Answer:
stream of revenues within that industry is less volatile than the market.
Explanation:
Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
an industry with less volatilty would have a low beta
higher debt and an industry affected by business cylce would have a higher beta
On February 1, 2020, Sheridan Company purchased a parcel of land as a factory site for $324000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below: Demolition of old building $ 19300 Architect's fees 35700 Legal fees for title investigation and purchase contract 4100 Construction costs 1387000 (Salvaged materials resulting from demolition were sold for $10300.) Sheridan should record the cost of the land and new building, respectively, as $347400 and $1412400. $333000 and $1426800. $333000 and $1422700. $337100 and $1422700.
Answer:
$337100 and $1422700.
Explanation:
According to the scenario, computation of the given data are as follows,
Cost of Land = Purchase of land + Demolition of old building + Legal fees - Salvage material
Cost of Land = $324,000 + $19,300 + $4,100 - $10,300
= $337,100
Now, Cost of Building = Architect's fees + Construction cost
Cost of Building = $35,700 + $1,387,000
= $1,422,700
Societies make choices about goods and services based on the availability of A. land B. workers C. resources D. new technology Please select the best answer from the choices provided ОА OB O c OD
Answer:
c
Explanation:
Resources are means or factors used to produce goods and services that satisfy human wants.
Human wants and that of the society is unlimited but the resources available to satisfy these wants are limited. As a result, economic agents must make decisions based on the availability of resources.
Resources include :
Land are natural resources used to produce goods and services e.g. gold mine
Labor is the effort used by people in the production of goods and services.
Capital includes machinery and man made resources used in production e.g. hammer
An entrepreneur is a person who combines the other factors of production together
Lore Co. changed from the cash basis to the accrual basis of accounting during 2005. The cumulative effect of this change should be reported in Lore's 2005 financial statements as a Group of answer choices Prior period adjustment resulting from the correction of an error. Prior period adjustment resulting from the change in accounting principle. Adjustment to retained earnings for an accounting principle change. Component of income after extraordinary item.
Answer: Prior period adjustment resulting from the correction of an error.
Explanation:
The Cash basis method is not acceptable under both IFRS and U.S. GAAP accounting principles and these are the principles followed by the majority of the world so Lore Co. was using the cash basis in violation of both conventions which means that their accounting records before the change are considered wrong and full of errors.
In changing to the acceptable principles, they are correcting that error and need to adjust prior periods for that error as well.
If a company has two projects of equal value to selected from how would they decide which one to choose for their budget?
Smith Company sells a single product at a selling price of $30 per unit. Variable expenses are $12 per unit and fixed expenses are $115,920. Smith's break-even point is: Multiple Choice 3,864 units 9,660 units 19,320 units 6,440 units
Answer:
6,440 units
Explanation:
Smith's break-even point is: 6,440 units
A company must decide the number of machines it should buy to satisfy its demand. The machine will operate 60 minutes per hour, 8 hours per day, 250 days per year. The company currently has 2 machine type 1, and 1 machine type 2.
Product demand and processing times for the equipment are:
Product Annual Demand PROCESSING TIME
PER UNIT (minutes)
Machine 1 Machine 2
001 12,000 4 6
002 10,000 9 9
003 18,000 5 3
a) The total processing time required by producing Product 1, 2, and 3 using machine type 1?
b) The total processing time required by producing Product 1, 2, and 3 using machine type 2?
c) What is the capacity cushion for machine type 1 and machine type 2?
d) How many machines of each type would be required to handle the demand?
Answer:
A
Explanation:
it's a because the processing time required by product 1,2 and 3 using machine type 1
Black Corporation had a 1/1/17 balance in the Allowance for Doubtful Accounts of $21,000. During 2017, it wrote off $15,120 of accounts and collected $4,410 on accounts previously written off. The balance in Accounts Receivable was $420,000 at 1/1 and $504,000 at 12/31. At 12/31/17, Black estimates that 5% of accounts receivable will prove to be uncollectible. What should Black report as its Allowance for Doubtful Accounts at 12/31/17
Answer:
$25,200
Explanation:
Calculation to determine What should Black report as its Allowance for Doubtful Accounts at 12/31/17
Using this formula
12/31/17 Allowance for Doubtful Accounts=12/31 Accounts Receivable Balance*Estimated Uncollectibles accounts receivable percentage
Let plug in the formula
12/31/17 Allowance for Doubtful Accounts=$504,000*5%
12/31/17 Allowance for Doubtful Accounts=$25,200
Therefore What Black should report as its Allowance for Doubtful Accounts at 12/31/17 is $25,200
In a database table, which field stores the unique identifying piece of data for a record?
