Answers
Answer:
d
Explanation:
The complete question is mentioned in attachment. According to 2nd line and 2nd last line, option d is the ocrrect answer.
According to Mikey, the founder, Holden Outerwear does not manufacture its garments in the United States because of the: limited control over manufacturing partners. Therefore, the correct option is B.
The manufacturing in any place abroad brings many challenges in maintaining the same level of vigilance and control over the production processes as comparatively to having manufacturing processes in the company's home nation.
The offshore manufacturing mainly involves working with third-party or manufacturing partners, which may bring problems and issues related to quality control, supply chain management, and communication.
Thus, the ideal selection is option B.
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The complete question might be:
According to Mikey, the founder, Holden Outerwear does not manufacture its garments in the United States because of the: a. aplicated procedure to acquire a manufacturing license. b.limited control over manufacturing partners. c.legal and political risks. d.high production costs.
Related Questions
Which of the following is a feature of an effective business email?
The message has a number of abbreviations in order to save the
writer time.
B. The subject line clearly states what the email is about.
C. The message has a joke in the last paragraph.
D. The subject line is in all capital letters.
Answers
The feature of an effective business email is that the subject line clearly states what the email is about. Thus, option (B) is correct.
What is Email?The term email stands for electronic mail, which is sent by using the digital mode of transactions. It is a computer based program associated with the exchange of the messages.
People may exchange e-mail messages relatively fast thanks to a global e-mail network. E-mail is the electronic version of a letter, but with time and flexibility advantages.
While sending mail to any person, the subject should be clearly stated as many of the people have not so much time to read the mail and can just read the subject and understand the mail.
Therefore, it can be concluded that The subject line of an excellent business email clearly communicates what the communication is about. Hence, option (B) is correct.
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Nelly is creating an executive committee in a large corporation in order to decide how to open a new subsidiary. The committee has representation from the sales, information technology, general management, and warehouse departments. She feels unsure whether to include someone from the accounting department because she thinks that accountants focus only on taxes and do not have much management expertise. What would you suggest
Answers
Answer: Accountants do much more than taxes and often participate in executive committeesbecause of their financial perspective. This committee should include someone from the accounting or finance department.
Explanation:
The options to the question are:
a. Accountants usually do not work on strategy or planning, so the executive committee doesnot need a representative from the accounting department.
b. Accountants will not help the executive committee. The committee does not need arepresentative from the accounting department.
c. Accountants do much more than taxes and often participate in executive committees because of their financial perspective. This committee should include someone from the accounting or finance department.
From the question, we are informed that Nelly is creating an executive committee in a large corporation in order to decide how to open a new subsidiary and that she is unsure whether to include someone from the accounting department because she thinks that accountants focus only on taxes and do not have much management expertise.
I would suggest that she needs to include an accountant. Accountants do much more than just taxes. She needs someone from the finance or accounting department that will help in the communication, and processing of every financial details regarding the company or whatever they intend doing. For every executive committee, the role of accountants cannot be understated as they participate in executive committees due to their financial perspective on certain issues.
The aim of every organization is cost minimization and profit maximization and an accountant can help in achieving these aims.
Jaxon Furnishings Company is considering logging opportunities in Alaska to obtain wood for their products. The market analysis team is busy comparing the benefits of increased wood production to the costs of deforestation and resulting environmental conditions. The company is using the _____ approach to make this ethical decision.
Answers
Answer:
Jaxon Furnishings Company Vs Logging Opportunities in Alaska
Comparison of the benefits of increased wood production to the costs of deforestation:
The company is using the __environmental sustainability___ approach to make this ethical decision.
Explanation:
According to brittanica.com, environmental "sustainability is understood as a form of intergenerational ethics in which the environmental and economic actions taken by present persons do not diminish the opportunities of future persons to enjoy similar levels of wealth, utility, or welfare."
An approach to an ethical decision is sustainable when it considers the long-term benefits and costs associated with the decision, instead of concentrating on the short-term benefits as some business transactions are done. Short-termism selfishly considers the immediate gains from a transaction. It lacks a futuristic appetite for the good of future generations.
What guidelines will you develop for supervisors to successfully respond to employee questions about unionization? What can your supervisors say or do that is legally permissible in this situation?
Answers
The correct answer to this open question is the following.
