1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
exis [7]
3 years ago
9

Rice Industries owns a manufacturing plant in a foreign country. Political unrest in the country indicates that Rice should inve

stigate for possible impairment. Below is information related to the plant's assets ($ in millions): Book value $ 195 Undiscounted sum of future estimated cash flows 211 Present value of future cash flows 176 Fair value less cost to sell (determined by appraisal) 182 The amount of impairment loss that Rice should recognize according to U.S. GAAP and IFRS, respectively, is: U.S. GAAP IFRS a. $ 13 million $ 13 million b. $ 19 million $ 19 million c. $ 0 $ 13 million d. There is no impairment under both U.S. GAAP and IFRS.
Business
1 answer:
Dmitriy789 [7]3 years ago
6 0

Answer:

c. $ 0 $ 13 million

Explanation:

Under the U.S GAAP, if the sum of future cash flows is exceeded than the book value. So, no impairment loss would be recognized . Hence it would be zero

And, According to the IFRS, if the book value is more than the fair value, than the difference of  book value and the fair value is considered

In mathematically,  

= Book value - fair value  

= $195 million - $182 million

= $13 million

You might be interested in
When a dividend is not declared on preferred stock, and the common share­holders cannot receive a dividend until all past and cu
Lady_Fox [76]

Answer:

cumulative.

Explanation:

Cumulative preferred stock is defined as a type of stock that states that if any dividend payments have been missed the first payment of the owed dividends must be done to cumulative preferred shareholders in first instance

4 0
3 years ago
The motive of an intimate homicide is almost always anger/revenge or profit. True or False?
tester [92]

Answer: True

Explanation: An intimate homicide is a fatally violent attacked caused by someone who is in a deeply personal relationship with the victim. It is important to note that this can be a current relationship or a past one. The main motives of this type of murder are usually because of anger for whatever they feel the victim has done or made them feel, as revenge on the victim because they believe the victim has wronged them, or for some form of profitable gains such as claiming the victim's life insurance.

7 0
3 years ago
A new manufacturing machine is expected to cost $278,000, have an eight-year life, and a $30,000 salvage value. The machine will
oksano4ka [1.4K]

Answer:

C) 4.2 years

Explanation:

The computation of the payback period is as follows;

As we know that

Payback Period = Initial cost ÷ Annual net cash flow

Here

Initial cost = $278000

Annual net cash flow = Incremental after tax + Depreciation per year

where,  

Depreciation per year = (Original cost - Salvage value) ÷ Estimated Life

= ($278,000 - $30,000) ÷ 8 years

= $31,000

Annual net cash flow is

= $35000 + $31000

= $66000

So,

Payback Period is

= $278000 ÷ $66000

= 4.2 Years

4 0
3 years ago
XYZ Co. has forecasted June sales of 400 units and July sales of 700 units. The company maintains ending inventory equal to 125%
Gnesinka [82]

Answer:

775 units

Explanation:

By forecast,

June sales = 400 units

July sales = 700 units

if ending inventory equal to 125% of next month's sales

Then June's ending inventory = 125% × 700

                                                  = 875 units

May's ending inventory = 125% × 400

                                       = 500 units

Opening inventory + production - sales = closing inventory

Using the formula above, where p = production

500 + p - 400 = 875

p = 875 - 100

p = 775

Production required for June is 775 units.

7 0
2 years ago
A patent owner cannot exclude others from _____ his or her invention.
Elza [17]
I think it’s D I don’t know if I’m wrong or right but D sounds right
5 0
2 years ago
Other questions:
  • Omega Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $150 and the variable expe
    12·2 answers
  • How much interest will Dorothy earn on $200 deposited in an account that pays 5 3/4% interest annually if she leaves the money i
    6·1 answer
  • A snack food company experimented with the frequency of its advertising by working with a local cable provider. On the north end
    5·1 answer
  • Scott is a manager at a large electronics company. His primary role within the organization is to plan for the "people needs" of
    9·1 answer
  • If units produced are greater than units sold: Multiple Choice
    5·2 answers
  • 1. There are many different leadership theories and no ideal leadership style. Explain what "It depends" means to you in the con
    9·1 answer
  • Explain why making the minimum payment leads to paying the most interest.
    10·1 answer
  • Match each component of a mortgage with its definition.
    11·1 answer
  • I think we should raise taxes for the wealthy so we can increase the public services.
    10·2 answers
  • Many executives own shares in the companies they manage and are also in high tax brackets. When faced with the choice between de
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!