Answer:
Direct material quantity variance= $4.9 unfavorable
Explanation:
Giving the following information:
Copper Burgers sells burgers with 0.5 lb meat on each burger. They expected to buy meat a $2.45/lb.
They made 100 burgers this week, and used 52 lbs of meat.
To calculate the direct material quantity variance, we need to use the following formula:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Standard quantity= 0.5*100= 50
Direct material quantity variance= (50 - 52)*2.45
Direct material quantity variance= $4.9 unfavorable
Jake is the maker of a $2,000 promissory note payable to Kim. Kim indorses the note toLou who, in turn, indorses it to Mona, who then indorses it to Nat, the present holder
Refer to Fact Pattern 14-2. Nat properly presents the note to Jake for payment, but Jake dishonors it. With timely notice to the proper parties, Nat may collect payment on the note from
a. Kim, Lou, or Mona.
b. Kim or Lou only.
c. Mona only.
d. no one
Answer:
it's Jake, Kim, or Lyron or basically the first one but yours appears to be different
When information about two different enterprises has been prepared and presented in a similar manner, the information exhibits the characteristic of
Answer:
Comparability
Explanation:
Comparability is a characteristic of the information presentation of accounting information. It is required that the use of standardized accounting principles aid in making the accounts of two different enterprises to be compared to enable decision making among investors or for the allocation of investible resources. Without this comparability it becomes difficult to determine where resources would be put. Comparability can also be applied with the same company when it is able to compare its performance from one period to the other. This is also enabled by the use of standardized principles which have been consistently applied.
g on january 1 playa company acquires 90 percent ownership in seaside corporation for 180,000 the fair value of noncontrolling interest what will be the amount of consolidated net assets that would be reported
The question is incomplete, the complete question is:
On January 1, Playa Company acquires 90 percent ownership in Seaside Corporation for $180,000. The fair value of the noncontrolling interest at that time is determined to be $20,000. Seaside reports net assets with a book value of $200,000 and fair value of $200,000. Playa Company reports net assets with a book value of $480,000 and a fair value of $525,000 at that time, excluding its investment in Seaside. What will be the amount of consolidated net assets that would be reported immediately after the combination?
Answer:
$680,000
Explanation:
Since Playa Company owns 90% of Seaside Corporation, it is considered Seaside's parent company and it must include all of Seaside's assets when it presents its consolidated balance sheet.
Total net assets reported = $480,000 (Playa's net assets at book value) + $200,000 (Seaside's net assets) = $680,000
On January 1, 2021, Tabitha Designs purchased a patent for $240,000 giving it exclusive rights to manufacture a new type of synthetic clothing. While the patent had a remaining legal life of 15 years at the time of purchase, Tabitha expects the useful life to be only eight more years. In addition, Tabitha purchased equipment related to production of the new clothing for $140,000. The equipment has a physical life of 10 years, but Tabitha plans to use the equipment only over the patent's service life and then sell it for an estimated $20,000. Tabitha uses straight-line for all long-term assets. The amount to expense in 2024 related to the patent and equipment should be:
Answer:
The amount to expense in 2024 related to the patent and equipment should be: $45,000.
Explanation:
Note that Tabitha uses straight-line Method for all long-term assets.
Straight lime method charges a fixed amount of expense (depreciation / amortization) over the period of use of an asset.
Depreciation / Amortization Charge = (Cost - Residual Value) / Estimated Useful Life
Patent = $240,000 / 8 years
= $30,000
Equipment = ($140,000 - $20,000) / 8 years
= $15,000
Conclusion :
The amount to expense in 2024 related to the patent and equipment should be: $45,000 ( $30,000 + $15,000).
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On October 31, the company’s records show the following items and amounts.
