Answer:
Gain recognized by Tom is $10000
So option (b) will be correct answer
Explanation :
We have given liability on bulding assumed by Paul Corp = $30,000
Tom's adjusted basis in the building = $20,000
Since the liability assumed by Paul Corp on the building is greater than Tom's adjusted basis, Tom must recognize gain equal to the difference between the liability on the building and his adjusted basis.
So gain recognized by Tom = $30,000 - $20,000 = $10,000
Answer:
$28,800
Explanation:
Follow the given collection policy :
Cash Collection = 60 % in month of the sale + 40 % in the following month
<em>therefore,</em>
During the first month :
Cash Collection = 60 % in month of the sale only
= $48,000 x 60 %
= $28,800
The expected cash collections from credit sales during the first month is $28,800
Answer:
$2.25 per unit
Explanation:
The computation of the cost per equivalent is shown below:
= Total conversion cost ÷ total units completed
where,
Total conversion cost is
= Beginning work in process conversion cost + cost of conversion added
= $20,250 + 271,125
= 291,375
And, the number of units is
= Units completed + work in process ending inventory units × completion percentage
= 115,700 units + 23,000 units × 60%
= 115,700 + 13,800
= 129,500 units
So, the cost per equivalent unit for conversion cost is
= $291,375 ÷ 129,500 units
= $2.25 per unit
The strategy that deals with product and process innovation and improvement is known as a R & D strategy.
R & D is also known as research and development, which means, they continue searching for a possible process or way to improve the current process.
