If the purchase of machinery is treated incorrectly as a revenue expenditure, what will be the effect on net income and total assets in the year of purchase and in the following year, and why?
In the year of purchase, both net income and total assets will be understated as a result of the overstatement of expenses. In the following year, net income will be overstated because of the lack of the depreciation that should have been charged, and total assets will continue to be understated.
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Authentic leadership ______.
A. has multiple models that provide clear strategies for authentic leadership development B. is effective in producing positive organizational outcomes C. contains evidence-based research that the strategies to develop authentic leadership increases authentic leadership behaviors D. is something that all people have the capacity to learn, according to research findings
Land and a building on the land are purchased for $310,000. The appraised values of the land and building are $66,000 and $264,000, respectively. The cost allocated to the building should be
A) $25,200. B) $109,800. C) $135,000. D) $248,000.
In January 2014, Albert Corporation acquired 20 percent of the outstanding common stock of Peter Company for $1,120,000 . This investment gave Albert the ability to exercise significant influence over Peter. The book value of the acquired shares was $840,000 . The excess of cost over book value was attributed to an identifiable intangible asset that was undervalued on Peter's balance sheet and
that had a remaining useful life of ten years. For the year ended December 31 . 2014, Peter reported net income of $252,000 and paid cash dividends of $56,000 on its common stock. What is the proper carrying value of Albert's investment in Peter at December 31 . 2014? a. $1,080,800 b. $1,092,000 c. $1,131,200 d. $1,181,600
Inez wants to add a graph to her Prezi presentation showing the increase in student loan debt over the past 10 years. Which type of graph would best illustrate her point?
a. bar b. pie c. line d. pictograph