Cash $ 11,360 Cash dividends $ 2,000
Accounts receivable 14,000 Consulting revenue 14,000
Office supplies 3,250 Rent expense 3,550
Land 46,000 Salaries expense 7,000
Office equipment 18,000 Telephone expense 760
Accounts payable 8,500 Miscellaneous expenses 580
Common Stock 84,000
Preparing a statement of cash flows LO P2 Also assume the following:
The owner’s initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock. The company’s $18,000 equipment purchase is paid in cash. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 in employee salaries yet to be paid. The company’s rent, telephone, and miscellaneous expenses are paid in cash. No cash has been collected on the $14,000 consulting fees earned. Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)
Answer:
Required:
Prepare an October 31 statement of cash flows for Ernst Consulting.
________________________________
ERNST CONSULTING
Income Statement
For month ended October 31
Revenues:
Consulting fees $14,000
Total revenue: $14,000
Expenses:
Salary expense: 7,000
Rent expense: 3,550
Telephone expense: 760
Miscellaneous expenses: 580
Total expenses: 11,890
Net income: 2,110 (14,000 - 11890)
_____________________________
_______________________________________
ERNST CONSULTING
Statement of Retained Earnings
As of October 31
Retained earnings Oct, 1: $0
Add: Net income $2,110
$2,110
Less: Dividends - $2,000
Retained earnings October 31: $110(2,110 - 2,000)
________________________________
An investor has a long-term investment time horizon, no liquidity needs and is very risk averse. Your main concern when making a recommendation to this client is:
Answer:
Safety of principal
Explanation:
PRINCIPAL
SAFETY OF PRINCIPAL is the probability or likelihood that the main money invested or the money which was paid for a specific investment will be returned to the investor.
Secondly SAFETY OF PRINCIPAL help to give the assurance that a person's or an individual principal or their initial investment will tend to remain the same over the life of the investment or period of the investment which is why Safety of principal can be achieved by carefully carryingout the review of both the economic and industrial trends before deciding to choose what type of investment to go for.
Therefore if an investor has a long-term investment time horizon in which their is no liquidity needs and is very risk averse.
My main concern when making a recommendation to this client is: SAFETY OF PRINCIPAL.
The study of economic growth concentrates on understanding the determinants of the: Group of answer choices change in per capita GDP over time.
Answer:
the long term change in per capita GDP
Explanation:
please find attached the full question.
economic growth is the persistent rise in the amount of goods and services produced by an economy, it is the increase in the level of wealth of an economy overtime.
Per capita GDP = GDP / population
it is the GDP per person.
by understanding the factors that lead to long term changes in per capita GDP, one can determine what causes economic growth
can anyone plzzzz help me 5 concepts of marketing and its explanation.. i ll give 5 stars nd i ll mark them as brainlist..
Answer:
1. production concept, 2. product concept, 3. selling concept, 4. marketing concept, and 5. societal marketing concept.
Explanation:
So marketing is a department of management that tries to design strategies that will help build profitable relationships with other consumers.
Explanation:
5 Essential Marketing Concepts You Should Know
HELLO where are you from and how old are you me 21 from Phillippines
The Production Concept.
The Product Concept.
The Selling Concept.
The Marketing Concept.
The Societal Marketing Concept.
In each of the following independent situations, determine the dividends received deduction for 2018. Assume that none of the corporate shareholders owns 20% or more of the stock in the corporations paying the dividends.
Almond
Corporation Blond
Corporation Cherry
Corporation
Income from operations $700,000 $800,000 $900,000
Expenses from operations (600,000) (800,000) (910,000)
Qualifying dividends 100,000 100,000
100,000
a. The dividends received deduction for Almond Corporation is $
b. The dividends received deduction for Blond Corporation is $
c. The dividends received deduction for Cherry Corporation is $
Answer:
a. The dividends received deduction for Almond Corporation is
$ 50,000
b. The dividends received deduction for Blond Corporation is
$ 50,000
c. The dividends received deduction for Cherry Corporation is
$50,000
Explanation:
If a company owns less than 20% of the outstanding stock from another corporation, its DRD = 50% of the dividends received.
