Answer: 0.90 or 90%
Explanation:
The risky portfolio gives a return of 16% and the T-bill gives a 6% return.
Assume that proportion y is going into the risky portfolio and x is going into the T-bill.
The expected return for the overall portfolio = 15%
Use simultaneous equation:
x + y = 1
0.16y + 0.06x = 0.15
y = 1 - x
0.16 (1 - x) + 0.06x = 0.15
0.16 - 0.16x + 0.06x = 0.15
-0.1x = 0.15 - 0.16
x = -0.01/0.1
x = 10%
y = 1 - x
= 1 - 10%
= 90%
= 0.90
For each of the following scenarios, determine the effect on aggregate supply. a. There is an unexpected decrease in oil prices. This causes: multiple choice 1 a decrease in aggregate supply, shifting the aggregate supply curve to the left. an increase in aggregate supply, shifting the aggregate supply curve to the right. a movement along the aggregate supply curve to the right, indicating an increase in the quantity of real GDP supplied. a movement along the aggregate supply curve to the left, indicating a decrease in the quantity of real GDP supplied. b. The government increases the amount that all producers are required to contribute to health insurance coverage. This causes: multiple choice 2 a movement along the aggregate supply curve to the right, indicating an increase in the quantity of real GDP supplied. a decrease in aggregate supply, shifting the aggregate supply curve to the left. a movement along the aggregate supply curve to the left, indicating a decrease in the quantity of real GDP supplied. an increase in aggregate supply, shifting the aggregate supply curve to the right.
Answer:
a. an increase in aggregate supply, shifting the aggregate supply curve to the right.
b. a decrease in aggregate supply, shifting the aggregate supply curve to the left.
Explanation:
If there is a decrease in oil price, it would mean that producers are able to source oil at a cheaper rate. Oil is a major contributor to world economy whether indirectly or directly and if it is cheaper to source, production would increase as it would be cheaper to do so. Aggregate supply would therefore increase and the curve will be shifted to the right.
If the government increases the amount that all producers should contribute to health insurance, it would mean that labor is now more expensive. Labor is a major input in production so increasing its cost would make production more expensive. Producers would therefore hire less people and produce less to maintain profitability. Aggregate supply will therefore decrease and shift left.
Suppose Jean-Luc earns ten dollars for time spent in the labor market or can produce a meal worth five dollars for an hour of cooking. On the other hand, suppose Beverly earns fifteen dollars for time spent in the labor market or can produce a meal also worth fifteen dollars for an hour of cooking. This implies that a) Jean-Luc is not as good (not as efficient) as Beverly in both activities. b) Beverly has absolute advantage in both activities. c) the opportunity cost of a home-cooked meal is lower when Beverly produces it than when Jean-Luc does. d) all of the above are correct.
Answer:
b) Beverly has absolute advantage in both activities.
Explanation:
Absolute advantage is defined as the ability of an entity to produce more output given the same resources as other entities.
It shows superior production capacity of one entity over another.
In the given scenario Jean-Luc earns ten dollars for time spent in the labor market or can produce a meal worth five dollars for an hour of cooking. On the other hand, suppose Beverly earns fifteen dollars for time spent in the labor market or can produce a meal also worth fifteen dollars for an hour of cooking.
For both time spent in the labour market and in home cooking Beverly outperforms Jean-Luc so she has absolute advantage in bother activities.
Discount Mart borrows $400,000 on July 1 with a short-term loan that has an annual interest rate of 6% payable on the first day of each subsequent quarter. What will Discount Mart need to accrue on September 30, assuming that no accrual had been made since the last interest payment? Select one: A. $6,000; Decrease liabilities, decrease cash B. $4,000; Increase liabilities, increase expenses C. $6,000; Increase expenses, increase liabilities D. $4,000; Increase expenses, decrease cash
Answer:
C. $6,000; Increase expenses, increase liabilities
Explanation:
The computation is shown below:
= Borrowed amount × rate of interest × given months ÷ Total months
= $400,000 × 6% × 3 months ÷ 12 months
= $6,000
So this $6,000 represent an increase in liabilities and increase in expenses
hence, the correct option is c.
Presented below are certain account balances of Martinez Products Co.
