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Sergeu [11.5K]
3 years ago
7

Mr. Smith staggered home after a long night imbibing at the local bar. While attempting to navigate the stairs, he passed out co

ld and lay all night with his right armpit straddling the staircase banister. When he awoke the next morning, he had a severe headache, but what bothered him more was that he had no sensation in his right arm and hand. Explain what caused this symptom in his arm.
Business
1 answer:
skad [1K]3 years ago
8 0

Answer:

Whenever a person consumes too much of liquor, the body gets dehydrated as alcohol is a dehydrating agent and it removes body fluids through renal system.

Due to such dehydration, the occurrence of cramps is quite a common phenomena, apart from tastelessness.

In the current case, Mr Smith got besotted at a bar and in an attempt to navigate the stairs, he consequently passed out. The following morning he woke up, his right arm and hand were devoid of sensation.

The human body requires consistent blood flow with adequate oxygen and nutrient absorption to coordinate well with the nervous system. Neurons are responsible for nerve impulses and action.

Alcohol affects the functioning of neurons which are responsible for generating impulse, movement and coordination. Owing to the same phenomena, while an individual is intoxicated, the senses slow down due to which one feels less pain of an injury or hurt.

Here, consumption of excessive liquor led to pressure built up and the blood flow along with nutrients and oxygen, which are required for the neuron process, got obstructed. This led to a situation of no sensation with neuron function suspended temporarily. This resulted into lack of sensation in the arm and hand.

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On June 1, 2020, Forde Auto Manufacturer sells a 4-door sedan to a dealer for $6,000, which includes three years of maintenance.
hichkok12 [17]

Answer:

Part a

Allocation based on Stand Alone Selling Prices :

  1. 4 - door Sedan and the 3 years maintenance contract = $6,400
  2. Cash incentive = $100

Part b

Journal entry :

Debit : Cash $130,000

Credit : Revenue - 4 - door Sedan $128,000

Credit : Revenue - Cash incentive $2,000

Explanation:

It is important to identify the step in IFRS 15 - Revenue from Contracts with Customers, which is affected by the question.

Here, Step 2 - Identify the performance obligation in the contract, Step 3 - Determine the Transaction Price, Step 4 - Allocate the Transaction Price to the Performance obligation and Step 5 - Recognize the Revenue as or when the Performance Obligation is Satisfied. These are explained and applied as follows :

<u>Step 2 - Identify the performance obligation in the contract.</u>

Here, identify the individual promises (Performance Obligations) that the entity has committed to transfer to the customer.

Also the entity identifies each performance obligation that is distinct, or a series of distinct Goods or Services that are substantially the same and have the same pattern of transfer to the customer.

So, the performance obligations are as follows :

  1. 4 - door Sedan and the 3 years maintenance contract(these can not be consumed independently from one another)
  2. Cash incentive (can be consumed independently from the rest of the performance obligations)

<u>Step 3 - Determine the Transaction Price</u>

Transaction price is the consideration the entity expects to be entitled to in exchange of goods or services transferred to the customer.

Transaction Price is $6,500 ($6,000 + $400 + $100)

<u>Step 4 - Allocate the Transaction Price to the Performance obligation</u>

Allocation of Transaction Price is done based on Stand Alone Selling Prices.

Stand alone selling prices have already been identified :

  1. 4 - door Sedan and the 3 years maintenance contract = $6,400
  2. Cash incentive = $100

<u>Step 5 - Recognize the Revenue as or when the Performance Obligation is Satisfied</u>

Stand alone for 20 vehicles :

  1. 4 - door Sedan and the 3 years maintenance contract = $6,400 x 20 = $128,000
  2. Cash incentive = $100 x 20 = $2,000

Journal entry :

Debit : Cash $130,000

Credit : Revenue - 4 - door Sedan $128,000

Credit : Revenue - Cash incentive $2,000

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3 years ago
Lance Lopes went to his bank to find out how long it will take for $1,300 to amount to $1,925 at 8% simple interest. Can you sol
Dennis_Churaev [7]

Answer:

It will take 6 years to generate an amount of 1,925

Explanation:

Amount - Principal = Interest

1,925 - 1,300 = 625 interest

Then we calcualte the interest

Principal \times rae \times time = Interest

We post our know values and sovle for time

1,300 x 0.08 x time = 625

625/(1,300x0.08) = time 6.0096 = 6 years

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