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Alekssandra [29.7K]
3 years ago
11

Chico Company paid $950,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the

following estimates of the market values of the assets if they had been purchased separately: Office furniture, $190,000; Building, $740,000; and Land, $132,000. Based on this information, what is the cost that should be allocated to the office furniture
Business
1 answer:
kramer3 years ago
6 0

Answer:

$171,000

Explanation:

The company psid $950,000 for office furniture, building and land

The market value of the assets is

Office furniture= $190,000

Building= $740,000

Land= $132,000

Therefore the cost that should be allocated to the office furniture can be calculated as follows

= 18/100 × 950,000

= 0.18×950,000

= 171,000

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On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in cash. The equipment had ori
just olya [345]

Answer:  $‭322,000‬

Explanation:

Consolidated income = Net income from Ackerman + Net Income from Brannigan + Excess depreciation - Amortization of unpatented tech - Gain from transfer of equipment

Excess depreciation = New depreciation of equipment - Old depreciation

Depreciation is straight line;

= (200,000/5 years) - (110,000/5)

= $18,000

Gain from transfer of equipment

= Sales - Book value

= 200,000 - 110,000

= $90,000

Consolidated income = 300,000 + 98,000 + 18,000 - 4,000 - 90,000

= $‭322,000‬

5 0
3 years ago
Exercise 16-05 a-b (Video) In Waterway Company, materials are entered at the beginning of each process. Work in process inventor
____ [38]

Answer:

(a) Total units for January = 14,200

Total units for May = 23,260

(b). Conversion cost for :

January = 13,053  

March = 13,660

May = 21,688

July = 11,212

Explanation:

As per the data given in the question,

1)

                                                 Jan.                        May

Units to be accounted for

Beginning WIP                            0                            0

Started into production            14,200                   23,260

Total number units                   14,200                   23,260

Units accounted for

Transferred out                         11,100                   15,400

Ending WIP                                 3,100                      7,860

Total units                                 14200                   15400

2)

We can calculate the conversion cost by using following formula:

Conversion cost = Transferred out unit + (Work in process  unit × conversion cost)

                            Material           Conversion cost

Jan.                       14,200                    13,053              (11,100 + 3,100 × 63%)

Mar.                      15,700                     13,660              (12,300 + 3,400 × 40%)

May                       23,260                   21,688             (15,400 + 7,860 × 80%)

July                        12,400                   11,212              (10,200 + 2,200 × 46%)

7 0
3 years ago
Shady Lane's income tax payable account decreased from $14 million to $12 million during 2016. If its income tax expense was $80
maria [59]

Answer:

A cash outflow of $82 million.

Explanation:

Because during the year Shady had taxes expenses for $80 million but then Shady cancelled $2 million of the Income Tax Payable account, which decreased from $14 million to $12 million.  

3 0
3 years ago
A company provides the following data for material costs: Standard cost per unit 3 pounds at $2 per unit Actual cost per unit 2.
satela [25.4K]

Answer:

Direct material price variance= $5,000 unfavorable

Explanation:

Giving the following information:

Standard cost per unit 3 pounds at $2 per unit

Actual cost per unit 2.5 pounds at $3 per unit

During the month, 5,000 pounds of raw materials were purchased.

<u>To calculate the direct material price variance, we need to use the following formula:</u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2 - 3)*5,000

Direct material price variance= $5,000 unfavorable

6 0
2 years ago
A shoe factory has an elasticity of supply of .5 as the price if shoes raises from $50 to $75. if the factory produced 100,000 s
lidiya [134]
E S ( elasticity of supply ) = .5 ( supply is inelastic: E S < 1 )
The formula is:
E S = Δ Q / Δ P * P / Q,
where: Δ Q is the change in quantity, Δ P is change in price, P is initial price and Q is initial quantity.
.5 = Δ Q / 25 * 50 / 100,000
Δ Q = .5 * 25 * 100,000 / 5
Δ Q = 25,000
Quantity at the new price: Q ( new ) = 100,000 + 25,000 = 125,000 
4 0
3 years ago
Read 2 more answers
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