Answer:
1. Gain of $12,000 on sale of some equipment from one of the gas stations that Bakko still owns at 12/31/Year 4. - <u>Part of income from continuing operations.</u>
The gas station is still owned by Bakko so the gain received will form part of income from continuing operation.
2. Bakko receives $5,000 for a fuel contract that will begin in Year 5. - <u>Not part of net income for Year 4</u>
As per the Revenue Recognition principle of Accounting, revenue is only to be recorded when earned which means that this revenue will be in the Year 5 income.
3. Bakko has $100,000 gain on the sale of the gas stations on May 1, Year 4. - <u>As a discontinued operation.</u>
The gas station has been sold and so is a discontinued operation.
4. Operating results through April 30,Year 4 for the gas stations that were sold. -<u> As a discontinued operation.</u>
The gas station has been sold and so is a discontinued operation. Will be reported in the Income statement as such.
5. Bakko has a $20,000 loss on the sale of the donut stores on October 1. - <u>As a discontinued operation. </u>
The donut store was sold and is no longer a part of Bakko so is a discontinued operation.
Answer:
$6,000
Explanation:
The computation of the dividend amount distributed to preferred shareholders is shown below:
= Number of non-cumulative preferred stock shares × par value per share × dividend rate
= 10,000 shares × $10 × 6%
= $6,000
In the case of the non-cumulative preferred stock, if there are dividend arrears, the same is not paid.
Simply we multiplied the preferred stock share by the par value and the dividend rate so that the estimated value can come
Answer:
One approach is to use the simple equation Value = Benefits / Cost. The plus side to this approach is that it is concrete and quantifiable. You can measure the profit consistently throughout the life of the product, charting changes in value over time.
Answer: Resistance to change
Explanation: In the given case the managers of Inseason inc. made the focus on short term goals rather than the long term. The manager in the given case did not took proper actions to continue the firm with large scale operations.
The managers was resisting the change due to the risk factor that it might not lead to benefit and the continuous success that the entity is making might stop.
Thus, the correct option is A.
Answer:
Cost of land= $1,124,100
Explanation:
<em>According to International accounting standards(IAS) 16 ,The cost of land includes purchase cost plus all other costs necessary to bring and make it ready for the intended use. </em>
<em>These costs include purchase cost, fees and commission associated with the purchase transaction. </em>
Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.
However, remember that land is not depreciated because it has an infinite life span.
So using the historical cost principle the cost of the land
Cost of land = 990,000 + 49,600 +2300 + 6, 900 + 75,300= 1,124,100.00
Cost of land= $1,124,100
