Answer:
D) $16,000 Discount Expense plus a $20,000 positive Adjustment to Net Income when the merchandise is delivered
Explanation:
Options include <em>"A) $20,000 Discount Expense plus a $12,000 positive Adjustment to Net Income when the merchandise is delivered. B) $20,000 Discount Expense plus a $12,000 negative Adjustment to Net Income when the merchandise is delivered. C) $20,000 Discount Expense plus a $20,000 negative Adjustment to Net Income when the merchandise is delivered. D) $16,000 Discount Expense plus a $20,000 positive Adjustment to Net Income when the merchandise is delivered E) $20,000 Discount Expense plus a $20,000 positive Adjustment to Net Income when the merchandise is delivered."</em>
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Discount expense
= ($1.41 - $1.37) * 400,000 euro
= $0.04 * 400,000 euro
= $16,000
Adjustment at Delivery
= ($1.41 - $1.36) * 400,000 euro
= $0.05 * 400,000 euro
= $20,000 (positive)
Answer:
Explanation:
The journal entry is shown below:
Amortization expense - Patent A/c Dr $32,380
To Patent A/c $32,380
(Being amortization expense for the first year is recorded)
The computation is shown below"
= Purchase cost of patent ÷ estimated useful life
= $161,900 ÷ 5 years
= $32,380
For the intangible assets, the amortization expense is considered,not the depreciation expense and the same is to be taken.
Answer: Plainly put, extreme income inequality, such as the kind found in Sub-Saharan Africa and South Asia, cause economic inefficiency. The relatively wealthy tend to save a much higher proportion of their income than the poor. In order to grow economically, a society must have robust rates of consumption. However, if most of the wealth of a country is owned by a very small percentage of its population, that wealth is saved, not spent. These savings are then invested by individuals and financial institutions.
Explanation:
Answer:
Accounting rate of return = 20.53%
Explanation:
<em>The accounting rate of return is the average annual income expressed as a percentage of the average investment.</em>
The simple rate of return can be calculated using the two formula below:
Accounting rate of return
= Annual operating income/Average investment
× 100
Average investment = (Initial cost + scrap value)/2
= 30,000/2= 15,000
Accounting rate of return = ( 3080/15,000) × 100
= 20.53%
Accounting rate of return = 20.53%
Answer:
Depreciation for 6 months ending June 30, 2016 is $ 5,000 and the accounting entry to record the transaction is:
Depreciation Expense - Debit $ 5,000
Allowance for Depreciation - Credit $ 5,000
Explanation:
The depreciation charge for the year is calculated as follows:
Total cost of the equipment $ 55,000
Salvage Value $ 5,000
Net Depreciable value $ 50,000
Estimated Useful Life 5 years
Annual Depreciation expense(50000/5) $ 10,000
Depreciation for 6 months (10000/2) $ 5,000
