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AnnyKZ [126]
3 years ago
13

A new children's hospital is being built in Springfield, and Friendly Corp. has publicly pledged that it will contribute $5 mill

ion toward the hospital's construction. In its pledge agreement dated 1/1/X1, Friendly Corp. and the hospital have agreed upon the following contribution schedule: $2 million to be contributed at 12/31/X1, $2 million at 12/31/X2, and $1 million at 12/31/X3. Friendly's typical borrowing rate is 6%. Required: How must Friendly Corp. report the contribution in its financial statements at the end of each reporting period and as of the inception of the agreement
Business
1 answer:
frozen [14]3 years ago
5 0

Answer:

Following are the solution to this question:

Explanation:

By IAS 1 — Annual Report presentation, 3 concepts were all first consideration, its second consistency as well as the third reporting framework related to investment based that can be define as follows:

  • Full accrual basis: its IAS 1 allows an organization to compile all financial reports through an accounting standards basis, with exception of working capital details. Even more cash accounting is a method to record profit or expenditure account balances when they are made.
  • All financial statements throughout the United States were repayment-based. Any cost will not be reported underneath the accrual system once it is accruing. It implies that recognition is irrelevant whenever a company pays cash to pay an expense.
  • Thus the allocation of 2 million to the year that the Pleasant Corp. was created must be listed as just an expense. As well as the remaining payment amount must be listed as expenses once it is paid. Future interventions throughout the current FY should not be published.
  • Also, notice the payment incoming to ensure that you will be prepared when due, but just don't join the way of supporting using the cash method. It simply reports an expense of what you are pay if you make a payment when you choose to use the cash method. Consequently, until the next date, you would not modify your reporting, which is also known as journal entries.
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b) One month

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kakasveta [241]

Answer:

developing new competencies

Explanation:

In simple words, globalization promotes the innovation all around the world along with the promotion of its transfer from one economy to another. Due to this, the firms around the globe extend their businesses by setting their own limits. It helps the enhance their operational activities with new market and a new customer base to attract.

4 0
2 years ago
Two years ago, Kimberly became a 30 percent partner in the KST Partnership with a contribution of investment land with a $10,000
klio [65]

Answer:

A. $6,000

B. $13,000

Explanation:

A. Calculation to determine Kimberly’s remaining basis in KST after the distribution

Basis in KST$ 15,000

Add §737 gain $3,000

($15,000-$12,000)

Deduct Carryover basis in land ($12,000)

Remaining basis in KST $6,000

($15,000+$3,000-$12,000).

Therefore Kimberly’s remaining basis in KST after the distribution will be $6,000

B. Calculation to determine KST’s basis in the land Kimberly contributed after Kimberly receives this distribution

KST basis upon contribution $10,000

Add Kimberly’s §737 gain $3,000

($15,000-$12,000)

KST’s basis in land $13,000

($10,000+$3,000)

Therefore KST’s basis in the land Kimberly contributed after Kimberly receives this distribution is $13,000

6 0
3 years ago
The graph below represents the low-wage labor market demand curve for a U.S. city; there is also a line (MinWg) showing a $12 ho
alexandr402 [8]

The new ordinance will make a difference when the new wages will be binding.

<h3>How to depict the information?</h3>

It should be noted that the supply curve shows the relationship between the price and the quantity supplied.

Based on the information given, when the equilibrium wage is above the minimum wage, the ordinance won't make a difference.

On the other hand, when the equilibrium wage is below the minimum wage, it'll make a difference for the worker.

Therefore, joining the lowest of the two points will give the equilibrium.

Learn more about supply curve on:

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7 0
2 years ago
2. Alex, Becky, Cindy, Deanna and Elias form a general partnership, Glorious Jeans, to manufacture coffee-colored clothing. Alex
kari74 [83]

Answer:

Under the UPA ( uniform partnership act ) the partners share the profits of the business according to their contributions towards the business ( mostly financial contribution)

The UPA is used to address the issues of profit and loss sharing in a business partnership based on financial contribution towards the business and not based on service rendered to the business hence it won't work in this situation

Explanation:

Under the UPA ( uniform partnership act ) the partners share the profits of the business according to their contributions towards the business ( mostly financial contribution), the primary purpose of the uniform partnership act to to address certain in-formal or formal issue that was not addressed under the business agreement reached between the partners,

The reason why the UPA might not govern the sharing of the profits is because of the involvement of a partner who did not contribute towards the capital but contributes in terms of service. The UPA is used to address the issues of profit and loss sharing in a business partnership based on financial contribution towards the business and not based on service rendered to the business hence it won't work in this situation

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3 years ago
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