Answer:
Current SMA balance is $15,000
Explanation:
SMA means special memorandum account, where excess margin recouped from investing the fund in customer's margin account is held.
Since ABC was bought for $10,000, while it's current worth is $20,000
Margin recorded = $20,000 - $10,000
= $10,000
XYZ stock sells short at $10,000, while it's current worth is $5,000
Margin recorded on short sell
=$10,000 - $5,000
=$5,000
SMA current balance
= $10,000 + $5,000
= $15,000
Skolits Corp. issued 20-year bonds 2 years ago at a coupon rate of 8.9 percent. The bonds make semiannual payments. If these bonds currently sell for 110 percent of par value, what is the YTM
Answer:
The YTM is 7.85%
Explanation:
Since 20 year bonds were issued 2 years ago,
Time to Maturity = 18 years
Coupon Rate = 8.9%
Lets assume that the par value of the bond is $100
The bonds make semi-annual payments,
Therefore, number of periods = 18 × 2 = 36
Semi-annual Coupon =( 8.9% × 100 ) / 2 = $4.45
Current Value of Bond = 110% of par value = 1.1 × 100 = $110
YTM is the discount rate which makes the present value of all the future cash flows equal to the current value of the bond, that is $110 , which means
110 = [tex]4.45/(1+r)^1[/tex] + [tex]4.45/(1+r)^2[/tex] + ... + [tex]4.45/(1+r)^{35[/tex] + [tex]104.45/(1+ r)^{36[/tex]
where, r is YTM/2
r = 3.927%
Therefore, YTM = 3.927 × 2 = 7.85%
The last step in the marketing process often includes: collecting the cash from sales to consumers. developing a written report to summarize the results of the period's marketing activities. deciding the best way to distribute the product. building relationships with customers.
Answer: developing a written report to summarize the results of the period's marketing activities.
Explanation:
The last step in the marketing process often is developing a written report to summarize the results of the period's marketing activities.
Developing a written report to summarise the results of the marketing activities is necessary in order to evaluate the performance of the marketing activity and also learn from past mistakes which have previously affected the company.
These are vital in order to capture a good market share in the future and also achieve organizational goals.
Important provisions of the Sarbanes-Oxley Act Multiple Choice encourage the destruction of financial documents. approve corporate loans to directors of the company. encourage outside CPA firms to deliver several services to their clients, including auditing services and consulting services. require the CEO and CFO of corporations to certify the accuracy of financial reports.
Answer: require the CEO and CFO of corporations to certify the accuracy of financial reports.
Explanation:
The Sarbanes-Oxley Act of 2002 was passed by the US Congress in the wake of the devastating crisis that engulfed the financial world as a result of the dodgy accounting practices of Enron, WorldCom and Tyco amongst others to protect the Public from acts by companies that would seek to deceive and mislead the public in terms of Accounting and Corporate disclosures.
One of the provisions was that Top Executives such as the CEO and the CFOs of companies personally certify the accuracy of the Financial reports. By doing this they can take personal responsibility and if they make a false certification willingly, they could be prosecuted and jailed.
Suppose that you are the manager and sole owner of a highly leveraged company. All the debt will mature in one year. If at that time the value of the company is greater than the face value of the debt, you will pay off the debt. If the value of the company is less than the face value of the debt, you will declare bankruptcy and the debt holders will own the company.
a) Express your position as an option on the value of the company.
b) Express the position of the debt holders in terms of options on the value of the company.
c) What can you do to increase the value of your position?
Answer:
From my position as an option on the value of the company, the stance or view of the owner is a call option on value of company strike face of debt
Secondly, debt holders have systematically sold a put option value of company strike at face of debt.
Now, to be able to increase or raise the value call option it includes he following, In making sure to raise the value of the company, To boost the unpredictability of the company.
Explanation:
Solution
(a) The position of the owner is a call option on value of company strike at face of debt
(b)The debt holders have efficiently sold a put option on value of company strike at face of debt.
