Ada is the maker of a note, on which Bart is secondarily liable. Credit Instruments Company is the current holder of the note. Bart will be obligated to pay the note if a. Ada defaults on the note. b. Credit Instruments breaches a transfer warranty. c. Credit Instruments presents the note for payment. d. Credit Instruments negotiates the note to Delta Collection Agency, a third party.

Answer:

a. Ada defaults on the note.

Explanation:

An agency can be defined as a mutual relationship existing between two parties, wherein a principal authorizes the agent to act as the principal's representative or on his behalf (fiduciary role) in dealing with third parties.

The parties entering into a contractual agreement are obligated to terminate an agency relationship by placing into the agreement a time period specifying the termination. Thus, when that time elapses or expires, the agency between the parties involved ends. Furthermore, the parties involved may specify the particular purpose for which the agency is established. Once that purpose is achieved, the agency is terminated or ends.

This ultimately implies that, the legal entity or secondary liability (trustee or licensee) would be held responsible for the losses, legal claims and damages incurred by its partner in an agency, whether or not the agent's actions were authorized or unauthorized by the principal.

In this scenario, Ada is the maker of a note, on which Bart is secondarily liable. Also, the current holder of the note is Credit Instruments Company.

Since Bart is secondarily liable to Ada, it will be obligated to pay for any of the notes if Ada defaults on the them.

Hence, a trustee is liable for acts or contracts entered into by an agent when he or she gives an agent either actual authority (power of attorney) or apparent authority.

36. Regina Company purchased a Cash register on January 1 for $5,400. This register has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the second-year of its useful life using the double-declining-balance method

Pluto Inc., a leather goods manufacturer, produces and sells a wide range of leather bags, wallets, purses, and belts. It recently opened an outlet in Mexico. However, since Mexico's per capita income is approximately one-third that of the U.S., Lolita's sales have dipped. Moreover, the extent of available financing in the country is limited. With regard to global marketing research, the dip in Lolita's sales can be attributed to which of the following organizational issues?
A. Political conditions
B. Culture
C. Willingness to buy
D. Ability to buy

Stock X and Stock Y have a correlation coefficient of .5. Stock X has an expected return of 10% and a standard deviation of 10%. Stock Y has an expected return of 14% and a standard deviation of 21%. What is the portfolio standard deviation if 60% of your wealth is invested in Stock X and 40% in Stock Y

Consider two firms, Firm X and Firm Y, that have identical assets that generate identical cash flows. Firm Y is an all-equity firm, with 1 million shares outstanding that trade for a price of $24 per share. Firm X has 2 million shares outstanding and $12 million in debt at an interest rate of 5%. What is the stock price for Firm X

Steinberg Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Steinberg expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products is as follows:
Regular Model Deluxe Model Total
Sales $13,500,000 $12,150,000 $25,650,000
Less: Variable costs 9,000,000 7,290,000 16,290,000
Contribution margin $4,500,000 $4,860,000 $9,360,000
Less: Direct fixed costs 1,200,000 960,000 2,160,000
Segment margin $3,300,000 $3,900,000 $7,200,000
Less: Common fixed costs 1,280,000
Operating income $5,920,000
Required:
1. Compute the number of regular models and deluxe models that must be sold to break even.
2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even.

How swag are u 1/10

The options for closing inventory is
A. 10.50
B. 10
C. 10.25

Total cost options are
A. 8,050
B. 8,000
C. 8,200

ayton Inc. reports in its Year 7 annual report, sales of $7,362 million and cost of goods sold of $2,945 million. For next year, you project that sales will grow by 3% and that cost of goods sold percentage will be 1 percentage point higher. Projected cost of goods sold for Year 8 will be:

What are the characteristics of Insurance contract
​

Ewunia Corporation hires nine individuals on January 2, 2020, all of whom qualify for the work opportunity credit. Two of these individuals receive wages of $11,000 during 2020, and each individual works more than 400 hours during the year. The other seven individuals each work 230 hours and receive wages of $6,600 during the year. a. Calculate the amount of Ewunia's work opportunity credit. $fill in the blank 1 b. If Ewunia pays total wages of $235,000 to its employees during the year, how much of this amount can Ewunia deduct, assuming the work opportunity credit is taken

Suppose the Simmons Co's common stock has a beta of 1.37, the risk-free rate is 3.4 percent, and the market risk premium is 8.2 percent. The yield to maturity in the firm’s bonds is 7.6 percent and the debt-equity ratio is .45. What is the RWACC if the tax rate is 34 percent? 14.07% 10.94% 12.60% 10.59% 11.65%

Bramble sells softball equipment. On November 14, they shipped $4300 worth of softball uniforms to Novak Middle School, terms 3/10, n/30. On November 21, they received an order from Douglas High School for $2500 worth of custom printed bats to be produced in December. On November 30, Novak Middle School returned $450 of defective merchandise. Bramble has received no payments from either school as of month end. What amount will be recognized as accounts receivable, net on the balance sheet as of November 30

Gaston Company is considering a capital budgeting project that would require a $2,400,000 investment in equipment with a useful life of five years and no salvage value. The company’s tax rate is 30% and its after-tax cost of capital is 13%. It uses the straight-line depreciation method for financial reporting and tax purposes. The project would provide net operating income each year for five years as follows:

Sales $3,400,000
Variable expenses 1,600,000
Contribution margin 1,800,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs $680,000
Depreciation 660,000
Total fixed expenses 1,340,000
Operating income $460,000


Required:
Compute the project's net present value.

