Answer:
after tax cash flow = $29,512.32
Explanation:
the numbers are missing in this question:
purchase cost = $82,000
tax rate = 40%
selling price at end of year 4 = $32,000
MACRS 7 year depreciation schedule:
year % depreciation expense carrying value
1 14.29% $11,717.80 $70,282.20
2 24.29% $19,917.80 $50,364.40
3 17.49% $14,341.80 $36,022.60
4 12.49% $10,241.80 $25,780.80
after tax cash flow = $32,000 - [($32,000 - $25,780.80) x 40%] = $32,000 - $2,487.68 = $29,512.32
Suppose we have the following information for 2008: Potential output: $17 trillion Actual output: $16 trillion Actual Deficit: $ 500 billion Tax Rate: 15% What is the structural deficit in 2008
Answer:
The structural budget in 2008 is $350 billion
Explanation:
Actual deficit = Government spending - Tax Revenue Collection
i.e Actual deficit = G-T
T = (Tax rate) (Actual output)
$500 billion = G - (0.15)($16 trillion)
$500 billion = G - 2400 billion
G = $500 billion + 2400 billion
G = $2900 billion
Thus, Government spending is $2900 billion
Structural deficit = G - T'
T' = (Tax rate)(Potential output)
T' = (0.15)(17000 billion)
T' = $2550 billion
Structural deficit = G - T'
Structural deficit = $2900 billion - $2550 billion
Structural deficit = $350 billion
Thus, the structural budget in 2008 is $350 billion
The firm has a target debt-equity (D/E) ratio of 0.76. Its cost of equity is 15.3 percent, and its pretax cost of debt is 9 percent. What is the WACC given a tax rate of 21 percent
Answer:
11.76%
Explanation:
The computation of the Weighted average cost of capital (WACC) is shown below:
= Weightage of debt × cost of debt × ( 1 - tax rate)+ (Weightage of common stock) × (cost of common stock)
= (0.76 ÷ 1.76 × 9%) × ( 1 - 21%) + (1 ÷ 1.76 × 15.3%)
= 3.07% + 8.69%
= 11.76%
Hence, the WACC is 11.76%
We simply multiplied the weight of capital stucture with its cost
For the following investments, identify whether they are: Trading debt securities. Available-for-sale debt securities. Held-to-maturity debt securities. None of the above. Each case is independent of the other.
(a) A bond that will mature in 4 years was bought 1 month ago when the price dropped. As soon as the value increases, which is expected next month, it will be sold.
(b) 10% of the outstanding stock of Farm-Co was purchased. The company is planning on eventually getting a total of 30% of its outstanding stock.
(c) Bonds were purchased in December of this year. The bonds are expected to be sold in January of next year.
(d) Bonds that will mature in 5 years are purchased. The company would like to hold them until they mature, but money has been tight recently and they may need to be sold.
(e) Preferred stock was purchased for its constant dividend. The company is planning to hold the preferred stock for a long time.
(f) A bond that matures in 10 years was purchased. The company is investing money set aside for an expansion project planned 10 years from now.
Answer:
(a) A bond that will mature in 4 years was bought 1 month ago when the price dropped. As soon as the value increases, which is expected next month, it will be sold. - Trading Debt Securities
Trading debt securities such as these are held only for a short time before they are sold with the goal being short term profit.
(b) 10% of the outstanding stock of Farm-Co was purchased. The company is planning on eventually getting a total of 30% of its outstanding stock. - None of the Above
This is an Equity Investment.
(c) Bonds were purchased in December of this year. The bonds are expected to be sold in January of next year. - Trading Debt Securities
Like the bond in (a), this is being held for a short while only and then it will be sold so it is a Trading debt security.
(d) Bonds that will mature in 5 years are purchased. The company would like to hold them until they mature, but money has been tight recently and they may need to be sold. - Available-for-sale debt securities
Available for sale debt securities are to be sold before maturity and therefore have no certain selling time. The bond above has no selling time as it might be sold at any point so it is an Available-for-sale debt security.