(c) To be able to increase the value option call the following are listed below:
Endeavor or make sure to raise the value of the companyBoost the volatility of the company.Country Furniture Company manufactures furniture at its​ Akron, Ohio, factory. Some of its costs from the past year​ include: Depreciation on sales office: ​ $9,700 Depreciation on factory equipment 16,700 Factory supervisor salary 50,800 Sales commissions 23,900 Lubricants used in factory equipment 3,300 Insurance costs for factory 21,100 Wages paid to maintenance workers 115,900 Fabric used to upholster furniture 10,300 Freightminusin ​(on raw​ materials) 3,300 Costs of delivery to customers 9,100 Wages paid to assemblyminusline workers 115,700 Lumber used to build product 82,900 Utilities in factory 54,600 Utilities in sales office 26,600 Conversion costs for Country Furniture Company totaled:_______ a. $378,100.b. $486,500.c. $526,500.d. $510,500.
Answer:
just asking. is this even a question or a passage for us to read. im confused someone help me out here
Explanation:
In this paper, please discuss the three costing methods of job order costing, process costing, and activity-based costing. Define each method and explain when it is best suited to be used. Compare and contrast the methods and consider their benefits and shortfalls. Use the information provided to propose which cost method should be used to allocate costs. Wet Suit World is a company that manufactures wet suits for use with water sports such as snorkeling and scuba diving. The suits are made in sizes small through 3x extra large with levels of insulation layers of 2 millimeters, 5 millimeters, and 7 millimeters. They come in black with the Wet Suit World logo imprinted across the chest. The materials are the same for all of the suits, though they vary in thickness. All suits undergo the same production and quality inspection processes. There is no one "correct" answer to the proposed cost allocation method as long as the answer is well-supported based on the week’s learning. Superior papers will include the following when responding to the assignment question: Define the three costing methods. Explain when each is most appropriately used. Compare and contrast the methods, considering both benefits and shortfalls. Provide a well-supported proposal for the cost method Wet Suit World should use.
Answer:
Check below for the Answer and Explanation
Explanation:
A. All the three costing which are Job order costing, process costing and activity based costing are the different types of concepts of costing as well as the different methods of costing.
B. JOB ORDER COSTING is a method of either assigning or allocating a cost to a specific unit product .
PROCESS COSTING is a method for assigning allocation of cost for mass quantity of product .
In ACTIVITY BASED COSTING cost is calculated on the basis of the activity, number of the activities and on the basis of classification of the activities.
C.Each of the three costing method which are job order costing, process costing and activity costing are costing that has their own benefits and shortfall in which No one can replace another or fulfill the deficiency of another because each of them costing method has their own different benefits and shortfalls.
The benefit is that for calculating the cost for a particular task or job the job order costing is been applied and for calculating cost on particular process the process costing is been applied while on calculating the cost of particular activity the activity based costing is been applied .
The shortfall of all these three are that no one can replace another one.
D. A well-supported proposal for the cost method Wet Suit World should use will be JOB ORDER COSTING.
Answer :
The three costing methods of jobs are :
Job order costingProcess costingActivity based costing1. Job Order Costing :
It is a method of allocating or allocating costs to a specific unit product.2. Process Costing:
It is a method of assigning costs to the bulk quantity of a product.3. Activity based costing :
It calculates costs based on activity, the number of activities, and a classification of activities.Compare and contrast the methods and consider their benefits and shortfall are :
The benefit is that for calculating the cost for a particular task or job the job order costing is been applied and for calculating cost on particular process the process costing is been applied while on calculating the cost of particular activity the activity based costing is been applied . The shortfall of all these three are that no one can replace another one.
A well-supported proposal for the cost method is the Job Order Costing.
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Through coordinating partnerships with dedicated suppliers, Warby Parker have ensured quality, built a lean manufacturing operation, and built an organization that keeps buyers happy. This is an example of which triple bottom line performance metric? Multiple Choice planet/people planet/environment profit/economic profit/environment people/social Question 3 linked to 4 of 4 Total 3 4 of 4
Answer:
B. Profit / Economic
Explanation:
The triple bottom line addresses three factors that a socially responsible company must adhere to. The People / Social factor discusses the importance of the social needs of the customers which the customer must fulfill. The Planet / Environment factors are the factors that discusses about the responsiblity of the company to manufacture environmental friendly products that do not harm the environment and is sustainable. The Profit / Economic factor is one of the three factor which company must try to earn profit to keep the business running and thus benefits by earning profit to a lot of stakeholders.