Rent revenue $6,610 Sales discounts $7,930
Interest expense 13,420 Selling expenses 99,440
Beginning retained earnings114,500 Sales revenue 410,000
Ending retained earnings 134,260 Income tax expense 28,935
Dividend revenue 71,490 Cost of goods sold 179,854
Sales returns and allowances 12,560 Administrative expenses 75,280
From the foregoing, compute the following: (a) total net revenue, (b) net income, (c) dividends declared, and (d) income attributable to controlling stockholders, if Martinez has allocation to noncontrolling interest of $19,240.
(a) Total net revenue $
1.Presented below are certain account balances of
(b) Net income $
1.Presented below are certain account balances of
(c) Dividends declared $
1.Presented below are certain account balances of
(d) Income attributable to controlling stockholders $
1.Presented below are certain account balances of
Answer:
a. Total net revenue:
= Sales revenue - Sales discounts - Sales returns + Rent revenue + Dividend revenue
= 410,000 - 7,930 - 12,560 + 6,610 + 71,490
= $467,610
b. Net income:
= Total net revenue - Cost of goods sold - Interest expense - selling expenses - income tax expense - administrative expenses
= 467,610 - 179,854 - 13,420 - 99,440 - 28,935 - 75,280
= $70,681
c. Dividends declared:
= Beginning Retained earnings + Net income - Ending Retained earnings
= 114,500 + 70,681 - 134,260
= $50,921
d. Income attributable to controlling shareholders:
= Net income - non-controlling interest:
= 70,681 - 19,240
= $51,441
Identify the reasons why the quantity demanded of a product increases as the price of that product decreases. a. as the price declines, the real income of the consumer increases b. as the price of product A declines, it makes it more attractive than product B c. as the price declines, the consumer will always demand more on each successive price reduction d. a and b e. a and c
Answer:
D) A and B
Explanation:
a. as the price declines, the real income of the consumer increases
b. as the price of product A declines, it makes it more attractive than product B
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Bonita Corporation has the following cost records for June 2020. Indirect factory labor $5,540 Factory utilities $420 Direct materials used 22,490 Depreciation, factory equipment 1,760 Work in process, 6/1/20 3,340 Direct labor 41,640 Work in process, 6/30/20 4,470 Maintenance, factory equipment 1,890 Finished goods, 6/1/20 5,620 Indirect materials 2,530 Finished goods, 6/30/20 8,410 Factory manager’s salary 3,300 Prepare a cost of goods manufactured schedule for June 2020. BONITA CORPORATION Cost of Goods Manufactured Schedule
Answer:
See below
Explanation:
Given the above information, to calculate the cost of manufactured goods, we need to use the formula below;
Cost of goods manufactured = Beginning work in progress + direct materials of the period + direct labor + manufactured overhead - ending work in progress
Beginning work in process = $3,340
Direct materials = Beginning inventory + Purchase - ending inventory
= $22,490
Direct labor = $41,640
Manufactured overhead = (Indirect factory labor + Factory utilities + depreciation, factory equipment + Maintenance , factory equipment + indirect materials) = $5,540 + $420 + $1,760 + $1,890 + $2,530 = $12,140
Ending work in process = $4,470
Therefore,
Cost of goods manufactured = $3,340 + $22,490 + $41,640 + $12,140 - $4,470
Cost of goods manufactured = $75,140
Metropolitan Water Utilities purchases surface water from Elephant Butte Irrigation District at a cost of $100,000 per month in the months of February through September. Instead of paying monthly, the utility makes a single payment of $800,000 at the end of each calendar year for the water it used. The delayed payment essentially rep- resents a subsidy by Elephant Butte Irrigation Dis- trict to the water utility. At an interest rate of 0.25% per month, what is the amount of the subsidy
Answer:
The amount of the subsidy is $6,000.
Explanation:
Since the payment is made at the end of each calendar year and the months of usage are the months of February through September, this implies the payment was due at the end of September but dalayed for 3 months from the end of September to the end of December.
The amount of subsidy can therefore be calculated as follows:
Subsidy amount = Total utility bill * Interest rate per month * Number of months the payment is delayed = $800,000 * 0.25% * 3 = $6,000
Therefore, the amount of the subsidy is $6,000.
Aflak Corporation, an Omani firm, is currently planning goods market in India. Aflak Corporation will most likely discover that_____ beliefs and values are more open to change in India. Select one:
a. core
b. traditional
c. primary
d. secondary
The correct answer is B) traditional.