(e) Preferred stock was purchased for its constant dividend. The company is planning to hold the preferred stock for a long time. - None of the above.
This is an Equity investment as well.
(f) A bond that matures in 10 years was purchased. The company is investing money set aside for an expansion project planned 10 years from now. - Held-to-maturity debt securities.
Held to Maturity bonds are bought with no intention of selling and the company hopes to hold them till they mature like this bond which will be held for 10 years.
On November 7, Mura Company borrows $370,000 cash by signing a 90-day, 8%, $370,000 note payable. 1. Compute the accrued interest payable on December 31. 2. & 3. Prepare the journal entry to record the accrued interest expense at December 31 and payment of the note at maturity on February 5.
Answer:
At 31 December, the Interest for 54 days accrues as follows :
Interest expense $17,740 (debit)
Note Payable $17,740 (credit)
On payment February 5, the Interest expense will be capitalized in the Note Payable as follows :
Note Payable $407,473 (debit)
Cash $407,473 (credit)
Explanation:
AT, November 7, When Mura Company borrows the money :
Cash $370,000 (debit)
Note Payable $370,000 (credit)
At 31 December, the Interest for 54 days accrues as follows :
Interest expense $17,740 (debit)
Note Payable $17,740 (credit)
Interest expense calculation = $370,000 × 8% × 54/90
= $17,740
At February 5, the interest for 60 days accrues as follows :
Interest expense $19,733 (debit)
Note Payable $19,733 (credit)
Interest expense calculation = $370,000 × 8% × 60/90
= $19,733
On payment February 5, the Interest expense will be capitalized in the Note Payable as follows :
Note Payable $407,473 (debit)
Cash $407,473 (credit)
Note Payable Calculation = $370,000 + $19,733 + $17,740
$407,473
uppose a Starbucks tall latte cost $4.00 in the United States, 5.00 euros in the euro area and $2.50 Australian dollars in Australia. Nominal exchange rates are .80 euros per dollar and 1.4 Australian dollars per U.S. dollar. Where does purchasing power parity hold
Answer: Nether Australia or Europe
Explanation:
Purchasing power parity is a notion that states that prices of the same or similar goods should have the same price across the world after adjusting for exchange rate differences.
If the price of a tall latte in the U.S. is $4,00, it should be the same price in Europe and Australia after exchange rate adjustments.
$4.00 in Euro is: $4.00 in Australian dollars is:
= 4 * 0.8 = 4 * 1.4
= €3.20 = $5.60
Purchasing power parity does not hold in wither countries because the prices of the lattes are not equal to the $4.00 in the U.S. after adjustments for exchange rates.
Pattison Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element per Month Variable Element per Customer Served Revenue $5,500 Employee salaries and wages $46,300 $1,000 Travel expenses $ 500 Other expenses $32,500 When the company prepared its planning budget at the beginning of May, it assumed that 20 customers would have been served. However, 17 customers were actually served during May. The activity variance for "Travel expenses" for May would have been closest to:
Answer:
Pattison Corporation
Activity Variance for "Travel expenses" for May would have been closest to:
$1,500 Favorable
Explanation:
Data and Calculations:
Fixed Element Variable Element per
per Month Customer Served
Revenue $5,500
Employee salaries
and wages $46,300 $1,000
Travel expenses $ 500
Other expenses $32,500
The Travel Expenses Activity Variance = Actual cost minus budgeted cost
= $8,500 - $10,000
= $1,500 Favorable
Actual travel expenses = ($500 x 17)
= $8,500
Budgeted travel expenses = ($500 x 20)
= $10,000
Pattison Corporation's activity variance for Travel Expenses for the month of May is the difference between the actual travel expenses and the budgeted travel expenses. The budgeted expenses are based on budgeted number of customers served in May while the actual expenses are based on actual number of customers served in May.
Hawley company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which will allow it to concentrate on decorating. The company averages 100 wedding cakes per year and incurs the following costs from baking wedding cakes.
