Wainright Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $720 2 930 3 1,190 4 1,275 aw
ard: , 1o.oo L ' points Toadies, lnc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,375 2 1,495 3 1,580 4 1,630 Page 1 of5 lf the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intemtediate calculations and round your final answer to 2 decimal places. (e.9., 32.16)
Revenue that has been earned by the end of December is $ 140,000
Explanation:
When entity uses the accrual method of accounting, the transaction is recorded as and when it occurs.
The subscription revenue received relates to services to be rendered over 12 months. Therefore the Revenue is recognised as magazines are issued over - time.
<em>From the first issue June to end of December , there exists 7 issues of magazines.</em>
B) Income from subsidiary is recognized from date of acquisition to year-end.
Explanation:
When an individual or a company purchase another business, they are responsible for all the gains and losses generated by that business starting from the exact moment that the sales transaction has been completed. E.g. if I buy a business on January 20, at 10 AM, I am completely responsible for the things that happen in the company after 10 AM.
