Answer:
The correct option is true
Explanation:
The book value of the old fixtures at the date of exchange which is the cost less accumulated depreciation till date is computed thus:
Book value of old fixtures=$48,000-$14,000=$34000
Expected cash payable by the company for the new fixtures is the market value of the new fixtures minus the carrying value of the old fixtures.
Expected cash=$117,000-$34,000=$83,000.00
Loss on the exchange =cash paid -expected cash payable=$101,000-$83,000=$18000
Answer:
we must first determine the annual payment:
annual payment = present value / annuity factor
present value = $25,000
PV annuity factor, 10%, 3 periods = 2.4869
annual payment = $25,000 / 2.48685 = $10,052.87
year payment interest paid principal paid ending balance
1 $10,052.87 $2,500 $7,552.87 $17,447.13
2 $10,052.87 $1,744.71 $8,308.16 $9,138.97
3 $10,052.87 $913.90 $9,138.97 $0
in percentages:
year payment interest paid principal paid
1 100% 25% 75%
2 100% 17.36% 82.64%
3 100% 9.09% 90.91%
Answer:
$32,000
Explanation:
Calculation to determine the before-tax LIFO liquidation profit or loss that the company would report
Before-tax LIFO liquidation profit =8,000 Units × ($12.00 per unit – $9.00 per unit) + (12,000 units-10,000units)× ($12.00 per unit – $8 per unit)
Before-tax LIFO liquidation profit =(8,000 units× $3 per unit)+(2,000 units ×$4 per unit)
Before-tax LIFO liquidation profit =$24,000+$8,000
Before-tax LIFO liquidation profit =$32,000
Therefore the before-tax LIFO liquidation profit or loss that the company would report in a disclosure note will be $32,000
Answer:
Debit Credit
Applied overheads $110,000
Cost of sales (over applied overheads) $4,000
Overhead control account $106,000
Explanation:
Since the estimated overhead amounting to $110,000 are greater than the actual overheads amounting to $106,000, therefore the overheads are overapplied by $4,000.
The journal entry to disposed off the overapplied overheads are given below:
Debit Credit
Applied overheads $110,000
Cost of sales (over applied overheads) $4,000
Overhead control account $106,000
