The depreciation expense will be credited for $750 in the consolidating entries while preparing the 20X8 consolidated income statement,
<h3>What is the
depreciation expense?</h3>
This refers to the cost of an asset that has been depreciated for a single period such as in that year.
Depreciation expense = Cost - Salvage value / Useful life
Depreciation expense = $36,000 - $33,000 / (2 years (semi-annual charges)
Depreciation expense = $3,000 / 4
Depreciation expense = $750
Therefore, the depreciation expense will be credited for $750 in the consolidating entries while preparing the 20X8 consolidated income statement,
Read more about depreciation expense
<em>brainly.com/question/25785586</em>
#SPJ1
Answer: C. allow the users to compare numbers in relative terms rather than absolute amounts
Explanation:
By expressing every item as a percentage of sales or revenue, users of these statements are able to compare figures on a relative term. With the relativity being related to the aforementioned sales or revenue.
Answer:
Ames should reduce the lease liability by $17,000
Explanation:
There are two components of lease payment:
- Interest expense
- Amount paid against lease obligation.
Annual Lease = $40,000
Carrying amount at the beginning of the period = ( $270,000 – $40,000 ) = $230,000
Interest is calculated by multiplying the carrying amount with annual interest rate.
Interest expense = $230,000 x 10% = $23,000
Reduction in liability is the net of Lease payment and Interest expense for the period.
Reduction in lease liability = $40,000 - $23,000 = $17,000
The type of marketing channel that this represents is direct.
This means that there are no intermediaries between the seller and the consumer. This local store buys the goods, and then sells it to the buyers itself - there is no third-party retailer or dealer which is going to do that for the local store - that would be indirect marketing, which is something this is not.