Answer:
The answer is letter d. The primary key is the unique identifier throughout a database table. It could be a social security number, license number, or telephone number. This makes a person to be easily identified especially when there's a lot of people with the same name in the database.
Clampett, Incorporated, converted to an S corporation on January 1, 2020. At that time, Clampett, Incorporated, had cash ($40,000), inventory (FMV $60,000, basis $30,000), accounts receivable (FMV $40,000, basis $40,000), and equipment (FMV $60,000, basis $80,000). In 2021, Clampett, Incorporated, sells its entire inventory for $60,000 (basis $30,000). Assume the corporate tax rate is 21 percent. Clampett, Incorporated's taxable income in 2021 would have been $1,000,000 if it had been a C corporation. How much built-in gains tax does Clampett, Incorporated, pay in 2021
Answer:
$2,100
Explanation:
Particulars Fair market value Basis Differences
Inventory $60,000 $30,000 $30,000
Account receivables $40,000 $40,000 $0
Equipment $60,000 $80,000 ($20,000)
Taxable gain $10,000
Tax rate 21%
Built in gains tax $2,100
So therefore, the built-in-gains tax that Clampett (Incorporated) will pay in 2021 is $2,100.
The following T-account is a summary of the Cash account of Tamarisk, Inc.. Cash (Summary Form) Balance, Jan. 1 8,200 Receipts from customers 362,100 Payments for goods 294,200 Dividends on stock investments 6,700 Payments for operating expenses 139,800 Proceeds from sale of equipment 36,300 Interest paid 10,400 Proceeds from issuance of bonds payable 500,400 Taxes paid 8,100 Dividends paid 60,400 Balance, Dec. 31 400,800 What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows?
Answer:
$440,000
Explanation:
What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows?
Cash-flow from Financing activities
Particulars Amount
Proceeds from issuance of bonds payable $500,400
Dividends paid -$60,400
Net cash provided by financing activities $440,000
Other than living with your parents, what is another smart way to keep living
expenses down while in college?
Answer:put money in stocks
Explanation:it might be risky but you can strike gold I made 200 in a day and other people can get more, this is a graet way to make money.
Or you can buy caned food that you can save for longer and eat less
The Bronco Corporation exchanged land for equipment. The land had a book value of $126,000 and a fair value of $162,000. Bronco paid the owner of the equipment $16,000 to complete the exchange which has commercial substance. Required: 1. What is the fair value of the equipment
Answer:
$178,000
Explanation:
When a transaction has commercial substance :
Fair value of Asset = Fair Value of Asset given up + Cash paid
therefore,
Fair value of the equipment = $162,000 + $16,000
= $178,000
thus,
the fair value of the equipment is $178,000
Gain contingencies usually are recognized in a company's income statement when: Multiple Choice The gain is reasonably possible and the amount is reasonably estimable. The gain is certain The amount is reasonably estimable. The gain is probable and the amount is reasonably estimable.]
Answer: The gain is certain
Explanation:
A Gain contingency means that the company stands to make a gain in future if a certain event happens such as the company winning a lawsuit that would result in a good settlement figure for them.
According to U.S. GAAP, gain contingencies are not to be recognized unless it is certain that the gain is coming. If the gain is not certain and is recorded, the income is considered overstated.
Suppose the exchange rate is such that 1 U.S. dollar equals 1 euro in New York and 0.9 euros in Paris. An arbitrageur would sell euros _____ a. in New York and buy U.S. dollars in Paris. b. in both Paris and New York at different prices. c. in New York while buying them in Paris. d. in Paris while buying them in New York. e. at the same price in both cities.
Answer: d. in Paris while buying them in New York.
Explanation:
An arbitrageur aims to make a profit by trading in different markets where prices are different.
To take advantage of this opportunity, the arbitrageur would sell Euros in Paris where they know they will be able to get more U.S. dollars because the dollar is weaker there.
Once they get more dollars in Paris than they would have gotten in New York, they will then take those dollars to new York where they will be able to buy more Euros than they sold because the dollar is now on par with the Euro.
Gain:
In Paris using 1 Euro they were able to buy = 1 / 0.9 = $1.11
In New York they bought back the 1 Euro for $1.
