Answer:
The answer is $155,000
Explanation:
Solution
Given that:
The Malpractice claims should accumulate an estimated loss by a charge to operations as soon as both the following conditions are :
1. There is a possibility that an asset has been weakened or a liability has been incurred.
2. The loss can be reasonably estimated
Thus
The Basic premium is = $150,000
The Additional premium is = $80,000 for first year as result of claims
So,
The insurance expense in first year is given as follows:
150,000/2 + 80,000
= 75,000+80,000
= $155,000
Therefore the amount of insurance expense that should appear on the financial statements at the end of the first year is $155,000
Answer:
Kingbird, Inc
Balance Sheet (Partial) as on December 31, 2020
Fixed Assets
Building $1,150,000
Accumulated Depreciation <u>($646,000)</u>
Net book value of Building $504,000
Goodwill $450,000
Coal mine $495,000
Accumulated Depletion <u>($109,000)</u>
Net Value of Coal mine <u>$386,000</u>
Total Fixed Assets <u>$1,340,000</u>
Explanation:
Fixed assets are all those asset which will be kept by the company more than one year. It is not converted to cash / Sold before one year time. If Company has the intention to sale the asset within one year then it will be classified as current asset.
All the assets are classified as the fixed assets. The depreciation and Depletion are contra asset accounts, these are adjusted against the relevant Assets and Net book value of that assets is reported on the balance sheet.
Answer:
$ 97,900
Explanation:
ASSETS = LIABILITIES + OWNERS CAPITAL ( Equity)
Answer:
C
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
If the PPF is a straight line, it means there is a constant opportunity cost no matter the point one is on the curve