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Kitty [74]
3 years ago
10

Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.Required:1. The

likelihood of a payment occurring is probable, and the estimated amount is $1.3 million.2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $1.1 to $1.6 million.3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.3 million.4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.3 million.Record the necessary entry for the scenarios given above.
Business
1 answer:
Ainat [17]3 years ago
5 0

Answer and Explanation:

According to the scenario, the journal entries are of the given data are as follow:-

Journal Entry

1. Loss A/c              Dr.  $1,300,000

     To Contingent liability A/c       $1,300,000

(Being the likelihood of a payment occurring is probable is recorded)

For recording this we debited the loss and credited the contingent liability as it increased the loss and liability

2. Loss A/c       Dr.  $1,100,000

     To Contingent liability A/c       $1,100,000

(Being the likelihood of a payment occurring is probable is recorded)

For recording this we debited the loss and credited the contingent liability as it increased the loss and liability

3. The likelihood of payment occurring is reasonably possible instead of probable, so we don’t have a need to record this entry. But we describe this in financial statements in the foot note

No Journal Entry Needed

4. The likelihood of payment occurring is remote so disclosure is not needed.

No Journal Entry Needed

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At the beginning of last​ year, Barrington Corporation purchased a piece of heavy equipment for $ 63,000. The equipment has a li
Viefleur [7K]

Answer:

double declining balance depreciation:

$63,000 / 5 years = $12,600 or 20% per year

depreciation expense year 1 = $63,000 x 40% = $25,200

$63,000 - $25,200 = $37,800

depreciation expense year 2 = $37,800 x 40% = $15,120

units of production depreciation:

($63,000 - $3,000) / 100,000 hours = $0.60 per hour

Depreciation expense year 1 = 19,000 hours x $0.60 per hour = $11,400

Depreciation expense year 2 = 23,000 hours x $0.60 per hour = $13,800

5 0
3 years ago
What would be the total cost of leasing a vehicle for four years that requires a security deposit of $1,000 (which would be with
horsena [70]

Answer:

total economic cost = $25,211.58

total accounting cost = $24,800

Explanation:

the total economic cost of leasing the vehicle includes the lease costs (monthly lease payments) plus the payment for excess miles (8,000 miles x 10 cents) plus the opportunity cost of the money withdrawn for the security deposit ($1,000 x 1.09⁴):

total economic cost = ($500 x 4 x 12) + (8,000 x $0.10) + ($1,000 x 1.09⁴) = $24,000 + $800 + $411.58 = $25,211.58

total accounting cost = ($500 x 4 x 12) + (8,000 x $0.10) = $24,000

3 0
3 years ago
Martinez Corporation purchased machinery on January 1, 2022, at a cost of $268,000. The estimated useful life of the machinery i
Olegator [25]

Answer:

see below

Explanation:

1. Depreciation using the straight-line method.

Under the straight-line method, depreciation is a constant figure in every year of an asset's useful life.

The calculation of depreciation expense is by establishing the depreciable amount, which is the asset cost minus salvage value.

Depreciable amount = Asset cost - Salvage value.

In this case

Depreciable amount = $268,000 - $31,800

=$236,200

The depreciation rate = 1/4 x 100 = 25%

Depreciation per year

=25/100 x $236,200

=$59,050

year Depreciable cost rate Amount

2022 $236,200 25% $59,050

2023 $236,200 25% $59,050

2024 $236,200 25% $59,050

2025 $236,200 25% $59,050

2. Depreciation under the double-declining method.

The double-declining method uses twice the rate of the straight-line depreciation method.

The depreciation rate for the straight-line method is 25%, double-declining will use 50%. The salvage value is $31,800. The asset is depreciated until the salvage value is achieved.

year Depreciable cost rate Amount

2022 $268,000 50% $134,000

2023 $134,000 50% $67,000

2024 $67,000 50% $33,500

2024 $33,500 - $1,700

Balance : salvage value of $31,800

b The straight-line method would have the highest income reported in 2022. It reports less depreciation expense.

c. both Methods will report the same amount of income over the 4 year period.

5 0
3 years ago
4. Consider the game of chicken. Two players drive their cars down the center of the road directly at each other. Each player ch
IrinaVladis [17]

Complete question:

Consider the game of chicken. Two players drive their cars down the center of the road directly at each other. Each player chooses SWERVE or STAY. Staying wins you the admiration of your peers (a big payoff) only if the other player swerves. Swerving loses face if the other player stays. However, clearly, the worst output is for both players to stay! Specifically, consider the following payouts. Player two Stay swervePlayer one stay -6 -6 2 -2 swerve -2 2 1 1

a) Does either player have a dominant strategy?

b) Suppose that Player B has adopted the strategy of Staying 1/5 of the time and  swerving 4/5 of the time. Show that Player A is indifferent between swerving and staying.

c) If both player A and Player B use this probability mix, what is the chance that  they crash?

Explanation:

a. There is no dominant strategy for either player. Suppose two players agree to live. Then the best answer for the player is to swerve(-6 versus -2).  Yet if the player turns two, the player will remain one (2 vs 1).  

b. Player B must be shown to be indifferent among swerving and staying if it implements a policy (stay= 1⁄4, swerving= 5/4).

When we quantify a predicted award on the stay / swerving of Player A, we get

E(stay)= (1/5)(-6)+ (4/5)(2)= 2/5 E(swerve)= (1/5)(-2)  

c. They both remain 1/5 of the time. The risk of a crash (rest, stay) is therefore (1/5)(1/5)= 1/25= 4%

4 0
3 years ago
A Not-for-Profit Organization
yuradex [85]

Answer:

1.The parties involved can ask the government to raise the allocation of funds to  the student community service organization

2. Volunteers will be available to help out in the project

3. About $10000 will be the project cost(The cost of starting and finishing the project to meet the objectives and demands at hand)

Explanation:

Planning of  a large party or an event is called a  project. This is because, it was a specific party for a specific purpose and It was held on a specific date and time(beginning and end).

A project must have an objective . It must have stakeholders. This whose decision will greatly affect the outcome of the project

The following are the assumption made by the stakeholders of the project:

1.The parties involved can ask the government to raise the allocation of funds to  the student community service organization

2. Volunteers will be available to help out in the project

3. About $10000 will be the project cost(The cost of starting and finishing the project to meet the objectives and demands at hand)

The needs identified are:

-Money to support food purchasing.

-Grow the volunteer force.

-Food donations.

-To teamwork and synergy with a common goal.

6 0
2 years ago
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