The quality product is a reason why the customer prefer the company's product which helps the company in making profit. So the profit / economic factor is the right option.
Using both the supply and demand for bonds and liquidity preference framework, show how interest rate are affected when the riskiness of bonds rises. Are the results the same in the two frame works
Answer:
Yes, the results are the same in both frameworks. Please see below for explanation.
Explanation:
With regards to the bond supply and demand framework, people will look to buy more bonds since they are more wealthy now. Hence, the supply of bonds will increase. The supply curve and the demand curve will both move to the right, with the former shifting more than the latter. The equilibrium interest rate will increase.
With regards to the liquidity preference framework, once the economy experiences a positive shift, there will also be an increase in the demand for money. People will make an increased number of transactions as well and hence, the demand curve will move towards the right. The equilibrium interest rate will rise too.
ABC Corporation is considering the purchase of a machine that would cost $170,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $19,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $41,000. The company requires a minimum pretax return of 11% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to: (Round your intermediate calculations and final answer to the neare
Answer:
-$7,193
Explanation:
The computation of the net present value is shown below:
Year Cash Inflows PV factor at 11% Present value
0 $170,000 1 $170,000 (A)
1 $41,000 0.9009009 $36,936.94
2 $41,000 0.8116224 $33,276.52
3 $41,000 0.7311914 $29,978.85
4 $41,000 0.6587310 $27,007.97
5 $41,000 0.5934513 $24,331.50
5 $19,000 0.5934513 $11,275.58
Total $162,807.35 (B)
Net Present Value (NPV) -$7,193 (B - A)
It is a difference between the cash inflow and the cash outflows
A company had net sales of $21,500 and ending accounts receivable of $2,700 for the current period. Its days' sales uncollected equals: (Use 365 days a year.) Multiple Choice 8.0 days. 58.9 days. 45.8 days. 7.4 days. 45.2 days.
Answer:
45.8 days
Explanation:
The computation of the days sales uncollected is shown below:
But before that first we need to find out the inventory turnover ratio which is
Inventory turnover ratio = Sales ÷ Accounts receivable
= $21,500 ÷ $2,700
= 7.96 times
Now Days sales uncollected is
= 365 ÷ Inventory turnover ratio
= 365 ÷ 7.96
= 45.8 days
We simply applied the above formulas
Which of these is an acceptable professional behavior in the United States?
O A. Wearing clean clothes
O B. Having your cell phone out
O C. Having ungroomed hair
O D. Not bathing properly
Answer:
A. wearing clean clothes
Explanation:
An acceptable professional behavior in the United States is Wearing clean clothes Option(A) is correct. Deal with your feelings and language, particularly during upsetting times. Figure out how to perceive and control dissatisfaction.
What is an Professional Behavior?Professional behavior is a type of manners in the working environment which is connected principally to deferential and gracious direct.
In all honesty, professional behavior can help your vocation and work on your possibilities of future achievement. Numerous associations have explicit sets of rules set up, yet some don't. By and large, it comes down to morals, honesty, devotion, and being aware of how you treat collaborators.
Be conscious of individual representatives, partners and clients, no matter what their position or status everybody is significant. This incorporates utilizing great habits, being aware of individual space and forgoing referring to non-business related or other unseemly subjects. Utilize proper language, apologize for blunders or errors, and keep your closely-held convictions of others hidden.
Therefore Option(A) is correct.
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The following information is available for Tomlin Company.
April 1 April 30
Raw materials inventory $10,000 $14,400
Work in process inventory 4,830 3,290
Materials purchased in April $97,900
Direct labor in April 80,300
Manufacturing overhead in April 155,000
Prepare the cost of goods manufactured schedule for the month of April.
