Answer:
Not impaired because the fair value of the equipment is greater than the carrying value of the asset by $120,000.
Explanation:
Impairment will happen if carrying amount is greater than the fair value of the assets, here the carrying value of the assets is 1,480,000, which is lessor than the fair value of the assets 1,600,000 by 120,000. Hence impairment will not happen so 1st option is correct.
Answer:
Total variable cost if 4 units were produced
= $33.75 x 4 units = $135
Total fixed cost = Total cost - Total variable cost
Total fixed cost = $175 -$135
Total fixed cost = $40
Average fixed cost = Total fixed cost/No of units
Average fixed cost = $40/10 units
Average fixed cost = $4
The correct answer is B
Explanation:
In this case, we need to calculate the total variable cost on the ground that 4 units were produced. Then, we will determine the total fixed cost by deducting the total variable cost from total cost. Finally, we will divide the total fixed cost by 10 units in order to obtain the average fixed cost.
Answer:
1, 2, 3 & 4
Explanation:
All of the given options could be used as a basis to allocate the profit among partners. Allocation of salaries is also a basis for profit allocation. Salaries of partner is deducted from the net profit on the basis of predetermined ratio or amounts.
The numbers of years can also be a base for the profit allocation. The partner from the long time could have more share than a new partner but it depends on the agreement of all the partners.
The profit can also be based on the the amount of work work done or time spent by each partner. Some associations and firms use this method to allocate the profit.
The most common method of profit allocation is the capital invested in the business. partners are paid on the basis of what they invested in the business.
Solution :
In the context, it is given that foreman in a construction company is responsible for the workers who are unskilled labors.
1. The segregation of the duties which involves the separation of the main functions and have them to conducted by the different workers. But here in this case, the approval of the attendance of the employees and the distribution of the checks to the worker are the important activities that are being conducted by a single employee.
2. This may result into frauds to the company. If the segregation of the duties is not implemented, then the company is at risk. This is because a single employee does the work for the approval of the attendance of the workers and distributing the checks to them for their work. So this can result in a fraud if the foreman wants to do fraud. But distributing the work among two employee will reduce the risk of fraud as one employee many not be willing to do fraud.