Aflak Corporation, an Omani firm, is currently planning goods market in India. Aflak Corporation will most likely discover that traditional beliefs and values are more open to change in India.
When a multinational company is planning on initiating operations in another country, it has to be very sensible of the traditional values of that country. The company is getting into a new market and people could have different belief systems, different culture, traditions, and customs, that need to be carefully assessed by the multinational company if they are about to be successful in the new country.
This is the case of India, which has always have very strict traditional values, although younger generations are relaxing those values in recent years.
While Charles and Esther Kveragas were in a rented motel room at the Scottish Inns, Inc., in Knoxville, Tennessee, three intruders kicked open the door, shot Charles, and injured Esther. The intruders also took $3,000 belonging to the Kveragases. The Kveragases brought an action against the motel owners, claiming that the owners had been negligent in failing to provide adequately for the safety of the motel s guests. At trial, the evidence showed that the door had a hollow core and that it fit poorly into the door frame. There was no deadbolt lock on the door, although such locks were easily available and commonly used in motels. The only lock on the door was one fitted into the door handle, which was described as a grade three lock, although a security chain was attached to the door. The Kveragases had both locked and chained the door, but still, a single kick on the part of the intruders was all that was necessary to open it. Evidence at trial also indicated that a deadbolt lock would have withstood the force that was applied to the door.
Required:
Did the motel owners have a duty to protect their guests from criminal acts on the motel premises, and if so, did the owners breach that duty of care by failing to provide more secure locks on the doors of the motel rooms?
Answer:
yes they had a duty of protection to guests and they breached this duty
Explanation:
Did this motel have the duty to protect the Kveragas from this kind of activity?
The answer is yes under the tort law. This motel has a duty of care to safeguard the life, security and properties of others. This is a law obligation and the motel has to take necessary actions to follow through.
The kveragas were occupants of this motel, during ther stay here, this question has made us to understand that they were attacked by intruders and they also lost their properties in this attack. The motel did not fulfill its duty of care to the kveragas because the room they rented was not properly secured. The door did not have proper lock. An Insufficient and bad lock system is what gave this criminals entry and brought the occupants to harm.
Therefore it is evident that the motel owners breached there duty of care by not having a secure lock system.
In 2018, U.S. government spending was $3.90 trillion, tax revenue was $4.50 trillion, GDP was $14.02 trillion, and total consumer spending was $10.75 trillion. If the economy has no exports or imports, what was the national savings in 2018? How much was public savings? How much was private savings?
Answer: See explanation
Explanation:
Government spending = $3.90 trillion
Tax revenue = $4.50 trillion
GDP = $14.02 trillion
Consumer spending = $10.75 trillion.
National savings will be:
= GDP - Consumer spending - Government expenditure
= $14.02 - $10.75 - $3.90
= -$0.63 trillion
Public savings will be:
= Tax revenue - Government spending
= $4.50 trillion - $3.90 trillion
= $0.60 trillion
Private savings will be:
= GDP - Consumer spending - Tax revenue
= $14.02 - $10.75 - $4.50
= -$1.23 trillion
A transfer payment is Group of answer choices a payment that is automatically transferred from your bank account to pay a bill or some other obligation. a payment for moving expenses a worker receives when he or she is transferred by an employer to a new location. the benefit that a person receives from an expenditure by government minus the taxes that were collected by government to fund that expenditure. a form of government expense that is not made in exchange for a currently produced good or service.
Answer: a form of government expense that is not made in exchange for a currently produced good or service.
Explanation:
Transfer payment are the goods or services that are supplied to the residents of a country. They're the form of government expense that is given to people in the society and such payments are not made due to the exchange of goods or services.
Examples of transfer payments include unemployment benefits, Social Security, etc. The reason behind transfer payments is to help in the redistribution of income and to help the less privileged in the society.
QS 7-12 Note receivable honored LO P4 On August 2, Jun Co. receives a $7,100, 90-day, 12.0% note from customer Ryan Albany as payment on his $7,100 account receivable. Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year. (Do not round intermediate calculations. Round your answers to nearest whole dollar value. Use 360 days a year.)
Answer: See explanation
Explanation:
Firstly, the interest revenue will be calculated as:
= 7,100 × 12% × 90/360
= 7100 × 0.12 × 0.25
= $213
Therefore, Jun's journal entry assuming the note is honored by the customer on October 31 will be:
Debit: Cash = $7313
Credit: Notes receivable = $7100
Credit: Interest revenue = $213.
