overheads
= $305,000 - $300,000
= $5,000 Unfavorable(U).
Fixed Overheads Spending Variance = Fixed Overheads at Actual Production - Budgeted Fixed Overheads
= ($5.00 × 64,000) - $300,000
= $320,000 - $300,000
= $20,000 Favorable (F)