Answer:
d. All of these explanations could be relevant.
Explanation:
Change in demand for small luxury condominiums, from large single family homes could be : due to any of these three reasons - changing 'taste & preferences' of people
- Increase in senior citizen (old parents) , whose children have moved away from home. So, they might feel settling in community apartments better rather than full lonely homes (without children)
- Urban area aged people tend to have higher income & financial base for purchasing luxury condominiums
Solution :
Required :
<u>Items </u> <u>Cash </u> <u>Net Income</u>
a). Supplies of $133 purchased for cash - $ 133 --
b). Recorded the adjustment entry so as to
record use the $31 for the above supplies -- $ 31
c). Made sales of the $ 1297 on account -- $ 1,297
d). $865 received from customers as payment
of accounts $ 865 --
e). $ 2,528 purchased the equipment for cash - $ 2, 528 --
f). Recorded the depreciation of the building
for the period use of $ 610 -- $ 610
Answer: discounted cash flow valuation
Explanation:
The discounted cash flow valuation is a method of project analysis that is defined as computing the value of a project based on the present value of the project based on the present value of the project's anticipated cash flows.
Discounted cash flow is used to determine an investment's value based on the future cash flows that the investment will bring.
Answer:
Explanation:
Amount realized on sale:
Cash $75,000
Purchaser’s note 675,000
$750,000
Adjusted basis (535,000)
Gain realized on sale $215,000
b. $215,000 gain realized ÷ $750,000 contract price = 28.67% gross profit percentage.
Cash received in year of sale:
Cash at closing $75,000
August principal payment 33,750
$108,750
Gain recognized (108750*28.67%) $31,179
A. Book gain $215,000
Tax gain (31,179)
Book/tax difference $183,821
B. $183,821 × 35% = $64,338 deferred tax liability
The excess of book gain over tax gain is a favorable difference.
Answer:
D. Expensed as incurred in the current period.
Explanation:
Since in the question it is given that the acquisition cost incurred for $100,000 which is related to the purchase of the net assets
And, the same $100,000 is reported as an expenses incurred for the current period as other cost like professional fees, consulting fees, general administrative cost expenses, etc are recorded when they are incurred
Hence, the last option is correct