Coastal Bank uses activity-based costing to determine the cost of servicing customers. There are three activity pools: teller transaction processing ($2.80 per teller transaction), check processing ($0.25 per canceled check), and ATM transaction processing ($0.20 per ATM transaction). Jacki Marshall had 4 teller transactions, 12 canceled checks, and 9 ATM transactions during the month. What is the total monthly activity-based cost for Jacki Marshall during the month?a.$16.00b.$116.80c.$43.00d.$14.38
Answer:Allocated MOH= $16
Explanation:
Giving the following information:
teller transaction processing ($2.80 per teller transaction)
check processing ($0.25 per canceled check)
ATM transaction processing ($0.20 per ATM transaction).
To allocate overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2.8*4 + 0.25*12 + 0.2*9
Allocated MOH= $16
IF IT'S RITE I WILL REWARD BRAINLIEST. Someone who works in quality assurance would spend their days meeting with customers and convincing them to buy the company’s products.
A.
True
B.
False
Answer: True
Explanation:
Quality assurance is assuring the customer that the product will work and that they will even offer a warranty if it some how breaks for free.
Answer:
True
Explanation:
Presented below is information for Blossom Co. for the month of January 2022. Cost of goods sold $200,750 Rent expense $32,000 Freight-out 6,000 Sales discounts 8,000 Insurance expense 12,000 Sales returns and allowances 17,000 Salaries and wages expense 60,000 Sales revenue 390,000 Income tax expense 3,150 Other comprehensive income (net of $400 tax) 2,000Prepare a comprehensive income statement.BLOSSOM CO. Comprehensive Income Statement .
Answer:
Blossom Co.
Comprehensive Income Statement for the month ended January 2022.
Sales revenue 390,000
Less Sales returns and allowances (17,000)
Net Sales Revenue 373,000
Less Cost of goods sold (200,750)
Gross Profit 172,250
Less Expenses
Rent expense 32,000
Freight-out 6,000
Sales discounts 8,000
Insurance expense 12,000
Salaries and wages expense 60,000
Income tax expense 3,150 (121,150)
Net Profit for the Year 51,100
Other comprehensive income 2,000
Total Comprehensive Income 53,100
Explanation:
The Comprehensive Income Statement shows the Total Profit (including other comprehensive Income) resulting from the trading period.
Which of the following techniques will help the writer of an advertisement
inspire desire for a product?
A. Emphasizing benefits
B. Using loud sounds
C. Asking the audience to do something
D. Matching the target market's language
Answer:
a
Explanation:
The techniques which will help the writer of an advertisement to inspire desire for a product is emphasizing benefits. Thus, option A is correct.
What is advertisement?Advertising is the practice and techniques employed to bring attention to a product or service. Advertising aims to put a product or service in the spotlight in hopes of drawing it attention from consumers.
An advertisement, otherwise known as an advert or ad, is generally considered a public communication that promotes a product, service, brand or event.
The goal of the writer is to attract new clients to towards his products. The strategy of stressing benefits will assist the writer of an advertising in inspiring demand for a product. Therefore, it can be concluded that option A is correct.
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Ivanhoe Corporation was organized on January 1, 2020. It is authorized to issue 9,500 shares of 8%, $100 par value preferred stock, and 516,800 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.
Jan. 10 Issued 80,020 shares of common stock for cash at $7 per share.
Mar. 1 Issued 5,750 shares of preferred stock for cash at $111 per share.
Apr. 1 Issued 24,660 shares of common stock for land. The asking price of the land was $91,520; the fair value of the land was $80,020.
May 1 Issued 80,020 shares of common stock for cash at $9 per share.
Aug. 1 Issued 9,500 shares of common stock to attorneys in payment of their bill of $49,100 for services rendered in helping the company organize.
Sept. 1 Issued 9,500 shares of common stock for cash at $11 per share.
Nov. 1 Issued 970 shares of preferred stock for cash at $115 per share.
Instructions
Prepare the journal entries to record the above transactions.
Answer:
Ivanhoe Corporation
Journal Entries:
Jan. 10: Debit Cash $560,140
Credit Common Stock $80,020
Credit Additional Paid-in Capital - Common Stock $480,120
To record the issuance of 80,020 shares of common stock for cash at $7 per share.
