Answer:
The initial cost of manufacturing machine to be capitalized as per International Accounting Standard 16 is $88,500.
Explanation:
IAS-16 states that the initial cost should include the Purchase Price Plus all the costs necessary to bring the asset into working condition. The discount should be deducted. Freight Charges and Installation Costs are directly attributable costs, these costs must be incurred to bring it to working condition. On the other hand, insurance is not required to make machine run so this cost should be written-off to Profit or Loss Statements as soon as incurred.
Purchase Price = 85,000 * .98 = $83,300
Add: Freight Charges = 2,200
Installation Cost = 3,000
Cost To Be Capitalized = $88,500
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Answer:
$120,000
Explanation:
The computation of the budgeted accounts receivable is shown below:
= Budgeted sales of January month × next month sales collection percentage
= $200,000 × 60%
= $120,000
We simply multiply the January accounts receivable with the next month collection sales percentage to find out the budgeted accounts receivable
Answer:
$250,000 and $500,000
Explanation:
According to the tax laws there is annual limit on Loss deductions relating the amount of business loss that can be deducted in a year.
The law states that single or individual tax payers can deduct nothing more than $250,000 while married taxpayers who are filing jointly can deduct up to $500,000 per year of their business losses.
Therefore, if Jahlil is single the amount of partnership loss he can deduct is $250,000 but if he is married filing jointly, he can deduct $500,000
Answer:
Inventories refer to goods that have been produced but not yet sold.
Explanation:
Inventories or Stock refer to goods that have been produced but not yet sold. It also means goods that have been purchased by the company with the intention of selling them for profit. Once goods are sold, they are erased from the inventory records and transferred to the sales accounts, and only 'goods available for sale' will primarily classify as inventory.
Furthermore, there is also 'raw material inventory' which is the goods that have been bought to be used in production.
Answer:
savings accounts or checking accounts
