Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Vargo sells two products. The first (the tibed) is sold only for cash and represents a single performance obligation (sale of the product). Tibed sales

Vargo sells two products. The first (the tibed) is sold only for cash and represents a single performance obligation (sale of the product). Tibed sales for the year are 205,000 units. Tibed sells for a price of $23.90 per unit, and Vargo incurs shipping costs of $3.70 per unit sold. Vargo had sales discounts of $89,000 on tibed sales. The second is a software package (the tiderc) and is new for 2022. It has two performance obligations (sale of the software and a software update after 2 years). 59,400 units of tiderc were sold. Tiderc sells for $30 per unit (also cash sales). The standalone sales price of the software has been determined to be $25 and the standalone sales price of the update is $5. Vargo incurs a costs of $4.25 per software package. Report sales of the two products separately on the income statement (one line for tibed and one line for tiderc)

e. Vargo purchased land on 3/1/17 for future expansion at a cost of $90,000. They made improvements of $10,000 that will have an indefinite life, and $76,000 of improvements with a 10 year life. Vargo uses straight line depreciation to the nearest month for any land-related items that require depreciation. Compute any depreciation necessary for 2022.

F: On 8/1/22, Vargo decided to discontinue a segment of their business. The segment, which had a book value of $633,000 was sold for $513,000 on 12/1/22. The segment incurred a loss of $35,000 from operations from 8/1/22 to 12/01/22. All amounts are pre-tax

Wha is the answer for e and F

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting Change Approaches And Perspectives

Authors: Chandana Alawattage, Danture Wickramasinghe

1st Edition

0415393329, 978-0415393324

More Books

Students also viewed these Accounting questions

Question

Summarize the findings of behavior therapy outcome research.

Answered: 1 week ago