Answer:
See below
Explanation:
With regards to the above information, there would be no sales if Tam were to be dropped. Also, there would be no cost associated with it other than $145,000 fixed manufacturing overhead.
Again, since the net loss operating loss was $55,000, the $145,000 would increase that loss by $90,000.
Answer:
d. only when there is an exchange transaction involving the purchase of an entire business.
Explanation:
Goodwill: Goodwill is an intangible asset that is shown in the asset side of the balance sheet just like intellectual properties, trademark, etc. The goodwill is recognized when it is purchasing the business of the organization
The goodwill is computed by considering the consideration that is paid and the net assets value based on fair value.
Hence, the most appropriate option is d. as the other reasons are not valid
Answer: Cost plus contact
Explanation:
A cost-plus contract is a form of contract whereby the contractor is paid for all of its allowed expenses including additional payments in order to allow for a profit.
A cost plus contract is usually used when the quality, delivery time and performance is of more importance than the cost. In cost plus contract, the final cost may be smaller than the fixed cost because the contractors don't usually inflate price and also as a result of lesser price competition.
A cost price contract also gives more room for control and oversight over a contractors work and is also flexible which gives room for specification changes.
<span>Sandy purchased a new tire for Mike's car because it got a flat tire while she had borrowed it for the weekend. The method of Mike acquiring ownership for the new tire is called transferring.</span>