Answer:
I think I think it will be 2:35 or 2:50
Leo's paycheck is a bit behind his rent due date therefore his percent rate for the 14-day loan will be 2:35 or 2:50.
What do you understand by the term paycheck?A paycheck which is also spelt as paycheque in simple terms means the money which we get from our workplace after delivering our service. It is a paper document which is issued by an employer to pay an employee for services rendered.
Nowadays the paper or physical paycheck is replaced by electronic direct deposits to the employee's designated bank account or loaded into a payroll card. To get the details of the final payment employees still receive a pay slip.
In the paycheck, there are details such as a notice that the direct deposit transaction has gone through. Different countries have different laws which must be included in a paycheck but most commonly gross wages, taxes, deductions and the gross amount the employee will receive are included.
Paycheck was founded by Tom Golisano in 1971.
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If consumer has rational, monotonic and convex preferences, which of the following is true concerning the substitution effect of a decrease in price of good X.
A) It always will lead to an increase in consumption of good X.
B) It will lead to an increase in consumption of good X only if X is a Giffen good.
C) It will lead to an increase in consumption of good X only if X is an inferior good.
D) It will lead to an increase in consumption of good X only if X is a normal good.
Answer:
It will lead to an increase in consumption of good X only if X is a normal good ( D )
Explanation:
If consumer has rational, monotonic and convex preference the decrease in price of good X will lead to an increase in consumption of good X only if X is a Normal good .
This is because the demand for Normal goods increases with increase in consumers income. therefore a decrease in price will automatically lead to an increase in demand because of the increase in the purchasing power of the consumer's income.
The process of bond valuation is based on the fundamental concept that the current price of a security can be determined by calculating the present value of the cash flows that the security will generate in the future.
There is a consistent and predictable relationship between a bond's coupon rate, its par value, a bondholder's required return, and the bond's resulting intrinsic value. Trading at a discount, trading at a premium, and trading at par refer to particular relationships between a bond's intrinsic value and its par value. These result from the relationship between a bond's coupon rate and a bondholder's required rate of return.
Remember, a bond's coupon rate partially determines the interest-based return that a bond (might/will) pay, and a bondholder's required return reflects the return that a bondholder(would like/is obligated) to receive from a given investment.
The mathematics of bond valuation imply a predictable relationship between the bond's coupon rate, the bondholder's required return, the bond's par value, and its intrinsic value
These relationships can be summarized as follows:
When the bond's coupon rate is equal to the bondholder's required return, the bond's intrinsic value will equal its par value, and the bond will trade at par.
When the bond's coupon rate is greater to the bondholder's required return, the bond's intrinsic value will ________(be less than/exceed/equal) its par value, and the bond will trade at a premium.
When the bond's coupon rate is less than the bondholder's required return, the bond's intrinsic value will be less than its par value, and the bond will trade_________ (at a premium/at par/at a discount).
Answer:
When the bond's coupon rate is greater to the bondholder's required return, the bond's intrinsic value will EXCEED (be less than/exceed/equal) its par value, and the bond will trade at a premium.
When the bond's coupon rate is less than the bondholder's required return, the bond's intrinsic value will be less than its par value, and the bond will trade AT A DISCOUNT (at a premium/at par/at a discount).
Explanation:
When the coupon rate of a bond, e.g. 5%, is less than the market rate, e.g. 6%, the value of hte bond will be lower than the face value, therefore, it will be sold at a discount.
On the other hand, if the coupon rate, e.g. 6%, is higher than the market rate, e.g. 5%, the value of the bond will be higher than the face value, therefore, it will sell at a premium.
Stellar Corporation had the following activities in 2020.
1. Payment of accounts payable $844,000
2. Collection of note receivable $97,000
3. Issuance of common stock $275,000
4. Issuance of bonds payable $469,000
5. Payment of dividends $380,000
6. Purchase of treasury stock $49,000
Compute the amount Stellar should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash select an option by financing activities $enter a dollar amount
Answer:
Net cash provided by financing activities $315,000
Explanation:
The computation of the net cash provided or used by financing activities is shown below:
Issuance of common stock $275,000
Issuance of bonds payable $469,000
Less: Payment of dividends $380,000
Less: Purchase of treasury stock $49,000
Net cash provided by financing activities $315,000
Hector received three A’s and one b in his college course. What is his grade point average? Assume each course is three credits. A=4.0, b=3.0, c=2.0, d=1.0
Answer:
I think it is A id don't know
what is a tax bracket? in your own words.
