Answer:
the income that should be recognized is $25,000
Explanation:
The computation of the income that should Johson recognized is shown below:
Income To be recognized is
= Borrowings amount - Basis of land
= $45000 - $20000
= $25,000
hence, the income that should be recognized is $25,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer: $15600
Explanation:
To calculate the amount of the Payroll Department's cost that is allocated to the Assembly Department goes thus:
First we need to calculate the allocation rate which will be:
= $300,000/25,000
= $12.
Then, the departmental cost will be:
= Payroll checks × Allocation rate
= 1,300 × $12
= $15,600.
Therefore, the amount of the Payroll Department's cost that is allocated to the Assembly Department is $15600.
