Answer:
Scenario Description
Sell a tract of land it has held for years Investing
Pay preferred stock dividends Financing
Increase accrued liabilities Investing
Sell some old equipment Operating
Issue shares of common stock Financing
Increase inventory holdings Operating
Buy property for a future factory Investing
Also, Scenarios that are expected to increase a company’ cash-flow are Issue shares of common stock, Increase accrued liabilities and Sell some old equipment.
Your coworker Ethan is trying to find information on the Internet to include in his business report. In four to five sentences, give Ethan advice on some search strategies he can use to find what he's seeking.
Answer: Pick his subject title, do a search concerning it, and make his report from there
Explanation:
These is dependent on what actually he's filling in the report. I would advise Ethan to pick out the subject title of what he's searching for and place on the net. When he does that, he would get various responses. He would have to do the selection himself regarding that which fits into his search, then use it for his report
In December of this year, Paul, who is single, redeemed qualified Series EE U.S. Savings Bonds. The proceeds were used to help pay for his daughter's college tuition. Paul received proceeds of $10,000 representing principal of $7,000 and interest of $3,000. The qualified higher educational expenses he paid this year totaled $6,000. Paul has other adjusted gross income of $85,350. What is the amount of interest income Paul can exclude from his income this year
Answer:
$1,800
Explanation:
The computation of the amount of interest income that should be excluded is as follows:
Given that
Proceeds received $10,000
Principle $7,000
Interest $3,000
Qualified Higher Educational expenses $6,000
Now the amount excluded is
= $3,000 ×($6,000 ÷ ($7,000 + $3,000))
= $1,800
Which of the following are sections of the Schedule of Cost of Goods Manufactured?
a. Direct Labor
b. Direct Materials
c. Factory Overhead
d. Cost of Goods Manufactured
e. Cost of Goods Sold
f. Net Income
Answer:
a. Direct Labor
b. Direct Materials
c. Factory Overhead
d. Cost of Goods Manufactured
Explanation:
Costs of Goods Manufactured Schedule records the total of manufacturing costs only. So, consider all costs related to manufacturing process for this question.
QUESTION 9 of 10: The skill set to predict the various aspects of the business several months or even years into the future is called:
a) Supply chain management
b) Forecasting
c) Quality control
Answer:
b) Forecasting
Explanation:
The skill set that is used to predict the aspects of the business in the future is what is known as forecasting.
In field of business or management, forecasting is also known as predicting. It is used to predict the developmental strides that the business would attain in the years to come.
Forecasting is very helpful because it helps to come up with strategies that would be useful to the business in the future.
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Lucky Strike Mine (LLC) purchased a silver deposit for $1,500,000. It estimated it would extract 500,000 ounces of silver from the deposit. Lucky Strike mined the silver and sold it, reporting gross receipts of $1.8 million, $2.5 million, and $2 million for Years 1 through 3, respectively. During Years 1 through 3, Lucky Strike reported net income (loss) from the silver deposit activity in the amount of ($100,000), $400,000, and $100,000, respectively. In Years 1 through 3, Lucky Strike actually extracted 300,000 ounces of silver as follows: Ounces extracted per year Year 1 Year 2 Year 3 50,000 150,000 100,000 What is Lucky Strike's depletion deduction for Year 2 if the applicable percentage depletion for silver is 15 percent
Answer:
$375,000
Explanation:
depletion rate musts equal the lesser between:
net income = $400,000
or
15% of gross revenues = $2,500,000 x 15% = $375,000
in this case, $375,000 is the smallest amount.
The percentage of depletion is used by extraction companies, e.g. oil & gas companies or mining companies.
Mortensen Industries, which uses a process-costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The following selected information was taken from the company's accounting records: Total equivalent units of materials: 8,000 Total equivalent units of conversion: 7,240 Units started and completed during the period: 6,100 On the basis of this information, the ending work-in-process inventory's stage of completion is:
Answer:
60%
Explanation:
Calculation for what the ending work-in-process inventory's stage of completion is:
First step is to calculate the Total materials
Total equivalent units of materials + Units started and completed during the period = Total materials or 6,100 + x = 8,000; x = 1,900 (8,100-6,100)
Second step is to calculate Partial units with conversion costs in ending inventory
Using this formula
Partial units with conversion costs in ending inventory= Equivalent units of conversion –
Units started and completed during the period
Let plug in the formula
Partial units with conversion costs in ending inventory= 7,240 – 6,100
Partial units with conversion costs in ending inventory = 1,140 units
Now let calculate the ending work-in-process inventory's stage of completion
Ending work-in-process inventory's stage of completion= 1,140 ÷1,900
Ending work-in-process inventory's stage of completion=0.6*100
Ending work-in-process inventory's stage of completion= 60%
Therefore the ending work-in-process inventory's stage of completion is:60%
A Student table and an Address table contain one linked record. What kind of table relationship do these tables
demonstrate?
a. one-to-one
b. one-to-many
c. many-to-many
d. many-to-none
Answer:
A.)