Answer:
cost of goods manufactured= $330,340
Explanation:
Giving the following information:
April 1 April 30
Raw materials inventory $10,000 $14,400
Work in process inventory 4,830 3,290
Materials purchased in April $97,900
Direct labor in April 80,300
Manufacturing overhead in April 155,000
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 10,000 + 97,900 - 14,400= $93,500
cost of goods manufactured= 4,830 + 93,500 + 80,300 + 155,000 - 3,290
cost of goods manufactured= $330,340
Daniel acquires a 30 percent interest in the PPZ Partnership from Paolo, an existing partner, for $48,000 of cash. The PPZ Partnership has borrowed $19,000 of recourse liabilities as of the date Daniel bought the interest. What is Daniel's basis in his partnership interest
During the year, RIT Corp. had sales of $565,600. Costs of goods sold, and depreciation expenses were $476,000, and $42,800, respectively. In addition, the company had an interest expense of $112,000 and a tax rate of 22 percent. What is the operating cash flow for the year
Answer:
Cash flows from Operating activities is $30800
Explanation:
The first thing that we will calculate is the Net Profit for the year thereafter we will calculate the operating cash flow for the year.
Step 1: Calculate is the Net Profit for the Year
Sales $5,65,600
Less: Cost of Goods Sold ($4,76,000)
Gross margin $89,600
Less: Admin and Selling expenses ($58800)
Less: Depreciation ($42,800)
Less: Interest expense ($112,000)
Net income before tax (124000)
Less: tax -
Net income after tax ($1,24,000)
Step 2: Now we will calculate the Cash flow from Operating activities
Net income after tax ($1,24,000)
Add: Depreciation $42,800
Add: Interest $1,12,000
Cash flow from Operating activities $30800
Kingbird Company leased equipment from Costner Company, beginning on December 31, 2019. The lease term is 4 years and requires equal rental payments of $32,230 at the beginning of each year of the lease, starting on the commencement date (December 31, 2019). The equipment has a fair value at the commencement date of the lease of $120,000, an estimated useful life of 4 years, and no estimated residual value. The appropriate interest rate is 5%. Prepare Kingbird's 2019 and 2020 journal entries, assuming Kingbird depreciates similar equipment it owns on a straight-line basis.
Date Account Titles and Explanation Debit Credit
Answer:
Kingbird's 2019 and 2020 journal entries, assuming Kingbird depreciates similar equipment it owns on a straight-line basis is prepared in the table below.
_____________________________
Date: 12/31/2019
Account: Right of use asset. Debit: $120,000
Account: Lease liability. Credit: $120,000
(To record lease liability)
_____________________________
Date: 12/31/2019
Account: Lease liability. Debit: $32,230
Account: Cash. Credit: $32,320
(To record lease payment)
_____________________________
Date: 12/31/2020
Account: Interest Expense ($120,000-$32,230)*5%. Debit: $4,389
Account: Lease Liability (Plug in) ($32,320 - $4,389). Debit: $27,841
Account: Cash. Credit: $32,320
______________________________
Date: 12/31/2020
Account: Amortization Expense. Debit: $30,000
Account: Right of use asset. Credit: $30,000
(To record amortization) $120,000/4 years
_____________________________
Big Canyon Enterprises has bonds on the market making annual payments, with 17 years to maturity, a par value of $1,000, and a price of $969. At this price, the bonds yield 8.1 percent. What must the coupon rate be on the bonds?
Answer:
7.8%
Explanation:
For computing the coupon rate first we have to determine the PMT by using the PMT formula which is shown in the attachment below:
Given that,
Present value = $969
Future value or Face value = $1,000
RATE =8.1%
NPER = 17 years
The formula is shown below:
= PMT(RATE;NPER;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the PMT is $77.58
Now the coupon rate is
= $77.58 ÷ $1,000
= 7.8%
QS 9-13 Note receivable interest and maturity LO P4 On December 1, Daw Co. accepts a $12,000, 45-day, 7% note from a customer. (1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31. (2) Prepare the entry required on the note's maturity date assuming it is honored. (Use 360 days a year.)