Answer:
a range of income level that is taxed at a certain percentage.
explain the difference between a flat tax and a graduated income tax.
Answer:Progressive tax systems have tiered tax rates that charge higher income individuals higher percentages of their income and offer the lowest rates to those with the lowest incomes. Flat tax plans generally assign one tax rate to all taxpayers. ... A flat tax would ignore the differences between rich and poor taxpayers.
The numbers of copies of a college textbook sold quarterly over the past four years are: Since the time series has trend and seasonal pattern, to forecast the quarterly sales of the textbook, the following regression equation was found:
yt= 2120 - 620 Qtr1t - 1320Qtr2t+290Qtr3t + 24t
where Qtr1t , Qtr2t and Qtr3t are dummy variables corresponding to Quarters 1, 2 and 3, and t = time period.
The sales forecast for Quarter 4 of the next year is:_______
a. 2600
b. 1232
c. 2006
d. 1874
The sales forecast for Quarter 1 of the next year is
a. 1908
b. 1432
c. 2206
d. 1874
Answer:
2,600 textbook. 1,908 textbooks.Explanation:
1. The equation is based on the past four years so in calculating the time period for Quarter 4 next year, the time period is:
t = (4 * 4 periods) + 4 periods next year
t = 20
Sales forecast is therefore:
= 2,120 + 24t
= 2,120 + 24 * 20
= 2,600 textbooks
2. The time period will be:
t = (4 * 4 periods) + 1 quarter
t = 17 quarters
Sales forecast:
= 2,120 - 620 + 24t
= 2,120 - 620 + 24 * 17
= 1,908 textbooks.
The cost of manufacturing a specific good in a developing country is less than the cost to manufacture it in the United States. What is the most likely result if that country exports the good to U.S. markets? Prices will decrease and the quantity produced will increase. Companies will expand production to compete in the industry. Congress will raise the rates on international tariffs. Prices will remain stable but quality will decline.
Answer:
Prices will decrease and the quantity produced will increase.
Explanation:
Because labor costs are lower in developing countries, when these countries produce manufactured goods, they do it at a lower cost, meaning that these goods will also have a lower price for the final consumers. If these cheaper goods are exported to the U.S. market, the U.S. market is flooded with more goods at a lower price, something that may affect some U.S. firms, but that benefits the majority of U.S. consumers.
a.
The main purpose of a cover letter is to:
Get hired for a position
b. Be called in for an interview
c. Let your friends know how your job search is going
d. Obtain references from your network
Please select the best answer from the choices provided
А
B
Answer:
B) Be called in for an interview!!!!
Explanation:
just took this review hope this helps!
You decide to go on a shopping spree. You make a purchase at Sears, and the cashiers says "Can I put your purchase on your Sears Card?" You reply "I don't have a Sears Card." The cashier asks you if you would like to apply for one. You say "Sure!" Throughout your shopping spree you purchase items at many different stores. At each of the stores this same scenario happens, the cashier asks you to apply for credit and you say yes. What will happen to your credit score?
A. It will decrease because of the number of times you have applied for credit.
B. It won't change at all because you were denied the credit card.
C. It will increase because of the number of times you have applied for credit.
Answer:
A and it can raise red flags for future creditors
1) Name TWO disadvantages of chain drives. [2]
Answer:
Disadvantages of chain drives are as follows;
Explanation:
Chain drives aren't allowed to be used in situations where slip is a device necessity.In comparison to belt movements, they necessitate precise alignment.On November 1 of this year, Jaxon borrowed $32,000 from Bucksnort Savings and Loan for use in his business. In December, Jaxon paid interest of $2,880 relating to the 12-month period from November of this year through October of next year.
A. How much interest, if any, can Jaxon deduct this year if his business uses the cash method of accounting for tax purposes?
B. How much interest, if any, can Jaxon deduct this year if his business uses the accrual method of accounting for tax purposes?
Answer:
Jaxon
A. If the business uses the cash method of accounting for tax purposes, the interest to be deducted this year is $2,880.
B. If the business uses the accrual method of accounting for tax purposes, the interest to be deducted this year is $480 (for November and December).