If a company owns 20% or more, but less than 80% of the outstanding stock from another corporation, its DRD = 65% of the dividends received.
If a company owns 80% or more of the outstanding stock from another corporation, its DRD = 100% of the dividends received.
You can determine a company’s cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets.
Which of the following is true for the statement of cash flows?
a. It reflects cash generated and used during the reporting period.
b. It reflects revenues when earned.
Answer: a. It reflects cash generated and used during the reporting period
Explanation:
The Cash flow statement is very important and is useful to various stakeholders in a company with the most important being the Company Management itself and Creditors.
Management are able to use the Cash flow statement to see how much actual cash was spent in the year as well as how much was used. This is important because the Income statement contains entries that might show revenue that have not being received or expenses such as depreciation that did not impact the actual cash the company has. The Cash flow statement fixes this by showing those actual figures thus enabling the company to plan better.
It is also useful to Creditors so that they see if a company is able to pay them for the period.
preferred stockholders must receive their stated dividends prior to the distribution of any earnings to common stockholders and bondholders true false
Answer: False
Explanation:
While it's is true that Preferred Shareholders should receive their stated dividends before Common Shareholders do, the same cannot be said for Bondholders.
Bonds are a type of debt and as such get preferential treatment to a company's income. Bond interest is paid before any dividend to any class of shareholders. Even in the event of a Liquidation, Bond holders are paid first before Preferred Shareholders.
YellowCard Company manufactures accessories for iPods. It had the following selected transactions during 2017. (Note: For any part of this problem requiring an interest or discount rate, use 10%.)
1. YellowCard provides a 2-year warranty on its docking stations, which it began selling in 2017. During 2017, YellowCard spent $6,000 servicing warranty claims. At year-end, YellowCard estimates that an additional $45,000 will be spent in the future to service warranties related to 2017 sales.
2. YellowCard has a $200,000 loan outstanding from First Trust Corp. The loan is set to mature on February 28, 2018. For several years, First Trust has agreed to extend the loan, as long as YellowCard makes all its quarterly interest payments (interest is due on the last days of each February, May, August, and November) and maintains an acid-test ratio (also called "quick ratio") of at least 1.25. First Trust has provided YellowCard a "commitment letter" indicating that First Trust will extend the loan another 12 months, providing YellowCard makes the interest payment due on March 31.
3. During 2016, YellowCard constructed a small manufacturing facility specifically to manufacture one particular accessory. YellowCard paid the construction contractor $5,000,000 cash (which was the total contract price) and placed the facility into service on January 1, 2017. Because of technological change, YellowCard anticipates that the manufacturing facility will be useful for no more than 10 years. The local government where the facility is located required that, at the end of the 10-year period, YellowCard remediate the facility so that it can be used as a community center. YellowCard estimates the cost of remediation to be $500,000.
Prepare all 2017 journal entries relating to YellowCard’s warranties.
Prepare all 2017 journal entries relating to YellowCard’s loan from First Trust Corp
Prepare all 2017 journal entries relating to the new manufacturing facility YellowCard opened on January 1, 2017
Answer:
warrant expense 51,000 debit
cash 6,000 credit
warranty liability 45,000 credit
--to record warrant-related accounts--
interest payable 16,667 debit
interest expense 3,333 debit
cash 20,000 credit
--to record interest expense for the loan and installment--
Manufacturing Facilities 5,192,772 debit
Cash 5,000,000 credit
Restoration Liability 192,772 credit
-- to record the payment to contractor--
Explanation:
Warranty: the additional expected expense are considered warranty laibility
Loan: we previously recorded accrued interest from March 1st to Dec 31th
That is: 200,000 x 10% x 10/12 months = 16,667 payable
At February 28th we recognize the last two month of interest
200,000 x 10% x 2/12 months = 3,333 expense
in total we have 16,667 + 3,333 = 20,000 cash outlay
Facility: the asset should add to all the cost necessary to acquire it:
As the conversion into community center is mandatory it is part of the cost:
present value of the 500,000 in ten years:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity $500,000.00
time 10.00
rate 0.10000
[tex]\frac{500000}{(1 + 0.1)^{10} } = PV[/tex]
PV 192,771.6447
Total cost:
5,000,000 cashg + 192,772 liability = 5,192,772
6. ABC Company announced today that it will begin paying annual dividends next year. The first dividend will be $0.10 a share. The following dividends will be $0.20, $0.30, $0.40, and $0.50 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 2.0 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 8.0 percent
Answer:
The amount willing to pay to buy one share is $6.92.
