Answer:
The correct option is C. Recognize $9 million Gross Profit in 2016.
Explanation:
IFRS-15 states that a 4-step approach should be followed when the performance obligation is satisfied over a period of Time. In-this case, the performance obligation will be satisfied within three years from 2016 to 2018.
4-step Approach:
1) First of all you have to calculate the over gain/loss of the project, and the result will decide the entries to be made. In this case, the contract price is $150m and the total costs (Costs incurred + Expected Costs) are $120m. This gives us a Profit of $30m.
2) In the second step, we have to determine the progress of the contract, It means that how much work have we done so far. There are two methods to calculate the progress: Input Method and the Output Method. Based on the data available, we will go for Input Method. To calculate progress under this method, simply divide the costs incurred by the total costs and multiply the result with 100 to get the percentage. 30% is the progress of the contract.
3) Revenue (150 * 30%) = $45m
COS (120 * 30%) = $36m
Gross Profit = $9m
* 120 is the Total Cost.
4) The last step involves determining Contract Assets and Liabilities. I won't go in to the detail because this step is not concerned with your question. You are open to ask questions regarding this step if you need.
Thanks.
Answer:
The Equity for the bank will be $260
Explanation:
Assets of the banks are
Reserve = $60
Bond = $400
Loans = $600
Total Asset = $1,060
Liabilities of the banks are
Deposit = $500
CD's: = $300
Total Liabilities = $800
Equity = Asset - Liabilities
Equity = $1,060 - 800
Equity = 260
The maximum amount of the bank to sustain without becoming insolvent their Equity is $260
In free enterprise when businesses can complete against each to sell their goods and services to buyers.
<h3>What is
free enterprise?</h3>
Free enterprise, can be described as the free market or capitalism, which is an economic system driven by supply and demand.
In this case, it should be noted that In free enterprise when businesses can complete against each to sell their goods and services to buyers.
We can conclude that in a free Enterprise, the economy is been driven by the demand and the control of the market is with the businesses as well as the consumer and in this type of market, there is no invention of the government and they do not hold any central plan.
Learn more about free enterprise from
brainly.com/question/3369578
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The correct option is D.
The Child Development Associate Credential is a highly recognized credential in early childhood education and getting the credential is a key step on the path of career advancement in that field. To receive endorsement for infants and toddlers under CDA, the assessment must occur in a state licensed day care center.