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Mrac [35]
3 years ago
6

As a certified public accountant, you have been contacted by Joe Davidson, CEO of Sports Pro Athletics, Inc., a manufacturer of

a variety of athletic equipment. He has asked you how to account for the following changes 1. Sports pro appropriately changed its depreciation method for its machinery from the doucle declining balance method to units of production method effective January 1, 2020. 2. Effective January 1, 2020 Sports Pro appropriately changed tha salvage values used in computing depreciation on its office equipment. 3. On December 31, 2020 sports pro changed the specific subsidiaries constuting the group of companies for which consolidate financial statements are presented. Required: Prepare a memo to Joe Davidson explaining how each of the above changes should be presented in the December 31, 2020 financial statements.
Business
1 answer:
pychu [463]3 years ago
4 0

<u>Solution and Explanation:</u>

<u>CHANGE1 </u>

Reduce the accumulated depreciation from double declining method for the actual carrying value of asset in December 31 ,2019 and apply the new depreciation method from the January 1,2020 and present in financial statement with the new method .

<u>CHANGE 2 </u>

Represent the new value on financial statement, if their is reduction in value it must be presented in profit and loss statement. And gain must be presented in other comprehensive income and then to equipment.

<u>CHANGE 3 </u>

Take of the investment from the subsidiary withdrawn from financial statement and add the proceeding from the investment into cash balance.

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insens350 [35]

law on property rights is defined as the state government granting power, license, or real property to a private individual or individuals using a land patent

A property's legal ownership and permitted uses are governed by property right law. When it comes to land, it has been noted that theft is common. People who purchase properties often lose them to thieves when they are resold to someone else who is unaware that the property has already been sold to someone else. The property right law was established to stop this circumstance from occurring frequently so that the owner of a plot of land would have the legal right to claim ownership for it and use it for any purpose he desired without fear of it being taken by someone else.

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6 0
11 months ago
the initial business model of the ocean house focused on investing in the development of its staff in the early years before rai
tankabanditka [31]

Answer:

Strategic Human Resources Management

Explanation:

Strategic human resource management is the process of ensuring that employees are attracted, developed, rewarded and retained in order to maximize benefits not only for the employees alone but also for the whole organization.

Strategic human resource management is practiced in such a way that the goals of human resource department and the rest of the organization are in the same direction of ensuring organisational success. This is done by ensuring the best employees required by each department in the organisation are recruited as at when needed, provided adequate training and duly motivated. Therefore, strategic human resource management renders support to the organizational success.

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7 0
3 years ago
Round Barn stock has a required return of 11.00% and is expected to pay a dividend of $2.35 next year. Investors expect a growth
34kurt

Answer:

$47

Explanation:

Given that,

Required return = 11.00%

Expect a growth rate = 6.00%

Expected to pay a dividend next year = $2.35

Stock Price:

=  Dividends (Div)  ÷  (Expected Return (R)  -  Dividend Growth Rate (G))

= $2.35 ÷ (11% - 6%)

= $2.35 ÷ (5%)

=  $47

Therefore, the current fair price for the stock is $47.

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3 years ago
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