One example of an impairment indicator is a significant adverse change in legal factors that affect the value of an asset or asset group

A business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier. Which of the following accounts is debited?

A) Cash B) Accounts Payable C) Supplies D) Accounts Receivable

Paradiso Company manufactures dolls that are sold to various distributors

The company produces at full capacity for six months each year to meet peak demand; the manufacturing facility operates at 80% of capacity for the other six months of the year. The company has provided the following data for the year: No. of units produced and sold 400,000 units Sales price $40 per unit Variable manufacturing costs $20 per unit Fixed manufacturing costs $1,000,000 per year Variable selling and administrative costs $5 per unit Fixed selling and administrative costs $500,000 per year Paradiso receives an offer to produce 6,000 dolls for a special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum sales price the company should accept for the order? A) $15 B) $40 C) $20 D) $25