A breakdown in bargaining happens when one party repeatedly holds our for a better deal. In this cases, private solutions to this kind of externalities is deemed necessary. Though bargaining is quite common among transactions made by economists, it cannot be helped that there are certain problems that arise from this.
Answer:
a. Sep 10
b. $21,823
c. $21,500
Explanation:
a) Due date of the note
July 13 to 31 = 19 days
Aug 1 to 31 = 31 days
Sep 1 to Sep 10 = 10 days
due date is Sep 10
b) Maturity value of the note
$ 21500 + $ 21500*9%*60/360
= $ 21823
c) Journal entry
Cash debit $ 21823
interest recieved credit $323
Notes Receivable credit $ 21500
Answer:
There will be a difference in the income .
Absorption costing income will be lower as it transfers all the fixed costs to the ending inventory.
Variable costing income will be higher as it does not transfer the fixed costs to the ending inventory.
The difference will be of $ 104000
Explanation:
Increase in units 8000
Variable Fixed
Unit manufacturing costs of the period $24.00 $10.00
Unit operating expenses of the period 8.00 3.00
Total Unit Costs $ 32.00 $ 13.00
The net operating income under variable costing for the year will be $ 13* 8000= $ 104000 Lower than the net operating income under absorption costing. This is because the all fixed costs will be treated as period cost rather than product costs.
In variable costing the ending inventory will be $104000 lower than the ending inventory under absorption costing because the fixed costs will not be allocated to products.
Under variable costing, the units in the ending inventory will be costed at $32 each.Under absorption costing, the units in the ending inventory will be costed at $32+ $ 13= $ 45 each.
Answer:
Related to the transferred equipment, the items that is true regarding the preparation of the consolidated financial statements for the year ending December 31, 2013 is:
C. The consolidation entries will include a $26,000 debit to "Gain on Sale of Equipment."
Explanation:
a) Data and Calculations:
Original cost of the equipment to the parent = $180,000
Transfer of equipment to subsidiary = (118,000)
Accumulated depreciation to December 31, (36,000)
Unaccounted balance = 26,000
b) The unaccounted balance of $26,000 needs to be credited to the parent's Equipment account to remove it from the account. This will have a corresponding debit entry in another account. The only correct entry among the options is C.
Answer:
a. Straight-Line method:
Year depreciation = (Cost - Residual value) / useful life
= (130,000 - 10,000) / 6
= $20,000
2019 = $20,000 2020 = $20,000
b. Double declining.
= Twice the rate of straight-line.
= 1 / 6 * 2
= 33%
2019 2020
= 130,000 * 33% = (130,000 - 42,900) * 33%
= $42,900 = $28,743
c. Units of Production:
Rate per unit = (Cost - residual) / Number of units in lifetime
= (130,000 - 10,000) / 1,000,000
= $0.12 per unit
2019 2020
= 180,000 * 0.12 = 140,000 * 0.12
= $21,600 = $16,800