Explanation:
The announcement by company to pay annual dividend = $0.10
2nd year divident amount = $0.20
3rd year divident amount = $0.30
4th year divident amount = $0.40
5th-year divident amount = $0.50
The increase in dividend = 2 percent.
The desired rate of return = 8%
Value after year 5 = (D5 × Growth rate) / (Required rate-Growth rate)
=(0.5 × 1.02) / (0.08-0.02)
=8.5
Therefore, the current value = Future dividend and value × Present value of discounting factor(rate%,time period)
=0.1/1.08 + 0.2/1.08^2 + 0.3/1.08^3 + 0.4/1.08^4 + 0.5/1.08^5 + 8.5/1.08^5
=$6.92.
Last year Baron Enterprises had $350 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity last year. In millions, by how much could Baron's sales increase before it is required to increase its fixed assets? a. $170.09 b. $179.04 c. $197.88 d. $188.46 e. $207.78
Answer:
Increase in sales= 188.46 million
Explanation:
Giving the following information:
Sales= 350 million
Fixed assests= 270 million
Used capacity= 65%
We need to determine the increase in sales that would occupy the entire capacity.
If 350 is 65% then:
Full capacity= (100*350)/65= 538.46 million
Now, the increase in sales:
Increase in sales= 538.46 - 350= 188.46 million
Which of the following statements best describes how a change in a firm’s stock price would affect a stock’s capital gains yield? The capital gains yield on a stock that the investor already owns has a direct relationship with the firm’s expected future stock price. The capital gains yield on a stock that the investor already owns has an inverse relationship with the firm’s expected future stock price.
Answer: The capital gains yield on a stock that the investor already owns has a direct relationship with the firm’s expected future stock price.
Explanation:
The Capital Gains on a security refers to the increase in the price of the security from the cost that it was bought at. The Yield can therefore be calculated by dividing the difference between the Security Price now and the Security Price at cost by the Security Price at Cost.
If the price is higher than the cost, that is a Capital Gain. The reverse is a loss.
Therefore, a Company's future stock price is directly related to the Capital Gains Yield of an investor who is already holding the stock. If the future price increases, the Capital Gains Yield on that stock will go up. The reverse is true.
Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes to record the following transactions. External Transaction Accounts Debit Credit 1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500 2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100 3. Purchase office supplies on account, $110. Supplies 110 Cash 110 4. Pay $410 for next month's rent. Rent Expense 410 Cash 410 5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250
Assess wether the junior accountant correctly proposes how to record each transaction.If incorrect provide the correction.
Answer:
Scarlet Knight Corporation
Posting of transactions:
1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500
Wrong. Correct Posting: Cash 5,500 Common Stock 5,500
2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100
Correct.
3. Purchase office supplies on account, $110. Supplies 110 Cash 110
Wrong. Correct Posting : Supplies 110 Accounts Payable 110
4. Pay $410 for next month's rent. Rent Expense 410 Cash 410
Wrong. Correct Posting: Rent Prepaid 410 Cash 410
5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250
Wrong. Correct Posting: Equipment 1,250 Cash 1,250
Explanation:
1. Owners invest $5,500 in the company and receive common stock. Cash is increased and Common Stock increased by $5,500.
2. 2. Receive cash of $2,100 for services provided in the current period.
