When managers delegate work, three transfers occur. the three transfers are responsibility, authority, and ____

Presented below is information related to equipment owned by Novak Company at December 31, 2020.

Rama09 [41]

Answer:

Debit : Impairment loss $1,250,000

Credit : Accumulated impairment loss $1,250,000

Explanation:

Impairment of an asset happens when, the Carrying Amount of an Asset is greater than the Net Realizable Value of an asset.

Carrying Amount is Cost of asset less Accumulated depreciation. Carrying Amount for the equipment is $10,000,000 ($11,250,000 - $1,250,000).

The Net Realizable Value of an asset is the higher of Fair Value of Asset and Future Value. For the equipment the Net Realizable Value is $8,750,000

Then, since Carrying Amount ($10,000,000) > Net Realizable Value ($8,750,000), the equipment is impaired.

Impairment loss will be $1,250,000 ($10,000,000 - $8,750,000).

The journal entry to record the impairment loss would be :

Debit : Impairment loss $1,250,000

Credit : Accumulated impairment loss $1,250,000

4 0

1 year ago

The most desirable bundle of rights in time-sharing gives the buyer privileges to rent or sell the interest in the property. the

Arturiano [62]

The most desirable bundle of rights in time-sharing gives the buyer privileges to rent or sell the interest in the property. These rights are known as Livery of Seisin. Livery of Seisin refers to owning something and having the right to sell it. When a consumer owns a time-share, they have the rights to rent or sell the property during their allotted time during the year they have the property.

6 0

2 years ago

Read 2 more answers

Which of these statements about the production order quantity model is FALSE? The production order quantity model is appropriate

Rzqust [24]

Answer:

Question is written again to add options:

A. The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous.

B. Average inventory is more than one-half of the production order quantity.

C. Because receipt is noninstantaneous, some units are used immediately and not stored in inventory.

D. All else equal, the smaller the ratio of demand rate to production rate, the smaller is the production order quantity.

E. None of these is false.

The correct answer is option B "Average inventory is more than one-half of the production order quantity."

Explanation:

With an inventory, it is possible to separate parts of the production process , to separate assets from goods are yet to be produced or are already produced that could serve as a source of income for a company.

An average inventory is less than one-half of the production order quantity.

The production order quantity model doesn't make it possible for the ordered quantity to be received at one time.

The production order quantity model helps a company on how to manage inventory holding costs and the average fixed ordering cost, thereby making it possible for a company to check and minimize its inventory cost and to have a guide on what quantity to produce at every point in time.

6 0

2 years ago

(Prepared from a situation suggested by Professor John W. Hardy.) Lone Star Meat Packers is a major processor of beef and other

Wewaii [24]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

1 Pound T-bone:

Selling price ($7.95 per pound) $ 7.95

Joint costs= $3.80

Profit per pound $ 4.15

Further process:

It costs $0.55 to further process one T-bone steak.

6-ounce filet mignon and one 8-ounce New York cut.

The filet mignon can be sold for $12.00 per pound, and the New York cut can be sold for $8.80 per pound.

A) Filet mignon: $12.00 pound

1 ounce= 16 ounce

0.375= 6 ounce

Price= 0.375*12= $4.5

New York cut= $8.80 a pound

Price= 0.5*8.80= $4.4

Sales= 4.5+4.4= $8.9

Costs= 3.80 + 0.55= 4.35

Profit= $4.55

B) It is more profitable to further process the T-bone stake by $0.40.

7 0

2 years ago

A salesperson is offering promissory notes for a company selling coffee at drive-through kiosks. The notes pay a 13% interest ra

OverLord2011 [107]

Answer:

Legitimate promissory notes are marketed to sophisticated, corporate investors that have the ability to thoroughly research the company issuing the notes and determine whether the issuer will be able to repay principal and interest. There have been many instances of "promissory note fraud" where unlicensed individuals push bogus promissory notes that are sold as investments that offer above-market fixed interest rates and safeguarding of principal - and most of there are frauds. This is a major concern to state regulators.

To offer a promissory note, both the salesperson and the note must be registered in the state. Only promisory notes that have maturities of 9 months or less, that are investment grade, and are sold in minimum increments of $50,000 are exempt from registration.

Finally, the tell-tale sign of fraud are:

Statements that tho notes are "guaranteed" or insured, especially by bogus foreign entities.

Promises of above-market rates fo return

Statements that the notes are "risk"free"

The labeling of a star-up company´s notes as prime

Offers of promissory notes from a stanger who does not know the costumer financial situation

4 0

2 years ago

When managers delegate work, three transfers occur. the three transfers are responsibility, authority, and _____?