Direct materials $550
Direct labor 950
Variable manufacturing overhead 150
Fixed manufacturing overhead 1,125
Total manufacturing cost $2,775
Number of cakes / 100
Cost per cake $28
Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Hawley expects to retain the equipment. Hawley can buy the cakes for 28$.
1. Should Hawley make the cakes or buy them? Why?
2. If Hawley decides to buy the cakes, what are some qualitative factors that Hawley should also consider?
1. Should Hawley make the cakes or buy them? Why? (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the cakes in-house.)
Make Outsource Difference
Cake costs cakes cakes (make—outsource)
Variable costs:
Direct materials
Direct labor
Variable manufacturing overhead
Purchase cost
Total differential cost of cakes
Hawley (should, should not) continue to make the cakes. Outsourcing will (decrease, increase) profits.
2. If Hawley decides to buy the cakes, what are some qualitative factors that Hawley should also consider?
A. Qualitative factors include considering sunk costs andmanager's opinions.
B. Qualitative factors include separating fixed and variable costs.
C. Qualitative factors include quality and on-time delivery.
D. Qualitative factors include contribution margins of the various products produced.
Answer:
1. Continue to Make the Cakes. Because the Cost of Outsourcing is greater that the cost of making by $1,150.
2. C. Qualitative factors include quality and on-time delivery.
Explanation:
Analysis of the Make or Buy Decision
Make Outsource Difference
Cake costs cakes cakes
Variable costs:
Direct materials $550 $0 $550
Direct labor $950 $0 $950
Variable manufacturing overhead $150 $0 $150
Fixed manufacturing overhead $1,125 $1,125 $0
Purchase cost $0 $2,800 ($2,800)
Total differential cost of cakes $2,275 $3,925 ($1,150)
Qualitative Factors.
Are non-monetary factors that need to be considered in decision making.
Margaret’s car loan statement said that she would pay $7,683.20 in interest for a 5-year loan at an interest rate of 9.8%. Assuming this is an example of simple interest, how much did Margaret borrow to buy the car?
Answer: $15680
Explanation:
Principal = Unknown
Time = 5 years
Rate = 9.8%
Simple interest = $7683.20
Simple interest= PRT/100
7683.20 = (P × 9.8 × 5)/100
7683.20 = 49P/100
Cross multiply
768320 = 49P
P = 768320/49
Principal = $15680
Margaret borrowed $15680 to buy the car.
Net income (in millions) $150 Shares outstanding (in millions) 300 Stock price $30.00 What is the price-earnings ratio (to the nearest whole number)?
Answer:
60
Explanation:
price-earnings ratio = price / earnings per share
earnings per share = net income / shares outstanding = $150 / 300 = $0.50
$30 / $0.50 = 60
Pelican Cove Corporation is trying to decide whether to invest in equipment to manufacture a new product. If the investment project is accepted, sales revenue will increase by $65,000 per year and materials costs will increase by $16,000 per year. The equipment will cost $140,000 and is depreciable over 10 years using simplified straight line. The firm has a marginal tax rate of 34%. Calculate the firm's annual cash flows resulting from the new project. Group of answer choices
Answer:
The firm's annual cash flows resulting from the new project is $58,220
Explanation:
Increase in EBIT $81,000
(65,000 + 16,000)
Less: Depreciation $14,000
Profit before tax $67,000
Less: Tax at 34% $22,780
Net income $44,220
Add: Depreciation $14,000
Operating cash flows $58,220
Note: Depreciation = $140,000/10 years = $14,000
The following information is available for Blossom Corporation for 2020.1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2021–2024.2. Interest received on municipal bonds was $9,300.3. Rent collected in advance on January 1, 2020, totaled $64,200 for a 3-year period. Of this amount, $42,800 was reported as unearned at December 31, 2020, for book purposes.4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years.5. Income taxes of $297,000 are due per the tax return for 2020.6. No deferred taxes existed at the beginning of 2020.Requried:Prepare the income tax expense section of the income statement for 2020.
