Answer:
Dismantling cost is the expense which is caused when the asset is about to bring in its original state when it was not used.
Explanation:
To: Director Finance
From: Business Analyst
Subject: Cost recovery for dismantling
It is to bring into your knowledge that the land area near the plant was used by our company several years ago. The company has decided to sell it to one of our client. He has agreed to purchase the land but the erosion caused due to plant and manufacturing activities need to be restored. For this purpose we have decided to fill the erosion holes with waste material.
Your Kind approval is required for the process.
Answer:
The amount of discount that will be taken is $300.4
Explanation:
The amount of discount that will be taken will be on the value of accounts payable that is eligible for pay after adjustments.
The accounts receivable balance after adjusting for purchases returns and defective goods is:
Accounts receivables eligible for payment = 18000 - 2800 - 180 = $15020
The accounts payable amount that is eligible for discount is:
Discount received = 15020 * 0.02 = $300.4
Answer:
Management by exception
Explanation:
This is a practice of examining the financial as well as operational results of a business and bringing to management only those differences that show a significant difference between the budgeted and actual amounts. This allows managers to focus on the highly important variances that can affect the growth and profitability of a company significantly. This concept, can however be fine-tuned where small variances are shown but to low-level managers whilst the senior managers will look at the large variances.
Antitrust laws prevent monopolies.
<span>A monopoly is a company or business that dominates a particular market to such an extent that there is no viable competition to that company. </span>
<span>Since a monopoly does not have any other serious competition in a market, the monopoly is at greater liberty to charge higher prices and offer lower-quality prices. </span>
<span>Antitrust laws break up or limit the size of monopolies, allowing other companies to enter a market.</span>
Answer:
carrying value after 2 years = $967.64
Explanation:
the journal entry to record the purchase of the bond:
Dr Investment in bonds 1,000
Dr Premium on investment in bonds 41.60
Cr Cash 1,041.60
Assuming a straight line amortization, the yearly amortization = $41.60 / 9 years = $4.62 per year
carrying value at moment of purchase = $958.40
carrying value after 1 year = $963.02
carrying value after 2 years = $967.64
