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Assume the following balances at the end of the

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19.Assume the following balances at the end of the currentyear:Capital Liquidated1,800,000Accumulated Depletion2,500,000Retained Earnings1,500,000Depletion based on 50,000 units extracted @P20 per unit1,000,000Inventory of resource deposit 5,000 unitsWhat is the maximum dividend that can be declared by the company?a. 2,100,000c.2, 200,000b.2, 000,000d.1, 500,000
20.Marie Company sells gift certificates redeemable only whenmerchandise is purchased. These gift certificates have anexpiration date of two years after issuance date. Upon redemptionor expiration, Marie recognizes the unearned revenue as realized.Information for 2017 as follows:Gift certificate payable 12/31/2016 520,000Gift certificate payable 12/31/2017680,000Gift certificate redeemed1,560,000Expired gift certificates80,000Cost of goods sold80%How much Gift certificates sold during the year?
21.PRC Company began selling a new calculator that carried atwo year warranty against defects in 2007.
PRACTICAL ACCOUNTING 1PRC projected the estimated warranty cost (as a percent of sales)as follows:First year warranty 4%Second year warranty10%Sales and actual warranty repairs were:2007 2008Sales5,000,0009,000,000Actual warranty repairs 390,000 900,000What is the estimated warranty liability on December 31, 2017?
22.On December 31, 2017 Colt Company is experiencing extremefinancial pressure and is in default in meeting interest paymenton its long term note of P6, 000,000 due on December 31, 2019.The interest rate is 12% payable every December 31.In an agreement with the creditor, Colt obtained the following changesin the terms of note:The present value of 1 at12% for four periods is 0.6355 and the
present value of an ordinary annuity of 1 at 12% for four periods is3.0373.How much is the gain or loss on extinguishment?a. 2,504,750c. 1,888,338b. 1,168,338 d. 0

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Term
Fall
Professor
saiydwfdwvd
Tags
Balance Sheet, Depreciation, Fences, 1981, 1986, 1973, 1970

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