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tangare [24]
2 years ago
11

A city receives notice of a S150,000 grant from the state to purchase vans to transport challenged individuals. Although the cit

y did not receive any of the grant funds during the current year, the city purchased a bus for $65,000 and issued a purchase order for a van for $60,000. The grant revenue that t current year is he city should recognize in the government-wide financial statements in the а) $-0- b) $ 65,000. c) $125,000. d) $150,000.
Business
1 answer:
mestny [16]2 years ago
5 0

Answer:

d.$150,000

Explanation:

The grant is given for purchase of vans for challenged individuals. It means grant is given subject to purchase of vans.

As the vans have been purchased, therefore whole amount is recognized as accrued revenue as it is probable that amount will be received and amount of revenue is also certain/determinable.

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Jack's Lumber Yard receives 8,000 large trees each period that it subsequently processes into rough logs by stripping off the tr
ivann1987 [24]

Answer:

(i) $4,000,000

(ii) $3,840,000

Explanation:

(i) Contribution to income from selling the logs for log cabin construction:

= Large trees receive each period × per-unit price of logs

= 8,000 × $500

= $4,000,000

(ii) Contribution to income from processing the logs into lumber:

= Large trees receive each period × each log can be processed (feet) × (Selling price of lumber per board foot - Additional cost per board foot)

= 8,000 × 800 × (0.75 - 0.15)

= $3,840,000

(iii) Jack's continue to sell the logs only, because income from processing it as lumber is lower than log.

7 0
3 years ago
Building Supplies is considering a merger with Tools and More. Building's total operating costs of producing services are $4 mil
Natalka [10]

Answer:

We generally calculate total average cost by dividing total cost / total output units.

In this case, we are not given the output units, but instead we are given the output value, so we should find a percentage from total revenue.

total costs = $4,800,000

total revenue = $20,000,000 + $5,000,000 = $25,000,000

average total cost = ($4,800,000 / $25,000,000) x 100 = 19.2%

This means that for every $100 of revenue, the merged company will spend $19.20.

7 0
3 years ago
A buyer is closing on the purchase of a residence. The taxes for the year are estimated to be $4,780. The closing date is Januar
Aneli [31]

Answer:

For seller = $196.44

For buyer = $4583.56

Explanation:

Data provided in the question:

Taxes for the year = $4,780

Date of closing = January 16

since the day of closing belongs to the buyer therefore the seller owns the tax for 15 days only

Per day tax = [ Taxes for the year ] ÷ 365

= $4,780 ÷ 365

= $13.095 per day

Hence,

Proration will be

for seller = $13.095 per day × 15 days

= $196.44

For buyer = $4,780 - $196.44

= $4583.56

6 0
3 years ago
The simple case of a fixed per-unit tax is indicative of more complicated ones. consider a proportional sales tax and a progress
mars1129 [50]

<span>The tax revenues and quantities produced compare in these various cases in a way of the said proportional tax. The proportional tax is a type of tax processes and system that need the percentage of equal value and it came from the people who pay tax.</span>

8 0
3 years ago
Which professional’s advice is Peter seeking? Peter wants to buy office space for his new business. However, he is not sure if t
Igoryamba
Peter is consulting someone who sells commercial real estate. Peter wants to make sure he's in a good place business wise and that it is the best time before he makes the purchase for a new building. By consulting the agent, he can get a better understanding of when the right time to purchase will be. 
4 0
3 years ago
Read 2 more answers
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