Answer:
ACME Drilling should record impairment loss of $6.9 million
Explanation:
According to GAAP, when the fair value of an asset is below the net carrying amount of that asset ( Asset's historical cost - Asset's accumulated depreciation or the net book value of the asset), the Company should record it as asset impairment loss.
In ACME's case, the net book value is $18.6 million while the estimated fair value is only $11.7 million meaning that the platform is actually worth less than it is recorded on ACME's book. Thus, an impairment loss of $6.9 million should be recorded ( $18.6 million - $11.7 million) to realize the fair value of the oil-drilling platform.
The sum of projected sum of future cash flows in this case is not suitable to be used to determine the oil-drilling platform because it has not been discounted to the present value amount, and also, it is not appropriate under GAAP.
<span>If the form of a will is made orally, and written down by a witness, it is called </span>nuncupative (non-culpatory) - meaning oral or dictated; often limited to sailors or military personnel.
Answer:
Total $46,319.9565
Explanation:
We need to calculate the value of the present value of the bond payment
and the maturity using the current market rate
C 2500 (50,000 x 0.10/2)
time 10 (5 years 2 payment per year)
rate 0.06 (12% annual --> divide by 2 to convert semiannual)
PV $18,400.2176
Maturity 50000
time 10
rate 0.06
PV $27,919.7388
PV bond interest payment $18,400.2176
PV maturity payment $27,919.7388
Total $46,319.9565
Yeah hurts but you’ll be okay soon enough :) lol
Answer:
Dr Cost of Goods Sold 20,000
Cr LIFO Reserve (20,000
)
Explanation:
<u>Journal Entr</u>y
Dr Cost of Goods Sold 20,000
Cr LIFO Reserve (20,000
)
<u>Ending Balances after adjustment</u>:
<u>Stocks</u>:
Inventories 375,000
<u>LIFO Reserve </u> <u> (55,000
)</u>
Total: 320,000 ( Financial Statement and Income Tax compliance )