Answer and Explanation:
The journal entries are shown below;
a. Interest receivable Dr ($12,000 × 7% × 30 days ÷ 360 days) $70
To Interest revenue $70
(Being the interest revenue is recorded)
For recording this we debited the interest receivable as it increased the asset and credited the interest revenue as it also increased the revenue
b. Cash Dr $12,105
To interest receivable $70
To interest revenue ($12,000 × 7% × 15 days ÷ 360 days) $35
To Note receivable $12,000
(being cash received is recorded)
For recording this we debited the cash as it increased the assets and credited the interest receivable, interest revenue and note receivable as it decreased the asset and increased the revenue
Use the information below for Harding Company to answer the question that follow. Harding Company Accounts payable $ 40,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 30,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 110,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 30,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000 Based on the data for Harding Company, what is the amount of quick assets
Answer:
$131,000
Explanation:
The computation of the amount of quick assets is shown below:
Quick asset = Account Receivable + Cash + marketable securities
= $65,000 + $30,000 + $36,000
= $131,000
We simply added the account receivable, cash and the marketable securities so that the quick assets could come plus it contains more liquidity that converted into cash in a very short period of time and the rest of the items are ignored as there are not relevant
Suppose a firm’s sales for the year = $1200 and its average receivables balance is $200. What is the firm’s Accounts Receivable Turnover Ratio, expressed in days (not times per year)?
Answer:
61 days
Explanation:
Accounts receivable turn over ratio is an efficiency ratio that is used to calculate how efficiently a company is receiving its sales on account payments . This measures the number of times in a period that a company collects its average accounts receivable.
When expressed in days , it reveals the number of days it takes a sales on account customer to make payment
Workings
Annual sales = 1200
Average receivable balance = 200
Receivable turnover ratio = Annual sales /average receivable balance
1200/ 200 = 6
Account receivable turnover ratio in days = 365/receivable turnover ration
365/6 = 60.8 days = approximately 61 days
This shows that it takes a customer approximately 61 days to pay their purchase on account which
Roy Company manufactures a product in Departments A and B. Materials are added at the beginning of the process in Department B. Roy uses the weighted-average method in its process costing system. Conversion costs for Department B were 50% complete with respect to the 6,000 units in the beginning work in process and 75% complete with respect to the 8,000 units in the ending work in process. A total of 12,000 units were completed and transferred out of Department B during February. An analysis of the costs in Department B for February follows: The total cost per equivalent unit during February was closest to:_________
a. $2.75
b. $2.78
c. $2.82
d. $2.85
Answer:
Number of equivalent units= 18,000
Explanation:
Giving the following information:
Conversion costs for Department B were 50% complete concerning the 6,000 units in the beginning work in process and 75% complete for the 8,000 units in the ending work in process. A total of 12,000 units were completed and transferred out of Department B during February.
With the information provided, we can calculate the number of equivalent units of the period.
Beginning work in process = 6,000*0.5= 3,000
Units started and completed = 12,000 - 3,000= 9,000
Ending work in process completed= 8,000*0.75= 6,000
Number of equivalent units= 18,000
Indicate the effect that the following will have on the operating cycle. Use the letter "I" to indicate an increase, the letter "D" for a decrease, and the letter "N" for no change.
(a) average receivables goes up.
(b) credit repayment times for customers are increased
(c) inventory turnover goes from 3 times to 6 times.
(d) payable turnover goes from 6 times to 11 times.
(e) receivables turnover goes from 7 times to 9 times.
(f) payments to suppliers are accelerated.
Answer: a. Increase
b. Increase
c. Decrease
d. No change
e. Decrease
f. No change
Explanation:
The Operating cycle refers to the amount of time it will take a business to source or produce inventory, sell that inventory and then receive the money for the sold inventory.
a. If the Average Receivables goes up, then that means there are more people to collect money from. This will increase the amount of time it will take to collect thereby increasing the operating cycle.
b. If the credit repayment times for the customers are increased, this means that the time they have to take to pay the company increases and this will definitely increase the Operating cycle.
c. If the inventory turnover increases, it means that inventory is being purchased more times in the period. This means that the operating cycle has decreased because the company is having to replace inventory more to begin a new cycle.
d. The Payables turnover rate does not feature in the operating cycle so no effect will be recorded.
e. If the Receivables turnover rate increases, it means that the company is getting paid by receivables faster. This will decrease the operating cycle because it means that the business is receiving its money faster.
f. Payments to suppliers is just another way of saying Account Payables and as stated already, it has nothing to do with the Operating Cycle so No effect will be recorded.