The guidelines you will develop for supervisors to successfully respond to employee questions about unionization would be the following.
The first thing the supervisor can do is establish an open door policy to always listen to employees' concerns. This is of the utmost importance because one of the factors that impact employee's morale is the lack of communication and the sentiment of not being important for the organization.
An open line of communication from the very top of the hierarchy to the very bottom of the company is of so much help for the workers feel comfortable to express their opinions, and do not try to look for unions to be heard.
What the supervisors can say that is legally permissible in this situation is to inform workers that they have the right to express themselves and be heard, as well as freely join the union they feel most comfortable with, always inviting the worker to first directly address their issues within the company.
Eberley Corporation's cost formula for its manufacturing overhead is $25,700 per month plus $10 per machine-hour. For the month of July, the company planned for activity of 5,900 machine-hours, but the actual level of activity was 5,920 machine-hours. The actual manufacturing overhead for the month was $86,800. The manufacturing overhead in the planning budget for July would be closest to:
Answers
Answer:
$84,700
Explanation:
The computation of manufacturing overhead in the planning budget for July is shown below:-
Manufacturing overhead in the planning budget = Manufacturing overhead per month + Budgeted hours × Budgeted rate
= $25,700 + 5,900 × $10
= $25,700 + $59,000
= $84,700
Therefore for computing the manufacturing overhead in the planning budget for July we simply applied the above formula.
A company had beginning inventory... A company had beginning inventory of 10 units at a cost of $20 each on March 1. On March 2, it purchased 10 units at $22 each. On March 6 it purchased 6 units at $25 each. On March 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold
Answers
Answer:
COGS= $470
Explanation:
Giving the following information:
Beginning inventory= 10 units for $20 each
On March 2, it purchased 10 units at $22 each.
On March 6 it purchased 6 units at $25 each.
On March 8, it sold 22 units for $54 each.
We need to determine the cost of goods sold for the 22 units under the FIFO (first-in, first-out) method. Using this method, we need to use the cost of the firsts units incorporated into inventory.
COGS= 10*20 + 10*22 + 2*25= $470
Which of the following could be considered a cost driver? Select one: a. A service provided by an architecture firm b. A product produced by a manufacturer c. A tax return prepared by a local CPA firm d. All of the above
Answers
Answer: d. All of the above
Explanation:
A cost driver refers to the activity that causes an actual change in the cost of a transaction and by extension it's local cost.
For example, cost driver of labor would be the number of people working or cost driver of Electricity paid would be the actual number of units consumed.
In the above, the products and services mentioned are the integral activities for those firms so they are cost drivers to those firms.
You purchase one MMM July 129 call contract (equaling 100 shares) for a premium of $21. You hold the option until the expiration date, when MMM stock sells for $141 per share. You will realize a ______ on the investment.
Answers
Answer:
There is loss of $900 on investment.
Explanation:
The purchase of 1 MMM July 129 call contract at premium = $21
Since it is given that it is held unit the expiration date.
The selling price of MMM stock = $141 per share.
Total number of shares = 100
Total amount paid for share (purchase price) = 129 + 21 = $150
Loss or profit = Market price on expiration date- purchase price
=141-150
= - 9
Total loss = 9 × 100
=900 loss
A pollution haven is A. unattractive for multinational investment because of the ambient pollution. B. a location with weak environmental rules that attracts manufacturing companies due to decreased costs. C. a place that has very low worker wages. D. a place where people actually like pollution and view it as a positive externality.
Answers
Answer:
B. a location with weak environmental rules that attracts manufacturing companies due to decreased costs.
Explanation:
A pollution haven is when companies establish factories or offices abroad in countries in which they have lower costs and have access to all the resources they need. Also, these locations tend to be in developing nations in which the environmental standards tend to be lower than the ones in developed nations. According to this, the answer is that a pollution haven is a location with weak environmental rules that attracts manufacturing companies due to decreased costs.
The other options are not right because a pollution haven is attractive for multinational investment because of the lower cost and it is not related to ambient pollution. Also, a pollution haven has low wages but it is not the only thing that defines it and it is not a place where people like pollution.
