Concept explainers
a.
Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.
To prepare: The valuation analysis schedules to determine what adjustments are to be recorded.
b.
Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.
To prepare: The valuation analysis schedules to determine what adjustments are to be recorded.
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Advanced Accounting
- ABC Co.’s biological asset has a fair value less costs to sell of P 100,000 and P120,000, respectively. The year-end adjusting entry will most likely include a. a credit to unrealized gain of P 20,000 to be recognized in profit or loss b. a credit to unrealized gain of P 20, 000 to be recognized in other comprehensive income c. a debit to unrealized gain of P 20,000 to be recognized in profit or loss d. none of thesearrow_forwardLinden Corporations is negotiating for the purchase of Hill Company. The following is an abbreviated balance sheet of Hill. Assets Cash Land Equipment, net Trademark Total assets Additional Information: Hill Company Balance Sheet As of December 31, 2025 $100,000 230,000 200,000 40,000 $570.000 Liabilities and Stockholders' Equity Accounts payable Notes payable (long-term) Common stock Retained earnings Total liabilities and stockholders' equity 1. Land is undervalued by $20,000. 2. Equipment is overvalued by $3,000. Hill agrees to sell the business to Linden for $370,000. $150,000 250,000 140,000 30,000 $570,000 Instructions Prepare the entry to record the purchase of Hill Company on Linden's books.arrow_forwardAssets Cash Receivables (net) Inventory PP & E (net) Patents&Licenses Goodwill Total assets Liabilities & Equity Accounts payable Short term debt Long term debt Preferred stock Common Equity Total Liabilities + Equity New Chip Corp Balance Sheet at 12/31/22 ($ in Millions) 31 45 64 215 28 19 402 53 19 179 23 128 402arrow_forward
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