<span>This is a phenomenon described by Christian McLean's law as rural flight. Advancement of agricultural equipment have often made farmers to leave smaller villages to bigger towns where there are more better equipped farms and farmers after the end of world War 2 felts the need for specialist services focusing on planting just a particular type of crop and getting better results as old methods were not yielding enough harvest.</span><span />
Answer:
Capitalized Expenditures:
2. Added a new wing onto the office building.
5. Had an engine rebuilt in one of their fleet cars.
Explanation:
Capitalization is the process of delaying the full recognition of an expense for the acquisition of a new asset with long-term life so that the costs can be treated as an expense gradually over its useful life through an accounting method known as depreciation or amortization.
The criteria for capitalizing expenditure depend on whether the expenditure is necessary to bring the asset to the condition and location where it can be operated as desired by the management. It must also meet the threshold amount set by management for capitalization. This is because some assets can be used for more than one year and still they are not regarded as capital assets. Example is a stapling machine that costs less than a dollar.
Answer: Andrew should look to find the information in SFAC No. 7. The level of the conceptual framework that his new knowledge will apply to is level 3.
Explanation:
From the question, we are informed that Andrew has been asked to estimate future cash flows for his company and that he is having a hard time remembering how to estimate future cash flows from his accounting classes.
Andrew should look to find the information in SFAC No. 7. The level of the conceptual framework that his new knowledge will apply to is level 3.
No, because
Jane is not able to influence the engagement or on the attest team. According
to Interpretation 101-1<span>, </span>the independence
is not impaired except the manager falls within the description of a “covered
member” in ET section 92.06. Jane in general would not be well-thought-out a
covered member since she is not on the attest engagement team and does not be
responsible for non-attest services to the client.
Answer:
Increase profits by $40,000
Explanation:
The computation of the net impact of stopping production of love seats is shown below:
= Contribution margin × increased percentage - segment margin
= $900,000 × 10% - $50,000
= $90,000 - $50,000
= $40,000
Since the amount comes in positive which means that the profits is increased by $40,000
All other information which is given is not relevant. Hence, ignored it