Cash is increased and Service Revenue increased by the same amount.
3. Purchase office supplies on account, $110.
No cash payment is involved with this transaction since it was on account. The accounts involved and which increased by $110 are Supplies and Accounts Payable.
4. Pay $410 for next month's rent. The amount is for next month. As such no Rent Expense account is involved. Instead, the accounts involved are Rent Prepaid and cash. While Rent Prepaid increases, Cash is reduced.
5. Purchase office equipment with cash of $1,250. Equipment received value and will increase by $1,250 while Cash gave value and will reduced by $1,250 and not vice versa.
Abburi Company's manufacturing overhead is 55% of its total conversion costs. If direct labor is $58,500 and if direct materials are $29,200, the manufacturing overhead is:
Answer:
$71,500
Explanation:
The computation of manufacturing overhead is shown below:-
We assume conversion cost = x
Conversion cost = Labor cost + manufacturing overhead
x = $58,500 + 0.55x
x = $58,500 ÷ 0.45
= $130,000
Now the manufacturing overhead is
= Conversion cost × maufacturing overhead percentage
= $130,000 × 55%
= $71,500
We simply applied the above formula
ervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% factoring fee. What entry should Jervis make to record the transaction?
Answer:
Debit Cash account $71,250
Debit Factoring charge $3,750
Credit Accounts receivable $75,000
Explanation:
Factoring accounts receivable involves the sale of the account receivable to another party such that the debt is now payable to that party. This is usually done to ease liquidity and at a charge.
When receivables are factored,
Debit Cash account
Debit Factoring charge
Credit Accounts receivable
Charge on factoring = 5/100 × $75,000
= $3,750
Amount to be received = $75,000 - $3,750
= $71,250
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable$363,000debit Allowance for uncollectible accounts 580debit Net Sales 808,000credit All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared
Answer:
$4,848 will be the amount that should be debited to Bad debts expense when the adjusting entry is being prepared for the year end.
Explanation:
Since the company uses percentage of sales method for calculating bad debt, it therefore means that the bad debt expense for the year will not be charged from the opening balance of allowance for uncollectible accounts but will be charged as Net credit sales × percentage of uncollectible from credit sales.
Therefore, bad debt for the period is charged as Net credit sales × Percentage of uncollectible from credit sales
= $808,000 × 0.6%
= $4,848
Therefore, the adjusting entry for bad debt expenses at year end is;
Bad debt expense Dr $4,848
Allowance for uncollectible accounts Cr $4,848
Art purchased 2,500 shares of Delta stock. His purchase represents 10 percent ownership in the firm. His shares have increased in value from the $12 a share he originally paid to today's market value of $13 a share. Assume Delta goes bankrupt and owes $450,000 more in debts than the firm can pay after liquidating all of its assets. What is the maximum loss per share Art will incur on this investment
Answer: $12
Explanation:
From the question, we are informed that Art purchased 2,500 shares of Delta stock and his purchase represents 10 percent ownership in the firm. We are further told that his shares have increased in value from the $12 a share he originally paid to today's market value of $13 a share.
Assume Delta goes bankrupt and owes $450,000 more in debts than the firm can pay after liquidating all of its assets, the maximum loss per share Art will incur on this investment will be the purchase price per share which was given in the question as $12.
This is because when a firm guess bankrupt, the maximum loss which will be incurred by Art will be the value of his investment which is $12.
In 2019, Linda gave her son, Jonathan 425 shares of School Products Inc., common stock. Linda paid $9,350 for the stock in 2013. At the date of the gift, the FMV of the stock was $6,800. Assuming that there is no gift tax paid, if Jonathan sells the stock for $6,000, he will recognize:
Answer:
Lol
Explanation:
Goteem
Suppose the elasticity of demand for your parking lot spaces, which are located in a downtown business district, is –1.8, and the price of parking is $7 per day. Additionally, suppose that your MC is zero, and your capacity has been 80% full at 9 AM each day over the last month. Since demand is______, and the lot is below capacity,________is the optimal pricing strategy.
