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Reil [10]
3 years ago
15

Cullumber Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method

prior to 2021. In 2021, it changed to the percentage-of-completion method. The company decided to use the same for income tax purposes. The tax rate enacted is 40%. Income before taxes under both the methods for the past three years appears below. 2019 2020 2021 Completed contract $395000 $267000 $139000 Percentage-of-completion 695000 331000 215000 What amount will be debited to Construction in Process account, to record the change at beginning of 2021?
Business
1 answer:
slavikrds [6]3 years ago
7 0

Answer:

$217,800

Explanation:

1.)Income as per new method (695,000 + 331,000) $1,025,000

Less Actual reported income until 2021 (395,000 + 267,000 ) $662,000

Balance $363,000

Hence:

40%*$363,000

=$145,200

$363,000 -145,200

=$217,800

Therefore amount will be debited to Construction in Process account, to record the change at beginning of 2021 will be $217,800

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Starfish that reproduce by splitting into pieces are reproducing by what
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Answer:

The answer is fragmentation

Explanation:

Fragmentation is a form of asexual reproduction in which an organism is split into fragments

7 0
3 years ago
______________ produce fundamental changes that can transform a company or even revolutionize an industry, while ______________
Whitepunk [10]

Answer: Incremental innovation ( answer for both the blanks)

           

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Such small changes however occur in large volumes and can easily revolutionize any industry.

3 0
3 years ago
In October of the current year, received a $15,520 payment from a client for 32 months of security services she will provide sta
sleet_krkn [62]

Answer:

a. When must Janine recognize the income from the $17,360 advance payment for services if she uses the cash method of accounting?

  • 3. Year 0

Cash method of accounting recognizes revenues and expenses when they are received or paid for.

b. When must Janine recognize the income from the $17,360 advance payment for services if she uses the accrual method of accounting?

  • 1. Year 0 and Year 1

c. Suppose that instead of services, Janine received the payment for a security system (inventory) that she will deliver and install in year 2. When would Janine recognize the income from the advance payment for inventory sale if she uses the accrual method of accounting and she uses the deferral method for reporting income from advance payments? For financial accounting purposes, she reports the income when the inventory is delivered.

  • 1. Year 2

She will recognize revenue only after the merchandise is delivered.

d. Suppose that instead of services, Janine received the payment for the delivery of inventory to be delivered next year. When would Janine recognize the income from the advance payment for sale of goods if she uses the accrual method of accounting and she uses the full-inclusion method for advance payments?

  • 5. Year 0

Under this system, advanced payments are considered revenue on the year that they were received.

4 0
3 years ago
Compare and contrast John Keats’s “To Autumn” and Susan Hartley Swett’s “July.” In your response, make sure you include the answ
Vera_Pavlovna [14]
The principle is the loan amount so it would be $1,000.
Hope it helps!
6 0
3 years ago
A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier may be able to
Aleonysh [2.5K]

The statement,"A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier may be able to enjoy economies of scale that result in higher quality and lower cost than if every company makes its own parts" is True .

<u>Explanation: </u>

The drawback to vertical integration is that a producer can have economies of scale, and incorporate demand for components from certain companies and therefore improve quality and cost in contrast with the production of their own products by each company.

Market power is a framework in which an organization manages the microeconomics and administration supply chain. In general, a supply chain leader creates another goods or services and the products satisfy a certain criteria.

A retailer such as Wal-Mart, which has its own products, is an example of vertical integration. This owns the inventory, manages the distribution and is the seller. Because it splits the guy in between, the company will deliver a much lower price, such as the brand name drug.

8 0
3 years ago
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