Name the parties involved in insurance?

Buerhle Company needs to determine if its indefinite-life intangibles other than goodwill have been impaired and should be reduc

Vera_Pavlovna [14]

Answer:

Option C Not recoverability test but fair value test

Explanation:

The reason is that the standard on impairment IAS 36 Impairment of Assets says that the assets with indefinite life must tested for impairment every accounting year end. The test only includes whether the fair value of the asset has been decreased or not. This test is helpful by asking questions that asks about the decrease in the life of the asset due to a new legislation, the performance of the asset is fallen (oil is less extracted now than before because the oil is not reachable), etc. The standard does not permits to use Recoverability test as it will come later once the company is sure that the asset fair value has been decreased.

8 0

2 years ago

If the Administrator were examining the actions of a particular agent to determine whether the agent engaged in churning a clien

Elena L [17]

Answer:

C) the client's objectives, financial resources, and the character of the account

Explanation:

While at the time of examining the actions of a specific agent by the administrator with respect to the commission earned would be depended upon the objective of the client, his financial resources,and the character of the account.

The character of the account represents the type of account in which the client is interest as different accounts have different commissions

So these three above objectives should be required

Hence, the option c is correct

7 0

2 years ago

Division A offers its product to outside markets for $30. It incurs variable costs of $11 per unit and fixed costs of $75,000 pe

olga55 [171]

Answer:

a. See part a below for the analysis.

b. We have:

1. Division A total cost = $1,131,000

2. Division A total profit or benefit = $1,509,000

3. Division B total cost = $1,320,000

4. Division A total profit or benefit = $44,000

Explanation:

Note: See the attached excel file for the calculation of calculation of costs and benefits of options available to Divisions A and B.

a. What are the costs and benefits of the alternatives available to Division A and Division B with respect to the transfer of Division A's product? Assume that Division A can market all that it can produce.

Under this condition, each analysis is based on the condition that either Division A or Division B will pay for the transportation cost.

From part a the attached excel file, we have:

1. Division A will incur a total cost of of $559,000 and gets a profit or benefit of $761,000 if it sells to the outside market.

2. Division A will incur a total cost of of $647,000 and gets a profit or benefit of $673,000 if it sells to Division B.

3. Division B will incur a total cost of $1,408,000 if it buys from Division A.

4. Division B will incur a total cost of $1,364,000 if it buys alternate supplier. It thereby saves the transportation cost of $88,000 of buying from A as a benefit.

b. How would your answer change if Division A had idle capacity sufficient to cover all of Division B's needs?

Under this condition, it is assumed that Division A will pay for the transportation cost. Therefore, Division A will sell to both the outside market and Division B.

From part b of the attached excel file, we will have the following based on this condition:

1. Division A total cost = Total cost of selling to the outside market + Total cost of selling to Division B = $559,000 + $572,000 = $1,131,000

2. Division A profit or benefit cost = Total profit or benefits of selling to the outside market + Total profit or benefits of selling to Division B = $761,000 + $748,000 = $1,509,000

3. Division B will incur a total cost of $1,320,000 by buying from Division A. It thereby saves $44,000 (i.e. $1,364,000 - $1,320,000 = $44,000) as a benefit for not buying from alternate supplier.

Download xlsx

3 0

2 years ago

Crane Company purchases a patent for $161,900 on January 2, 2022. Its estimated useful life is 5 years. (a) Prepare the journal

Zina [86]

Answer:

Explanation:

The journal entry is shown below:

Amortization expense - Patent A/c Dr $32,380

To Patent A/c $32,380

(Being amortization expense for the first year is recorded)

The computation is shown below"

= Purchase cost of patent ÷ estimated useful life

= $161,900 ÷ 5 years

= $32,380

For the intangible assets, the amortization expense is considered,not the depreciation expense and the same is to be taken.

7 0

2 years ago

Paul and Karen Kent are married, and both are employed (Paul earned $44,000 and Karen earned $9,000 this year). Paul and Karen h

VashaNatasha [74]

Answer:

$760

Explanation:

The tax credit for child and dependent care expenses allows working taxpayers to discount up to 35% of care expenses. The exact percentage that you are allowed to deduct depends on your income:

if you earn up to $15,000, you can discount 35% of dependent care expenses of up to $3,000 per child.
the percentage decreases for every $2,000 of income (1% decrease per every $2,000), until your income reaches $43,000 where it remains at 20%.

The Kent's earned $53,000 during the year, so they can claim up to 20% of their children's care expenses = $3,800 x 20% = $760

8 0

3 years ago