Answer:
C) price lining
Explanation:
Based on the information provided within the question it can be said that Holly’s Candle Shop appears to be using price lining. This refers to a business decision in which a range of products from the same product line are priced differently depending on the difference in quality. Which is most likely the case in Holly's store since she sells only candles but the higher quality candles are priced at $10 while the lowest quality ones are priced at $6.
Answer:
a) What is the expected transaction price with variable consideration estimated as the expected value?
- original cost $5,800 if job is finished in one month (15% probability)
- bonus price for finishing 2 weeks earlier $5,800 x 1.25 = $7,250 (25% probability)
- bonus price for finishing 1 week earlier $5,800 x 1.15 = $6,670 (60% probability)
expected transaction price = ($5,800 x 15%) + ($7,250 x 25%) + ($6,670 x 60%) = $6,684.50
b) What is the expected transaction price with variable consideration as the most likely amount?
$6,670, since it has a 60% probability
Answer:
Annual depreciation= $189,600
Explanation:
Giving the following information:
On January 1, 2017, anodel, Inc. acquired a machine for 1,010,000. the estimated useful life of the asset is five years. residual value at the end of five years is estimated to be 62000.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (1,010,000 - 62,000)/5= $189,600
Answer: False
Explanation:
What a ethnic, religious and racial group shares in common is their beliefs or traditions.
Cognitive dissonance on the other hand is a conflict that occurs in an individual's mind as a result of new information contradicting what they already believe to be true.
Answer:
D. $285,000
Explanation:
When a company is acquired by another company, the parent company (the new owner) must report the assets at fair market value - amortization.
FV = $300,000
amortizable value = $100,000
depreciation for 3 years (2017, 2018 and 2019) = ($100,000 / 20) x 3 = 415,000
reported value = $300,000 - $15,000 = $285,000