Explanation:
a) Data and Calculations:
Amount borrowed from Bucksnort Savings and Loan = $32,000
December 31, Interest paid for 12 months starting from November this year through October of next year = $2,880
Monthly interest expense = $240 ($2,880/12)
Interest expense for November and December = $480 ($240 * 2)
Interview can be defined as an attempt to
a.
make two persons communicate
b.
test the suitability of the candidate for the job under consideration
c.
develop relationship between two persons
d.
secure minimum information from the candidate
Answer:
B
Explanation:
What are REITs? please help
Answer: REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.
Explanation: Real Estate Investment Trust
Company
A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and commercial forests. Some REITs engage in financing real estate.
Journalize the following transactions for Henderson Company. Assume a perpetual inventory system. Also, assume a constant gross profit ratio for all items sold. Make sure to enter the day for each separate transaction.
October 1 Sold goods costing $9,000 to Hernandez Company for cash, $15,000.
October 7 Hernandez Company returned undamaged merchandise, purchased on
October 1, for a cash refund, $1,290.
Answer and Explanation:
The journal entries are shown below:
Cash Dr $15,000
To Sales $15,000
(Being cash is recorded)
Cost of goods sold Dr $9,000
To Merchandise inventory $9,000
(being cost of the merchandise is recorded)
Sales returns & allowances $1,290
To Cash $1,290
(being sales return is recorded)
Merchandise inventory ($1,290 × $9,000 ÷ $15,000) $774
To Cost of goods sold $774
(being merchandise inventory is recorded)
When looking at a firm's behavior, you know it is engaging in price discrimination when it:__________
a. charges a different price to different customers that is not reflective of the firm's costs.
b. charges customers more than they would prefer to pay.
c. asks about personal information such as race, gender, and sexual orientation before offering services.
d. does not accept payment with a smartphon
Answer:
a. charges a different price to different customers that is not reflective of the firm's costs.
Explanation:
The price discrimination strategy occurs when an organization charges a different price to different customers that does not reflect the company's costs, that is, the company divides its potential customers into groups, usually based on customer perceptions and characteristics and demographic data to evaluate which group of customers is willing to pay more or less for a particular product or service.
This is a strategy that can be favorable for companies to charge a maximum price for their product knowing that it will be accepted, but it is effective in large companies that have a high position in the market.
Use the 20-10 Rule to calculate the debt limits for Jesse's brother and sister.
Jesse's Brother: Annual Net Income of $24,750
Jesse's Sister: Annual Net Income of $35,800
Answer:
Jesse's brother total debt limit =$24,750 x 20% = $4,950
his monthly payment should not exceed ($24,750 / 12) x 10% = $206.25
Jesse's sister total debt limit = $35,800 x 20% = $7,160
her monthly payment should not exceed ($35,800 / 12) x 10% = $298.33
the 20/10 rule is a rule of thumb, meaning that it is not exact, it only gives us a parameter.
What is a logical argument for ethical decision-making and ethical impact in a technological society.
Answer:
Kindly check explanation
Explanation:
Technological advancement has without doubt brought a whole lot to our environment ranging from the ease, speed and volume at which we get things done, the making of new and better products to mention just a few. However, like most other impacting strategies, it comes with its own points of concern. The derision of ethics by certain technological processes have raised a few eyebrows, the need to innovate has to be checked and balanced such that it does not infringe upon the values and morals of individuals and businesses. Some of the ethical concerns include ; increased and easy accessibility to immoral viewings. The intrusion of private and public data unsolicited data in other derive or generate insight. This data may often be used for more than it was requested. The threat posed to health due to testing usually from innovative experiment and research.
Discuss Three (3) types of lobbying in detail please .
Answer:
Legislative lobbying
Regulator advocacy lobbying
Budget advocacy
Using the table below, calculate the holding inventory costs for all four periods using both average inventory and end inventory values. The holding cost per period per unit is $200. The sequence of cost is (average inventory, end inventory). Periods 1 2 3 4 Usage 100 120 50 80 End Inventory 10 30 70 30
Answer:
Holding cost = Ending inventory for period * Holding cost per unit
Period 1 holding cost Period 2
= 10 * 200 = 30 * 200
= $2,000 = $6,000
Period 3 Period 4
= 70 * 200 = 30 * 200
= $14,000 = $6,000
Total holding cost:
= 2,000 + 6,000 + 14,000 + 6,000
= $28,000
Zachary Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc. Never-Fail is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accounting course. The company’s motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it can deliver, it pays Zachary to carry the excess. Zachary contracts with independent pilots to fly its planes on a per-trip basis. Zachary recently purchased an airplane that cost the company $4,636,000. The plane has an estimated useful life of 24,400,000 miles and a zero salvage value. During the first week in January, Zachary flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Zachary paid $420 for the pilot and $370 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $370 for the pilot and $185 for fuel. The round trip between Chicago and San Francisco is approximately 4,300 miles and the round trip between Chicago and New York is 1,300 miles.