Gain = 1.11 - 1 = $0.11
Too Young, Inc., has a bond outstanding with a coupon rate of 6.7 percent and semiannual payments. The bond currently sells for $948 and matures in 24 years. The par value is $1,000. What is the company's pretax cost of debt
Answer:
4%
Explanation:
The company's pretax cost of debt is 4%
ssued 10,800 shares of common stock at $6.00 per share. Issued 20,400 shares of common stock at $8.20 per share. Reported a net income of $108,000. Paid dividends of $59,000. Purchased 3,100 shares of treasury stock at $10.20 (part of the 20,400 shares issued at $8.20). What is total shareholders' equity at the end of 2021
Answer:
$249,460
Explanation:
Calculation to determine total shareholders' equity at the end of 2021
Issued of stock $64,800
( 10,800 shares *$6.00 per share)
Issued of stock $167,280
(20,400 shares *$8.20 per share)
Net income of $108,000
Less Dividends ( $59,000)
Less Treasury stock ($31,620)
( 3,100 shares $10.20)
2021 Ending total shareholders' equity $249,460
Therefore The total shareholders' equity at the end of 2021 is $249,460
A year ago, an investor bought shares of a mutual fund at $ per share. This year, the fund has paid dividends of per share and had a capital gains distribution of $ per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $. b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $ per share.
Complete Question
1. One year ago, an investor bought 200 shares of a mutual fund at $8.50 per share. Over the past year, the fund has paid dividends of $.90 per share and had a capital gains distribution of $.75 per share.
a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $9.10.
b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $8.75 per share.
Answer:
a. Holding period returns = 26.47%
b. Holding period returns = 27.41%
Explanation:
a) Data and Calculations:
Number of shares bought = 200
Price per share of the mutual fund = $8.50
Dividends per share = $0.90
Capital gains distribution per share = $0.75
Total initial investment cost = $1,700 (200 * $8.50)
Total dividends = $180 (200 * $0.90)
Total capital gains distribution = $150 (200 * $0.75)
Net asset value = $9.10 per share
Total net asset value = $1,820 (200 * $9.10)
Holding period returns:
Dividends $180
Capital gains $150
Price change $120
Total returns = $450
Holding period returns = $450/$1,700 * 100 = 26.47%
Reinvestment of dividends and capital gains distribution:
Initial investment cost = $1,700
Reinvestment cost = 330
Total investment costs = $2,030
Number of additional shares = $330/$8.75 = 38 shares
Total returns = $466 (238 * $9.10) - (200 * $8.50)
Holding period returns in percentage = $466/$1,700 * 100 = 27.41%
Testbank Multiple Choice Question 76 Given the historical cost of product Dominoe is $35, the selling price of product Dominoe is $40, costs to sell product Dominoe are $4, the replacement cost for product Dominoe is $41, and the normal profit margin is 20% of sales price, what is the cost amount that should be used in the lower-of-cost-or-market comparison
Answer: $35
Explanation:
When using the lower-of-cost-or-market comparison method, we value the product at the lower of the market value or the historical cost amount.
The market value here is the replacement cost which is $41.
The historical cost is $35.
The historical cost is lower so the product will be valued at $35.
Oriole Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2021, a customer purchases $3100 of products (cost $1550). Assuming that based on prior experience, estimated returns are 30%. The journal entry to record the actual return of $160 of merchandise includes a
Answer: See explanation
Explanation:
The journal entry to record the actual return of $160 of merchandise includes:
Debit Sales return and allowance $160
Credit Account receivable $160
Debit Returned Inventory $80
Credit Cost of goods sold $80
Note:
Returned inventory was calculated as:
= $160 × (1550/3100)
= $160 × 0.5
= $80
On October 1, 2014, Balkan, Inc. accepted from another corporation a 1-year note receivable in the amount of $15,000, with an interest rate of 6%. On December 31, 2014, Balkan accrued the interest income earned to date. How did this accrual affect Balkan's financial statements
Answer:
Balkan, Inc
The accrual effects on Balkan's financial statements are:
1. Income Statement: The interest income is increased by $225.
2. Balance Sheet: The current assets (interests receivable) are increased by $225.
3. Statement of Cash Flows: The operating cash flow is reduced by $225.
Explanation:
a) Data and Calculations:
Note receivable accepted on October 1, 2014 = $15,000
Interest rate on the note = 6%
Interest accrued on December 31, 2014 = $225 ($15,000 * 6% * 3/12)
Under the indirect method of preparing the Statement of Cash Flows, when a current asset increases, it signifies the use of funds (non-collection of funds).
a pregnant employee who violated several attendance rules due to her physical conditions. She is about to get fire by hr manager of the company.discuss what business ethics issues present on this situation. what can be done?