Answer:
ELASTIC
DECREASING PRICE
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
The demand for your parking lot spaces is elastic. if the price of parking is reduced, the demand for parking would rise
A firm wishes to maintain an internal growth rate of 9 percent and a dividend payout ratio of 66 percent. The ratio of total assets to sales is constant at 1, and the profit margin is 8.1 percent. If the firm also wishes to maintain a constant debt-equity ratio, what must it be
Answer:
the constant debt-equity ratio is 2.580
Explanation:
Given:
dividend payout ratio of 66 percent= 0.66
Sustainable Growth rate of 9 percent = 0.09
profit margin is 8.1 percent= 0.081
total assets to sales is constant at 1
We need to calculate the Retention Ratio first,
which gives the percentage of a company's earnings that are not paid out in dividends but credited to retained earnings. It can be calculated using below expression,
Retention Ratio = 1 - Dividend pay-out ratio
Retention Ratio = 1 - 0.66 = 0.34
ROE i.e the return on equity which is a measure of the profitability of a business in relation to the equity can be calculated as;
Sustainable Growth rate = (ROE * Retention Ratio)/(1 - ROE*Retention Ratio)
0.09 = (ROE * 0.34/(1 - ROE*0.34)
0.09 (1 - 0.34ROE) = 0.34ROE
0.09 - 0.0306ROE = 0.34ROE
0.3094ROE = 0.09
ROE = 0.09/0.3094
ROE = 0.290 or 2.90%
debt-equity ratio can now be calculated as;
Return on Equity = Profit Margin×Total Assets to sales ratio×(1+D/E)
0.290 = 0.081*1*(1+D/E)
1 + D/E = 0.290/0.081
1 + D/E = 3.580
D/E = 3.580 - 1 = 2.580
Therefore, the constant debt-equity ratio is 2.580
If marijuana were legalized, it is likely that there would be an increase in the demand for marijuana. If demand for marijuana is inelastic and the supply of marijuana is perfectly elastic, this will result in Group of answer choices higher prices and higher total revenue from marijuana sales. higher prices but lower total revenue from marijuana sales. the same price and higher total revenue from marijuana sales. the same price but lower total revenue from marijuana sales.
Answer:
The correct answer is the first option: Higher prices and higher total revenue from marijuana sales.
Explanation:
To begin with, the fact that the demand would be inelastic would implicate that no matter how much the price rises the variation in the amount of quantity demand would be minimun so that would means that if the price increases then the consumers will keep buying the product and that is why that the total revenue will increase overall. Moreover, if the supply of the product is totally elastic then that would means that the sellers would try to offer the product as much as they can and they would be influenced by the demand as well.
Hazel owns an event planning company that specializes in very high-end events. Several years ago, Hazel purchased a magnificent chocolate fountain for $3,000 and has since taken $1,200 in depreciation deductions on the fountain. Hazel is now ready to replace the fountain with tools for creating ice sculptures, but she is not sure what the tax consequences of selling the fountain will be. Which of the following statements is true regarding the tax consequences of selling the fountain?A. If Hazel sells the chocolate fountain for $1,800, she will have a $1,200 ordinary loss.B. If Hazel sells the chocolate fountain for $1,700, she will have a $100 capital loss.C. If Hazel sells the chocolate fountain for $2,000, she will have an ordinary gain of $200 and no capital gain.D. If Hazel sells the choclate fountain for $3,300, she will have a $1,500 capital gain.
Answer:
D. If Hazel sells the chocolate fountain for $3,300, she will have a $1,500 capital gain.
Explanation:
I´m assuming that Hazel is a person that owns this event planning company.
