Answer:
Results are below.
Explanation:
First, we need to calculate the total unitary variable cost:
Direct materials= 10
Manufacturing overhead= 5
Direct labor= 2
Selling and administrative= 5
Total unitary variable cost= $22
Now, the contribution margin income statement:
Sales= 5,000*38= 190,000
Total variable cost= 22*5,000= (110,000)
Total contribution margin= 80,000
Fixed Manufacturing overhead= (35,000)
Fixed Selling and administrative= (15,000)
Net operating income= 30,000
Pat is on the Board of Directors for Zony, a consumer electronics manufacturer. Pat has been an excellent board member by providing leadership and expertise to the Zony Board. Zamzung is a consumer electronics manufacturer and direct competitor to Zony. Zamzung believes Pat would be a good addition to their Board of Directors. Zamzung asks Pat to join the Board of Zamzung. Can Pat be on the Board of Directors of both Zony and Zamzung?
Answer: No. Pat cannot be on the Board of Directors of both Zony and Zamzung.
Explanation:
No, Pat cannot be on the Board of Directors of both Zony and Zamzung. The Clayton Act prohibits this as Pat can have superior power and high control of the industry.
Pat can also face ethical issues such as internal tactics or sharing of information or conflict regarding decision making. Pat being on the Board of Directors of both Zony and Zamzung will lead to an unfair competition in the market as well.
Master Corp. issued 8%, $80,000 bonds on February 1, 2020. The bonds pay interest semiannually each July 31 and January 31 and were issued to yield 7%. The bonds mature January 31, 2030, and the company uses the effective interest method to amortize bond discounts or premiums.
Required:
a. Prepare journal entries on the following dates.
1. February 1, 2020—Issuance of bonds.
2. July 31, 2020—Interest payment.
3. December 31, 2020—Interest accrual.
4. January 31, 2021—Interest payment. b. Indicate how the balance sheet and income statement of Master
b. Corp. for the year ended December 31, 2020, would reflect these transactions.
c. What is the total cost of financing assuming that the bonds remain outstanding for the full term?
d. What is the total cost of financing assuming that the bonds remain outstanding for the full term if the straight-line interest method was used to amortize the premium?
e. If the company were to have instead amortized the premium using the straight-line interest method, would interest expense recognized be lower or higher in 2020?
f. If the company were to have instead amortized the premium using the straight-line interest method, would interest expense recognized be lower or higher in 2030?
Answer:
Master Corp.
a. Journal Entries:
1. Feb. 1, 2020:
Debit Cash $85,685
Credit 8% Bonds Payable $80,000
Credit Bonds Premium $5,685
To record the issuance of bonds at premium.
2. July 31, 2020:
Debit Interest Expense $2,999
Debit Bonds Premium $201
Credit Cash $3,200
To record the first payment of interest on the bonds and amortization of premium.
December 31, 2020:
Debit Interest Expense $2,493
Debit Bonds Premium $174
Credit Interest Payable $2,667
To accrue interest expense and bonds payable.
4. January 31, 2021:
Debit Interest Expense $499
Debit Bonds Premium $34
Debit Interest Payable $2,667
Credit Cash $3,200
To record the payment of interest.
b. Balance Sheet as of December 31, 2020:
Liabilities:
Bonds Payable $80,000
Bonds Premium $5,310 ($5,685 - 201 - 174)
Income Statement for the year ended December 31, 2020:
Interest Expense $5,492
c. The total cost of financing the bonds for full term is $58,315.04.
d. The total cost of financing is $58,315.04
e. Interest expense would have remained the same.
f. The interest expense would have remained the same as it is not dependent on the premium amortization method used.
Explanation:
a) Data and Calculations:
February 1, 2020:
Face value of issued bonds = $80,000
Price of issued bonds = $85,685
Premium on bonds = $5,685
N (# of periods) 20
I/Y (Interest per year) 8
PMT (Periodic Payment) = $ 3,200
Results:
PV = $85,684.96
Sum of all periodic payments = $64,000.00
Total Interest $58,315.04
July 31, 2020:
Cash payment = $3,200 ($80,000 * 4%)
Interest Expense 2,999 ($85,685 * 3.5%)
Premium amortized $201
December 31, 2020:
Interest Payable = $2,667 ($80,000 * 4% * 5/6)
Interest expense = $2,493
Premium amortized $174
January 31, 2021:
Interest Expense $499
Bonds Premium $34
Interest Payable $2,667
Cherry Corporation, a calendar year C corporation, is formed and begins business on April 1 of the current year. In connection with its formation, Cherry incurs organizational expenditures of $54,000.
