Answer:
b. 26,000 units
Explanation:
We will calculate break even point as;
Break even point = Fixed expenses ÷ Contribution margin per unit
Where,
Fixed costs = $525,000 + $125,000 = $650,000
Also, Contribution margin per unit = Selling price per unit - Variable expense per unit
Selling price per unit = $50
Variable expense per unit
= 50% × $50
= $25
Contribution margin per unit
= $50 - $25
= $25
Therefore, the break even point in units
= $650,000 ÷ $25
= 26,000 units
Answer:
true
Explanation:
items first before listing the price
Answer: $324,800
Explanation:
It is a general Principle that when calculating income tax expense, that the Extraordinary loss is treated separately because it is not a usual thing.
The income gained from changing the Accounting principle is not included as well.
The Taxable income to be recorded therefore is,
Taxable income = Income + Gain on disposal - Unusual loss (due to its infrequency)
Taxable income = 928,000 + 32,000 - 148,000
Taxable income = $812,000
Tax expense would therefore be,
= 812,000 * 40%
= $324,800
$324,800 is the amount of income tax expense Arreaga would report on its income statement.
Question attached
Answer and Explanation:
Answer and explanation attached
Answer:
A liability account in the balance sheet.
Explanation:
When rent is collected in advance, the entries required to be recognized at the point of collection is as follows;
Debit Cash account
Credit Unearned/Deferred rental revenue
The cash account is an asset while the Unearned/Deferred rental revenue is a liability account.
As such, the collection of rent in advance is A liability account in the balance sheet.