The current book value of the chocolate fountain = purchase cost - accumulated depreciation = $3,000 - $1,200 = $1,800
If the chocolate fountain (or any asset) is sold at a higher price than book value, then a capital gain must be recognized. If the chocolate fountain is sold at a lower price than book value, then a capital loss should be recognized.
$3,300 (selling price) - $1,800 (book value) = $1,500 capital gain
Home equity line interest. Sean and Amy Anderson have a home with an appraised value of $180,000 and a mortgage balance of only $90,000. Given that an S&L is willing to lend money at a loan-to-value ratio of 75 percent, how big a home equity credit line can Sean and Amy obtain? How much, if any, of this line would qualify as tax-deductible interest if their house originally cost $100,000?
Answer:
$135,000
$75,000
Explanation:
Home value = $180,000
Loan to Value ratio = 75%
Formula: Maximum loan amount = Home value x loan to value ratio
Maximum loan amount = $180,000 x 75%
Maximum loan amount = $135,000
If the value of house is $100,000 then,
$100,000 x 75% = $75,000
$75,000 would qualify as Tax deductible interest
When Teresa talks about communicating with her employees, she says, "Now I write the emails and I save them. And then in the morning I shoot them all out." Teresa’s emails are an example of
The question is incomplete. The complete question is:
When Teresa talks about communicating with her employees, she says, “Now I write the e-mails and I save them. And then in the morning, I shoot them all out.” Teresa’s e-mails are an example of downward communication. This form of communication might not be effective with:
A. Gen-X employees
B. Baby Boomer employees
C. Gen-Y employees
Answer:
C. Gen-Y employees
Explanation:
Generation Y refers to the generation of people that were born between the early 1980s and the early 2000 and Gen-X refers to the people born from 1965 to 1980.
The downward communication might not be effective with Gen-Y employees because Gen-Y has is a technological youth and founds themselves more independent, so when Teresa addresses 'I', Gen-Y can get offended and it may question their ability.
Hence, the correct answer is C. Gen-Y employees.
Steve worked as a tech supervisor for a computer company. In September of 2016, he was laid off. He was paid unemployment compensation for the rest of the year totaling $7,000. Which of the following is true?
a. Steve will have to report all $7,000 of the unemployment compensation as income.
b. Steve will have to report $4,600 of the unemployment compensation as income.
c. Unemployment compensation is never taxable.
d. As long as the unemployment compensation payments are less than the taxpayer's previous salary, they are not taxable.
Answer:
The answer is A.
Explanation:
Unemployment compensation is a benefit paid to people who lost their job via laid off, recession etc
Unemployment compensation is being reported or treated as income and it will be taxed at prevailing income tax rate.
So in the light of the above, option A is correct. The $7,000 unemployment compensation will be reported as income.
Use the following information to calculate cash received from dividends: Dividends revenue $ 32,300 Dividends receivable, January 1 3,100 Dividends receivable, December 31 4,400 Multiple Choice $27,900. $31,000. $35,400. $32,300. $33,600.
Answer:
$31,000
Explanation:
Calculation for the cash received from Dividend
Beginning dividends receivable + Dividend revenue - dividends paid = Ending dividends receivable
Hence,
Using this formula
Dividends paid = Beginging dividends receivable + dividend revenue - Ending dividends receivable
Let plug in the formula
= 3,100+32,300-4,400
=31,000
Therefore the amount of cash received from dividend will be $31,000.
Thus the dividend revenue is not the dividends which was received in cash, but instead it is the dividends which was earned during the period.
"Our goal is to make add-on sales during 85% of sales. If you make35 sales. How many add-0n sales do you need to make to meet the goal
Answer:
30
Explanation:
Add-On Sales Goal =85% of Sales
If there were a total of 35 sales, in order to meet the goal, we would require to make an add-on sales during 85% of 35 sales.
Now:
85% of 35=0.85 X 35
=29.75
This is approximately 30.
Therefore, you would need to make 30 add-on sales to meet the goal.