Required:
Determine Cherry Corporationâs deduction for organizational expenditures for 2015.
[tex]\huge\bold{Question}[/tex]
Prove that [tex]\sqrt{n} [/tex] is not a rational number, if n is not perfect square.
[tex]\huge{\underline{\underline{\mathrm{\red{AnswEr}}}}}[/tex] [tex]\huge\bold\blue{=}[/tex]
[tex]\sqrt{4} [/tex]= 2 where 2 is a rational number . Here n is perfect square the [tex]\sqrt{n} [/tex] is rational number
[tex]\sqrt{5} [/tex] = 2.236.. is not rational number But it is irrational number.here n is not a perfect square the [tex]\sqrt{n} [/tex] is irrational number
So [tex]\sqrt{n} [/tex] is not irrational number if n is perfect square.
Which of the following is an example of investment? A. a person depositing $ 100 a week to her savings account B. a person's annual medical checkup C. the purchase of new buses by Greyhound D. a student increasing his human capital by attending college
Answer:
C. the purchase of new buses by Greyhound
Explanation:
The investment is the amount that should be invested in order to generate the income
So as per the given situation,the option C is correct as if we puchase the new buses so there is a big investment but after investing into it it generated the income on daily basis
So this should be the example of the investment
If total liabilities decreased by $27,275 during a period of time and stockholders' equity increased by $34,366 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is a a.$7,091 decrease b.$27,275 increase c.$27,275 decrease d.$7,091 increase
Answer:
d.$7,091 increase
Explanation:
From the accounting equation, assets = liabilities + equity. If the total liabilities decrease by $27,275, the assets will also decrease by $27,275. Similarly, when stockholders' equity increased by $34,366, the amount of assets will increase by the same amount. The net increase in assets will be $7,091, which is the difference between the increase in stockholders' equity and the decrease in liabilities ($34,366 - $27,275).
Lesco's is evaluating a project that has a different level of risk than the overall firm. This project should be evaluated: Group of answer choices
Answer:
3. using a beta commensurate with the project's risks.
Explanation:
In the case when the project is evaluated so there is the different type of the risk instead of the total firm so here the project should be evaluated via beta commensurate alonhg with the risk of the project. As each and very project has the different level of risk also there is a different between the beta as if we compared to the beta of the market, beta of the firm etc
Hence, the above represent the answer
The Wildhorse Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.484 million, cost of goods sold of $803,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity.
Answer: $535,251.25
Explanation:
Cash flow to investors from operating activities is calculated by:
= EBIT + Depreciation - Taxes
EBIT = Sales - Cost of goods sold - Depreciation
= 1,484,000 - 803,000 - 175,000
= $506,000
Taxes = Tax rate * (EBIT - Interest)
= 35% * (506,000 - 89,575)
= $145,748.75
Cash flow to investors = 506,000 + 175,000 - 145,748.75
= $535,251.25
For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as negative values. Upon completion, compare the amount of income with the amount reported on the income statement.
Prepare journal entries to record the following merchandising transactions of Lowe’s, which uses the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable—Aron.)
Aug. 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1.
Aug. 5 Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000.
Aug. 8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8.
Aug. 9 Paid $125 cash for shipping charges related to the August 5 sale to Baird Corp.
Aug. 10 Baird returned merchandise from the August 5 sale that had cost Lowe’s $400 and was sold for $600. The merchandise was restored to inventory.
Aug. 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe’s received a credit memorandum from Waters granting a price reduction of $400 off the $5,400 of goods purchased.
Aug. 14 At Aron’s request, Lowe’s paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron.
Aug. 15 Received balance due from Baird Corp. for the August 5 sale less the return on August 10.