Find the expected return for Jackson Corporation. Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)
Answers
Question:
Jackson Corporation has expected return of 12% during recession, 20% during normal, and 40% during boom state of economy. Probability of recession, normal and boom states of economy is 0.25, 0.50, and 0.25 respectively. Find the expected return for Jackson Corporation. Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)
Answer:
23.00
Explanation:
Given:
For Jackson Corporation:
Expected return during recession = 12%
Expected return during normal = 20%
Expected return during boom = 40%
For Economy:
Probability of recession = 0.25
Probability of normal = 0.50
Probability of boom = 0.25
Required:
Find the expected return for Jackson Corporation.
To find expected return, use the expression below:
Expected return = (Probability of Recession * Returns at Recession) + (Probability of Normal * Returns at Normal) + (Probability of Boom * Returns at Boom)
Using the expression above, expected return for Jackson corporation will be calculated as:
Expected return = (25×12%)+(0.50×20%)+(0.25×40%)
= 3 + 10 + 10
= 23%
Expected return for Jackson corporation is 23.00
The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. Supplies Expense 730 Supplies 730 ppppppp?Record purchase of supplies. Adjust supplies inventory to actual. Record sale of supplies. Reduce supplies expense.
Answers
Answer:
Adjust supplies inventory to actual.
Explanation:
The adjusting entry to record the adjust supplies inventory to actual is shown below:
Supplies expense $730
To Supplies $730
(Being the supplies inventory is adjusted)
For recording this we debited the supplies expense as it increased the expenses and credited the supplies as it decreased the assets
Therefore the second option is correct
Tom Company incurs overhead costs each year in its three main departments, setup ($70,000), machining ($34,000), and packing ($56,000). Information about the company's two products is as follows:
Product A1 Product B1 Total
Number of setups 7 33 40
Machining hours 2,800 2,200 5,000
Orders packed 280 220 500
Number of products manufactured 560 440 1,000
If machining hours are used as a base under traditional costing, how much overhead is assigned to Product A1?
Answers
Answer:
Allocated MOH= $89,600
Explanation:
Giving the following information:
Tom Company incurs overhead costs each year in its three main departments, setup ($70,000), machining ($34,000), and packing ($56,000).
Product A1 Product B1 Total
Number of setups 7 33 40
Machining hours 2,800 2,200 5,000
Orders packed 280 220 500
Number of products manufactured 560 440 1,000
Under the traditional costing system, the company applies overhead based on a single plantwide predetermined overhead rate.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 160,000/ 5,000
Predetermined manufacturing overhead rate= $32 per machine hour
Now, we can apply overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 32*2,800= $89,600
A stock with a beta of 2.0 has an expected rate of return of 21%. If the market return this year turns out to be 8 percentage points below expectations, what is your best guess as to the rate of return on the stock
Answers
Answer:
The answer is 5%
Explanation:
Solution
Given that:
A stock with a beta =2.0
The expected rate of return =21%
Market return turnout = 8%
Now,
Rf = risk free return
Rp = risk premium =Rm -Rf
β = 2.0
Thus
The expected return R = Rf +β *Rp
= Rf +β * (Rm -Rf)
R = Rf +2.0 (Rm -Rf)
=Rf + 2 times risk premium
So,
The market turns by 8%
R = Rf +2.0 (Rm -8%-Rf)
=Rf + 2 Rm-16%-2Rf
Then
The expected return is reduced by 16%
Hence,
21% -16% =5%
Therefore the expected rate of return on the stock is 5%
Assume that the cost of money is 10% per year. The initial cost of a small personal aircraft is $35,000, the annual repair and maintenance cost is $20,000 and the salvage value is $10,000. The aircraft is kept for 2 years. The present worth of the aircraft is :__________
Answers
Answer:
The present worth of aircraft = $29137.82
Explanation:
Given the cost of money (r ) = 10%
The initial cost of small aircraft = $35000
Annual repair and maintenance costs (A) = $20000
Salvage valaue = $10000
Now calculate the present value of aircraft by adding the initial cost of annual maintenance and salvage value and subtracting the initial cost.
[tex]Present worth = initial cost + \frac{A[1-(1+r)^{-n}]}{r} - \frac{Salvage \ value}{(1 + r)^{n}} \\= 35000 + \frac{20000 [1 – (1+ 0.01)^{-2}]}{0.01} - \frac{10000}{(1 + 0.01)^{2}} \\= $29137.82[/tex]
Kenzi kayaking a manufacturer of kayaks began operations this year. During this first year the company produced 1075 kayaks and sold 825 at a price of $1075 each. At this first year-end, the company reported the following income statement information using absorption costing.
