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Masja [62]
3 years ago
7

Diego has been hired as a consultant to review a company’s contracting and purchasing procedures. He began by reviewing recent c

ontracts that were awarded and ones that the company lost. He also interviewed employees in both units to ascertain if there were any concerns regarding process, work flows, communication, and expectations. Diego learned that the company had a reward system in place for the number of contracts awarded and bonuses for higher amount contracts. Diego recommended a new system that rewarded contracts that benefitted the company’s mission, regardless of financial amount. How was Diego applying the systems model of change?
Business
1 answer:
MatroZZZ [7]3 years ago
6 0

Diego applying the systems model of change as a diagnostic framework

<h3><u>Explanation:</u></h3>

The Business Diagnostics Framework is a systemized way to diagnose the form of your business. The framework emerges from the external concentric rings, evaluating primary the outside environment and then penetrating down into the essential functional areas of the business processes.

Business diagnosis is a means of operating rearward to recognize causes for inadequate execution by making the relevant links within causes and effects. Thus, it is a method of knowing the signs or conditions of a problem. The Business Diagnostics system is a different framework that assists resolve even the most complicated business circumstances.

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Cynthia Co. exchanged Building 24 which has an appraised value of $4,800,000, a cost of $7,600,000, and accumulated depreciation
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Answer:

See the journal entries below.

Explanation:

<u>In the Book of Cynthia Co.</u>

Book value of Building 24 = Cost of Building 24 - Accumulated depreciation of Building 24 = $7,600,000 - $3,619,000 = $3,981,000

Gain on disposal of Building 24 = Building 24 an appraised value of - Book value of Building 24 = $4,800,000 - $3,981,000 = $819,000

Basis for Building M = Building M appraisal value - Gain on disposal of Building 24 = $4,560,000 - $819,000 = $3,741,000

Cash = Accumulated Depreciation of Building 24 + Basis for Building M - Cost of Building 24 -  Gain on Disposal of Building 24 = $3,619,000 + $3,741,000 - 7,600,000 - $819,000 = $1,059,000

The journal entries will look as follows:

<u>Accounts Title                                 Debit ($)                   Credit ($)      </u>

Accumulated Depreciation           3,619,000

Building M                                       3,741,000

Cash                                                1,059,000

  Building 24                                                                   7,600,000

  Gain on Disposal                                                             819,000

<u><em>To record the exchange of Building 24 for Building M from Waterway Co. </em></u>

<u>In the Book of Waterway Co. </u>

Building 24 = Building M cost + Cash - Building M depreciation = $9,096,000 + $1,059,000 - $4,747,000 = $5,408,000

The journal entries will look as follows:

<u>Accounts Title                                 Debit ($)                   Credit ($)      </u>

Accumulated Depreciation           4,747,000

Building 24                                    5,408,000                            

  Building M                                                                    9,096,000

  Cash                                                                              1,059,000

<u><em>To record the exchange of Building M for Building 24 from Cynthia Co. </em></u>

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