An Operating cycle refers to period it might take a business to produce, sell and receive money for the sold inventory.
a. For when average receivables goes up : I
b. For when credit repayment times for customers are increased : I
c. For when inventory turnover goes from 3 times to 6 times : D
d. For when payable turnover goes from 6 times to 11 times : N
e. For when receivables turnover goes from 7 times to 9 times : D
g. For when payments to suppliers are accelerated : N
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From 2010 to 2011, nation A's real GDP increased from $100 billion to $106 billion and its population grew from 50 million to 51 million. As a result, real GDP per capita _____ because real GDP rose _____ than the population.
Answer:
As a result, real GDP per capita WILL INCREASE because real GDP rose MORE than the population.
Explanation:
increase in real GDP = $106 - $101 = $5 billion, or 4.95%
population increase = 51 - 50 = 1 million people, or 2%
real GDP per capita 2010 = $101,000 / 50 = $2,020
real GDP per capita 2011 = $106,000 / 51 = $2,078
since the real GDP increased by almost 5%, while the population increased only by 2%, the real GDP per capita will increase by 2.9%
The internal financial statements of Vera Incorporated show that their beaded purses incurred an operating loss in the most recent year. There were 27 comma 000 purses sold in that year. Selected financial information about the purse line follows. Total sales revenue $ 191 comma 000 Variable costs $ 92 comma 000 Contribution margin $ 99 comma 000 Fixed costs $ 101 comma 000 Net operating loss $( 2 comma 000 ) If the line of purses were to be discontinued, the company would avoid $ 21 comma 000 in fixed costs per year. If Vera Incorporated were to discontinue the line of purses, the change in annual operating income would be
Answer:
Vera Incorporated
Change in annual operating income from discontinued business:
Annual Operating Income would reduce by $78,000.
Explanation:
a) Calculation of the Net Income Lost:
Loss of Contribution ($99,000)
Avoidable fixed cost $21,000
Reduction of Income ($78,000)
b) The line of purses contributes $80,000 towards the company's fixed cost. Therefore, discontinuing this line of business would lead to the loss of this steam of income. The amount of reduced operating income will be $78,000 ($80,000 - 2,000).
Identify whether the following activities Ere examples Of business-level or corporate level strategy.
a. A company's managers ask, "Should we increase the size of our Bluetooth wireless speaker and sell it at a higher cost?"
b. Never previously known as a computer hardware company, Microsoft decides to enter the tablet manufacturing business, producing the Microsoft Surface.
c. Managers for IBM's SPSS statistics software meet to determine how they Will market the product in the upcoming year. Their decision is to show potential clients how effective SPSS is at analyzing extremely large data sets, and how
the "Direct Marketing" part Of the program helps identify which customers will respond to advertisements.
d. The manufacturer of Chobani Yogurt decided to open a flagship store in Soho, where customers can order special yogurt creations, such as fig and walnut or cucumber and olive oil. Though it was in the business of manufacturing
yogurt for 7 years, the company never tried to run a restaurant before.
Answer: A. Business Level.
B. Corporate Level.
C. Business Level.
D. Corporate Level.
Explanation:
Business level strategies are used by a company to engage in transactions that will enable it to sell it's products and bring in profit to the company. It therefore focuses on the customers the business has.
Corporate Level strategies on the other hand are at organizing level of the Organization. In other words they deal with decisions meant to progress the company to make it bigger or more profitable. For example by selling or buying companies/ business units.
A. This is a business level activity as it focuses on the sales of their Bluetooth products.
B. This is a Corporate Level Strategy as it deals with Microsoft as an Organization entering a new market i.e diversifying for growth.
C. This is a Business level strategy as it deals with the product that the company wants to improve sales of which is SPSS.
D. This is a Corporate Level Strategy because as the text shows, the company has never tried to run a restaurant before. They are therefore diversifying and entering into a new market.
"Partnership LIFE's profits and losses are shared equally among the four partners. The adjusted basis of Partner E's interest in the partnership on December 31, Year 1, was $25,000. On January 2, Year 2, Partner E withdrew $10,000 cash. The partnership reported $200,000 as ordinary income on its Year 2 partnership return. In addition, $5,000 for qualified travel, meals, and entertainment was shown on a separate attachment to E's Schedule K-1 of Form 1065. Due to the limitation, $2,500 of the $5,000 is unallowable as a deduction.
