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2 years ago

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Marigold Corp. bought a machine on January 1, 2011 for $806000. The machine had an expected life of 20 years and was expected to

have a salvage value of $76000. On July 1, 2021, the company reviewed the potential of the machine and determined that its future net cash flows totaled $395000 and its fair value was $288000. If the company does not plan to dispose of it, what should Marigold record as an impairment loss on July 1, 2021

1 answer:

lidiya [134]2 years ago

5 0

Answer: Marigold should record $134,750 as an impairment loss on July 1, 2021

Explanation:

Given that

Cost of the machine= 806,000

Expected life= 20 years

Time between January 1, 2011 and July 1 2021 = 10 1/2years

salvage value $76000.

Fair value= $288, 000

We know that the

Carrying amount /Book Value of machine = Cost of the machine- (Cost of the machine-salvage value)/expected life x time (ie from 2011 and 2021)

Carrying amount of machine =806,000 - [(806,000-76,000)/20 x 10.5 years]

=806,000 -383,250=$422,750

Asset is impaired when the Book value is more than net realizable value,

Here, The Book Value of $422,750 is greater than net realizable value,$395000.

Therefore loss on Impairment= Carrying amount - Fair value

$422,750-$288000

=$134,750

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Answer:

The right solution is "$78.55".

Explanation:

The given values are:

Material cost,

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According to the question,

The direct material cost per unit will be:

= $((4.5+0.5)\times 5\times 0.98)+(0.25\times (4.5+0.5))$

= $(5\times 5\times 0.98)+(0.25\times 5)$

= $24.5+1.25$

= $25.75$ ($)

The direct labor will be:

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= $28.8+7.2$

= $36$ ($)

Manufacturing overhead will be:

= $(2.0+0.4)\times 7$

= $2.4\times 7$

= $16.8$ ($)

hence,

The standard cost per unit will be:

= $Direct \ material+Direct \ labor+Manufacturing \ overhead$

= $25.75+36+16.8$

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3 years ago

As the number of firms in an oligopoly increases, a. the total quantity of output produced by firms in the market gets closer to

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Answer:

A is the correct answer.

Explanation:

Oligopoly is the market form in which a small number of large sellers dominate. It results in the reduction of the competition and leads to higher prices for consumers. they have their market structure. In oligopoly each firm stays aware of others, hence their decisions influence others and vice versa. The developed economies are dominated by Oligopolies. For example, if the total market share of the American telecom companies (Verizon wireless, AT and T and T mobile ) is combined, it comes out to be more than ninety percent.

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Explanation:

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Answer:

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