Following situations relate to bolivia company

Assignment Help Accounting Basics
Reference no: EM131050867

The following situations relate to Bolivia Company.

1. Bolivia provides a warranty with all its products it sells. It estimates that it will sell 1,000,000 units of its product for the year ended December 31, 2014, and that its total revenue for the product will be $100,000,000. It also estimates that 60% of the product will have no defects, 30% will have major defects, and 10% will have minor defects. The cost of a minor defect is estimated to be $5 for each product sold, and the cost for a major defect cost is $15. The company also estimates that the minimum amount of warranty expense will be $2,000,000 and the maximum will be $10,000,000.

2. Bolivia is involved in a tax dispute with the tax authorities. The most likely outcome of this dispute is that Bolivia will lose and have to pay $400,000. The minimum it will lose is $20,000 and the maximum is $2,500,000.

Reference no: EM131050867

Questions Cloud

Prepare a classified balance sheet as at 31 march 2016 : Accounting for Management M 5011 - Prepare a worksheet outlining the transactions of HIGH Energy Ltd in February and March 2016. Ignore tax.
Traditional warehousing strategy : Consider a large discount store. Discuss some products and suppliers for which the discount store should use a cross-docking strategy; some products and suppliers better suited to a direct-shipment strategy; and, finally, some products and supplie..
Construct time series plot : a. Construct time series plot. What type of pattern exists in the data? b. Use simple linear regression analysis to find the parameters for the line minimizes MSE for this time series. c. What is the forecast for t=8?
What role did culture play in the negotiation process : Analyze the situation using the concepts of power, emotions, and culture, and write at least a one-page paper describing how these three theories apply to and impact the outcome of the negotiation among the jurors.
Following situations relate to bolivia company : 1. Bolivia provides a warranty with all its products it sells. It estimates that it will sell 1,000,000 units of its product for the year ended December 31, 2014, and that its total revenue for the product will be $100,000,000.
Describing the type of hospitality business : Resources: Strategic Management In The Hospitality Industry, Ch. 1; Entrepreneurship: Starting & Operating a Small Business, Ch. 1 and Ch. 2; B plans website Write a 700- to 1,050-word paper describing the type of hospitality business you would pu..
Discussed audience awareness : In Lesson 1, we discussed audience awareness. As you move forward in our course, think about audience. Think about audience in all things that you do.
List and define five potential benefits of delegation : List and define five potential benefits of delegation. List and describe the seven guidelines for good delegation. Discuss why one of the major complaints of subordinates regarding delegation is the issue of dumping.
Situations related to mckee corporation debt obligations : Presented below are two different situations related to Mckee Corporation's debt obligations. Mckee's next financial reporting date is December 31, 2014. The financial statements are authorized for issuance on March 1, 2015.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Data analysis on creativitypre and creativitypost

Perform exploratory data analysis on CreativityPre and CreativityPost. Using SPSS, calculate the mean and standard deviation of these two variables.

  Net short-term capital loss

Robin Corporation has ordinary income from operations of $30,000, net long-term capital gain of $10,000, and net short-term capital loss of $15,000. What is the taxable income for 2007?

  What is one assurance engagement and one attestation

the american institute of certified public accountants aicpa and the institute of internal auditors iia have positioned

  Percentage-of-completion method of revenue recognition

Assume the percentage-of-completion method of revenue recognition is used on a long term construciton contract. Under this method, revenues that are earned but unbilled at the balance sheet date should be disclosed

  Research and summarize at least two 2 news events this may

research and summarize at least two 2 news events this may include mergers acquisitions or political issues that

  During the year the partnership incurs

During the year the partnership incurs a $120,000 loss. How much of the loss can Karen report on her tax return for the current year?

  Original depreciation basis of the old machine

They have calculated all the necessary figures but are unsure about how to account for the sale of their old machine. The original depreciation basis of the old machine is $200,000 cash. Assume a tax rate for the company is 40 percent.

  What of the following is a significant difference between

what of the following is a significant difference between ifrs and u. s. gaap related to recognition and measurement of

  Corporation as a contribution to capital

Mary and Jane, unrelated taxpayers, hold Gray Corporation's stock equally. One year before the complete liquidation of Gray, Mary transfers land (basis of $600,000, fair market value of $180,000) to Gray Corporation as a contribution to capital.

  Able company purchase a machine for 35000 on january 1 2013

1.able company purchase a machine for 35000 on january 1 2013. the fair market value of the machine is 42000 and the

  Precedence diagram of a operation

The Temple Toy Company has decided to manufacture a new toy tractor, the production of which is broken into six steps. The demand for the tractor is 4,800 units per 40-hour workweek. a) Draw a precedence diagram of this operation

  The final processing department in carols production

the final processing department in carols production facility began the year with no work in process inventories.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd