Reference no: EM132948029
Question - Toyoka Motors manufactures and sells a model of luxury sports cars. Included in the car's price is a five-year warranty that is two years longer than warranties provided by other car manufacturers; in addition, the law only requires Toyoka Motors to provide a three-year warranty.
On January 1, 2021, Toyoka Motors sells a car to a customer for P2,000,000. The car's estimated standalone selling price is P1,800,000, and the extra two years of warranty is P200,000. Toyoka Motors delivers the car on January 1, 2021 and the customer pays P2,000,000 on that same date. Based on past experience, Toyoka Motors expects to incur P250,000 of warranty expense each year during the first three years of the car's life and provide repairs evenly during the 4th and 5th year of the warranty period. Actual repairs during the first, second and third years were P80,000, P120,000 and P180,000 respectively.
Required -
1. Determine the amount of warranty liability on December 31, 2021?
2. Determine the amount of warranty liability as of December 31, 2022?
3. Determine the amount of revenue that Toyoka Motors should recognize in 2024?
|
Explain the steps of the strategic management model
: 1- Outline and explain the steps of the Strategic Management Model (process) used by the domestic for- pro?t ?rms. How can the strategy of a company integrate t
|
|
Ethics and the environment
: When it comes to Ethical Decision Making and its impact on our environment, there are many views, both social and political. One way to look at it, is who shoul
|
|
Why do we take the seasonality out of a forecast
: Why do we take the seasonality out of a forecast?
|
|
What are the variables being measured
: Discuss whether you think the article is true-experimental, quasi-experimental, or no experimental. You must also state what type of quantitative design
|
|
Determine the amount of warranty liability on December
: On January 1, 2021, Toyoka Motors sells a car to a customer for P2,000,000. Determine the amount of warranty liability on December 31, 2021
|
|
Discuss what meant by the qualitative research approach
: Discuss what it meant by the qualitative research approach to knowledge generation. What are the characteristics of qualitative research studies?
|
|
Determine the amount in the fund at the end of three years
: Anna plans to deposit P7500 every 6 months for 3 years in a fund. Determine the amount in the fund at the end of 3 years then prepare a complete sinking fund
|
|
How much is the income tax due arising from this sale
: In early 2020, he sold the unit for P10,000,000, which he utilized in full to purchase a house and lot in Greenhills, How much is the income tax due
|
|
What type of data collection method was used in the scenario
: What type of data collection method was used in this scenario? What type of collection methods are usually used in descriptive studies?
|