Mar. 1: Debit Cash $638,250
Credit 8% Preferred stock $575,000
Credit Additional Paid-in Capital -Preferred Stock $63,250
To record the issuance of 5,750 shares of preferred stock for cash at $111 per share.
Apr. 1: Debit Land $80,020
Credit Common Stock $24,660
Credit Additional Paid-in Capital - Common Stock $55,360
To record the issuance of 24,660 shares of common stock for land with a fair value of $80,020
May 1: Debit Cash $720,180
Credit Common Stock $80,020
Credit Additional Paid-in Capital - Common Stock $640,160
To record the issuance of 80,020 shares of common stock for cash at $9 per share.
Aug. 1: Debit Attorney Fees Expense $49,100
Credit Common Stock $9,500
Credit Additional Paid-in Capital- Common Stock $39,600
To record the issuance of 9,500 shares of common stock to attorneys in payment of their bill of $49,100 for services rendered in helping the company organize.
Sept. 1: Debit Cash $104,500
Credit Common Stock $9,500
Credit Additional Paid-in Capital - Common Stock $95,000
To record the issuance of 9,500 shares of common stock for cash at $11 per share.
Nov. 1: Debit Cash $111,550
Credit 8% Preferred Stock $97,000
Credit Additional Paid-in Capital - Preferred Stock $14,550
To record the issuance of 970 shares of preferred stock for cash at $115 per share.
Explanation:
a) Data and Analysis of Transactions:
Jan. 10: Cash $560,140 Common Stock $80,020 Additional Paid-in Capital - Common Stock $480,120
Mar. 1: Cash $638,250 8% Preferred stock $575,000 Additional Paid-in Capital -Preferred Stock $63,250
Apr. 1: Land $80,020 Common Stock $24,660 Additional Paid-in Capital - Common Stock $55,360
May 1: Cash $720,180 Common Stock $80,020 Additional Paid-in Capital - Common Stock $640,160
Aug. 1: Attorney Fees Expense $49,100 Common Stock $9,500 Additional Paid-in Capital- Common Stock $39,600
Sept. 1: Cash $104,500 Common Stock $9,500 Additional Paid-in Capital - Common Stock $95,000
Nov. 1: Cash $111,550 8% Preferred Stock $97,000 Additional Paid-in Capital - Preferred Stock $14,550
Simon lost $5,700 gambling this year on a trip to Las Vegas. In addition, he paid $2,220 to his broker for managing his $222,000 portfolio and $1,505 to his accountant for preparing his tax return. In addition, Simon incurred $3,480 in transportation costs commuting back and forth from his home to his employer's office, which were not reimbursed. Calculate the amount of these expenses that Simon is able to deduct (assuming he itemizes his deductions).
Answer:
12,885
Explanation:
5700 lost of gambling
2,220 to his broker
1,505 for his accountant
3,480 for his transportation costs
Gomez runs a small pottery firm. He hires one helper at $11,000 per year, pays annual rent of $6,000 for his shop, and spends $22,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $4,500 per year if alternatively invested. He has been offered $17,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3,500 per year. Total annual revenue from pottery sales is $70,000. Calculate the accounting profit and the economic profit for Gomez’s pottery firm.
Answer:
$31000
$6000
Explanation:
Accounting profit= total revenue - explicit cost
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
explicit cost = $11,000 + $22,000 + $6,000 = $39,000
Accounting profit = $70,000 - $39,000 = $31,000
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
It includes the amount he could have earned if he invested is money , his entrepreneur talent and salary he could have earned
$31,000 - $4500 - $17,000 - $3,500 = $6000
Gomez’s pottery firm's accounting profit is $31,000 while the economic profit is $6,000
To calculate the accounting profit for Gomez's pottery firm, one must subtract all the explicit costs (i.e., actual monetary expenses) from the total revenue.
Total Revenue = $70,000
[tex]~$Explicit Costs = Helper's salary + Rent + Materials[/tex]
[tex]~$Explicit Costs = \$11,000 + \$6,000 + \$22,000[/tex]
[tex]~$Explicit Costs = \$39,000[/tex]
[tex]~$Accounting Profit = Total Revenue - Explicit Costs[/tex]
[tex]~$Accounting Profit = \$70,000 - \$39,000[/tex]
[tex]Accounting Profit = \$31,000[/tex]
To calculate the economic profit, one needs to consider both explicit costs and implicit costs (i.e., opportunity costs).