Sales (825x $1,075) Cost of goods sold (825x $475) Gross margin Selling and administrative expenses Net income
$886,875 391,875 495,000 210,000 $285,000
Additional Information:
a. Product cost per kayak totals $500, which consists of $400 in variable cost production cost and $100 in fixed production cost- the latter amount is based on 107500 of fixed production cost allocated to the 1075 kayaks produced.
b. The $210,000 in selling and administrative expense consists of $75,000 that is variable and $135,000 that is fixed.
Required:
Prepare an income statement for the current year under variable costing.
Answers
Answer:
Income Statement for the Current Year under Variable Costing
Sales (825 × $1,075) $886,875
Less Cost of Sales
Opening Stock $0
Add Cost of Goods Manufactured ( 1075 × $400) $430,000
Less Closing Inventory (250 × $400) ($100,000) ($330,000)
Contribution $556,875
Less Expenses :
Fixed Manufacturing Overheads ($107,500)
Selling and administrative expense : Variable ($75,000)
Selling and administrative expense : Fixed ($135,000)
Net Income / (Loss) $239,375
Explanation:
Under variable costing, only variable costs of production are included in cost of goods sold. Both the Non - Production and Fixed Production Costs are treated as Period Cost Expensed during the year.
The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2017.Raw Materials Inventory 7/1/16 $51,100Factory Insurance $4,700Raw Materials Inventory 6/30/17 46,000Factory Machinery Depreciation 19,000Finished Goods Inventory 7/1/16 98,200Factory Utilities 29,100Finished Goods Inventory 6/30/17 26,100Office Utilities Expense 9,350Work in Process Inventory 7/1/16 26,800Sales Revenue 564,000Work in Process Inventory 6/30/17 22,300Sales Discounts 4,700Direct Labor 147,750Plant Manager’s Salary 65,600Indirect Labor 26,560Factory Property Taxes 9,810Accounts Receivable 27,100Factory Repairs 1,600Raw Materials Purchases 97,500Cash 35,600A) Prepare a cost of goods manufactured schedule (Assume all raw materials used were direct materials).B) Prepare an income statement through gross profitC) Prepare the current assets section of the balance sheet at June 30,2017
Answers
Answer:
A) cost of goods manufactured schedule
Factory Insurance 4,700
Factory Utilities 29,100
Factory Machinery Depreciation 19,000
Direct Labor 147,750
Plant Manager`s Salary 65,600
Indirect Labor 26,560
Factory Property Taxes 9,810
Factory Repairs 1,600
Add Beginning Work in Process Inventory 26,800
Less Closing Work in Process Inventory (22,300)
Cost of Goods Manufactured $308,620
B) income statement through gross profit
Sales Revenue 564,000
Less Sales Discounts (4,700)
Net Sales 559,300
Less Cost of Goods Sold :
Finished Goods Inventory 98,200
Add Cost of Goods Manufactured 308,620
Less Closing Finished Goods Inventory (26,100) (380,720)
Gross Profit 178,580
C) current assets section of the balance sheet at June 30,2017
Current Assets
Raw Materials Inventory 46,000
Work in Process Inventory 22,300
Finished Goods Inventory 26,100
Accounts Receivable 27,100
Cash 35,600
Total Current Assets 157,100
Explanation:
Raw Materials Consumed in Production Calculation
Open a Raw Materials T - Account as follows :
Debit :
Opening Balance $51,100
Purchases $97,500
Totals $148,600
Credit :
Closing Balance $46,000
Requisitioned for Production (Balancing figure) $102,600
Totals $148,600
The supplies account has a balance of $1,200 at the beginning of the year and was debited during the year for $2,300, representing the total of supplies purchased during the year. If $650 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is Group of answer choices
Answers
Answer:
Supplies expense to be recorded = $2,850
Explanation:
Beginning account balance = $1,200
debit during the year = $2,300. This means that a transaction of $2,300 was used for supply purchase during the year
balance on hand = $650
difference between beginning and ending inventory = 1200 - 650 = $550
This means that an expense of $550 was carried out during the year.
