Credit limit refers to the maximum amount of credit a financial institution extends to a client through a line of credit as well as the maximum amount a credit card company allows a borrower to spend on a single card.
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Answer:
Net Income (Loss) = $440,000
Explanation:
Total Fixed Cost = $460000
Total Variable Cost = $11 * 100,000 unit = $1100000
Total Revenue = $20 * 100,ooo unit = $2000000
Contribution Margin = TR- TVC = ($200,000 - $1,100,000) = -$900,000
Net Income = Contribution margin - Total Fixed cost
Net Income (Loss) = $900,000 - $460,000
= $440,000
Answer:
A. No, because Ahmed is not a merchant.
Explanation:
Implied warranty of merchantability is a law in contract which states that when there is a transaction between a seller (the merchant), and a buyer, there is an unwritten guarantee from the seller, that the product meets up to the ordinary standards of care. This means that the goods must be fit to do what the merchant says it will do. Therefore, if the seller finds it defective, he could return it to the seller. and if the seller refuses to make a change, a legal case could be established. The merchant by law is a wholesaler or retailer, who sells goods in which he has expertise or special skills.
Ahmed in the question could be argued in court to not be a merchant of cars and as such, has no expertise with which he can make a guarantee for the car being sold to Carlos.
Answer:
Explanation:
In this scenario, we compare the values between book value and the fair value of equipment, the difference would be the loss on impairment of the asset
In mathematically,
= Book value - fair value
where,
Book value = Equipment cost - accumulated depreciation
= $672,000 - $174,000
= $498,000
And, the fair value is $384,000
Now put these values to the above formula
So, the value would equal to
= $498,000 - $384,00
= $114,000
Now the journal entry would be
Loss on impairment A/c Dr $114,000
To Accumulated depreciation A/c $114,000
(Being the impairment loss is recorded)