Required:a. Select if the costs mentioned below are direct or indirect.b. Determine the total cost of each trip. (Do not round intermediate calculations.)
Answer: See explanation
Explanation:
a. Based on the information given, the direct costs are:
• Pilot Cost
• Fuel Cost.
The indirect cost is:
• Depreciation Cost
b. To know the total cost for each trip, we need to know the depreciation per mile which will be:
= $4,636,000 / 24,000,000
= 0.19
Cost for Trip 1
Pilot Cost = $420
Fuel Cost = $370
Depreciation Cost = (0.19 × 4,300) = $827
Total Cost = $1617
Trip 2
Pilot Cost = $370
Fuel Cost = $185
Depreciation Cost = (0.19 × 1,300) = $247
Total Cost = $802
Franklin Freight Company owns a truck that cost $46,000. Currently, the truck’s book value is $22,000, and its expected remaining useful life is five years. Franklin has the opportunity to purchase for $31,700 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $5,600 per year more than fuel cost for the new truck. The old truck is paid for but, in spite of being in good condition, can be sold for only $15,000.
Required:
a. Calculate Total Relevand Costs for:
a) Keep Old
b) Replace with a New One
b. Should Brewton replace the old truck with the new fuel-efficient model, or should it continue to use the old truck until it wears out?
Continue to use the old truck
Replace the old truck
Answer:
Franklin Freight Company
a. Total relevant costs for:
1. Keep Old
= $28,000
2. Replace with New One
= $16,700
b. Franklin Freight Company is quickly replace the old truck with the new fuel-efficient model:
Replace the old truck
Explanation:
a) Data and Calculations:
Cost of old truck = $46,000
Book value of old truck = $22,000
Expected remaining useful life of old truck = 5 years
Fuel cost for the old truck in excess of the new truck = $5,600 per year
Total fuel inefficiency cost of old truck = $28,000 ($5,600 * 5)
Cost of new replacement truck = $31,700
Salvage value of old truck = 15,000
Relevant cost of replacement = $16,700 ($31,700 - $15,000)
b) The salvage value of the old truck can only be realized when the new truck is procured and not without. Thus, the salvage value should be attributed to the replacement truck and not to the old truck.
The correct options in the Franklin Freight Company are:
(a). Total relevant costs to Keep Old is $28,000 and Replace with New One is $16,700.
(b). Franklin Freight Company is speedily renewed the elderly truck with the new fuel-efficient model.
What is the cost?Cost is simply meaning an amount that has to be paid or expended to purchase or acquire something.
It is the measurement of the secondary opportunities preceded in the selection of one good over others.
(a). Computation of the total relevant cost:
(i).
Replace the old truck:
According top the given information,
Cost of old truck = $46,000
Book value of old truck = $22,000
Expected left helpful life of old truck = 5 years
Fuel cost for the old truck in surplus of the new truck = $5,600 per year
Total fuel inefficiency cost of old truck :
[tex]\text{Total Efficiency Cost of Old Truck}=\text{Fuel Cost of Old Truck}\times \text{Estimated Useful Life}\\\\\text{Total Efficiency Cost of Old Truck}=\$5,600\times5 \text{years}\\\\\text{Total Efficiency Cost of Old Truck}=\$28,000[/tex]
(ii).
Computation of Relevant cost of replacement Truck:
According to the given information,
Cost of new replacement truck = $31,700
Salvage(S) value of old truck =$15,000
[tex]\text{Relevant Cost of Replacement}=\text{Cost of New Replacement Truck}-\text{S Value of the Old Truck}\\\\\text{Relevant Cost of Replacement}=\$31,700-\$15,000\\\\\text{Relevant Cost of Replacement}=\$16,700[/tex]
(b) After the new truck is acquired, the salvage value of the old truck can only be recognised.
Therefore, the salvage value should be assigned to the substitution truck and not to the elderly truck.