Therefore, total expense during year = 550 + purchase expense
= 550 + 2300 = $2,580
Alternatively, the supply expense reported can be calculated with the formula:
Supplies expense = beginning inventory + supplies purchased - ending inventory
Supplies expense = 1200 + 2300 - 650 = $2,850
Based on the supplies opening balance, the supplies purchased and other details, the supplies expense must be $2,850
The supplies expense can be calculated as:
= Beginning balance + Supplies purchased - Closing balance
Solving would give:
= 1,200 + 2,300 - 650
= $2,850
In conclusion, the supplies expense in the income statement will be $2,850
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Rachelle transfers property with a tax basis of $800 and a fair market value of $960 to a corporation in exchange for stock with a fair market value of $765 and $42 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $153 on the property transferred. What is the corporation's tax basis in the property received in the exchange
Answers
Answer:
$842
Explanation:
The computation of corporation's tax basis in the property received in the exchange is shown below:-
corporation's tax basis = Fair market value + Transaction
= $800 + $42
= $842
Therefore, The corporation's tax basis should be equivalent to the shareholder's tax basis as the property is transferred for $800 (a substituted basis) and add gain recognized of $42. And If the corporation sells the property for $960, the recognized gain would be $52.
The Kirkland Department of Delta Company began the month of December with beginning work in process of "4,000" units that are "100%" complete as to materials and "30%" complete as to conversion costs. Units transferred out are "10,000" units. Ending work in process contains "5,000" units that are "100%" complete as to materials and "60%" complete as to conversion costs.
InstructionsCompute the equivalent units of production for materials and conversion costs for the month of December.
Answers
Answer:
Instructions are below.
Explanation:
Giving the following information:
December with beginning work in process of 4,000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are "10,000" units.
Ending work in process contains 5,000 units that are 100% complete as to materials and "60%" complete as to conversion costs.
To calculate the equivalent units, we need to use the following structure:
Beginning work in process = beginning inventory* %incompleted
Units started and completed = units completed - beginning WIP
Ending work in process completed= Ending WIP* %completed
=Number of equivalent units
Direct material:
Beginning work in process = 0
Units started and completed = 10,000
Ending work in process completed= 5,000
= 15,000 units
Conversion costs:
Beginning work in process = 4,000*0.7= 2,800
Units started and completed = 10,000 - 2,800= 7,800
Ending work in process completed= 5,000*0.6= 3,000
= 13,600 units
The equivalent units of production for materials and conversion costs is 15,000 units and 13,600 units
Calculation of equivalent units:For Direct material:
Beginning work in process = 0
Units started and completed = 10,000
Ending work in process completed= 5,000
Equivalent units = 15,000 units
For Conversion costs:
Beginning work in process = 4,000*0.7= 2,800
Units started and completed = 10,000 - 2,800= 7,800
Ending work in process completed= 5,000*0.6= 3,000
Equivalent units = 13,600 units
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An uninterruptible power system used in a small production facility at Acme Manufacturing has a basis of $56,000 and is expected to have $5750 salvage value after 125,000 hours of use. Calculate the depreciation rate per hour of use and the book value after 77,000 hours of operation.
Answers
Answer:
The depreciation rate per hour is 0.402
The Book value is $25,046
Explanation:
In order to calculate the depreciation rate per hour of use we would have to calculate the following:
depreciation rate per hour=(basis- salvage value)/hours of use
depreciation rate per hour=($56,000-$5750)/125,000
depreciation rate per hour=0.402
To calculate the book value we would have to make the following calculation:
Book value=basis-(depreciation rate per hour*77,000 hours of operation)
Book value=$56,000-(0.402*77,000)
Book value=$25,046
At the end of 2018, we have a credit balance of $10,000 in allowance for doubtful accounts before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable using the aging of receivables method, the company's management estimates that uncollectible accounts will be $30,000. What will be the amount of bad debts expense reported on the income statement
Answers
Answer:
$20,000
Explanation:
From the question above
At the end of 2018, there was a credit balance of $10,000 in allowance for the doubtful accounts.
After proper screening of the account receivable through the use of a method known as 'aging of receivables method' the management of the company estimated that the uncollectible accounts will be $30,000
Therefore, the amount of bad debts expense recorded on the income statement can be calculated as follows
= $30,000-$10,000
= $20,000
Hence the amount of bad debts expense that was recorded on the income statement is $20,000
QUESTION 12 For a strategic alliance, firms should seek partners that are: a. known for being opportunistic. b. radically different when it comes to strategic goals. c. willing to share costs and risks of new-product development. d. different in terms of vision and agendas. e. similar when it comes to capabilities.