Aug. 18 Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12.
Aug. 19 Sold merchandise to Tux Co. for $4,800 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,400.
Aug. 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe’s sent Tux a $500 credit memorandum toward the $4,800 invoice to resolve the issue.
Aug. 29 Received Tux’s cash payment for the amount due from the August 19 sale less the price allowance from August 22.
Aug. 30 Paid Aron Company the amount due from the August 1 purchase.
Answer:
Lowe Company
1. Impact on Income and the Dollar Amount:
Aug. 1 No impact
Aug. 5 +$5,200 - $4,000 = +$1,200
Aug. 8 No impact
Aug. 9 = -$125
Aug. 10 -$600 +$400 = -$200
Aug. 12 None
Aug. 14 None
Aug. 15 -$92
Aug. 18 +$50
Aug. 19 +$4,800 -$2,400 = $2,400
Aug. 22 -$500
Aug. 29 -$43
Aug. 30 None
Total = +$2,690
2. Journal Entries:
Aug. 1 Debit Inventory $7,500
Credit Accounts Payable (Aron Company) $7,500
Purchase of goods on credit terms of 1/10, n/30, FOB destination, invoice dated August 1.
Aug. 5 Debit Accounts Receivable (Baird Corp.) $5,200
Credit Sales Revenue $5,200
Sale of goods on credit terms of 2/10, n/60, FOB destination, invoice dated August 5.
Debit Cost of goods sold $4,000
Credit Inventory $4,000
Cost of goods sold.
Aug. 8 Debit Inventory $5,400
Credit Accounts Payable (Waters Corporation) $5,400
Purchase of goods on credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8.
Aug. 9 Debit Freight-in $125
Credit Cash $125
Freight-in paid for cash.
Aug. 10 Debit Sales Returns $600
Credit Accounts Receivable (Baird Corp.) $600
Goods returned by a customer.
Debit Inventory $400
Credit Cost of goods sold $400
Cost of returned goods.
Aug. 12 Debit Accounts Payable (Waters Corporation) $400
Credit Inventory $400
Price reduction granted by Waters.
Aug. 14 Debit Accounts Payable (Aron) $200
Credit Cash $200
Part-payment to Aron on account.
Aug. 15 Debit Cash $4,508
Debit Cash Discounts $92
Credit Accounts Receivable (Baird Cop.) $4,600
Cash received on account.
Aug. 18 Debit Accounts Payable (Waters Corporation) $5,000
Credit Cash $4,950
Credit Cash Discounts $50
Cash payment on account.
Aug. 19 Debit Accounts Receivable (Tux Co.) $4,800
Credit Sales Revenue $4,800
Credit sales on terms of n/10, FOB shipping point, invoice dated August 19.
Debit Cost of goods sold $2,400
Credit Inventory $2,400
Cost of goods sold.
Aug. 22 Debit Sales Allowances $500
Credit Accounts Receivable (Tux Co.) $500
Sales allowances granted to Tux Co. on account.
Aug. 29 Debit Cash $4,257
Debit Cash Discounts $43
Credit Accounts Receivable (Tux Co.) $4,300
Aug. 30 Debit Accounts Payable (Aron Company) $7,300
Credit Cash $7,300
Cash payment on account.
Explanation:
a) Data and Analysis:
Aug. 1 Inventory $7,500 Accounts Payable (Aron Company) $7,500
credit terms of 1/10, n/30, FOB destination, invoice dated August 1.
Aug. 5 Accounts Receivable (Baird Corp.) $5,200 Sales Revenue $5,200
credit terms of 2/10, n/60, FOB destination, invoice dated August 5.
Cost of goods sold $4,000 Inventory $4,000
Aug. 8 Inventory $5,400 Accounts Payable (Waters Corporation) $5,400
credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8.