[tex]~$Implicit Costs = Opportunity Cost of Equipment + Opportunity Cost of Working for Competitor + Entrepreneurial Talents[/tex]
Opportunity Cost of Equipment = $4,500 (income that could be earned alternatively)
Opportunity Cost of Working for Competitor = $17,000 (annual salary offered)
Entrepreneurial Talents = $3,500
[tex]~$Economic Profit = Accounting Profit - Implicit Costs[/tex]
[tex]~$Implicit Costs = \$4,500 + \$17,000 + \$3,500[/tex]
[tex]~$Implicit Costs = \$25,000[/tex]
[tex]~$Economic Profit = \$31,000 - \$25,000[/tex]
Thus, the accounting profit for Gomez's pottery firm is $31,000, and the economic profit is $6,000, the economic profit considers opportunity costs, providing a more comprehensive view of the firm's profitability.
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During 2020, Jasmine (age 12) received $6,500 from a corporate bond. She also received $600 from a savings account established for her by her parents. Jasmine lives with her parents and she is their dependent. Assuming her parents' marginal tax rate is 24%, what is Jasmine's gross tax liability
Answer:
$605
Explanation:
Jasmine's total gross income = $6,500 + $600 = $7,100
standard deduction = $1,050 or earned income + $350. She she doesn't have earned income, then $1,050
taxable income = $7,100 - $1,050 = $6,050
tax liability = $6,050 x 10% (lowest bracket) = $605
On January 1, 2019, Wildcat Company purchased $100,000 of 6% bonds at face value. The market rate of interest was 8% bonds of similar risk and maturity. The Company paid $90,000 for the bonds. The bonds are to be held to maturity. The bonds pay interest semiannually on July 1 and January 1. Required: (1.) Prepare the appropriate journal entry to record the investment in the bonds. (2.) Record the first interest payment at the effective (market) rate.
Answer:
Part 1
journal entry to record the investment in the bonds.
Debit : Investment in Bonds $90,000
Credit : Cash $90,000
Part 2
journal entry to record the first interest payment at the effective (market) rate.
Debit : Investment in Bonds $7,200
Credit : Interest Income $7,200
Explanation:
The Summary of the Bond is :
FV = $100,000
PMT = ($100,000 x 6%) ÷ 2 = $3,000
I = 8 %
PV = - $90,000
P/YR = 2
N = ?
Using a Financial Calculator, the number of period payments to maturity N is 13.02.
Effective Interest = $90,000 x 8 % = $7,200
Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the current year Junior:
Personally stayed in the home for 19 days.
Rented it to his favorite brother at a discount for 11 days.
Rented it to his least favorite brother for twelve days at the full market rate.
Rented it to his friend at a discounted rate for fourteen days.
Rented the home to third parties for 72 days at the market rate.
Did repair and maintenance work on the home for two days.
Marketed the property and made it available for rent for 156 days during the year (in addition to the days mentioned above).
How many days of personal use and how many days of rental use did Junior experience on the property during the year?
Days of personal use ?
Days of rental use ?
5. In year 1, Peter and Shaline Johnsen moved into a home in a new subdivision. Theirs was one of the first homes in the subdivision. In year 1, they paid $2,700 in real property taxes to the state government, $1,490 to the developer of the subdivision for an assessment to pay for the sidewalks, and $1,430 for real property taxes on land they hold as an investment. What amount of property taxes are the Johnsens allowed to deduct assuming their itemized deductions exceed the standard deduction amount before considering any property tax deductions?
Deductible tax amount?
Answer:
1. a. Days of Personal Use:
= Days stayed personally + Days rented at a discount + Days rented to family
= 19 + 14 + 11 + 12
= 56 days
b. Days of rental use:
= Days rented to third parties at full rate + Days taken for repairs and maintenance
= 72 + 2
= 74 days
2. Deductible tax amount:
= Real property taxes to state government + Property taxes on land held as investment
= 2,700 + 1,430
= $4,130
The Johnsens may not deduct the amount paid for the assessment for the sidewalks as they are considered local benefits much like streets and these are not tax deductible.