Answer:
first we must determine taxable income = due income taxes / tax rate = $297,000 / 0.4 = $742,500
interest received on municipal bonds $9,300
unearned rent revenue = $42,800
deferred tax asset = $42,800 x 0.4 = $17,120
total pretax financial income = $742,500 + $9,300 + $124,000 - $42,800 = $833,000
deferred tax liability = $124,000 x .4 = $49,600
Income tax expense section
For the year ended December 31, 2020
Total pretax financial income $833,000
Income tax expense:
Income taxes $297,000Deferred tax liability $49,600Deferred tax asset -$17,120 -$329,480Net income $503,520
M&C Merchants is offering $2.5 million of new securities to the general public. Which SEC regulation governs this offering?
Answer:
Regulation A
Explanation:
Which of the following approaches should the Fed use if it experiences large lags and mistakes in monetary policy?
a. Discretionary policy
b. An eclectic approach
c. Fixed rules
d. Fiscal policy
Answer:
C. Fixed rules.
Explanation:
This is simply a policy that is seen to be a monetary or in some cases fiscal; they are said to be automated in most of its cases and are based on the criteria that are predetermined.
In most cases, these policies are seen to be binding and also categorically constrain officials' policy choices based on certain predetermined criteria to direct them toward serving the public interest.
Many cases by policymakers made this policy to be put in place because most of them generally cannot bind their own future choices, also fixed policy rules usually have to be enforced by some kind of higher authority in order to be binding etc.
A customer wishes to place an order to short 50,000 shares of ABC stock. The average daily trading volume (ADTV) in ABC stock is 40,000 shares. The representative:________.
A. should place the order
b. cannot place the order because the order size exceeds the ADTV.
c. should inform the client that the firm may not be able to borrow the stock.
d. sholud inform the client that the order can only be executed on an up-bid.
Answer:
c. should inform the client that the firm may not be able to borrow the stock.
Explanation:
Since it is mentioned that there is a short of 50,000 shares of ABC stock and the average daily trading volume is 40,000 shares that represent the trading of the stock is less i.e short
According to the SHO regulation, when the stock is sold has short than the dealer should track the shares i.e to be borrowed also find out the shares i.e to be delivered by the settlement by considering the documents
Now in this case, the shares i.e be borrowed find to be tougher also the tracking is not possible
Therefore the customer would not able to short the stock
the gross sales for store B were 876500. the custmer returns and allowances were 10%. what was the dollar amount of returns and allowances
Answer:
$87,650
Explanation:
The computation of the dollar amount of returns and allowances is shown below:
= Gross sales for store B × customer returns and allowances percentage
= $876,500 × 10%
= $87,650
By multiplying the gross sales with the customer returns and allowances percentage we can get the dollar amount with respect to the returns and allowances and the same is to be considered
You are planning to save for retirement over the next 25 years. To do this, you will invest $880 per month in a stock account and $480 per month in a bond account. The return of the stock account is expected to be an APR of 10.8 percent, and the bond account will earn an APR of 6.8 percent. When you retire, you will combine your money into an account with an APR of 7.8 percent. All interest rates are compounded monthly. How much can you withdraw each month from your account assuming a withdrawal period of 20 years
Answer:
$14,143.86 can be withdrawn each month from the account for 20 years.
Explanation:
To determine this, the first step is to use the formula for calculating the future value (FV) of ordinary annuity to calculate the FV of both stock and bond as follows:
Calculation of Future Value of Stock
FVs = M × {[(1 + r)^n - 1] ÷ r} ................................. (1)
Where,
FVs = Future value of the amount invested in stock after 25 years =?
M = Monthly investment = $880
r = Monthly interest rate = 10.8% ÷ 12 = 0.9%, or 0.009
n = number of months = 25 years × 12 months = 300
Substituting the values into equation (1), we have:
FVs = $880 × {[(1 + 0.009)^360 - 1] ÷ 0.009}
FVs = $880 × 1,522.3445923122
FVs = $1,339,663.24
Calculation of Future Value of Bond
FVd = M × {[(1 + r)^n - 1] ÷ r} ................................. (1)
Where,
FVd = Future value of the amount invested in bond after 25 years =?