Aug. 9 Freight-in $125 Cash $125
Aug. 10 Sales Returns $600 Accounts Receivable (Baird Corp.) $600
Inventory $400 Cost of goods sold $400
Aug. 12 Accounts Payable (Waters Corporation) $400 Inventory $400
Aug. 14 Accounts Payable (Aron) $200 Cash $200
Aug. 15 Cash $4,508 Cash Discounts $92 Accounts Receivable $4,600
Aug. 18 Accounts Payable (Waters Corporation) $5,000 Cash $4,950 Cash Discounts $50
Aug. 19 Accounts Receivable (Tux Co.) $4,800 Sales Revenue $4,800 credit terms of n/10, FOB shipping point, invoice dated August 19. Cost of goods sold $2,400 Inventory $2,400
Aug. 22 Sales Allowances $500 Accounts Receivable (Tux Co.) $500
Aug. 29 Cash $4,257 Cash Discounts $43 Accounts Receivable $4,300
Aug. 30 Accounts Payable (Aron Company) $7,300 Cash $7,300
4) The returns on the Bledsoe small-cap fund are the most volatile of all the mutual funds offered in the 401k plan. Why would you ever want to invest in the fund
Answer:
The summary of the given question is summarized in the explanation below.
Explanation:
Users might also opt for investment in a somewhat more "unstable" investment, and that we might risk lower because everything depends instead on the sensitivity of something like the participant's risks.A cautious investor can't invest throughout the micro-cap financing, whereas a risky investor is otherwise able to bear the risk as well as therefore an investment upon that condition increased risk would be equivalent to greater rewards.arett Motors is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technological advantages (which translate into cost savings) over the existing machine. Information on each machine follows: Old machine New machine Original cost $9,000 $20,000 Accumulated depreciation 5,000 0 Annual cash operating costs 9,000 4,000 Current salvage value of old machine 2,000 Salvage value in 10 years 500 1,000 Remaining life 10 yrs 10 yrs Refer to Jarett Motors. The $4,000 of annual operating costs that are common to both the old and the new machine are an example of a(n) Select one: a. opportunity cost b. irrelevant cost c. future avoidable cost d. sunk cost
Answer:
Jarett Motors
The $4,000 of annual operating costs are an example of an
a. opportunity cost
Explanation:
a) Data and Calculations:
Old machine New machine
Original cost $9,000 $20,000
Accumulated depreciation 5,000 0
Annual cash operating costs 9,000 4,000
Current salvage value of old machine 2,000
Salvage value in 10 years 500 1,000
Remaining life 10 yrs 10 yrs
b) The annual operating costs are an example of opportunity cost because the alternative with the old machine will incur an annual operating cost of $9,000 instead of $4,000 with the new machine. This will translate to a forgone benefit of $5,000 ($9,000 - $4,000) in cost saving if the new machine is purchased.
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 assignmen
Question Completion:
The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $18,750 cash in the company in exchange for common stock. b. The company purchased office supplies for $544 cash. c. The company purchased $10,369 of office equipment on credit. d. The company received $2,212 cash as fees for services provided to a customer. e. The company paid $10,369 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $3,975 as fees for services provided. g. The company paid $530 cash for the monthly rent. h. The company collected $1,670 cash as partial payment for the account receivable created in transaction f. i. The company paid $1,000 cash in dividends to the owner (sole shareholder).
Answer:
Spade Company
General Journal Entries:
a. Debit Cash $18,750
Credit Common stock $18,750
To record cash contributed in exchange of common stock.
b. Debit Office supplies $544
Credit Cash $544
To record the purchase of office supplies.
c. Debit Office Equipment $10,369
Credit Accounts Payable $10,369
To record the purchase of office equipment on account.
d. Debit Cash $2,212
Credit Fees Earned $2,212
To record the receipt of cash for earned fees.
e. Debit Accounts Payable $10,369
Credit Cash $10,369
To record the payment for office equipment.
f. Debit Accounts Receivable $3,975
Credit Fees Earned $3,975
To record the supply of services on account.
g. Debit Rent Expense $530
Credit Cash $530
To record payment for monthly rent.
h. Debit Cash $1,670
Credit Account receivable $1,670
To record the receipt of cash on account.
i. Debit Dividends $1,000
Credit Cash $1,000
To record the payment of cash dividend.