The demand for spring water at the SLC WalMart is 600 liters per week. The setup cost for placing an order to replenish inventory is $25. The order is delivered by the supplier which charges WalMart $0.10/liter for the cost of transportation from the Rocky Mountains to SLC. This transportation cost increases the cost of water to $1.25/liter. The water loses its freshness while stored at the SLC WalMart. To account for this, the WalMart charges an annual holding cost of $2.6/liter.
Required:
a. Determine the WalMart's Economic Order Quantity (in liters)?
b. How often should WalMart order for water (in weeks) ?
Answer:
Results are below.
Explanation:
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
Since:
D= 600*52= 31,200
S= $25
H= $2.6
Replacing:
EOQ= 2√[(2*31,200*25) / 2.6]
EOQ= 775 units
To calculate the time between orders, we need to use the following formula:
Time between orders= EOQ / Weekly demand
Timer between orders= 775 / 600
Time between orders= 1.3 weeks
QUESTION 11
A(n) is a union that consists of many local unions in a particular industry, skilled trade, or geographic area and thus represents workers throughout an
entire
country.
O national union
union conglomerate
O federated union
unionized association
Answer: National Union
Explanation:
Select the items below which must be adjusted to the book balance: ________
a. deposits in transit
b. book error
c. bank error
d. outstanding checks
e. interest earned on checking account
f. collections of accounts receivable by the bank
Answer:
b. Book Error
e. Interest earned on the Checking account
f. Collections of Accounts receivable by the bank.
Explanation:
Items which must be adjusted to the book balance as this question is concerned are Book Error, Interest earned on the Checking account & Collections of Accounts receivable by the bank.
These above items require adjustment in book balance to compute the adjusted book balance.
Show the effect of each transaction on the three basic accounting elements by indicating the dollar amount of the increase or decrease under the proper element heading. Compute the resulting accounting equation.
a. Owner invested $16,500 cash in the business.
b. Paid premium for two-year insurance policy, $1,500.
c. Purchased a van valued at $35,000 with $5,000 down payment; the balance to be paid over three years.
d. Paid the rent for the month, $900.
e. Purchased $470 of supplies for cash.
f. Cash sales for the month, $8,750.
g. Billed credit customers $14,200 for monthly services.
h. Paid monthly utility bill, $210.
i. Owner withdrew $2,200 for personal use.
j. Received payments of $3,300 from credit customers.
ASSETS
Accounts Prepaid
Cash + Rec. + Supplies + Ins. + Van
a.
b.
c.
d.
e. .
Cash + Rec. Accounts + DIIDIIDII LIIIIIIIII IIIIIIII IIIIIIII JULIDIIIII Supplies
ASSETS + Ins. Prepaid + Van II II A V V V V V V V V V V V v A V < LIAB. OWNER'S EQUITY Accounts Payable + Capital Drawing + Revenues - Expenses < <
a. <
b. JONI INT III IIII <
c. III <
d. <
e. <
f. <
g. V
h.
DODO DONE Doll ODIO < j. PROOF $ Cash Accounts Payable Accounts Receivable Capital Supplies Drawing -DUIT Prepaid Insurance Revenues |H-DOLIE Van Expenses $ Total Assets Total Liabilities and Owner' Equity
Answer:
a. Asset will increase and equity will increase
b. Asset will increase and liability will increase
c. Asset will increase and liability will increase
d. Asset decreases
e. Assets decrease and increase is balanced off
f. Assets increase and equity increase
g. Assets increase and liability increases.
h. Asset decreases
i. Equity decreases.
j. Asset increases.
Explanation:
Asset = Liability + Equity
This accounting equation is effected whenever any transaction is incurred. When the asset side of the accounts is increased then there will be increase in either liability or equity which off sets the account balances. The Assets will increase whenever owner invests in the business and the equity side also increases.