M = Monthly investment = $480
r = Monthly interest rate = 6.8% ÷ 12 = 0.566666666666667%, or 0.00566666666666667
n = number of months = 25 years × 12 months = 300
Substituting the values into equation (1), we have:
FVd = $480 × {[(1 + 0.00566666666666667)^300 - 1] ÷ 0.00566666666666667}
FVd = $480 × 784.895879465925
FVd = $376,750.02
Calculation of the amount that can be withdrawn monthly for 20 years
To calculate this, the formula for calculating the present value of an ordinary annuity is used as follows:
PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] …………………………………. (3)
Where;
PV = Combined present values of stock and bond investments after retirement = FVs + FVb = $1,339,663.24 + $376,750.02 = $1,716,413.26
P = Monthly withdrawal = ?
r = Monthly interest rate = 7.8% ÷ 12 = 0.65%, or 0.0065
n = number of months = 20 years * 12 months = 240
Substitute the values into equation (3) and solve for P to have:
PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r]
$1,716,413.26 = P × [{1 - [1 ÷ (1 + 0.0065)]^240} ÷ 0.0065]
$1,716,413.26 = P × 121.353915567094
P = $1,716,413.26 / 121.353915567094
P = $14,143.86
Therefore, $14,143.86 can be withdrawn each month from the account for 20 years.
"A registered representative is a 15% participant in an investment club formed by members of the local Elks Club. The Elks Club investment club has opened a securities account at ABC Brokerage. The account wishes to buy an IPO being offered by an underwriter. Which statement is TRUE?"
Answer: D. The account is prohibited from buying the new issue
Explanation:
The options to the question are:
A. The account can buy the issue without restriction
B. The account can buy the issue if the branch manager approves
C. The account can buy the issue if the registered representative agrees not to share in the profit on the position
D. The account is prohibited from buying the new issue.
From the question, we are informed that a registered representative is a 15% participant in an investment club formed by members of the local Elks Club and that the Elks Club investment club has opened a securities account at ABC Brokerage.
We are further told that the account wishes to buy an IPO being offered by an underwriter, out of the options that were given, the correct option is that account is prohibited from buying the new issue.
. A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price
Answer:
The answer is $18.29
Explanation:
We have many formulas to arriving at the stock price but here we use Gordon growth model.
Formula for getting stock price is:
D1/r - g
Where:
D1 - is the next year dividend or expected dividend to be paid next.
r is the rate of return
g is the growth rate
$0.75/0.105 - 0.064
$0.75/0.041
$18.29.
Therefore, the stock's current price is $18.29
You are considering buying a perpetuity contract from your insurance company that will pay you $500 annually where the payment will grow by 3% each year. Using a discount rate of 9%, the most you should be willing to pay for this contract is closest to:
Answer:
Maximum Amount Payable = $8333.33
Explanation:
Perpetual Annuity Payment = $500
Growth Rate = 3%
Discount Rate = 9%
Maximum Amount Payable = Present Value of Perpetual Annuity
Present Value of Perpetual Annuity = Perpetual Annuity Payment / (Discount rate - Growth rate)
Maximum Amount Payable = $500 / (0.09 - 0.03)
Maximum Amount Payable = $500 / 0.06
Maximum Amount Payable = $8333.33
Even if you cannot meet all of the elements of a contract, in special circumstances, courts may still find that there was an enforceable agreement.
a. True
b. False
Answer:
Correct answer:
a. True
Explanation:
A contract which is an agreement between two individual is meant to be kept in any given business situation. In a situation where there is a need not to meet the elements of the contracts, there might be cancellation of the contract if both parties agrees.
