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ivolga24 [154]
3 years ago
15

Club Co. appropriately uses the equity method to account for its investment in ChipCorp. As of the end of 2013, Chip's common st

ock had suffered a significant declinein fair value, which is expected to be recovered over the next several months. How should Club account for the decline in value? A. Club should switch to the fair-value method.B.No accounting because the decline in fair value is temporary.C. Club should decrease the balance in the investment account to the current value and recognize a loss on the income statement.D. Club should not record its share of Chip's 2013 earnings until the decline in the fair value of the stock has been recovered.E. Club should decrease the balance in the investment account to the current value and recognize an unrealized loss on the balance sheet.
Business
1 answer:
sweet-ann [11.9K]3 years ago
3 0

Answer:

C. Club should decrease the balance in the investment account to the current value and recognize a loss on the income statement.

Explanation:

Club SHOULD account for the decline in value by decreasing the balance in the investment account because it is stated in IAS 28 that when the 'carrying amount' which is the book value of an investment in an another company's shares <u>exceeds</u> the amount at which that investment can be disposed which is its 'recoverable amount', an impairment loss is recognized. The loss should be posted directly to the investment account.

Hence the investment account will be credited and the corresponding debit will go to the income statement.

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In addition to compensation, customers expect _____. in other words, they expect fairness in terms of policies, rules and timeli
konstantin123 [22]
The answer to this question is "OUTCOME FAIRNESS". Such as in addition to compensation, the customers expect OUTCOME FAIRNESS. In other words, the customers expect fairness in terms of policies, rules, guidelines, and timeless of the complaint process. Therefore, the answer is the last item in the choices which is outcome fairness.
4 0
3 years ago
For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an a
Naddik [55]

Answer:

$80,160.

Explanation:

An account receivable is lawfully enforceable cases for installment, held by a business for the products provided and benefits that clients/customers have requested yet not paid for.

According to Rahal's autos noncollectable accounts and the amount they received in the following year. Rahal's collectible accounts on December 31, 2021, is

86,500 + 404,000 - 408,000 - 2,340

3 0
3 years ago
Larned Corporation recorded the following transactions for the just completed month.
lara [203]

Answer:

1. Dr Raw materials $80,000

Cr Account payable $80,000

2. Dr Work-in-Process $62,000

Dr Manufacturing overhead $9,000

Cr Raw materials $71,000

3. Dr Work-in-Process $101,000

Dr Manufacturing overhead $11,000

Cr Cash $112,000

4. Dr Manufacturing overhead $175,000

Cr Accumulated depreciation $175,000

Explanation:

Preparation of Journal entries

1. Based on the information given we were told that the amount of$80,000 in raw materials were been purchased on account which means that the Journal entry will be :

Dr Raw materials $80,000

Cr Account payable $80,000

(Raw materials purchased on account)

2. Based on the information given we were told that the amount of $71,000 in raw materials were been used in production in which the amount of $62,000 was for used for direct materials while the remaining was for indirect materials which means that the Journal entry will be:

Dr Work-in-Process $62,000

Dr Manufacturing overhead $9,000

(71,000-62,000)

Cr Raw materials $71,000

(raw material charged to production)

3. Based on the information given we were told that the Total labor wages amount of $112,000 were been paid in cash in which the amount of $101,000 was for direct labor while the remaining was for indirect labor which means that the Journal entry will be :

Dr Work-in-Process $101,000

Dr Manufacturing overhead $11,000

(112,000-101,000)

Cr Cash $112,000

(Wages charged to production)

4. Based on the information given we were told that the Depreciation of the amount of $175,000 was incurred on factory equipment which means that the Journal entry will be :

Dr Manufacturing overhead $175,000

Cr Accumulated depreciation $175,000

(Depreciation charged)

4 0
3 years ago
If a store sells a good at the market price, even though the government authorities have set the minimum price that can be charg
Alexandra [31]

Answer:

The correct answer would be option D, Legal Market for a market price that is lower.

Explanation:

If there is a store which sells the goods at the market price even though the government authorities have set the minimum price that can be charged, it means store is selling the product at a price which is higher than the minimum price set by the government, but it doesn't mean that the store owner is doing any illegal trading. This is because the government has set the lower price limit but that ceiling price is non binding. It is not necessary for the market sellers to sell at the price given by government. So they are operating in a legal market for a market price that is lower.

4 0
3 years ago
If the price of a good increases, all else the same, then the consumer's total utility will increase. decrease. remain the same
AnnyKZ [126]

When the price of a good increases, all else the same, then the consumer's total utility will decrease.

<h3>What is utility?</h3>

Utility simply means the satisfaction that's gotten when one consumes a particular product.

In this case, it should be noted that when the price of a good increases, all else the same, then the consumer's total utility will decrease. This is because less products will be bought.

Learn more about utility on:

brainly.com/question/24922430

6 0
2 years ago
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