2.5 - Quiz: Recording Business Transactions Quiz

Nair Corp. enters into a contract with a customer to build an apartment building for $1,000,000. The customer hopes to rent apar

Ivahew [28]

The determination of the transaction price for this contract for Nair Corp. is as follows:

Completed by Probability:

Date Probability Bonus/Penalty Outcome

August 1, 2015 70% $150,000 $105,000 ($150,000 x 70%)

August 8, 2015 20% $50,000 -10,000

August 15, 2015 5% $50,000 -2,500

After August 15, 2015 5% $50,000 -2,500

Total expected value of performance bonus = $135,000

Contract value = $1,000,000

Total transaction price = $1,135,000 ($1,000,000 + $135,000).

<h3>What is a transaction price?</h3>

A transaction price is the amount of consideration expected to be paid or received for the exchange of goods or services.

A transaction price can vary based on timing or performance factors.

<h3>Data and Calculations:</h3>

Contract value = $1,000,000

Performance bonus = $150,000

Penalty per week in performance bonus = $50,000

The total transaction price is <u>$1,135,000</u>.

Learn more about contract transaction prices at brainly.com/question/984979

4 0

2 years ago

Warren Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost $800

nadezda [96]

Answer:

Option (C) is correct.

Explanation:

Here, we are using the double declining-balance depreciation method:

Given that,

Building cost = $800,000

Estimated residual value of the building = $50,000

Expected useful life = 25 years

Annual depreciation rate as per straight line method:

= 100 ÷ 25 years

= 4% per year

Hence, depreciation as per double decline balance method:

= 2 × Annual depreciation rate as per straight line method × Beginning value of each period

In year 1,

Ending value = Beginning value - Depreciation

= $800,000 - (2 × 4% × $800,000)

= $800,000 - $64,000

= $736,000

In year 2,

Depreciation = 2 × 4% × $736,000

= $58,880

5 0

3 years ago

The quality of information obtained from a request letter depends on the clarity of the inquiry. what techniques can you use to

WARRIOR [948]

For clarity, you should:

set an end date when appropriate
ask for a specific action
itemize information to improve readability

4 0

3 years ago

The owner of a store that sells fine-quality fabrics for home seamstresses bemoans the fact that few young women know how to do

podryga [215]

Answer: This case is an example of <em><u>core competencies that further have turned into core rigidities.</u></em>

In this particular case , the store was capable of catering to the demands of the market. Thus providing excellent service and technical advice.

But with the dawn of an era, now the store is earning lower-than-average returns. Also this is to be pondered upon that in current era only few potential customers are able to appreciate the premium quality of the fabrics.

5 0

3 years ago

The need for ______________ can complicate information sharing among emergency personnel. A. confidentiality B. social media out

DIA [1.3K]

The need for <u>A. confidentiality</u> can complicate information sharing among emergency personnel.

<h3>What is confidentiality?</h3>

Confidentiality refers to personal information which cannot be divulged to third parties without the express consent of the affected client.

For emergency personnel, they are also required to maintain confidentiality, despite the nature of their work. It is not social media outlets, advanced equipment, or verified sources that complicate information sharing.

Thus, the need for <u>A. confidentiality</u> can complicate information sharing among emergency personnel.

Learn more about confidentiality at brainly.com/question/8617757

6 0

2 years ago