Answers
Answer:
c. willing to share costs and risks of new-product development.
Explanation:
A strategic alliance is when two companies come together to carry out a project that benefits both companies while both companies still retain their independence.
If strategic alliance is carried out with a company that is opportunistic, the company might take advantage of the other company or take certain actions that would not benefit the other company.
strategic alliance has to be mutually beneficial to both companies, so, strategic goals and visions have to align.
Capabilities don't have to be the same for a strategic alliance.
I hope my answer helps you
The systematic process of selecting, supporting, and managing a firm's collection of projects is called: Profile management. Heavyweight project management. Project portfolio management. Matrix project organization.
Answers
Answer:
Project portfolio management
Explanation:
Project portfolio management refers to managing the portfolios of the project i,e used by the project managers and the management who manages the project.
This is useful to analyze the risk and return in each project
Moreover, it is a process of choosing, supporting and managing the collection of firm projects in a systematic way
Hence, the third option is correct
Problem 5-40 Loan Payments (LG5-9) You wish to buy a $10,800 dining room set. The furniture store offers you a 3-year loan with an APR of 10.8 percent. What are the monthly payments
Answers
Answer:
Required monthly payments = $352.556
Explanation:
Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.
The monthly installment is computed as follows:
Monthly installment= Loan amount/annuity factor
Loan amount; 10,800
Annuity factor = (1 - (1+r)^(-n))/r
r -monthly rate of interest, n- number of months
r- 10.8%/12 = 0.9 % = 0.009, n = 3 × 12 = 36
Annuity factor = ( 1- (1+0.009)^(-36))/0.009 =30.6334
Monthly installment = Loan amount /annuity factor
= 10,800/30.6334= 352.556
Required monthly payments = $352.556
Consider two ways of commuting in a crowded city: taking public transportation, such as subway and buses, or driving your own car.
A person who chooses to take public transportation in a crowded city imposes a NEGATIVE OR POSITIVE externality on drivers. A policy implication of this result is a SUBSIDY FOR OR TAX ON those who take public transportation.
Persons who choose to drive their own cars to get around in a crowded city impose a NEGATIVE OR POSITIVE externality on other drivers. A policy implication of this result is a TAX ON OR SUBSIDY FOR those who drive their own cars.
Answers
Answer: positive; subsidy for; negative; tax on.
Explanation:
A positive externality occurs when the activities of an economic agent is of benefit to another third party that is not part of the activity or transaction while negative externality is the cost an individual bears due to the market activities of another individual or firm. It should be noted that the third parties didn't plan to incur the costs or benefits mentioned above.
Therefore, an individual who chooses to take public transportation in a crowded city imposes a positive externality on drivers. We are told that the city is overcrowded, therefore using public transportation means there will be lesser vehicles on the road and this will be beneficial to the drivers and there may be subsidy for those who take public transportation.
The people who choose to drive their own cars to get around in a crowded city impose a negative externality because there will be traffic congestion and health hazards and a tax can be imposed on them.
Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $18,000 of cash and land with an FMV of $63,000. Her basis in the land is $28,000. Andrew contributes equipment with an FMV of $20,000 and a building with an FMV of $41,000. His basis in the equipment is $16,000, and his basis in the building is $28,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew
Answers
Answer:
$0
Explanation:
Given that
Sue contributed amount = $18,000
FMV of land = $63,000
Basis in land = $28,000
Andrew contributed amount = $20,000
FMV of Building = $41,000
Basis in equipment = $16,000
Basis in building = $28,000
Based on the above information, the gain that would be recognized is $0 as Partnerships recognize no gain on receiving contributed valued property. At the disposal of the asset, the constructed-in benefit or constructed-in loss will be revealed. For this, the partnership basis property i.e being acquired should be based on a carryover basis.
Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $42,600 and $88,200, respectively, at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $77,700. What amount of loss on realization should be allocated to Alpha
Answers
Answer:
The amount of loss to Alpha is $17700.
