Fuel-Rite Company operates a fleet of fuel trucks. When one of the trucks is positioned to receive a load, it strikes a storage tank owned by Puel-A. Inc. For the cost of repairing the damage to the tank, Fuel-A is most likely to be awarded Oa. punitive damages. Ob.coutingeney fees. Oc compensatory damages Od general damages.
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- Question 2. Using terms of 2/10 and n/30, Granite Company spent $133,000 on a machine. The equipment was delivered FOB the shipment location, and the freight charged $3,300. Special installation and electrical connections for the machine are necessary and will cost $11,300. Damages of $2,800 were incurred during equipment installation. Assuming Granite paid during the discount period, calculate the cost reported for this machine. A. $163,000. B. $154,140. C. $150,340. D. $154,440. E. $144,940.2019 1. A company must prepare an HGB financial statement as of December 31, t1. The company is legally obliged to clean up contaminated sites caused by 2.3.t1.This contaminated site remediation is to be carried out by a third-party company on 6.7.t2; You have received a cost estimate from the third-party company for this in the gross amount of EUR 357,000.a) Go into detail about the creation of provisions in the present case as of December 31, t1, and, if necessary, also state the posting. Assume that no provision was recognized for the facts stated in the balance sheet as of 12/31/t0! b) Why is a provision and not a liability to be recognized under a)?c) On 6.7.t2 the third-party company will carry out the remediation of contaminated sites. The bill is presented on the same day in the amount of 357 T€ gross and you pay it immediately in cash. How to book?Part C1 and C2 C1 Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model for the sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2021, for $60,000. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) C2 Assume that this equipment account represents the cost of 5 identical machines. Prepare the journal entry for the sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2019, for $60,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019. $ 273,375 $ 334,125
- 37 Assume that Sohar Aluminium Company purchased a machinery for OMR 2000 and spent OMR200 for its transportation. In addition they paid tax OMR 450 during purchase, Transportation cost OMR 100, Insurance during transportation OMR 50, and Assembling charges OMR 100, installation and testing charges OMR 250. After transportation and installation, the company also paid the insurance premium of OMR 50 to cover the future loss from the machinery due to accidents and breakdowns. Compute the cost of the machinery. a. OMR3100 b. OMR3150 c. OMR3200 d. None of the given optionsAccounting treatment for contingencies Analyze the following independent situations. a. Weaver, Inc. is being sued by a former employee. Weaver believes that there is a remote chance that the employee will win. The employee is suing Weaver or damages of $40,000. b. Gulf Oil Refinery had a gas explosion on one of its oil rigs. Gulf believes it is likely that it will have to pay environmental Clean-up Costs and damages in the future due to the gas explosion. Gulf cannot estimate the amount of the damages. c. Lawson Enterprises estimates that it will have to pay $75,000 in warranty repairs next year. Determine how each contingency should be treated1. A restaurant has traditionally used the straight line method to depreciate all its heavy duty kitchen equipment. This year it decides to start using the double declining balance depreciation method on the same equipment. This change must be announced in the financial statements due to the _______ principle. Choices: a. Full disclosure principle b. Time period assumption c. Materiality constraint d. Cost Principle e. Revenue recognition principle f. Conservatism Constraint g. Matching principle h. Economic entity assumption i. Monetary unit j. Going concern k. Some other answers
- Question #5 b. What is the difference between User Specific Qualities and Primary Qualitative Characteristics? c. If I want to book one month depreciation of $270.12 for an asset, what is the journal entry? d. List the four importance of accounting standards. e. Please give the three things considered and posted when disposing of a fixed asset.Question 1:What is a contract for a piece of work?Question 2:What are the obligations of the Contractor?Answers:1 ______________________________ __________________________________________ (Art. ____ )2 ______________________________ __________________________________________ (Art. ____ )3 ______________________________ __________________________________________ (Art. ____ )Question 3:What are the rights of the Contractor?Answers:1 ______________________________ __________________________________________ (Art. ____ )2 ______________________________ __________________________________________ (Art. ____ )Question 4:What are the liabilities of the Contractor?Answers:1 ______________________________ __________________________________________ (Art. ____ )2 ______________________________ __________________________________________ (Art. ____ )3 ______________________________ __________________________________________ (Art. ____ )4 ______________________________…Parrish Ch. 4 Pg. 101 4-5 11/25/19 For the following entries please identify if the entry is correct. If not correct the entry and explay WHY it is incorrect. Thank you. 1) To record depreciation on trucks for one year. The trucks cost $30000 and have no salvage value. They are being depreciated strait line over 6 years. Depreciation Expense $1500 Accumulated Depreciation $1500 2) To record one year's interest on a loan to an officer of the compnay. The loan was $10000 at 7% interest Interest Revenue $730 Interest Receivable $730 3) The Supplies account started with a balance of $1900. At the end of the period, a count of remaining supplies was indicated we had $563 left. Supplies Expense $563 Supplies $563 4) Employees have earned $1900 since last payday Wages Expense $1900 Wages Payable $1900 5) The company received a bill from the County Treasurer for $700 property taxes. The…
- Problem 8-8Modified Accelerated Cost Recovery System (MACRS), Election to Expense, Listed Property, Limitation on Depreciation of Luxury Automobiles (LO 8.2, 8.3, 8.4, 8.5) During 2019, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30) $54,000 Baking equipment (June 30) 7,000 Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile (which has a 5-year recovery period), and he also uses the MACRS accelerated method to calculate depreciation but elects out of bonus depreciation. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. Calculate William's maximum depreciation deduction for 2019, assuming he uses the automobile 100 percent in his business.QUESTION 1 Furnaces Pty Ltd was advised by a local building inspector that one of the chimneys on its premiseswas unsafe and, unless it was repaired, the factory would have to be closed. Furnaces decided thatit was not feasible to stop operations to repair the chimney, so they gained permission to build analternative chimney adjacent to the old chimney, thereby allowing production to continue. They foundthat although the new chimney was substantially the same size and make as the old one, it wascheaper to build than it would have been to repair the old one. Also, the new chimney can betterventilate the weather, which was not available in the previous one. After the new chimney waserected, the old chimney was demolished.Is any amount allowable as a deduction for the cost of the new chimney?answer in 20 minutes On 31 October 2012 the carrying amount of an entity’s delivery truck was R200 000 when its recoverable amount was estimated to be R190 000. On 31 October 2013 conditions that led to the previous impairment changed it was estimated that the new recoverable amount of the delivery truck was now R205 000. How much impairment can be reversed on 31 October 2013? Select one: a. R205 000 b. R15 000 c. R5 000 d. R10 000