2. T-accounts:
Cash
Account Title Debit Credit
Common stock $18,750
Office supplies $544
Fees Earned 2,212
Accounts Payable 10,369
Rent Expense 530
Account receivable 1,670
Dividends 1,000
Accounts receivable
Account Title Debit Credit
Fees Earned $3,975
Cash $1,670
Office Supplies
Account Title Debit Credit
Cash $544
Office Equipment
Account Title Debit Credit
Accounts Payable $10,369
Common Stock
Account Title Debit Credit
Cash $18,750
Accounts Payable
Account Title Debit Credit
Office Equipment $10,369
Cash $10,369
Fees Earned
Account Title Debit Credit
Cash $2,212
Accounts Receivable 3,975
Rent Expense
Account Title Debit Credit
Cash $530
Dividends
Account Title Debit Credit
Cash $1,000
Explanation:
a) Data and Analysis:
a. Cash $18,750 Common stock $18,750
b. Office supplies $544 Cash $544
c. Office Equipment $10,369 Accounts Payable $10,369
d. Cash $2,212 Fees Earned $2,212
e. Accounts Payable $10,369 Cash $10,369
f. Accounts Receivable $3,975 Fees Earned $3,975
g. Rent Expense $530 Cash $530
h. Cash $1,670 Account receivable $1,670
i. Dividends $1,000 Cash $1,000
Using these data from the comparative balance sheet of Blossom Company, perform vertical analysis. (Round percentages to 1 decimal place, e.g. 12.5%.) Dec. 31, 2017 Dec. 31, 2016 Amount Percentage Amount Percentage Accounts receivable $ 497,000 Enter percentages % $ 435,000 Enter percentages % Inventory $ 735,000 Enter percentages % $ 555,000 Enter percentages % Total assets $3,101,000 Enter percentages % $2,758,000 Enter percentages %
Answer:
For 2017
Account receivable % = Account Receivable/Total Assets x 100
Account receivable % = $ 497,000/$ 3,101,000 * 100
Account receivable % = 0.16027088 * 100
Account receivable % = 16.0%
Inventory % = Inventory/Total Assets *100
Inventory % = $ 735,000/$ 3,101,000 * 100
Inventory % = 0.2370203 * 100
Inventory % = 23.7 %
Total Assets = $3,101,000 = 100%
For 2016
Account receivable % = Account Receivable/Total Assets * 100
Account receivable % = $ 435,000/$ 2,758,000 * 100
Account receivable % = 0.15772298 * 100
Account receivable % = 15.8%
Inventory % = Inventory/Total Assets * 100
Inventory % = $555,000/$ 2,758,000 * 100
Inventory % = 0.20123277 * 100
Inventory % = 20.1%
Total Assets = $2,758,000 = 100 %
Which of the following would have an inventory of municipal security secondary market positions?
Dividends at FSL are expected grow at a rate of negative 5.4% per year (the dividends are getting smaller). The stock just paid a dividend of $3.93 per share, and investors require a return of 13% to invest in the company. What is the expected price of the stock next year?
Answer:
$21.37
Explanation:
g = -5.4%
D0 = $3.93
D1 = D0 (1+g)
D1 = 3.93*(1-0.054)
D1 = 3.93*0.946
D1 = 3.71778
Investors require a return (ke) of 12%
P0 = D1/(ke - g)
P0 = 3.71778 / (12% - (-5.4%)
P0 = 3.71778 / (12% + 5.4%)
P0 = 3.71778 / 17.4%
P0 = 3.71778 / 0.174
P0 = 21.3665517
P0 = $21.37
So, the expected price of the stock next year is $21.37.
Solve for the unknown interest rate in each of the following (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.):
Present Value Years Interest Rate Future Value
181 5 $ 317
335 17 1,080
48,000 13 185,382
40,353 30 531,618
Answer:
11.86%
7.13%
19.95%
8.97%
Explanation:
interest rate = [tex]\frac{future value}{present value}}^{\frac{1}{n} } - 1[/tex]
(317/181)^ (1/5) - 1 = 11.86%
1080/335)^(1/17) - 1 = .13%
(185,382/48,000)^(1/13) - 1 = 19.95%
(531,618 / 40,353)^(1/30) - 1 = 8.97%
The interest rate in the 1 case is 5.01%, 2 case is 5.79%, 3 case is 8.05%, 4 case is 10.60%.