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Norton Inc. is a hardware store that is owned by members of Norton family as well as a few close friends of the family what is is this company
Answer:
Closed Corporation
Explanation:
A closed corporation is a company in which the shares would be chosen by some individuals who are closely connected with the business. It could be also called by different names like privately held company, private company etc
Since In the given situation Norton Inc i.e. hardware store owned by the members also there is a few closed friends so this represent a closed corporation
Pam always drives under the speed limit to her risk and keep insurance costs down. Even so, she got into an accident and filed a to cover the expenses of repairing her car. One of the costs of doing so was that her insurance would likely increase in the future.
answers:
1. reduce
2. claim
3. premiums
Answer:
1. reduce
2. claim
3. premiums
just realized u already knew the answers lol....
Answer:
reduce, claim, premiums
Explanation:
got it right on edge !! :)
On June 10, Blossom Company purchased $7,100 of merchandise from Sunland Company, terms 4/10, n/30. Blossom Company pays the freight costs of $350 on June 11. Goods totaling $600 are returned to Sunland Company for credit on June 12. On June 19, Blossom Company pays Sunland Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Prepare separate entries for each transaction on the books of Blossom Company. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer:
June 10
Dr Inventory $7,100
Cr Accounts payable $7,100
June 11
Dr Inventory $350
Cr Cash $350
June 12
Dr Accounts payable $600
Cr Inventory $600
June 19
Dr Account payable $6,500
Cr Cash $6,240
Cr Inventory $260
Explanation:
Preparation of a separate journal entries for each transaction on the books of Blossom Company.
Books of Blossom Company
June 10
Dr Inventory $7,100
Cr Accounts payable $7,100
June 11
Dr Inventory $350
Cr Cash $350
June 12
Dr Accounts payable $600
Cr Inventory $600
June 19
Dr Account payable $6,500
($7,100-$600)
Cr Cash $6,240
($6,500-$260)
Cr Inventory $260
(4%*$6,500)
Wilson Animal Feeds has developed the following data to calculate lower of cost or market for its products.
Selling
Price Cost
Large animals:
Cattle $320 $160
Horse 400 400
Small animals:
Cat $360 $320
Dog 120 90
Exotic pets:
Ferret $140 $112
Iguana 70 48
The costs to sell are 20% of selling price.
Required:
Determine the reported inventory value assuming the lower of cost or market rule is applied to categories of feed products. (Round to nearest dollar. Do not include $ or commas.)
Answer:
Wilson Animal Feeds
The reported inventory value is:
= 1130
Explanation:
a) Data and Calculations:
Selling
Price Cost LCMV
Large animals:
Cattle $320 $160 $160
Horse 400 400 400
Small animals:
Cat $360 $320 $320
Dog 120 90 90
Exotic pets:
Ferret $140 $112 $112
Iguana 70 48 48
Total LCMV $1,130
b) This method of valuing inventory requires a comparison between the market value and the cost of each category of feed products. The lower between the two is chosen and then multiplied with the quantity of the item. In this example, the quantities of the items are not given.
Machinery purchased for $72,000 by Oriole Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,800 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,400 at the end of that time. Assume straight-line depreciation.
Prepare the entry to correct the prior years' depreciation, if necessary.
Answer:
No journal entry would be recorded
Explanation:
The journal entry is shown below:
No journal entry would be recorded for recognizing the prior year depreciation
So no journal entry would be passed for the same
Hence, the same would be relevant
Consider the following financial statement information for the Hop Corporation:
Item Beginning Ending
Inventory $16,284 $19,108
Accounts receivable 11,219 13,973
Accounts payable 13,960 16,676
Net sales $219,320
Cost of goods sold 168,420
Calculate the operating and cash cycles.
