Answer:
Goodwill impairment occurs when a company decides to pay more than book value for the acquisition of an asset.
An impairment is recognized as a loss on the income statement and as a reduction in the goodwill account. The amount of the loss is the difference between the current fair market value of the asset and its carrying value or amount.
Explanation:
Answer:
d. Work in Process Inventory and Factory Overhead.
Explanation:
Direct labor is labor that is directly involved in the production process, for example a machine operator in a factory is supplying direct labor. So when recording direct labor we do so under work in process inventory as that is where the labour is applied.
Indirect labour is one that is not directly involved in the production process, for example office cleaners, building maintenance. Since their contribution is not directly impacting production, indirect labor is recorded under factory overhead.
Answer:
c is the answer I think because I just think
Answer:
The correct answer is True.
Explanation:
These are the measures implemented by the Government aimed at channeling the economy towards certain goals. The fundamental tools available to the Government for this are the management of the volume and destination of public spending. Fiscal policy also includes ways to finance government expenses. For example, if the economy is entering a recessive phase, the Government can reduce taxes and increase spending, in order to expand aggregate demand and overcome the recession. If there is a very high level of unemployment, you can try to create new jobs and grant temporary benefits to the unemployed; If there is a high inflation rate, it will try to reduce spending to counteract possible demand pressures and moderate price rises.
The objectives of the policy are: moderate economic cycles, seek to raise the level of national income, redistribute income, provide public goods, increase employment, etc. However, in certain situations, achieving a fiscal policy objective will ultimately be conditioned by the general objectives of the economic policy pursued by the Government at a given time.
Answer:
(1) $19,500
(2) $142,000
(3) $27,000
(4) $15,000
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the p/l over the useful life of the asset. It may be computed as
Depreciation = (cost - salvage value)/useful life
Annual depreciation = ($220,000 - $25,000)/10
= $19,500
4 years later
Carrying amount of the equipment
= $220,000 - 4 * $19,500
= $220,000 - $78,000
= $142,000
If the asset is impaired
An asset is said to be impaired when the carrying amount is higher than recoverable amount where the recoverable amount is the higher of the fair value less cost to sell or the value in use of the asset which is the present value of the future expected inflow from the use of the asset.
Value in use = $115,000
Fair value = $85,000
Value in use = $115,000
Impairment loss = $142,000 - $115,000
= $27,000
Remaining number of years is 6
New carrying amount = $115,000
the annual depreciation expense = ($115,000 - $25,000)/6
= $90,000/6
= $15,000