What is interest rate?An interest rate is the amount of interest owed per period, as a quotient of the amount lent, deposited, or borrowed.
Computation of the interest rates :The formula for future value is:
[tex]\text{FV}= \text{PV} \ (1+r)^n[/tex]
where,
PV=present value
r=interest rate
n =number of periods/ years
FV = future value.
Then, the formula for finding r is :
[tex]\text{FV}= \text{PV} \ (1+r)^n\\\\r= (\dfrac{\text{FV}}{\text{PV}})^\dfrac{1}{\text{n}-1}[/tex]
case1:put the above formula in case 1 we get:
[tex]r= (\dfrac{\text{\$231}}{\text{\$190}})^\dfrac{1}{4}-1}\\\\r= (\dfrac{\text{\$231}}{\text{\$190}})^{0.25-1}\\\\r=(1.21578947)^{0.25-1}\\\\r=1.05006116 -1\\\\r=0.05006116\times100\\\\r=5.01%[/tex]
case2:Put the above formula in case 2 we get:
[tex]r= (\dfrac{\text{\$854}}{\text{\$310}})^\dfrac{1}{18}-1}\\\\r= (\dfrac{\text{\$854}}{\text{\$310}})^{0.0555-1}\\\\r=(2.75483871)^{0.0555-1}\\\\r=1.05785304 -1-1\\\\r=0.05785304\times100\\\\r=5.79%.[/tex]
case3:Put the above formula in case 3 we get:
[tex]r= (\dfrac{\text{\$1,48,042}}{\text{\$34,000}})^\dfrac{1}{19}-1}\\\\r= (\dfrac{\text{\$1,48,042}}{\text{\$34,000}})^{0.0526-1}\\\\r=(4.35417647)^{0.0526-1}\\\\r=1.08045444 -1\\\\r=0.08045444\times100\\\\r=8.05%[/tex]
case4:Put the above formula in case 4 we get:
[tex]r= (\dfrac{\text{\$412,862}}{\text{\$36,261}})^\dfrac{1}{25}-1}\\\\r= (\dfrac{\text{\$412,862}}{\text{\$36,261}})^{0.04-1}\\\\r=(12.4127958)^{0.04-1}\\\\r=1.10599913 -1\\\\r=0.10599913\times100\\\\r=10.60%.[/tex]
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Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh as a. employed. b. unemployed. c. not in the labor force. d. marginally attached worker .
Answer:
b. unemployed
the role of manager to organization is to?
Answer:
A manager has to perform functions like planning, organizing, staffing, directing and controlling. All these functions are essential for running an organization smoothly and achieving enterprise objectives. Planning is required for setting goals and establishing strategies for coordinating activities.
Taxes on labor have the effect of encouraging Group of answer choices workers to work more hours. the elderly to postpone retirement. second earners within a family to take a job. unscrupulous people to take part in the underground economy.
Answer:
unscrupulous people to take part in the underground economy.
Explanation:
Taxes are levies that a government collects from individuals and businesses. It is compulsory and is used to raise revenue from services, goods, or income.
When income earned by labour is taxed it reduces the the moral of employees to work and earn legally.
Some may now turn to the underground economy to earn more money.
The underground economy is made up of illegal activities that fail to meet reporting standards of the government. That is either transactions are made on goods that are illegal or income earned is not subject to government taxation.
The main disadvantage of an emissions tax is that :______.a) the total pollution reduction from an emissions tax cannot be known for sure. b) firms lack the flexibility to pursue different technologies. c) firms do not have an incentive to reduce pollution. d) firms cannot behave in an economically-efficient manner. e) differences among firms are not incorporated into the policy.
Answer:
.a) the total pollution reduction from an emissions tax cannot be known for sure.
Explanation:
The broad form of taxes by government on greenhouse gases , these is
✓an emissions tax: this tax is been put on the company due to the quantity that is been produced by entity. This emmision tax is imposed as a result of green house effect gas that is been produced during operation of companies example of this carbon tax, since the effect of the green house is felt in weather events, this tax is on goods or services which is known to be greenhouse gas-intensive, for instance carbon tax on gasoline. It should be noted that the main disadvantage of an emissions tax is that the total pollution reduction from an emissions tax cannot be known for sure.
