Answer:
The Journal entries are as follows:
(i) On January 1, 2017
Plant Assets A/c Dr. $600,000
To cash $600,000
[To record the depot]
(ii) On January 1, 2017
Plant Assets A/c Dr. $41,879
To To Asset retirement obligation $41,879
[To record the Asset retirement obligation]
Missing information: Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2017, is $41,879.
<span>
In this scenario, the mean as a measure of central tendency will be least
effective as an accurate representation of financial performance.
</span><span>The mean is a measure of central tendency that is the average for a sample.
</span><span>In this specific case the mean is not effective measure because there is a huge difference in the financial performance in the last month compared to the previous months.So the mean would not give the real picture.</span>
Answer:
$55,000
Explanation:
The operating income of any entity can be calculated using the following formula:
Operating income=Net income+ income tax expense+ finance cost- other revenues
Net income in this question=$42,000
Income taxes=$18,000
finance cost=0
Other revenues=$5000
Operating income=$42,000+$18,000+0-$5000=$55,000
The operating income of any entity can also be calculated using the following formula:
Operating income=Revenues-operating costs
=$100,000-$45,000=$55,000
Answer: The correct answer is d) NOMINAL
Explanation: Nominal interest rate is the interest rate before inflation is taken into account. Nominal interest rate can also be used to the advertised or stated interest rate on a loan, without taking into account any fees or compounding of interest.
It is the contractual interest rate charged by a lender or promised by the borrower.
Answer:
$319,000
Explanation:
The computation of the liability is shown below:
= Total expenses in three year - actual warranty expenditure
where,
Total expenses in three years = Total sales × total percentage of sales
= $6,200,000 × 9%
= $558,000
And, the actual warranty expenditure is $239,000
Now put these values to the above formula
So, the value would equal to
= $558,000 - $239,000
= $319,000