The following information was presented in the balance sheet of Diablo Company as of December 31, 2012: Trade accounts receivable, net of allowance for doubtful accounts of $255,000 $1,700,000 Which one of the following statements is true?
A) Diablo expects that $1,955,000 of accounts receivable will be collected after year end.
B) The balance in the Accounts Receivable account in Diablo's general ledger is $1,700,000.
C) The net realizable value Diablo's accounts receivable is $1,700,000.
D) Diablo expects to collect only $1,445,000 from its customers.
C
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U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true?
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Pleasant Hills Properties is developing a golf course subdivision that includes 250 home lots; 100 lots are golf course lots and will sell for $95,000 each; 150 are street frontage lots and will sell for $65,000. The developer acquired the land for $1,800,000 and spent another $1,400,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the street frontage lots using value basis. (Round your intermediate percentages to 2 decimal places.)
A. $1,620,800. B. $720,000. C. $1,080,000. D. $1,920,000. E. $1,579,200.