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3 years ago

On May 1, Tango Co. agreed to sell the assets of its Formal Wear Division to Top Hat Inc.

Business

2 answers:

wariber [46]3 years ago

5 0

Answer:

For the year ended December 31, 2021, Tango would report:

Fair value of the assets = $40 million

Carrying Amount = $48 million

lower of the 2 values is fair value, which would reduce the carrying amount and result in impairment of $8 million which would be recognized in the income statement.

This expense is recognized in the income statement + pre-tax loss

= $8 million + $10 million = $18 million

less tax(25%) = $4.5 million

Total loss from discontinued operation = $18 million - $4.5 million = $13.5 million

Explanation:

As at December 31, 2021, the Division's assets were considered held for sale.

Therefore, the assets should be measured at the lower of carrying amount and fair value less costs to sell (IFRS 5 -Non-current Assets Held for Sale and Discontinued Operations) with a recognition of any arising impairment.

Any impairment loss that arises by using the measurement principles in IFRS 5 must be recognized in profit or loss.

beks73 [17]3 years ago

3 0

Answer:

This gives a net losses from discontinued of operations of $13.5m

After having deducted tax benefit of $4,5m

Explanation:

Kindly find attached spreadsheet showing of the computations from US GAAP's perspective

Mind the use of formulas highlighted before each calculation

Download xlsx

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Define the market segment and target market

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2 years ago

Newton, Inc. just paid an annual dividend of $0.95. Their dividends are expected to increase by 4% annually. Newton Company stoc

Eduardwww [97]

Answer:

The required rate of return is 12.2%

Explanation:

Dividend growth model is used to calculate the price of the stock based on the dividend, its growth and required rate of return.

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P = D / ( r - g)

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g = 4%

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r - 4% = 8.2%

r = 8.2% + 4%

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4 years ago

A certain person goes for a run each morning. when he leaves the house for his run, he is equally likely to go out either the fr

boyakko [2]

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3 years ago

Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers.

grandymaker [24]

Answer:

Pay recorded for September 29 is $2,100

Explanation:

Jeremy Ortiz is paid based on two sources of income. The first being the annual salary of $36,000 and the second is the commission on all the service contracts sold, which is 3%.

Since the pay period is of semimonthly (15 days), the annual salary would be divided by 24 instead of the regular 12 months. This would mean that salary of $1,500 ($36,000 / 24) would be recorded in the payroll register.

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3 years ago

Trade between countries tends to a. reduce both competition and specialization. b. reduce competition and increase specializatio

Shtirlitz [24]

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The specialization is also majorly affect the trading process between different types of countries by producing the specialized products by focusing on the efficiency.

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4 years ago