Answer & Explanation:
The fair value of our asset is $20000 and what we receive is a truck with $15000 market value and $5000 cash. So the transaction possesses commercial substance as the fair value and value received are same.
So assume if the transaction lacks the commercial substance (according to question) then the truck received must be recorded at fair value and must be offset against the truck which is exchanged for. The entry would be:
Dr Truck received @ Fair Value $15000
Cr Truck Sold $12000
Cr Profit on Disposal $8000
The above entry makes it clear that the entry to recognize the truck would be $15000. So the option D is correct.
Answer:
if there is an increase to sales even if fixed expenses are also increased.
Explanation:
In simple words, fixed cost refers to the expenditures, that unlike variable expenses, remain stable at a high level. Factory or office rent , labor charges are some of the prime examples of fixed expenses.
Due to fixed expenses, entities operating at higher level makes higher profit. Hence, if the fixed expenses also increase with sales then the project might not be very profitable to accept.
Answer:
(C) Organizational Breakdown structure, Work Breakdown structure, Control Account Plans, and Points of Management control.
Explanation:
Under Earned value management in projects the mutli functional control account plans should have a Work break down structure which helps to provide on time deliveries and also a necessary Organizational break down structure to identify the respective persons who was assigned with particular resposibilities to provide smooth functioning of the business and both these sturctures maintain control account plans and all of these shall be subject to management control through a Points of management control.
When decisions are made by majority rule, elected officials have a strong incentive to <span>keep taxes low, run budget surpluses, and spend taxpayer funds wisely. When majority rules in a vote elected officials are typically in a much better standing with the voters and have time to focus on what's important and how to spend their funds wisely versus trying to spend money to win them over. </span>
Answer: $14.5 million
Explanation:
The following information can be gotten from the question;
Total equipment cost = $4.2 million
Direct cost factor = 1.52
Indirect cos factor = 0.37
The total plant cost will then be calculated as:
= 4.2 × (1 + 1.52) × (1 + 0.37)
= 4.2 × 2.52 × 1.37
= 14.5
Therefore, the total plant cost is $14.5 million