When one of the parties refuses, he or she would go to court inorder to enforce the agreement. In most cases, the court would see reasons on why the agreements must be enforced.
rancis Inc.'s stock has a required rate of return of 10.25%, and it sells for $87.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1
Answer:
$3.72
Explanation:
Francis incorporation stock has a required rate of return of 10.25%
The stock is sold at $87.50 per share
The growth rate is 6% per year
Therefore, the expected dividend can be calculated as follows
= Po(rs-g)
= $87.50(10.25%-6%)
= $87.50×4.25
= $3.72
Hence the expected year end dividend is $3.72
Under the Securities Act of 1933, signatures will be obtained by which of the following persons involved in an underwriting?
I. Chief Executive Officer of the issuer
II. Chief Financial Officer of the issuer
III. Accountants of the issuer
IV. Lawyers of the issuer
a. I and II
b. III and IV
c. I, II, III
d. I, II, III, IV
Answer: d. . I, II, III, IV
Explanation:
The Securities Act of 1933 was put in place in order to ensure that the investors get adequate information regarding the securities that are being sold to the public and to also prevent fraud and deceit.
Under the Securities Act of 1933, signatures will be obtained by the Chief Executive Officer of the issuer, Chief Financial Officer of the issuer, the accountants of the issuer and the lawyers of the issuer.
Using the following data on bond yields: This Year Last Year Yield on top-rated corporate bonds 4 % 7 % Yield on intermediate-grade corporate bonds 6 % 9 % a. Calculate the confidence index this year and last year.
Answer:
0.6667 ; 0.7778
Explanation:
Given the following :
- - - - - - - - - - - - - - - - - this year - - - - last year
Top rated bond - - - - - 4% - - - - - - - - - 7%
Intermediate grade - - 6% - - - - - - - - - 9%
Confidence Index (This year) :
(Yield on top rated corporate bond / yield on intermediate grade corporate bond)
= 4% / 6% = 0.6667
Confidence index(last year) :
(Yield on top rated corporate bond / yield on intermediate grade corporate bond)
= 7% / 9% = 0.7778
Computing absorption cost per unit and variable cost per unit Adamson, Inc. has the following cost data for Product X:
Direct materials $41 per unit
Direct labor 57 per unit
Variable manufacturing overhead 7 per unit
Fixed manufacturing overhead 20,000 per year
Required:
Calculate the unit product cost using absorption costing and variable costing when production is 2,000 units, 2,500 units, and 5,000 units.
Answer:
unit cost for 2,000 units=$115
unit cost for 2,500 units =$113
unit cost for 5,000 units= $109
Explanation:
Absorption costing is method of costing where overheads are charged to units produced using volume-based bases. e.g machine hours, labour hours e.t.c. Units are valued using full cost per unit
Full cost per unit= Direct material cost + direct labor cost + Variable production overhead + Fixed production overhead
Fixed production overhead = Budgeted overhead/Budgeted production units
unit cost for 2,000 units
unit cost = 41 + 57 + 7 + (20,000/2000) = $115
unit cost for 2,500 units
unit cost = 41 + 57 + 7 + (20,000/2,500)= $113
unit cost for 5,000 units
unit cost = 41 + 57 + 7 + (20,000/5,000) = $109
unit cost for 2,000 units=$115
unit cost for 2,500 units =$113
unit cost for 5,000 units= $109
he carrying value of Blossom’s net identifiable assets, including the goodwill, at year-end is $855,000. Prepare Cullumber’s journal entry, if necessary, to record impairment of goodwill.
Answer:
Goodwill Impairment (Debit)
Goodwill (Credit)
Explanation:
In case goodwill is impaired, then the entry to record this impairment will be Goodwill Impairment Debit and Goodwill Credit.
By crediting the Goodwill, the account will be reduced. This shows that the business is currently worth less than is accounted for. The Goodwill account is reduced to identify this difference.
The Impairment loss is an expense and must be reflected in the income statement. Therefore, while we reduce Goodwill amount from balance sheet. We record the expense on the income statement, which would mean that the current year profit amount will be reduced.
The capitalized cost of $10,000 every 5 years forever, starting now at an interest rate of 10% per year, is closest to
Answer:
$15,000Explanation:
Capitalized cost = Initial cost + Interest.