Several market participants interact in developed markets to organize the exchange of funds from buyers to sellers. Such institutions as investment banks, commercial banks, financial services corporations, credit unions, pension funds, life insurance companies, mutual funds, exchange traded funds, hedge funds, and private equity companies play a key role in facilitating these transfers.
Required: Identify the financial institution based on each description given below:
a. These financial conglomerates provide a range of services, such as investment banking, commercial banking, and financial advising.
b. These are financial intermediaries that share the financial risk of the untimely demise of their policyholders, who make regular payments to financial intermediaries for taking this risk.
c. With the use of advanced investment techniques, these largely unregulated portfolios are invested in securities. The investment objective is to offset potential losses by investing in counterbalancing securities. They are open to only a select class of investors.
Answer:
a. financial services corporations
b. life insurance companies
c. hedge funds
Explanation:
a. financial services corporations
The financial services corporations provide different services, to people such as investment banking, commercial banking, and financial advising.
b. life insurance companies
They're financial intermediaries that share the financial risk of the untimely demise of their policyholders, who make regular payments to financial
c. hedge funds
Hedge fund is an investment that protects the portfolios from the uncertainties in the market while maximizing returns. The investment objective is to offset potential losses by investing in counterbalancing securities.
Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 32 percent.
a1. What is the amount and character of Hart's recognized gain or loss if the asset is tangible personal property sold for $550,000?
a2. Due to this sale, what tax effect does Hart have for the year?
Answer and Explanation:
The computation is shown below:
a. The amount and the character of the gain or loss is
Sale value of the property $550,000
Less: (Purchase value - depreciation) $400,000
Total gain recognized $150,000
Ordinary income recapture is $100,000
remaining 1231 gain or loss $50,000
b.
Section 1231 Gain = $50,000
, Rate of tax on $100,000 i.e. 32% = $32000
Rate of tax on $50000 i.e. 15% = $7500
So,
The Total tax liability is
= $32,000 + $7,500
= $39,500
Sheffield Co. had retained earnings of $19900 on the balance sheet but disclosed in the footnotes that $2800 of retained earnings was restricted for building expansion and $800 was restricted for bond repayments. Cash of $2200 had been set aside for the plant expansion. How much of retained earnings is available for dividends?a. $12,000.b. $13,000.c. $15,000.d. $10,000.
Answer:
$16,300
Explanation:
Calculation to determine How much of retained earnings is available for dividends
Using this formula
Retained earnings=Retained earnings - Retained earnings for restricted plant expansion - Restricted for bond repayments
Let plug in the formula
Retained earnings= $19,900 - $2,800 - $800
Retained earnings= $16,300
Therefore the amount of retained earnings that is available for dividends is $16,300
Expense A is a fixed cost; expense B is a variable cost. During the current year the activity level has increased, but is still within the relevant range. In terms of cost per unit of activity, we would expect that
Answer:
b) Expense B has decreased.
Explanation:
a) Expense A has remained unchanged.
b) Expense B has decreased.
c) Expense A has decreased.
d) Expense B has increased.
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.
Hourly wage costs and payments for production inputs are variable costs
Variable costs are costs that vary with production
If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.
Let assume fixed cost is 100 pounds when output is 10 units
Fixed cost per unit = fixed cost / output
100 / 10 = 10
Fixed cost per output when output increases to 20 units is
100 / 20 = 5
fixed cost per unit falls as output increases
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.40 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 12 percent on the company's stock. a. What is the current stock price
Answer:
Missing word "What will the stock price be in three years?"
a. Current price = D0*(1+g)/(Ke-g)
Current price = 1.4*(1+0.05) / (0.12-0.05)
Current price = 1.4*1.05 / 0.07
Current price = 1.47 / 0.07
Current price = $21
b. Current price = D0*(1+g)/(Ke-g)
Current price = 1.4*(1+0.05)^4 / (0.12-0.05)
Current price = 1.4*1.05^4 / 0.07
Current price = 1.4*1.21550625 / 0.07
Current price = 1.70171 / 0.07
Current price = 24.310143
Current price = $24.31
Albatross Company purchased a piece of machinery for $60,000 on January 1, 2019, and has been depreciating the machine using the double-declining-balance method based on a five-year estimated useful life and no salvage value. On January 1, 2021, Albatross decided to switch to the straight-line method of depreciation. The salvage value is still zero and the estimated useful life did not change. Ignore income taxes.
