Answer:
A. An increase of $4,500
Explanation:
For computing the total cost change, first we have to determine the total cost which is shown below
= Direct Materials cost + Direct Labor costs + variable overhead costs
= $21,000 + $5,500 + $19,000
= $45,500
And, the outside purchase is $50,000
So, the total cost change would be
= $50,000 - $45,500
= $4,500 increase
Answer:
A. $549000
Explanation:
Given information
Number of outstanding stock of Sherry, Inc = 60%
The cost of the land = $207,000
Fair value at the acquisition date = $549,000
By considering the above information, the value reflected in a consolidated balance sheet is $549,000.
The historical principle says that the fixed assets should be recorded at the purchase price or acquisition cost only and the same is to be considered
. The amount of the purchase cost that should be allocated to the land and building are as follows:
Land = $233,750
Building = $701,250
The company would not recognize a gain on the purchase but uses the appraised values to determine the costs to be allocated to the two assets.
c. Statements model:
Balance Sheet Income Statement Statement of
Cash Flows
Assets = Liabilities + Equity Revenue - Expenses = Net Income
Cash Land Building
($935,000) $233,750 $701,250 $0 - $0 = $0 ($935,000) IA
d. General Journal
Account Titles Debit Credit
Land $233,750
Building $701,250
Cash $935,000
<h3>Is a debit money in or out?</h3>
When your bank account is debited, money is taken out of the account.
The opposite of a debit is a credit, in which case money is added to your account.
Learn more about debit and credit here:
<h3>
brainly.com/question/14283668</h3><h3 /><h3>#SPJ4</h3>
I think it's market with multiple trading partners.
If we only have one trading partner, we will not be able to fulfill our daily intakes for a certain resoure if somehow the stock is unavailable or the trading relation is ended.
If we have multiple trading partners, we just need to find that specific resources from other partners