Initial cost = Principal - $10,000
Interest = Principal * Rate * Time/100
Given Principal = $10,000
Rate (in %) = 10%
Time (in years) = 5 years
Interest = 10,000*10*5/100
Interest = $5000
Capitalized cost = Initial cost + Interest.
Capitalized cost = $10,000+$5,000
Capitalized cost = $15,000
Hence the capitalized cost of $10,000 every 5 years forever, starting now at an interest rate of 10% per year, is closest to $15,000
Edna is a leading brain surgeon in the United States. She enters into a contract to perform a complicated brain surgery on Ben. However, since Edna is very busy, she wants to assign this contract to a less experienced surgeon, Charles. This would be Charles's first operation of this type. Ben can object to this assignment and prevent it because the contract between Ben and Edna is a(n):
Complete Question:
Edna is a leading brain surgeon in the United States. She enters into a contract to perform a complicated brain surgery on Ben. However, since Edna is very busy, she wants to assign this contract to a less experienced surgeon, Charles. This would be Charles's first operation of this type. Ben can object to this assignment and prevent it because the contract between Ben and Edna is a(n):
Group of answer choices.
A. contract for services to be performed in the future.
B. contract involving personal skill.
C. services contract.
D. employment contract.
Answer:
B. contract involving personal skill.
Explanation:
In this scenario, Edna a leading brain surgeon in the United States enters into a contract to perform a complicated brain surgery on Ben. However, Edna is very busy and wants to assign this contract to a less experienced surgeon, Charles which would be his first operation of this type. Hence, Ben can object to this assignment (brain surgery) and prevent it because the contract between Ben and Edna is a contract involving personal skill.
Apparently, it can be deduced that Edna has competent and professional skills which is the reason why she's the leading brain surgeon in USA. Ben having this information at his disposal chose to go into the contract with Edna, who is an experienced brain surgeon. Therefore, the contract between the two (2) parties is solely based on Edna's personal skill.
On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 120 million, $1 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $35 on June 13. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is not to be effected in the form of a stock dividend. What is the par per share after the split
Answer:
Siewert Inc.
Journal Entry:
Memo: This is note that the stock has been split 2-for-1 and the number of common shares increased to 240 (120 x 2) million.
No journal entry is required for a split of 2-for-1 shares. What is required is a memo that indicates that the shares have been split.
The par value is now $0.50 ($1/2)
Explanation:
When the directors of Siewert Inc. declare a stock split, it does not require any journal entry. Instead, a memo is required to describe the declaration and the new number of shares that are now authorized if this has increased, and outstanding. The 2-for-1 split means that stockholders who held 1 share before will now be entitled to 2 shares. This doubling of the number of shares will affect the par value of the shares, causing it to divide by 2. For example, Siewert Inc.'s par value of common shares was $1 before the declaration of the split. After the split, the par value will change to $0.50 or half. This split will also affect the market price of the shares as investors are likely to reduce the current market price to about half of its prevailing price.
Job applicants generally face two kinds of interviews: screening interviews and hiring interviews. You will be better prepared if you know what to expect". An interview:_________If you want to ensure that you pass a screening interview, ______What can you expect in a one-on-one interview? a. You will be asked specific questions if the person is from human resources b. You will be asked general questions if the person is from human resources c. You will be asked specific questions that are job related if the person is the hiring manager d. You will be asked general questions if the person is the hiring manager e. You will sit down with the company representative and talk about the job.
Answer:
Correct Answer:
c. You will be asked specific questions that are job related if the person is the hiring manager
Explanation:
In job interview, when the job applicant reaches the stage of screening interview, it was expected that he or she should give their best in-order to get the job.
During the one-on-one interview, the applicant would be asked specific questions that are related to job such as his previous work experience, his expected contributions to the job when hired etc. This would help the hiring manager to decide if the applicant is the best candidate fit for the job.
DHL express deals with :
a) Air freight of goods
b) petroleum products
c) motorcycle company
d) import and export good
Answer:
DHL express deals with:
d)import and export good