Question 8-'sub sequent evente1.→One of the five steps in determining whether revenue should be recognized is whetherthe sale has realized. Do you agree? Provide reasons.2.→The Kelly dealership sells computers, both new and used. Five computers previouslyused for demonstration purposes are sold as used computers. Should Kelly record-these sales of used computers as revenue or as a gain? Provide reasons.3.→One of the criteria that contracts must meet to apply the revenue standard is thatcollectability of sales price must be reasonably possible. Is this correct? Providereasons.

1. One of the five steps --------- that the sale has realised. No. I do not…

Answered: Question 8-'sub sequent evente 1.→One…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Question Content Area A building with an appraisal value of $130,876 is made available at an offer price of $155,610. The purchaser acquires the property for $39,936 in cash, a 90-day note payable for $25,942, and a mortgage amounting to $59,561. The cost of the building to be reported on the balance sheet is a. $115,674 b. $125,439 c. $155,610 d. $130,876
If the Operator remits all severance taxes and distributes all revenue to royalty and working interest owners, which account will be debited for the total gas sales amount to be received from the purchaser under the accrual method? Group of answer choices A/R-Purchaser A/P-WI Owners A/P-Purchaser Gas Revenue
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Which of the following conditions would support recognition of revenue? The seller’s price to the buyer is being negotiated. Delivery has occurred or services have been provided. Collection is possible. Significant risks and rewards of ownership of the goods will soon be transferred to the purchaser by the seller.
• X assessed its purchase of Y and determined that they expect Y to continue increasing in value for the next several years. It is appropriate for X to: O Conclude that a qualitative test determined no impairment is necessary. Conduct a two-step quantitative test. Record an impairment. O All of the above are acceptable.
Subject :- Accounting
Basket purchase allocation Dorsey Co. has expanded its operations by purchasing a parcel of land with a building on it from Bibb Co. for $255,000. The appraised value of the land is $60,000, and the appraised value of the building is $240,000.Page 215Required:a. Assuming that the building is to be used in Dorsey Co.’s business activities, what cost should be recorded for the land?b. Explain why, for income tax purposes, management of Dorsey Co. would want as little of the purchase price as possible allocated to land.c. Explain why Dorsey Co. allocated the cost of assets acquired based on appraised values at the purchase date rather than on the original cost of the land and building to Bibb Co. d. Assuming that the building is demolished at a cost of $20,000 so that the land can be used for employee parking, what cost should Dorsey Co. record for the land?
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When a seller allows a buyer an amount for old equipment that is traded in for new equipment of similar use, this amount is known as boot.
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