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ra1l [238]
2 years ago
11

Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with

balances in Accounts Receivable and Allowance for Doubtful Accounts of $46,890 and $3,710, respectively. During the year, the company wrote off $2,770 in uncollectible accounts. In preparation for the company's Year 2 estimate, Domino prepared the following aging schedule:
Number of Days Past Due Receivables Amount % Likely to be Uncollectible
Current $82,000 1%
0-30 $29,500 5%
31-60 $7,960 10%
61-90 $4,220 25%
Over 90 $3,900 50%
Total $127,580

What will Domino record as Uncollectible Accounts Expense for 2016?

a. $6,096
b. $2,296
c. $5,116
d. $2,820
Business
1 answer:
nignag [31]2 years ago
6 0

Answer:

$5,156

Explanation:

The computation of the uncollectible account expense is shown below:

But for this, first we have to compute the ending balance of allowance that is shown below

Current          $82,000 × 1%  = $820

0-30               $29,500  × 5%  = $1,475

31-60              $7,960 × 10%  = $796

61-90              $4,220  × 25%  = $1,055

Over 90          $3,900 × 50% = $1,950

Total                                            $6,096

Now the uncollectible account expense is

= $6,096 + $2,770 - $3,710

= $5,156          

This is the answer but the same is not provided in the given options

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Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses. Year 1$(12,000)Net Section 1
vekshin1

Answer:

a. $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.

b. $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.

Explanation:

Note: This question is not complete as part 'a' of the requirement is omitted. The complete question with the part 'a' of the requirement is therefore provided before answering the question as follows:

Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses.

Year 1  $ (12,000)    Net Section 1231 loss

Year 2      10,500      Net Section 1231 gain

Year 3    (14,000)     Net Section 1231 loss

a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

Explanation of the answer is now provided as follows:

When section 1231 losses exceed section 1231 profits in the prior five years, the excess loss (unapplied loss) is applied against the current year's section 1231 gain.

The amount that is reported as ordinary income is the amount of the loss that is applied against the current year's section 1231 gain.

Long-term capital gain is the excess of the current year's section 1231 gain over the the recaptured section 1231 loss from the prior five years.

You have to start with the earliest year to apply section 1231 losses from the previous five years to the current year's section 1231 gain.

Therefore, we have:

a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

As a result of the loss from the previous year that is applied to the extent of $7,500, the whole of the $7,500 net Section 1231 gain will be recorded as ordinary gain.

Therefore, $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.

b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

Unapplied losses in previous years can be calculated as follows:

<u>Details                                                       Amount ($)   </u>

Net Section 1231 loss in Year 3                  (14,000)    

Net Section 1231 gain in Year 4                   7,500

Net Section 1231 loss in Year 1                  (12,000)

Net Section 1231 gain in Year 2               <u>   10,500  </u>

Unapplied losses in previous years    <u>    (8,000)  </u>

Because there are unapplied losses of $8,000 from previous years, $8,000 will be reported as ordinary gain.

Therefore, the amount to be reported as capital gain can be calculated as follows:

Amount to be reported as capital gain = Gain in Year 5 – Amount to be reported as ordinary gain = $9,000 - $8,000 = $1,000

Therefore, $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.

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Answer:

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Answer:

<em>B: Machineries </em>

Lighting is not running,there seems to be an issue with the mechanical equipment and the chairs are too tight so there's no leg room.

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The current research on managerial skill points to four general management skills. Which of the following is NOT one of the four
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Explanation:

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The scientific is not the managerial skills in an organization and the following are the four general management skills are:

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6 0
3 years ago
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Answer:

Stock Y is overvalued and Stock Z is undervalued.

Explanation:

The stock is fairly valued when the required rate of return on the stock is equal to its expected return. If the expected return on the stock is more than the required rate of return, the stock is undervalued and vice versa.

The required rate of return on the stock is calculated under the CAPM approach suing the following formula.

r = rRF + Beta * rpM

Where,

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r of Stock Y = 0.052 + 1.3 * 0.077  =  0.1521 or 15.21%

The required rate of return of Stock Y (15.21%) is more than its expected rate (14.9%) which means the stock is overvalued.

r of Stock Z = 0.052 + 0.95 * 0.077 = 0.12515 or 12.515%

The required rate of return of Stock Z (12.515%) is less than its expected rate (12.8%) which means the stock is undervalued.

6 0
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