Determine whether the company should continue operations or terminate the Accessories Store an rent-out the facilities. How much is the advantage of better option?
Q: Answer of the following question related to these characteristics and constraints. Which component…
A: GAAP is the common set of accounting principles, standards, and procedures that the companies must…
Q: 2. Which of the following costs would most likely be a discretionary fixed cost? A. The rent of the…
A: The correct option is D that is, Advertising. Discretionary fixed costs are such costs which are…
Q: Which of the following options regarding income earned will not be classified as revenue? Select…
A: Lets understand the meaning of revenue and gain. Revenue is a income generated from the normal…
Q: Walkin Inc. is considering the write-down of its longtermplant because of a lack of profitability.…
A:
Q: Harrison Company determines that an opportunity cost of an alternate course of action is relevant to…
A: Opportunity costs refer to the amount of left-out benefit to attain another option, which means the…
Q: (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the…
A: Any customer order for products or services that a firm does not handle on a regular basis is…
Q: What are the features of Rent discount for industrial/warehouse properties that might be added for…
A: The question is based on the concept of rent discounting for real estate.
Q: An asset manager's responsibilities would NOT include decisions pertaining to Group of answer…
A: Assets- The term "asset" refers to all of a company's resources that it anticipates in creating…
Q: Which of the following statements is false with respect to replacement analysis? a. Functional…
A: Obsolescence is the risk that the product of a corporation will become obsolete and it will no…
Q: Which is the best definition of start-up costs? a. All activities associated with organizing a new…
A: Costs are that worth of money which is utilized to pay for the expenses. Costs are incurred to start…
Q: A company is most likely to:A. use a fair value model for some investment property and a cost model…
A: SOLUTION:- A company is most likely to change from the fair value model when the company transfers…
Q: What do you mean by revaluation model? (Answer should be related to Property, Plant & Equipment…
A: Property, plant and equipment also known as PP&E are defined as the long term assets, which is…
Q: advantage (disadvantage) of renting out the building?
A: Annual sales P10550000 Less Expenses Annual cost of goods sold and other operating expenses…
Q: A manufacturing firm identified that it would have difficulty sourcing raw materials locally, so it…
A: Four strategies are Risk reduction strategy,prospect theory startegy,Risk sharing strategy and risk…
Q: Which one among the following conditions is NOT a condition of Murabaha: - Payment may be made…
A: Murabaha, also known as cost-plus finance, is an Islamic financing system in which the buyer and…
Q: What are two advantages and two disadvantages of renting over purchasing equipment?
A: Renting over purchasing equipment: Purchase of equipment is treated as a capital expenditure which…
Q: Required: 1. Determine the net effect of buying the components on the net income. Will you outsource…
A: Answer:
Q: (a) Given that at the outset any offer to buy would be made to both owners simulta- neously, draw a…
A: a.
Q: Which of the following is true for a make or buy decision? * O The reliability of the outside…
A: solution Make or buy decision Make or buy decision means the decision taken regarding…
Q: restaurant of understaffing it's dining room
A: Understaffing-: Understaffing is a circumstance in which an institution does not have sufficient…
Q: Investment property is most likely to:A. earn rent.B. be held for resale.C. be used in the…
A: An investment is an allocation of money in some financial securities, properties, etc. in the…
Q: The right-of-use asset may be measured using the following models except for: Group of answer…
A: The right of use asset is measured by adding the lease liability and initial direct cost of the…
Q: The cost of inventory currently owned by a firm is an example of a(n): a. opportunity cost. b. sunk…
A: Opportunity cost is the benefit forgone for accepting the next best alternative
Q: How has the move to producing standard furniture affected the com-pany’s financial structure?
A: Accounting & Finance of company not showing the profits what they should be. The investments of…
Q: What are the general desirability among users to lease rather than own the space they need in their…
A: Leasing is a method through which person can hire fixed asset or place for certain period of time by…
Q: Required: What do you suggest should the plant be leased or purchased? Why? Please be fast
A: Information Provided: Tax rates = 40% Price of new plant = Rs 400,000 Maintenance fees = Rs 10,000…
Q: How does Leasing offer flexibility and a lower cost when disposing of the asset?
