Answer:
The company should recognize d. $120,000 loss on disposal
Explanation:
Companies frequently sell plant assets to dispose them. To recognize gain or loss on disposal:
First, the company calculates the carrying amount of the asset by using the original cost of the asset, minus all accumulated depreciation and any accumulated impairment charges.
Then, subtract this carrying amount from the sale price of the asset. If the remainder is positive, it is a gain and if the remainder is negative, it is a loss
.
In Wonder Company:
The carrying amount of the asset = $720,000 - $360,000 = $360,000
Sales price - carrying amount of the asset = $240,000 - $360,000 = -$120,000 <0
The company should recognize $120,000 loss on disposal
Answer:
$4,000
Explanation:
Implicit cost is the cost which is an income foregone internally, that is not the exact opportunity cost, here opportunity cost is salary foregone, that is $60,000.
But implicit cost would be $4,000 if the financial assets are now used in business, and are not left as they are.
Implicit cost is internally generated opportunity cost.
Since here he outlays, $8,000 let us say these were used earlier as financial assets to generate revenue, now $4,000 would be considered as implicit cost, that is earlier generated revenue from internal funds.
Final Answer
$4,000
Answer:
Excess of investment center income over the minimum return set by the management.
Explanation:
Residual income can be defined as the continuous flow of cash after a particular work/task has been completed. This means an individual continuous to get payment after a work is done. This includes the amount of money that is acquired from business investments, royalties gotten from a published article or book, renting of an apartment, creating an application, working with different affiliates.
Residual income enables an individual to work on other business opportunities while still earning money from the previous efforts.
Question Completion:
A building owned by Hopewell Company was recently valued at $850,000 by a real estate expert.
Answer:
Book Value and Fair Value
There is a difference between the book value and the fair value of an asset. The book value is based on the asset's historical cost. The fair value is the current market price of the asset. In reporting long-term assets, the acceptable basis is the historical cost or the cost of acquiring the asset. This cost is further reduced by annual depreciation charges. The fair value is not often the acceptable basis for reporting long-term assets unless the entity is no longer a going concern or the asset has suffered an impairment loss.
Explanation:
a) Data and Calculation:
Fair value by a real estate expert = $850,000
Book value (historical cost) = $550,000
Difference between fair value and book value = $300,000
Answer:
The correct answer is True.
Explanation:
Basically, Du Bios' message invites awareness of the true usefulness of education, which is not found within the productive environment but in service and satisfaction to others. Also, education has to be a process of self-growth where progress is internalized and people can feel the accomplishment of reaching an educational goal.