Required:
a. What type of accounting change is this, and how should it be handled?
b. Prepare the journal entry to record depreciation for 2017. Show all calculations clearly.
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Answer:
Currently, the income statement for company reflects a total period cost for depreciation of $7,876,000
Sommers Co.'s bonds currently sell for $1,080 and have a par value of $1,000. They pay a $100 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,125. What is their yield to maturity (YTM)
Answer:
9.01%
Explanation:
Calculation to determine their yield to maturity (YTM)
We would be using financial calculation to determine their yield to maturity (YTM)
N =15 years
PV=$1,080
PMT=$100
FV=$1,000
Hence,
I/YR=YTM=9.01%
Therefore their yield to maturity (YTM) is 9.01%
Henry has a defined benefit plan that promises an annual retirement benefit based on 2% of his final 5-year average annual salary for each year of service. At retirement, Henry has 21 years of service and had an average salary of $95,000 over the last 5 years. His annual benefit will be:_______a. $15,200. b. $95,000. c. $60,500. d. $49,875. e. $39,900.
Answer: e. $39,900
Explanation:
Henry's defined benefit can be calculated by the formula:
= Average salary over the last 5 years * Years of service at retirement * annual retirement benefit percentage based on 5 year average salary
= 95,000 * 21 * 2%
= $39,900
Tony's marginal income tax rate is 24%, and he pays FICA tax on his entire salary (7.65%). Tony's employer offered him a choice between $5,000 additional salary or a nontaxable fringe benefit. Tony would have to pay $3,600 to purchase the benefit directly. Which of the following statements is true? (answers rounded to the nearest whole dollar)A. The fringe benefit and the additional salary have the same after-tax value.B. The fringe benefit is worth $83 more than the additional salary.C. The additional salary is worth $300 more than the fringe benefit.D. None of the above is true.
Answer: The fringe benefit is worth $182 more than the additional salary.
Explanation:
The Fringe benefit is valued at $3,600.
The additional salary after taxes is:
= 5,000 - (5,000 * 24%) - (5,000 * 7.65%)
= 5,000 - 1,200 - 382.5
= $3,418
The Fringe benefit is worth more than the salary by:
= 3,600 - 3,418
= $182
Options are more probably for a variant of this question.
A college uses advisors who work with all students in all divisions of the college. The most useful allocation basis for the salaries of these employees would likely be: ___________.
a. number of students advised from each division.
b. relative salaries of division heads.
c. square footage of each division.
d. number of classes offered in each division.
e. student graduation rate.
Answer: a. number of students advised from each division
Explanation:
An allocation base simply refers to the the basis upon which the overhead cost of an entity is allocated. This can.be done by the machine hours used, square footage occupied etc.
Since the college uses advisors who work with all students in all divisions of the college, the most useful allocation basis for the salaries of these employees would likely be the number of students that are advised from each division.
Therefore, the correct option is A.
Crane Company uses the periodic inventory system. For the current month, the beginning inventory consisted of 483 units that cost $63 each. During the month, the company made two purchases: 723 units at $66 each and 362 units at $68 each. Crane Company also sold 1195 units during the month. Using the average cost method, what is the amount of ending inventory
Answer:
$24,445.67
Explanation:
The average cost method calculates an average costs out of the units available for sale. The average cost is then used to value cost of sales and the inventory value.
Unit Cost = Total Cost ÷ Units available for sale
therefore,
Unit Cost = (483 x $63 + 723 x $66 + 362 x $68) ÷ 1,568
= $65.538
Now,
Ending Inventory = Units in stock x Unit Cost
= (1,568 - 1,195) x $65.538
= $24,445.67
Using the average cost method, the amount of ending inventory is $24,445.67.