Required:
What is the amount of E's basis in the partnership on December 31, Year 2?
Answer:
$62,500
Explanation:
As it is mentioned above the partners share profit and losses equally. So If there are four partners the proportion should be 25%
So year 2 Profit share for partner E would be 200,000 x 25% = $50,000
So the basis of partner E in year 1 = $25,000
LESS: Partner E drawings = ($10,000)
ADD: Profit share for year 2 = $50,000
LESS: Allowable expenditure = ($2,500)
Amoun of E's basis in year 2 = $62,500i
Oxygen combines with nitrogen in the air to form NOx at about
Answer:
2500° F
Explanation:
Oxygen combines with nitrogen in the air to form NOx at about 2500 degrees Fahrenheit.
LeBron James (LBJ) Corporation agrees on January 1, 2020, to lease equipment from Wildhorse, Inc. for 3 years. The lease calls for annual lease payments of $21,000 at the beginning of each year. The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment. This lease is properly classified as an operating lease. The credit to Lease Liability on December 31, 2020 is ________.
Answer:
interest expense 4,881.08 debit
lease liability 4,881.08 credit
Explanation:
We solve for the present value of the lease payment and with that we solve forthe interest accrued during the period which will be interest expense debit and lease liability credit.
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 21,300
time 3
rate 0.06
[tex]21300 \times \frac{1-(1+0.06)^{-3} }{0.06} = PV\\[/tex]
PV $60,351.2638
lease: +60,351.26
less: 21,000.00 payment
81,351.26 before interest
interest over the year 81,351.26 x 0.06 = 4,881.08
Missing Information: 6% implicit rate
Monson sells 29 units for $50 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.)
The complete question:
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 29 units for $50 each.
Purchases on December 7 20 units at $20.00 each
Purchases on December 14 34 units at $30.00 each
Purchases on December 21 30 units at $36.00 each
Monson uses a perpetual inventory system. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per-unit costs to 2 decimal places.)
Answer:
Trey MonsonDetermination of the cost of Ending Inventory based on the Weighted Average Method:Date Quantity Unit Cost Total Cost
Dec. 7 Purchase 20 $20 $400
Dec. 14 Purchase 34 30 1,020
Total 54 26.30 $1,420 .20
Dec. 15 Sale -29 26.30 -762.70
Dec 15 Balance 25 26.30 $657.50
Dec. 21 Purchase 30 36 1,080
Dec. 21 Available 55 31.59 $1,737.50
Dec. 31 Ending Inventory 55 $31.59 $1,737.50
Explanation:
To use the weighted average method, we divide the cost of goods available for sale by the number of units available for sale, which yields the weighted-average cost per unit. The cost of goods available for sale is the sum of beginning inventory and net purchases.
On September 1, Sky Mountain Co. borrowed $68,000 on a 6%, 9-month note payable to Coast National Bank. Given no previous adjusting entries have been recorded, Sky Mountain's adjusting entry four months later at December 31 would include a:
Answer and Explanation:
The journal entry is shown below:
Interest expense ($68,000 × 9% × 4 months ÷ 12 months) $2,040
To Interest payable $2,040
(Being the interest expense is recorded)
For recording this we debited the interest expense as it increased the expenses and credited the interest payable as it also increased the liabilities so that the proper journal entries could be recorded
g A particular brand of toothpaste costs 4 British pounds in London. The nominal exchange rate is .80 and the real exchange rate is about 1.16. These numbers imply that the U.S. price of the same toothpaste is about a. $5.79 b. $4.29 c. $3.70 d. $2.76
Answer:
The answer is option (d)$2.76
Explanation:
Solution
Given that:
The cost of a particular brand of toothpaste = 4 pounds
The exchange rate = .80
Real exchange rate = 1.16
Now
Real exchange rate is given as:
R = real exchange rate
e = nominal exchange rate
PF = foreign price
P = domestic price
Suppose we say that U.S. is a domestic country and British is a foreign country we have the following formula below:
R = e(PF/P)
R = 1.16
e = 0.80
PF = 4
Thus
R = e(PF/P)
1.16 = 0.80(4/P)
P = 3.2/1.16
= 2.7586207
= $2.76
Therefore, The U.S rice of the same toothpaste is about $2.76