Answer:
answer is no
Explanation:
You cannot be fired for being pregnant under most circumstances.employers from terminating employees due to pregnancy and pregnancy-related conditions
What should a colleague do if a box that looks like it’s leaking ?
Answer:
It might be something scary, like a health situation you've been ignoring while hoping it.
Explanation:
A zero-coupon bond has a yield to maturity of 5% and a par value of $1,000. If the bond matures in 16 years, it should sell for a price of ________ today. (Hint: use financial calculator to get PV.) $641.11 $458.11 $1,100.11 $789.11
Answer:
$458.11
Explanation:
The computation of the present value is shown below;
As we know that
Present value = Future value ÷ (1 + rate of interest)^number of years
= $1,000 ÷ (1 + 0.05)^16
= $1,000 ÷ 1.05^16
= $458.11
Hence, the bond should be sell at a price of today is $458.11
Therefore the second option is correct
The same would be considered and relevant
Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person's status as employed, unemployed, "not in the labor force" (if not in the civilian labor force but still part of the adult population), or "not in the adult population" if not in the civilian adult population.
a. Van is a 22-year-old professional tennis player. When he's not competing, he works as a coach at a local tennis club.
b. Amy is a 42-year-old autoworker who was just laid off by her employer. She is trying to find any kind of job to help make ends meet.
c. Carlos is a 42-year-old accountant who has been out of work for almost a year. He became so discouraged that he gave up on his job search a couple of months ago.
d. Janet is a 26-year-old who lost her job as a copy editor for a local newspaper. She has spent the past few weeks out of work and interviewing for other editing jobs. She is thinking about going back to grad school if her job search doesn't succeed after a few more weeks.
Answer:
employed
unemployed
not in the labour force
unemployed
Explanation:
The labour force consists of those who are between the ages of 18 - 60 who are either employed or unemployed but are seeking employment
The labour force does not include a discouraged worker
A discouraged worker is a worker that after searching for a job for a long period and does not find a job gets discouraged and stops seeking employment
An employed person is person with a job while an unemployed person does not have a job
Exercise 14-27 (Algorithmic) (LO. 3) On May 9, 2020, Glenna purchases 500 shares of Ignaz Company stock for $14,400. On June 30, 2020, she writes a call option on the stock, giving the grantee the right to buy the stock for $18,000 during the following 12-month period. Glenna receives a call premium of $144 for writing the call. The call is exercised by the grantee on December 15, 2020. a. What is the amount and character of Glenna's gain or loss
Answer: uh huh, this my sh
All the girls stomp your feet like this
A few times I've been around that track
So it's not just gonna happen like that
'Cause I ain't no hollaback girl
I ain't no hollaback girl
A few times I've been around that track
So it's not just gonna happen like that
'Cause I ain't no hollaback girl
I ain't no hollaback girl
Ooh, ooh, this my sh, this my sh
Ooh, ooh, this my sh, this my sh
Ooh, ooh, this my sh, this my sh
Ooh, ooh, this my sh, this my sh
I heard that you were talking sh
And you didn't think that I would hear it
People hear you talking like that
Getting everybody fired up
So I'm ready to attack, gonna lead the pack
Gonna get a touchdown, gonna take you out
That's right, put your pom-poms downs
Getting everybody fired up
A few times I've been around that track
So it's not just gonna happen like that
'Cause I ain't no hollaback girl
I ain't no hollaback girl
A few times I've been around that track
So it's not just gonna happen like that
'Cause I ain't no hollaback girl
I ain't no hollaback girl
Ooh, ooh, this my sh, this my sh
Ooh, ooh, this my sh, this my sh
Ooh, ooh, this my sh, this my sh
Ooh, ooh, this my sh, this my sh
So that's right dude, meet me at the bleachers
No principals, no student-teachers
Both of us want to be the winner, but there can only be one
So I'm gonna fight, gonna give it my all
Gonna make you fall, gonna sock it to you
That's right I'm the last one standing, another one bites the dust
Few times I've been around that track
So it's not just gonna happen like that
'Cause I ain't no hollaback girl
I ain't no hollaback girl
A few times I've been around that track
So it's not just gonna happen like that
'Cause I ain't no hollaback girl
I ain't no hollaback girl
Ooh, ooh, this my sh, this my sh
Ooh, ooh, this my sh, this my sh
Ooh, ooh, this my sh, this my sh
Ooh, ooh, this my sh, this my sh
Let me hear you say, this sh is bananas
B-A-N-A-N-A-S
This sh is bananas
B-A-N-A-N-A-S
Again, the sh is bananas
B-A-N-A-N-A-S
This sh is bananas
B-A-N-A-N-A-S
A few times I've been around that track
So it's not just gonna happen like that
'Cause I ain't no hollaback girl
I ain't no hollaback girl
A few times I've been around that track
So it's not just gonna happen like that
'Cause I ain't no hollaback girl
I ain't no hollaback girl
Ooh, ooh, this my sh, this my sh
Ooh, ooh, this my sh, this my sh
Ooh, ooh, this my sh, this my sh
Ooh, ooh, this my sh, this my sh
Teal Mountain Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $780,000 cash for Old Master. At the time, Old Masterâs balance sheet reported assets of $630,000 and liabilities of $190,000 (thus ownersâ equity was $440,000). The fair value of Old Masterâs assets is estimated to be $810,000. Included in the assets is the Old Master trade name with a fair value of $6,000 and a copyright on some instructional books with a fair value of $19,200. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years.
