Answer:
a)Jada's basis for depreciation in the property is NIL.
b) Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.
Explanation:
Due to a decline in the property values over the past few years Jada has converted her personal residence to rental property and/or investment property which is a subject dealt within IAS 40 (Investment property).
According to IAS 40 an investment property is land or building held to earn rentals or for capital appreciation or both rather than use in the entity. IAS 40 requires to initially measure investment property at cost and subsequently may either measure at cost or fair value model. Fair value is normally established by prevailing market prices.
IAS 40 also mentions that if an asset is revalued to fair value the gain and loss should be recorded in statement of profit and loss and 'NO DEPRECIATION IS CHARGED ON THE ASSET AFTER THE FAIR VALUE MEASUREMENT'.
Therefore, following the instructions laid out by IAS 40 Jada's basis for depreciation in the property is NIL.
2) Personal property with no intrinsic value:
Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.
Lets first understand what intrinsic value is. Intrinsic value of an asset refers to the market led and/or market-driven price of that asset. This means those assets which don't have an active market for sale and purchase will have no intrinsic value. This is absolutely the case with intangible assets, because most intangible assets are unique and uncommon, such as, GOODWILL, PATENTS, COPYRIGHTS, therefore due to the uniqueness and exclusivity of such assets an active market place doesn't exist therefore it's hard to determine an intrinsic value for such kind of assets/ properties.
The ERISA act address "retirement and healthcare benefits for employees".
<u>Answer:</u> Option B
<u>Explanation:</u>
The 1974 Employee Retirement Income Security Act (ERISA) is a federal legislation that lifts basic standards for most voluntarily developed private-sector healthcare and retirement plans to supply security for people in those plans. ERISA involves:
- proposals to have plan documentation to members including valuable information on plan characteristics and financing;
- offers legal duties to those managing and controlling plan liabilities;
- involves grievance plans and appeals for individuals to benefit from their plans; and
- grants participants the right to sue for advantages and infringements of fiduciary duties.
Answer:
Please refer to the below;
Explanation:
Difference between Floor inspection and Functional inspection.
• Floor inspection is usually conducted in a production environment. It involves checking of materials while processing in the machine by inspectors. Rather than checking the materials in the machine at the beginning of production, floor inspection checks the materials while in process inorder to ensure that the defected ones are quickly detected and expunged. It also ensure that the equipments used in processing are properly functioning.
• Functional inspection is an inspection that checks the overall function of a product rather than what makes up the component parts. For instance the load capacity and speed of a vehicle can be checked for optimal performance whereas individual parts that make up the vehicle are not checked, yet bring out satisfactory performance when combined together. This form of inspection is concerned with verification of final output and does not provide details about different sections instead provides a wider understanding of comfort that emanate from inspecting same item.
Points of Convergence between Floor inspection and Functional inspection.
• The key objective of both floor and functional inspection is quality output having reviewed and examined their expectations.
• Both floor and functional inspection work to prevent defective product from flowing down the successive operations and avoid loss to the company
• Both floor and functional inspection aim at meeting customers requirements, wants and needs.
Answer:
Total cost= $5,000
Explanation:
Giving the following information:
Job 731:
Direct Materials= $2,500
Direct Labor hours= 100
Direct Labor wage rate: $10.00 per hour
First, we need to calculate the direct labor cost and then allocate overhead:
Direct labor= 100*10= $1,000
Allocated overhead= 1,000*1.5= $1,500
Total cost= 2,500 + 1,000 + 1,500
Total cost= $5,000
Answer:
The present value decreases
Explanation:
The present value of an amount of $100 to be received in one year, at an interest rate 'r', is:
As we can see, since the interest rate is in the denominator of the expression, if 'r' increases, then the present value decreases.
I.e. If the interest rate were zero, then $100 would buy the same amount of goods today as it would in one year, however, if the interest rate is positive, $100 today would buy more goods than it would in one year.
