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.
a high school teacher,an assembly line worker,a plumber,a police woman
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Total Estimated total machine-hours (MHs) 10,000
Estimated total fixed manufacturing overhead cost= $45,800
Total Estimated variable manufacturing overhead cost- per MH= $1.90 + $2.10= $4
To calculate the estimated manufacturing overhead rate we need to use the following formula:
<u>Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base</u>
<u>Estimated FIXED manufacturing overhead rate=</u> (45,800/10,000)= $4.58
Answer: The answer is: Debit Account Receivable $2,000; Credit Unearned Revenue $2,000.
Explanation: The accounting entries above were premised on the <em>accrual accounting concept</em>, which states that income and expenses are recognized as they occur regardless of when actual cash settlement takes place. The amount was credited to unearned revenue simply because the client has not been billed and there is not further information on the duration of the service. Therefore, the amount would be <u>unwound from the unearned revenue to income, based on the duration of service and percentage of completion</u>. However, <u>when the client pays, the account receivable account would be credited.</u>
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