Required:
a. Prepare the journal entry to record amortization expense for 2020.
b. Prepare the intangible assets section of Teal Mountain Golf Inc. at December 31, 2020.
Answer:
Teal Mountain Golf Inc.
a. Journal Entry:
December 31, 2020:
Debit Amortization Expense $17,680
Credit Accumulated Amortization $17,680
To record the amortization expense for the year.
b. Intangible Assets Section of Teal Mountain Golf Inc. as at December 31, 2020:
Goodwill $160,000
less acc. amortization 16,000 $144,000
Trade Name 6,000
less acc. amortization 1,200 4,800
Copyright 19,200
less acc. amortization 480 18,720
Total net intangible assets $167,520
Explanation:
a) Data and Calculations:
Amount paid for Old Master Golf Company = $780,000
Fair value of old master's assets = $810,000
Less liabilities = (190,000) (620,000)
Purchased Goodwill = $160,000
Intangible assets: Amortization Period Amortization Expense for 2020
Goodwill = $160,000 10 years $16,000 ($160,000/10)
Trade name $6,000 5 years 1,200 ($6,000/5)
Copyright $19,200 40 years 480 ($19,200/40)
Total amortization expense for 2020 = $17,680
indirect materials are those used that enter into and become a major part of the finished product true or false
Inventory records for Marvin Company revealed the following: Date Transaction Number of Units Unit Cost Mar. 1 Beginning inventory 900 $ 7.26 Mar. 10 Purchase 520 7.76 Mar. 16 Purchase 452 8.36 Mar. 23 Purchase 510 9.06 Marvin sold 1,760 units of inventory during the month. Ending inventory assuming FIFO would be: (Do not round your intermediate calculations. Round your answer to the nearest dollar amount.)
Answer:
Ending inventory cost= $5,556.92
Explanation:
Giving the following information:
Mar. 1 Beginning inventory 900 $ 7.26
Mar. 10 Purchase 520 7.76
Mar. 16 Purchase 452 8.36
Mar. 23 Purchase 510 9.06
Units sold= 1,760
Under the FIFO (first-in, first-out) method, the ending inventory is calculated using the costs of the last units incorporated into inventory:
Units in ending invnetory= 2,382 - 1760= 622
Ending inventory cost= 510*9.06 + 112*8.36
Ending inventory cost= $5,556.92
If you go to the movies instead of going out to eat, what is the opportunity cost?
Answer:
going out to eat,
Explanation:
In this scenario, the opportunity cost would be going out to eat, which is what you are giving up doing. Opportunity cost is just that, whatever you give up in order to accept another opportunity between two or more choices. In this scenario, the two choices were going to the movies or going out to eat, since you chose to go to the movies your opportunity cost was going out to eat. If you would have chosen to go out to eat, then your opportunity cost would have instead been going to the movies since you gave that up.
The net income reported on the income statement for the current year was $245,000. Depreciation was $40,000. Account receivable and inventories decreased by $12,000 and $35,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $1,000 and $8,000. How much cash was provided by operating activities
Answer:
$339,000
Explanation:
Computation of operating activity as is as seen below;
= Net income + Depreciation + Accounts receivable + Inventories decrease - Prepaid expenses + Accounts payable increase
= $245,000 + $40,000 + $12,000 + $35,000 - $1,000 + $8,000
= $339,000
Therefore, the sum of $339,000 was provided as cash for operating activities.