Answer: The $4.05 market price
Explanation: Air-tite can buy or sell Hydrol at $4.05. If they decide to accept the order, there has to be a higher return on the use of Hydrol in the return than they would get from selling Hydrol as is.
There may also be an opportunity cost to using the product for this special order if there is an order that would yield higher returns for the use of Hydrol.
The quantity that would remain after making the special order does not have any impact on the decision making process, as they are considering just one order that requires Hydrol.
The purchase price is not relevant as they cannot purchase Hydrol at that price in the present. The total quantity is not relevant either as they have enough for the order.
Answer:
The amount of loss should Jacob Inc. record on December 31, 2019 is $38,000
Explanation:
Truck Value = $48,000
Annual depreciation = ( $48,000 - $8,000) / 8 = $40,000 / 8= $5,000
First year (2018) = $40,000 - $5,000 = $35,000
Second year (2019) = $35,000 - $5,000 = $30,000
Loss = Truck Value (actual) + estimated residual value= $30,000 + $8,000 = $38,000
Answer:
D. A debit card is approved electronically while checks are not.
Explanation:
A check can take days to clear the bank are not verified when given to the store.
Answer: No, because the damage to the windshield did not result from the abnormally dangerous aspect of the plant’s activity.
Explanation:
Based on the information given in the question, the driver will not prevail. This is because the damage to the windshield did not result from the abnormally dangerous aspect of the plant’s activity.
In this case, the owner of the plant has imposed strict safety measures to prevent an explosion at the plant and the damage of the windshield of the car was due to heavy windstorm and not from the plants activities.
Answer:
1. FIFO inventory is greater than (>) LIFO inventory.
2. FIFO cost of goods sold is less than (<) LIFO cost of goods sold.
3. FIFO net income is greater than (>) LIFO net income.
4. FIFO income taxes are greater than (>) LIFO income taxes.
b. Income shown on the company’s tax return would be lower if LIFO rather than FIFO is used.
Explanation:
FIFO and LIFO are accounting methods used in managing costs related to inventory, stock repurchases at different times and financial activities associated with monetary costs a company had tied up within inventory of feedstocks, raw materials, produced goods, and equipment parts.
Simply stated, FIFO and LIFO are accounting methods is used for the valuation of the cost of goods sold and ending inventory of a company.
FIFO is an acronym for "First In, First Out" and it assumes oldest unit of inventory is sold first, meaning goods that were first added to inventory are the first goods removed from inventory for sale and are recorded as sold first.
LIFO is an acronym for "Last In, First Out" and it assumes last unit to arrive in inventory is sold first, meaning goods that were last added to inventory are the first goods removed from inventory for sale and are recorded as sold first.
