6. If consumers always spend 30 per cent of their income on food, then the income elasticity of demand for food is

King corporation owns machinery with a book value of $760,000. It is estimated that the machinery will generate future cash flow

Evgen [1.6K]

Answer:

King should recognize a loss on impairment of $60,000

Explanation:

In terms of IAS 36, Impairement happens when the Carring Amount of an Asset is Higher than the Recoverable Amount of an Asset.

Recoverable Amount

Recoverable Amount is the Higher of :

(a) Assets Value In Use, and

(b) Fair Value Less Cost to Sell

therefore:

Assets Value In Use = $700,000

Fair Value Less Cost to Sell = $560,000

therefore Recoverable Amount is $700,000 ( higher)

Carrying Amount

Book Value = Carrying Amount = $760,000

Impairement Anaylsis

Carrying Amount ($760,000) > Recoverable Amount ( $700,000)

Recognised Imparement loss is $60,000 ($760,000- $700,000)

4 0

2 years ago

Since Anytime Pizza is open 24 hours a day, its pizza oven is constantly on and is, therefore, always using natural gas. However

netineya [11]

Answer: Mixed cost

Explanation:

The cost of the natural gas is a mixed cost. A mixed cost is the cost that combines two types of costs (fixed costs and variable costs). A mixed cost is made up of a fixed cost that doesn’t change when production volume changes and also the variable cost that changes when production volume changes.

Mixed costs are also known as semi variable cost. The natural gas is used constantly with the expense incurred on it continuous, therefore it's a fixed cost. Also, when there is no pizza, the usage of natural gas decreases so it's a variable cost. Since it has attribute of fixed and variable cost, it's a mixed cost.

6 0

3 years ago

Read 2 more answers

Tri Fecta, a partnership, had revenues of $362,000 in its first year of operations. The partnership has not collected on $46,400

OverLord2011 [107]

Answer: $185,500

Explanation:

Total cash received = Sales revenue - Accounts receivable + owner's investment + amount borrowed

= $362,000 - $46,400 + $42,000 + $30,000

= $387,600

Total cash disbursement = Merchandise purchased - Accounts payable + Salaries + Interest + Insurance

= $200,000 - $38,600 + $28,100 + $2,700 + $9,900

= $202,100

Ending cash balance = Total cash received - Total cash disbursement

= $387,600 - $202,100

= $185,500

8 0

3 years ago

What type of life insurance are credit policies issued as?

trasher [3.6K]

They are considered decreasing term policies. In these policies, the benefits usually decrease over the life of the policy: that is, the closer one gets to the end of the policy term, the less the benefit will typically be. At the end of the term, there is no option to renew for the same premiums, and the policy simply expires.

6 0

3 years ago

Professional athletes attempting only to maximize income will defer larger salaries if:

GenaCL600 [577]

Professional athletes attempting only to maximize income will defer larger salaries if DEFERRED PAYOUTS ARE ADJUSTED UPWARD TO COMPENSATE FOR FOREGONE INTERESTS.
If professional athletes, whose sole aim is larger income are asked to wait for sometime before collecting their salaries, with the promise that their incomes will be raise for the period of their waiting, then, most of them will gladly agree to the arrangement, since, they are sure of higher amounts.

4 0

3 years ago