Answer:
The correct answer is letter "B": The proceeds of the bond issue entirely as debt.
Explanation:
Under the U.S. General Accepted Accounting Principles (<em>GAAP</em>) the issuance costs of bonds are ignored for reporting purposes but the amount of sales revenues is recorded as debt. The amortization of the bond can be calculated using the <em>effective interest method</em> or the <em>straight-line method</em>.
Answer:
D. It involves analyzing relationships based on scientific data
Explanation:
Answer:
Acquisition cost of the Equipment = $94,000
Double declining depreciation rate = 25%
Explanation:
a. The computation of the acquisition cost of the equipment is shown below:-
Acquisition cost of the Equipment = Invoice cost + Freight costs + Installation wiring and foundation + Material and labor costs used in testing
= $90,000 + $1,100 + $2,200 + $700
= $94,000
b. The computation of double declining depreciation rate is here below:-
Double declining depreciation rate = 1 ÷ Depreciation life × Times
= 1 ÷ 8 × 2
= 0.125 × 2
= 0.25
or
= 25%
Answer:
Correct answer is A.
<u>Holly's basis is $98,000</u>
<u>Recognized Gain is $4,000</u>
Explanation:
Holly's basis = Carryover basis = $98,000
Recognized gain = Sale value - Basis
= $102,000 - $98,000
= $4,000
Answer:
The correct answer is $8,316( Unfavorable) and $10,500 ( Favorable).
Explanation:
According to the scenario, the computation of the given data are as follows:
Actual Variable OH AH × SVOR SH × SVOR
$222,816 $57,200×$3.75 = $214,500 $60,000×$3.75 = $225,000
Variable OH spending variance Variable OH efficiency variance
$214,500 - $22,816) $225,000 - $214,500
= $8,316( Unfavorable) = $10,500 ( Favorable)
Hence, Variable OH spending variance = $8,316( Unfavorable)
And Variable OH efficiency variance = $10,500 ( Favorable)