The OECD is concerned about transfer pricing practices because ________. a. transfer pricing can help maximize a company's worldwide tax liability b. companies use transfer prices to manipulate prices and, therefore, taxes c. transfer prices tend to be higher in industrial than developing countries d. governments use transfer prices to manipulate companies' investment strategies

The balance sheet for Monty Consulting reports the following information on July 1, 2022. Long-term liabilities Bonds payable $1,380,000 Less: Discount on bonds payable 55,200 $1,324,800 Monty decides to redeem these bonds at 102 after paying annual interest. Prepare the journal entry to record the redemption on July 1, 2022.

What was the overall response to Cornett’s plan to put his city on a diet, both locally and nationwide? What were some things that occurred as a result of the coverage and his website.

The Tinslow Co. has 125,000 shares of stock outstanding at a market price of $93 a share. The company has just announced a 5-for-3 stock split. How many shares of stock will be outstanding after the split

The following information is available for the year ended December 31: Beginning raw materials inventory $ 3,900 Raw materials purchases 5,400 Ending raw materials inventory 4,400 Office supplies expense 2,400 The amount of raw materials used in production for the year is:

Palepu Company owns and operates a delivery van that originally cost $38,080. Straight-line depreciation on the van has been recorded for three years, with a $2,800 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the third year, at which time Palepu disposes of this van.

a. Compute the net book value of the van on the disposal date.
b. Compute the gain or loss on sale of the van if the disposal proceeds are:

1. A cash amount equal to the van's net book value.

a. $13,000 cash.
b. $10,000 cash

Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is ¥115 = $1. Rinaldo finds out that the rate quoted in New York at 10:00 a.m. (3:00 p.m. London time) is ¥135 = $1. Rinaldo decides to buy yen in New York and sell it in London. Rinaldo is engaging in

Marvin is trying to figure out his cash flow. What is the BEST advice for Marvin to accurately determine his cash flow? OA. Add your liabilities to your assets. OB. Subtract your liabilities from your assets. OC. Add your expenditures to your income. OD. Subtract your expenditures from your income.​

With double-entry accounting, each transaction requires: ___________

a. that at least three accounts are affected.
b. that the total debits equal the total debits.
c. that at least two accounts are affected.
d. that the total debits will equal the total credits.

Using the information below, calculate net income for the period: Sales revenues for the period $ 1,309,000 Operating expenses for the period 244,000 Finished Goods Inventory, January 1 41,000 Finished Goods Inventory, December 31 46,000 Cost of goods manufactured for the period 545,000

Rubin Enterprises had the following sales-related transactions on a recent day:

a. Billed customer $27,500 on account for services already provided.
b. Collected $5,875 in cash for services to be provided in the future.
c. The customer complained about aspects of the services provided in Transaction a. To maintain a good relationship with this customer, Rubin granted an allowance of $1,500 off the list price. The customer had not yet paid for the services.
d. Rubin provided the services for the customer in Transaction b. Additionally, Rubin granted an allowance of $350 because the services were provided after the promised date. Because the customer had already paid, Rubin paid the $350 allowance in cash.

Required:
Prepare the necessary journal entry (or entries) for each of these transactions.

he bylaws of the corporation: A. are adopted as one of the first items of business at the organizational meeting held promptly after incorporation. B. may contain any provision for managing the business not inconsistent with law or the charter. C. may be repealed by the board of directors. D. All of these are true.

Filing Chapter 13 allows you to maintain a sound credit rating because
a. you stand free and clear of debt.
b. your possessions are used to pay your credit obligations.
C. you still fulfill your credit obligations.
d. none of the above.

The transactions of Spade Company appear below. Kacy Spade, owner, invested $16,250 cash in the company in exchange for common stock. The company purchased office supplies for $471 cash. The company purchased $8,986 of office equipment on credit. The company received $1,917 cash as fees for services provided to a customer. The company paid $8,986 cash to settle the payable for the office equipment purchased in transaction c. The company billed a customer $3,445 as fees for services provided. The company paid $515 cash for the monthly rent. The company collected $1,447 cash as partial payment for the account receivable created in transaction f. The company paid a $1,100 cash dividend to the owner (sole shareholder). Required: 1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Fees Earned; and Rent Expense. 2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.

Rick Co. had 35 million shares of $1 par common stock outstanding at January 1, 2021. In October 2021, Rick Co.'s Board of Directors declared and distributed a 1% common stock dividend when the market value of its common stock was $69 per share. In recording this transaction, Rick would:

1. You are evaluating the purchase of HypeToys, Inc. common stock that just paid an annual dividend of $1.80. You expect the dividend to grow at a rate of 12% per year, indefinitely. You estimate that a required rate of return 17.5% will be adequate compensation for this investment. Assuming that your analysis is correct, and the company pays dividends once a year, what is the most that you’re willing to pay for the common stock if you were to purchase it today? Round to the nearest $.01.

Nat is a salesman for a real estate developer. His employer permits him to purchase a lot for $75,000. The employer's adjusted basis for the lot is $45,000, and its normal selling price is $90,000. What is Nat's recognized gain and his basis for the lot