Cathy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and washcloths in a 4:3:2 mix (thus, a batch of 9 towels has 4 bath towels, 3 hand towels, and 2 washcloths). Each bath towel sells for $10 and costs $4, each hand towel sells for $5 and costs $2; and each washcloth sells for $2.50 and costs $1. The shop's annual fixed expenses are $324,000, and the income tax rate, t, is 40%. How many bath towels must the firm sell at the breakeven point
Answer:
36,000 baths
Explanation:
The computation of the bath towels that must the firm would sell at the break even point is shown below:
But before that the contribution margin per unit is
Particulars Bath towels Hand towels Wash towels
Selling price $10 $5 $2.5
Less: variable cost $4 $2 $1
Contribution margin $6 $3 $1.50
No of items in batch 4 3 2
Contribution margin per unit $24 $9 $3
Now the number of baths would be
= $324,000 ÷ ($24 + $9 + $3) × 4
= 36,000 baths
Presented below is pension information related to MJ Inc. for the year 2021: Service cost $410,000 Interest on projected benefit obligation 270,000 Interest on vested benefits 120,000 Amortization of prior service cost due to increase in benefits 60,000 Expected return on plan assets 90,000 Actual return on plan assets 100,000 The amount of pension expense to be reported for 2021 is
Answer:
$650,000
Explanation:
Calculation to determine what The amount of pension expense to be reported for 2021 is
Service cost $410,000
Add Interest on projected benefit obligation $270,000
Add Amortization of prior service cost due to increase in benefits $60,000
Less Expected return on plan assets ($90,000)
2021 Pension expense to be reported $650,000
($410,000+$270,000+$60,000-$90,000)
Therefore The amount of pension expense to be reported for 2021 is $650,000
A manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $540, and B for $523. In addition, A offers a three-day rate of $474 and a nine-day rate of $403, and B offers a four-day rate of $451 and a seven-day rate of $422. Annual holding costs are 36 percent of unit price. Four hundred and twenty boxes are to be shipped, and each box has a price of $150. Which shipping alternative would you recommend
Answer:
Ship 2days using B $647.27
Explanation:
Calculation to determine Which shipping alternative would you recommend
First step is to calculate the holding cost
Holding cost = .36 (420 boxes) ($150 per box) (1/365 days)
Holding cost= $62.137
Now let determine Which shipping alternative would you recommend using this formula
Cost = Fixex Cosy + Daily holding cost
Let plug in the morning
Shippers A
Option Cost
2 days $664.27
[$540+2days ($62.137)]
3 days $660.41
[$474+3days ($62.137)]
9 days $962.23
$403+9days ($62.137)
Shippers B
Option Cost
2 days $647.27
[$523+2days ($62.137)]
4 days $699.55
[$451+4days ($62.137)]
7 days $856.96
$422+7days ($62.137)
Based on the above calculation the shipping alternative that I would recommend is Ship 2 days using B with the amount of $647.27 because it is the cheapest of all.
To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2021, for $890,000 and immediately leased the building back. The operating lease is for the final 12 years of the building's estimated 20-year remaining useful life. The building has a fair value of $890,000 and a book value of $695,000 (its original cost was $1 million). The rental payments of $190,000 are payable to the insurance company each December 31. The lease has an implicit rate of 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required: 1. & 2. Prepare the appropriate entries for National Distribution Center on January 1, 2021 and December 31, 2021, to record the sale- leaseback and necessary adjustments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
1-Jan-21
Dr Cash $890,000
Dr Accumulated Depreciation $305,000
Cr Building $1,000,000
Gain On Sale of Building $195,000
1-Jan-21
Dr Right Of Use Assets $1,508,600
Cr Lease Payable $1,508,600
31-Dec-21
Dr Interest Expense $105,602
Dr Lease Payment $84,398
Cr Cash $190,000
31-Dec-21
Dr Amortization Expenses $84,398
Right Of Use Assets $84,398
Explanation:
1. & 2. Preparation for the appropriate entries for National Distribution Center on January 1, 2021 and December 31, 2021, to record the sale- leaseback and necessary adjustments
1-Jan-21
Dr Cash $890,000
Dr Accumulated Depreciation $305,000 ($1,000,000-$695,000)
Cr Building $1,000,000
Gain On Sale of Building $195,000
($890,000+$305,000-$1,000,000)
(To Record Lease)
1-Jan-21
Dr Right Of Use Assets ( $190,000* PVAF 7% for 12year)
($190,000*7.94) $1,508,600
Cr Lease Payable $1,508,600
(To Record The Lease Payable)
31-Dec-21
Dr Interest Expense ($1,508,600*7%) $105,602
Dr Lease Payment $84,398
($190,000-$105,602)
Cr Cash $190,000
(To Record First Lease payment)
31-Dec-21
Dr Amortization Expenses $84,398
Right Of Use Assets $84,398
(To Record Amortisation Expense)