A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…
Q: Which technique is expected to be most accurate in the valuation of an operating retail shopping…
A: The analytical process of determining the current (or future) worth of an asset or a firm is known…
Q: Should a company allow the owners to use the resources as they see fit?
A: solution : Should a company allow the owners to use the resources as they see fit?…
Q: Which of these is not typically a responsibility of a property manager? Maintenance programs O…
A: Property manager is the person who sees the day to day working of the real estate.The responsibility…
Q: Which of the following activities should be expensedcurrently as R&D costs?(a) Testing in search…
A:
Q: What is the economic rationale for the sales comparison approach? What information is necessary to…
A: Sales comparison approach: It is an appraisal method of real estate in which one property is…
Q: qualitative factors should be considered by management
A: Qualitative factors are factors which may be considered in decision making and cannot be converted…
Q: Could tear-down methods be used effectively for target pricing in a service-industry company, such…
A:
Q: Which of the following conditions would support recognition of revenue? The seller’s price to the…
A: Revenue recognition principle states that the revenue should be recorded only when the product and…
Q: ) How could rates of technological change affect a company’s decision about whether to buy or lease…
A: Rate of technology plays a crucial role in the decisions made by companies. If the technology is…
Q: Company A is currently manufacturing a component but is considering buy reliable supplier. Which of…
A: The avoidable fixed cost is the cost that does not change with the output but can be avoided in…
Q: Which kind of decision can be taken by tourism firm using cost accounting methods?
A: Cost accounting (CA) is the branch of accounting which deals with the cost and data of the…
Step by step
Solved in 2 steps
- Stillwater Designs is a private company and outsources production of its Kicker speaker lines. Suppose that Stillwater Designs provided you the following transactions: a. Sold a warehouse for 750,000. b. Reported a profit of 100,000. c. Retired long-term bonds. d. Paid cash dividends of 350,000. e. Obtained a mortgage for a new building from a local bank. f. Purchased a new robotic system. g. Issued a long-term note payable. h. Purchased a 40% interest in a company. i. Reported a loss for the year. j. Negotiated a long-term loan. Required: Classify each of these transactions as an operating activity, an investing activity, or a financing activity. Also, indicate whether the activity is a source of cash or a use of cash.Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $90,000 cash B. $85,000 cash C. $80,000 cashThe Goodson Company is a chain of retail electronics stores. How much of a loss can Goodson deduct in each of the following cases? Explain. a. An employee drops a 65-inch 3D television, cracking the plastic casing on the back. The television normally sells for 3,300. The cost of the set is 2,400, and Goodson sells the damaged set for 1,500. b. The company replaces its inventory system. The old system cost 45,000 and has a basis of 16,000. The company sells the old system for 7,500. The new system costs 75,000. c. A flood damages one of Goodsons retail stores. The building suffers extensive water damage. The basis of the building is 60,000, and the cost of repairing the damage is 72,000. The insurance company reimburses Goodson 50,000. d. The owner of Goodson sells a complete home entertainment center (e.g., projection TV, DVD, stereo system) to his sister for 7,000. The usual sales price is 8,500. The system costs 6,300. e. Assume the same facts as in part d, except that the owner sells the home entertainment center to his sister for 5,500. f. The owner of Goodson finds that the controller has embezzled 10,000 from the company. Before the owner can confront the controller, the controller leaves town and cannot be found. g. Upon arriving at the companys headquarters, the vice president of sales finds that someone has broken in and stolen three computers. The damage to the outside door is extensive. The cost of repairing the door is 1,500, and the cost of replacing the three computers is 9,500. The original cost of the computers totals 10,500. Goodsons basis in the computers is 5,000. The thieves also stole 350 from the petty cash fund. Goodson files a claim with its insurance company and receives 4,800.
- Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny Side had net assets worth $390,000. A. What is the amount of goodwill in this transaction? B. What is Farm Fresh Agriculture Companys journal entry to record the purchase of Sunny Side Egg Distribution? C. What journal entry should Farm Fresh Agriculture Company write when the company tests for impairment and determines that goodwill is worth $1,000 in the year following the purchase of Sunny Side?A company purchased a building twenty years ago for $150,000. The building currently has an appraised market value of $235,000. The company reports the building on its balance sheet at $235,000. What concept or principle has been violated? A. separate entity concept B. recognition principle C. monetary measurement concept D. cost principleCapstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an agreement to sell the land for $375,000. In accordance with the sales agreenwnt, the buyer transferred $375,000 to Capstone’s bank account on February 20. How would elements of the accounting equation be affected by the sale?
- Mr. Pans owns and operates several retail auto parts and accessories outlets. Management is now considering the possibility of terminating the operation of the Accessories Store and leasing the facilities to another retailer. The monthly results of the Accessories Store operations are as follows: Sales P940,000 Operating expenses directly identifiable with the outlet: Cost of goods sold, etc P890,000 Depreciation 80,000 If operation of Accessories Store is terminated, Mr. Pans can rent-out the facilities for P60,000 a month to a non-competing business. Determine whether the company should continue operations or terminate the Accessories Store and rent-out the facilities. How much is the…Bach Co., a VAT-registered business, acquired a piece of equipment for P224,000 on account. The purchase price is inclusive of 12% VAT. A P4,480 prompt payment discount is available on purchase, but Bach Co. opted not to take it. Bach Co. also incurred P20,000 cost of training the personnel who will be operating the equipment. Two months after the equipment was installed, Bach Co. decided to redeploy the equipment to another location. Bach Co. incurred P30,000 in the relocation and reinstallation. The cost of the equipment is a. 245,520. b. 230,000. c. 204,480. d. 195,520.Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of $1,270,000 that is currently appraised at $1,470,000. The equipment originally cost $750,000 and is currently valued at $497,000. The inventory is valued on the balance sheet at $440,000 but has a market value of only one-half of that amount. The owner expects to collect 98 percent of the $240,200 in accounts receivable. The firm has $10,800 in cash and owes a total of $1,470,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm?
- The Barrington Construction Company builds office buildings. It also owns and operates achain of motels throughout the Northwest. On September 30, 2018, the company decidedto sell the entire motel business for $40 million. The sale was completed on December 15,2018. Income statement information for 2018 is provided below for the two components ofthe company.($ in millions)ConstructionComponentMotelComponentSales revenue $450.0 $200.0Operating expenses 226.0 210.0Operating income 224.0 (10.0)Other income (loss)* 16.0 (30.0)Income (loss) before income taxes 240.0 (40.0)Income tax expense (benefit)† 96.0 (16.0)Net income (loss) $144.0 $ (24.0)*For the motel component, the entire Other income (loss) amount represents the loss on saleof assets of the component for $40 million when their book value was $70 million.†A 40% tax rate applies to all items of income or loss.In addition, in 2018 the company had pretax net unrealized holding gains on investment securities of $3 million and a…The accountant at industrial system Incorporated (ISI) decided to depriciate some new production equipment by using a declining balance method aproved by the goverment. ISI purchased three flexible manufacturing cells at a price of $400,000 each. The freight charges paid at the time of delivery was $20,000 and a special handling fee of $15,000 was paid. ISI paid $50,000 to prepare the site for the cells. In adddition, 6 employees, each earning $20.00 per hour worked five weeks at 40 hours per week to set up a prepare the new system. other materials applicable to the new cells cost $1000. a) determine the cost basis of the new cell. b) the useful life of the equiment is 5 years and ISI will use double declining balance as it method of depreciation until it has to swicht to SL. Determine which year that ISI will swith to SL.Leonard Co. sells $600,000 (cost $480,000) of vehicles to a local car dealer, Carlson Inc. The vehicles were ready to go when the contract was signed on May 31, 2021 and title passed to Carlson at that date. Carlson was undergoing a significant renovation to its dealership at the time and as a result, Carlson requested that Leonard retain the vehicles at its warehouse until July 15, 2021. Payment was made in full on June 30, 2021. At what date can Leonard Co. recognize the revenue relating to the sale of the vehicles?