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anzhelika [568]
2 years ago
12

Ridge, Inc. follows IFRS for its external financial reporting, and Cannon Company follows GAAP for its external financial report

ing. During 2021, both companies changed depreciation methods, from double-declining balance to straight-line. Compared to double-declining balance, for Ridge, Inc. the change resulted in a decrease in reported depreciation expense of $90,000, and for Cannon Company the change resulted in a reported decrease in depreciation expense of $105,000. The remaining useful lives of the assets impacted by the change in depreciation method is 10 years for both companies. How would this change impact the net income reported by Ridge, Inc. and Cannon Company for the year ended December 31, 2021
Business
1 answer:
Maksim231197 [3]2 years ago
4 0

Answer: increase $90,000 ; increase $105,000

Explanation:

Based on the changes made, the impact the net income reported by Ridge, Inc. and Cannon Company for the year ended December 31, 2021 will be that there'll be an increase of $90,000 for Ridge Inc. and there'll also be an increase of $105,000 for Cannon Company.

It should be noted that the reduction in the depreciation will bring about a rise in the net income of both companies.

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B

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Suppose a flood changes the production capacity in a country. How would you represent this situation with a production possibili
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Explanation:

The flood will lead to the destruction of the resources in the country.This will result in the shifting of the PPC curve leftward in the economy.

Earlier PPC is represented by PP curve.After the floods and destruction of resources,the curve shifts to P1P1.It is due to the availability of the number of possible combinations which decreases with the destruction of resources.

6 0
3 years ago
foreign project in Hungary and another in Japan had the same perceived value from the U.S. parent's perspective. Then, the excha
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Answer:

The correct answer is higher than that for the Hungarian project.

Explanation:

The break-even point is defined as that point or level of sales in which the total income is equal to the total costs and, therefore, no accounting profit or loss is generated in the operation. It is a mechanism for determining the point at which sales will exactly cover total costs. The breakeven point is also known as the Cost-Volume-Profit ratio, and emphasizes the different factors that affect profit. The break-even point allows determining the minimum number of units that must be sold or the minimum value of sales to operate without losses. The analysis of the break-even point answers the question related to the decisions that must be made about the planning of the profits of a company or an investment project. In this regard, it is convenient to say that the study of any investment project must include the calculation of the sales levels (either in units or in pesos) that are required for  reach operational balance.

7 0
3 years ago
A large account previously written off in a prior year was unexpectedly collected in the current year. as a result, the current
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In the given case the accounts were previously written off by debiting the Allowance for doubtful debts accounts now in order to revive these accounts receivable, we should Debit the Accounts Receivable and credit the Allowance for doubtful debts accounts. Hence the account to be credited is Allowance for doubtful debts accounts.

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6 0
3 years ago
First, we will start with annual depreciation. We will always use straight-line depreciation in this course Consider a firm that
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Answer:

Annual Depreciation expense = $15695.7692  rounded off to  $15695.77

Explanation:

We first need to calculate the cost of the equipment. The cost at which an equipment or asset should be recorded should include all the costs incurred to bring the asset into the place and condition necessary for its use as intended by the management. Thus the cost of the equipment will be,

Cost = 165891 + 42172

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Now we can calculate the depreciation expense per year based on the straight line depreciation method using the following formula,

Annual Depreciation expense = (Cost - Salvage Value) / Estimated useful life

Annual Depreciation expense = (208063 - 4018) / 13

Annual Depreciation expense = $15695.7692  rounded off to  $15695.77

6 0
3 years ago
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