Explanation:
Given income sharing ratio = 1:2
The capital balance of Alpha = $42600
The capital balance of Beta = $88200
Total capital balance (Alpha + Beta) [tex]= $42600 + $88200 = $130800[/tex]
The cash balance available = $77700
Loss = 130800 – 77700 = $ 53100
The share of loss allocated to Alpha:
[tex]= 53100 \times \frac{1}{3} \\= $17700[/tex]
Therefore, the amount of loss to Alpha is $17700.
The independent cases are listed below that includes all items relevant to operating activities: Case A Case B Case C Sales revenue $ 65,000 $ 55,000 $ 96,000 Cost of goods sold 35,000 26,000 65,000 Depreciation expense 10,000 2,000 26,000 Salaries and wages expense 5,000 13,000 8,000 Net income (loss) 15,000 14,000 (3,000) Accounts receivable increase (decrease) (1,000) 4,000 3,000 Inventory increase (decrease) 2,000 0 (3,000) Accounts payable increase (decrease) 0 2,500 (1,000) Salaries and wages payable increase (decrease) 1,500 (2,000) 1,000 Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Case A Case B Case C Cash Collected from Customers Cash Payments to Suppliers Cash Payments for Salaries and Wages Net Cash Provided by Operating Activities $ 0 $ 0 $ 0
Answers
Answer:
Case A Case B Case C
Cash Collected from Customers $66,000 $51,000 $93,000
Cash Payments to Suppliers ($37,000) ($23,500) ($63,000)
Cash Payments for Salaries and Wages ($3,500) ($15,000) ($7,000)
Net Cash Provided by Operating Activities $25,500 $12,500 $23,000
Explanation:
Case A Case B Case C
Sales revenue 65,000 55,000 96,000
Cost of goods sold 35,000 26,000 65,000
Depreciation expense 10,000 2,000 26,000
Salaries and wages expense 5,000 13,000 8,000
Net income (loss) 15,000 14,000 (3,000)
Accounts receivable increase (decrease) (1,000) 4,000 3,000
Inventory increase (decrease) 2,000 0 (3,000)
Accounts payable increase (decrease) 0 2,500 (1,000)
Salaries and wages payable increase
(decrease) 1,500 (2,000) 1,000
Cash Collected from Customers = Sales revenue - Accounts receivable increase (decrease)
Cash Payments to Suppliers = Cost of goods sold + Inventory increase (decrease) + Accounts payable increase (decrease)
Cash Payments for Salaries and Wages = Salaries and wages expense - Salaries and wages payable increase
(decrease)
Rational choices: A. are based on a comparison of total benefits and total costs. B. can only be made by those who are economists. C. are made based on expectations of the additional benefits and additional costs involved. D. measure benefits based on the past. E. are always motivated by concern for others.
Answers
Answer:
A) are based on a comparison of total benefits and total costs
The effect is A. more likely if inflation is unanticipated because workers would not seek higher nominal wages. B. more likely if inflation is unanticipated because workers would seek higher nominal wages. C. less likely if inflation is unanticipated because workers would not seek higher nominal wages. D. less likely if inflation is unanticipated because workers would seek higher nominal wages.
Answers
Answer:
more likely if inflation is unanticipated because workers would not seek higher nominal wages.
Explanation:
Here is the full question:
The effect of the sudden unanticipated spurt of inflation:
A. less likely if inflation is unanticipated because workers would not seek higher nominal wages.
B. less likely if inflation is unanticipated because workers would seek higher nominal wages.
C. more likely if inflation is unanticipated because workers would seek higher nominal wages.
D. more likely if inflation is unanticipated because workers would not seek higher nominal wages.
Inflation is a presistent rise in general price level.
Workers compensate for expected inflation by asking for an increase in nominal wages.
Nominal wages = real wages + inflation
If there's an unanticipated rise in inflation, workers would be at a disadvantage because their wages would most likely not reflect this unexpected rise in inflation.
I hope my answer helps you
Answer: A. more likely if inflation is unanticipated because workers would not seek higher nominal wages.
Explanation:
An Unanticipated Spurt in Inflation could lead to rapid Economic growth and this effect is more likely if it was unanticipated because workers would not seek higher nominal wages.
This is because if the workers do not expect prices to rise and hence do not negotiate better wages, the cost of Production for producers will remain the same even though profitability has increased due to the higher prices.
The producers will therefore produce more goods to take advantage of the situation which will further aid Economic growth.