Answer:
Huprey Co.
Identifying the accounting treatment for each claim as either (a) a liability that is recorded or (b) an item described in notes to its financial statements:
1. Huprey (defendant) estimates that a pending lawsuit could result in damages of $1,550,000; it is unlikely that the plaintiff will win the case.a. A liability that is recorded.
b. An item described in notes to its financial statements.
2. Huprey faces a loss on a pending lawsuit that it is unlikely to lose; the amount is reasonably estimable.
a. An item described in notes to its financial statements. b. A liability that is recorded.
3. Huprey faces a probable loss on a pending lawsuit; the amount is reasonably estimable.a. An item described in notes to its financial statements.
b. A liability that is recorded.
Explanation:
Huprey Co. will recognize and record contingent liabilities in its accounts when it can be reasonably established that the future event will occur and the amount of the liability can be reasonably estimated. The implication is that Huprey Co. must establish two things before a contingent liability is recognized and recorded. One is that the probability or the likelihood or the chance that the event will happen exists and can be estimated. With the probability estimate, it becomes possible for Huprey Co. to also estimate the amount that the happening of the event will cost it.
Answer:
The present value of the machine is $35499
Explanation:
The annual amount or annuity amount = $4010 per year.
Total number of years = 13 years
Here, the interest rate is not given so we just assume the interest rate = 6% per annum.
Since we have a total number of years and annual payment that occurs for 13 years. We are required to find the present value of the machine. So use the formula to find the present value of the annuity.
The present value of machine = (Annuity amount x (1 – (1+r)^-n) ) / r
The present value of machine = (4010(1 – (1+6%)^-13) ) / 6%
The present value of machine = $35499
Answer:
Net income= $11,412.2
Explanation:
Giving the following information:
sales of $46,382
interest expense of $3,854
cost of goods sold of $16,659
selling and administrative expense of $11,766
depreciation of $6,415
t=0.35
We need to use the following formula:
Net income= (sales - COGS - selling and administrative expense - interest expense - depreciation) - tax + depreciation
First, we deduct Depreciation to decrease the tax base, but because it is not an actual payment, we have to sum it after tax.
Sales= 46,382
COGS= (16,659)
Gross profit= 29,723
Selling and administrative expense= (11,766)
Interest=(3,854)
Depreciation= (6,415)
EBT= 7,688
Tax= (7,688*0.35)= (2,690.8)
Depreciation= 6,415
Net income= $11,412.2
Grace period is the answer aka c
Answer:
d) economic and legal
Explanation:
As Juan is going to start a business by satisfying the unfulfilled needs of his community, it means definitely going to target a niche market, therefore chances of success are quite higher but as far as economic and legal factors are concerned, they surely either can increase the restrictions over him with the help of many possible laws and adding various taxes or can lower the risk of initiating a new venture by finding him a suitable financier who could finance his business effectively.
