Answer:
Baxter
The amount of the Goodwill write-off required to be booked by Ajax at December 31, 2020 under the FASB rules effective in 2020 is:
= $130,000.
Explanation:
a) Data and Calculations:
Recorded Goodwill = $330,000
Book value of net assets = $400,000
Book value of all assets = $730,000 ($400,000 + $330,000)
Estimated fair value of company = $600,000
Goodwill impairment = $130,000 ($730,000 - $600,000)
b) The Goodwill impairment of $130,000 arose when the book value or the carrying amount exceeded the estimated fair value.
Answer:
$1,100
Explanation:
EBIT = Sales - Costs - Depreciation
= $9,000 - $6,000 - $1,500
= $1,500
Net income = EBIT - Tax @ 40%
= $1,500 - $600
= $900
Operating cash flow = Net income + Depreciation
= $900 + $1,500
= $2,400
Free cash flows:
= Operating cash flow - Increase in working capital - Capital expenditure
= $2,400 - $500 - $800
= $1,100
Answer:
d. $487,750
Explanation:
Cost of goods manufactured
<em>Consider only the manufacturing costs</em>
Cost of goods manufactured = $145,000 + $200,000 + $ 170,000 + ($5.75 x 25,000) - $171,000
= $487,750
Note : Only overheads applied $143,750 ($5.75 x 25,000) are added to cost of goods manufactured instead of actual overheads.
Conclusion
the amount of cost of goods manufactured is $487,750
Answer:
True
Explanation:
Data given in the question
Sale value of the property = $5,000,000
Cost basis of property = $2,750,000
And, the taxable income is $12,150,000
So, based on the above information, the capital gain on the property is
= (Sale value of the property - Cost basis of property) × capital gain tax rate
= ($5,000,000 - $2,750,000) × 15%
= $337,500
We assume the capital gain tax rate is 15%
Hence, the given statement is true
Answer: b. pays cash before the expense has been incurred.checked
d. receives cash before the revenue has been generated
Explanation:
Here is the complete question:
Deferral adjustments are needed when the business:
a. pays cash after the expense has been incurred.unchecked
b. pays cash before the expense has been incurred.checked
c. receives cash after the revenue has been generated.unchecked
d. receives cash before the revenue has been generated.
Adjustments are made during the end of every accounting period in order to report the revenues and the expenses in proper period at which they occur and also in order to report the assets and the liabilities at their appropriate amounts.
Deferral adjustment is when the revenue or the expense has been deferred or postponed and will therefore be reported on the income statement at a later period.
Previously deferred amounts will show on the balance sheet when a company pays cash before having to incur the expense or in a case whereby the company gets and collects cash before earning the revenue.
When revenues are made or when expenses are incurred, the previously deferred amounts will have to be adjusted and then, the amounts will be transferred to income statement through the use of the deferral adjustment.