Answer:
Operating cycle = 59.29 days
Cash cycle = 26.1115 days
Explanation:
From the information given:
[tex]\text{Beginning Inventory \$16,284} \\ \\ \text{Beginning Accounts receivable 11,219} \\ \\ \text{Beginning Accounts payable 13,960} \\ \\ \text{Ending Inventory $19,108} \\ \\ \text{Ending Accounts receivable 13,973} \\ \\ \text{Ending Accounts payable 16,676} \\ \\ \text{Net sales \$219,320} \\ \\ \text{Cost of goods sold 168,420} \\ \\[/tex]
[tex]\text{Ending Inventory \$19,108} \\ \\ \text{Ending Accounts receivable 13,973} \\ \\ \text{Ending Accounts payable 16,676} \\ \\ \text{Net sales \$219,320} \\ \\ \text{Cost of goods sold 168,420} \\ \\[/tex]
To start with:
[tex]\text{Average inventory = } \dfrac{Beginning \ value +Ending \ value}{2} \\ \\ =\dfrac{ 16,284 + 19,108} {2} \\ \\ = \dfrac{35,392}{ 2} \\ \\ = \$17,696[/tex]
[tex]\text{Average receivable }=\dfrac{ Beginning value + Ending value }{ 2} \\ \\ =\dfrac{ 11,219 + 13,973 }{2} \\ \\ =\dfrac{ 25,192 }{ 2} \\ \\= \$12,596 \\ \\[/tex]
[tex]\text{Average payable }= \dfrac{Beginning \ value + Ending\ value}{ 2} \\ \\ = \dfrac{13,960 + 16,676 }{2} \\ \\= \dfrac{30,636}{2} \\ \\ = \$15,313[/tex]
[tex]\text{Days of inventory outstanding} = \dfrac{Average \ inventory }{ Cost \ of \ goods \ sold } \times 365 \\ \\ \dfrac{= 17,686}{ 168,420} \times 365 \\ \\ = 0.105\times 365 \\ \\= 38.329 \ days[/tex]
[tex]\text{Days \ of \ receivable \ outstanding }= \dfrac{Average \ receivable }{ sales }\times 365 \\ \\ \dfrac{= 12,596 }{ 219,320} \times 365 \\ \\ = 0.0574 \times 365 \\ \\= 20.951 \ days[/tex]
[tex]\text{Days of payable outstanding} = \dfrac{Average payable}{cost of goods sold} \times 365 \\ \\ = \dfrac{15,313 }{ 168,420} \times 365 \\ \\ = 0.0909 \times 365 \\ \\= 33.1785 days[/tex]
[tex]\text{Operating Cycle = Days of inventory outstanding + Days of receivable outstanding} \\ \\ = 38.339 + 20.951 \\ \\ = 59.29 days[/tex]
[tex]\text{Cash Conversion Cycle = Operating cycle - Days of payable outstanding} \\ \\ = 59.29 - 33.1785 \\ \\ = 26.1115 days \\ \\[/tex]
Presented below is information related to Splish Company at December 31, 2020, the end of its first year of operations.
Sales revenue $334910
Cost of goods sold 149030
Selling and administrative expenses 54000
Gain on sale of plant assets 32710
Unrealized gain on available-for-sale debt investments 9080
Interest expense 6360
Loss on discontinued operations 11260
Dividends declared and paid 4660
Compute the following:
(a) Income from operations -
(b) Net income -
(c) Comprehensive income
(d) Retained earnings balance at December 31, 2020 -
Answer and Explanation:
The computation is shown below:
a.
Sales Revenue $334,910
Less: expenses
Cost of goods sold $149,030
Selling and administrative expenses $54,000
Income from Operations $131,880
b.
Income from Operations $131,880
Add: Gain on sale of Plant assets $32,710
Less:
Interest expenses $6,360
Loss on discontinued operations $11,260
Net income $146,970
c.
Net income $146,970
Add: Unrealized Gain $9,080
Comprehensive Income $156,050
d.
Retained earnings
Net income $146,970
Less: Dividend declared and paid $4,660
Retained earnings $142,310
Margot and Johnny; calendar year, cash basis taxpayers; file a joint return. Before any of the capital asset transactions below, their taxable income is $90,100 and consists entirely of wages from their current jobs. During the year, they also had the following capital asset transactions:
. On February 1, 2018, they purchased Wal-Mart common stock for $57,000. They sold the stock on May 31, 2020 for $65,000.
. On August 15, 2019, they purchased PG&E common stock for $42,000. They sold the stock on July 25, 2019 for $35,000.
. On April 25,2017, they purchased Cisco common stock for $87.500. They sold the stock on May 21, 2019 for $100,000.
What is their final taxable income after including the capital asset transactions, and what is their total tax liability?
a. 5103,600 taxable income: $11,539 tax liability.
b. 5107,600 taxable income: $14,209 tax liability.
c. 5107,600 taxable income; $23,672 tax liability.
d. 5103,600 taxable income; 513,564 tax liability.
Answer:
c. $107,600 taxable income: $23,672 tax liability.
Explanation:
Taxable Income calculation:
Taxable Income beginning $90,100
Add: gain on sales on Wal-Mart stock $13,000
Less: Loss on sale of PG&E stock $7,000
Add: Gain on Cisco common stock $11,500
Taxable Income at end $107,600