Explanation:
hope this helps
Michael won the Powerball jackpot of 57 million dollars. He has two options to collect the cash: (a) 30-year annuities (first payment one year from today) which future value equates the jackpot amount given that the prevailing interest rate is 8% per year; (b) a single payment now, corresponding to the present value of those 30-year annuities. Michael has big plans, hence he prefers option (b). Assuming that there are no taxes, how much money will he be able to collect now
Answer:
$5,664,627.53
Explanation:
future value of the annuity = $57 million
interest rate = 8%
number of periods = 30
FV annuity factor, 8%, 30 periods = 113.283
annual payment = future value / FV annuity factor= $57,000,000 / 113.283 = $503,164.64
the present value of an annuity = annual payments x PV annuity factor
PV annuity factor, 30 periods, 8% = 11.258
present value of the annuity = $503,164.64 x 11.258 = $5,664,627.53
*80 points* Introduce a blog owner (a company, organization, or school). Analyze a professional blog owned by a company or by a not-for-profit organization. Professional blogs are different from personal blogs in many ways. You'll compare these two types of blogs.
Compare and contrast the professional blog that you have chosen with the personal blog on the following dimensions:
Topic: What is the topic of the professional blog? How is it different from the topic of the personal blog?
Design: How do the designs of the two blogs (layout, font, color theme, images, styles, and so on) vary?
Structure and Content: Explain how the structure and the presentation of data and content in the two blogs vary?
Audience: (followers/subscribers) Who is the target audience for each blog? What is the targeted demographics for each blog? What kind of audience does each blog attract? Is the audience different from the intended audience? How is the audience for your personal blog different from the audience for the professional blog?
Other Social Media Links: Which other types of social media are linked to each blog? How do they help drive more traffic to the blog? How are the social media links in the nonpersonal blog different from the links in your personal blog?
Evaluation: Summarize how the blogs are different.
Answer: A blog (a truncation of "weblog") is a discussion or informational website published on the ... However, blog owners or authors often moderate and filter online comments to remove hate speech or other offensive content. ... by inventing new ways to navigate through huge amounts of information present in the blogosphere
Explanation: i hope that helps you!
It is generally not a good idea to put a cash advance on your credit card because
It will negatively effect your credit score.
O
Credit card companies charge a higher interest rate (and often an additional fee) on cash advances than they do on
purchases
O Credit cards have no grace periods on cash advances
Student loans must be repaid and grants do not need to be repaid.
Explain what answer he came to and why. Next, discuss the approach human resource management should take toward organizational social responsibility. Finally, cite one real-life example of a company implementing social responsibility that is not mentioned in the video or the course textbook. Be sure to be factual and to fully support your answer.
Explanation:
The management of human resources in a globalized society, must be focused on the inclusion and protection of diversity. Organizational social responsibility includes protecting the individual rights of each individual regardless of their culture or individual values.
A socially and environmentally responsible company is one that is concerned with its internal and external environment, adopting the best current practices for the protection and development of the society in which it operates and the environment.
A company that implements social responsibility is the Brazilian agribusiness company Amaggi, which has the potential to cause negative impacts on the environment, but which develops environmental protection programs and contains ISO environmental certifications for the adoption of continuous environmental improvement practices, as well as the creation of subsidy and protection programs for local farmers.
If Ralph rides the bus to work which is considered an inferior good/service. After Ralph applies for and accepts a new management job at twice his old salary he starts to make changes. Based on what you have learned about changes in income and consumer choices, what will most likely happen to Ralph’s use of public transportation? Group of answer choices Ralph would discontinue riding the bus and switch to riding his bike. Ralph would discontinue riding the bus and purchase a car. It will decrease since Ralph will ask his boss if he can telework to avoid the long commute. Ralph would continue riding the bus.
Answer:
Ralph would discontinue riding the bus and purchase a car.
Explanation:
As in the question it is mentioned that Ralph rides the bus when he go to work this represent an inferior good or a service but when he accept a new management job where his salary is doubled so he begins to make the changes
The change is that as the income rises, so the consumption would fall so he would prefer the more expensive option i.e to purchase a car
A- Ralph would discontinue riding the bus and switch to riding his bike after he gets a new management job and his salary is doubled as compared to the old payroll of Ralph.
Ralph is a rational consumer who will like to upgrade his lifestyle only when his salary reaches a level that he can spend extra part of his disposable income.
Ralph would continue riding his bike for numerous reasons one of them being that he would want to save the time of commute between his accommodation and his workplace,Ralph will also be able to save time for himself when he reaches home as he can depart at his own comfortable times and this will lead to him eventually spending on own's happiness for Ralph.Ralph will also end up saving money even after commuting through bike as he knows that his salary is doubled from the previous salary. This will hence not cost as much to him than he would proportionately save.
Hence, the correct option is A that Ralph will stop riding bus and use bike to commute.
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The time management skill of knowing your limits means: A. Knowing how long it will take you to accomplish a task. B. Knowing how to accomplish a lot of objectives so you do not have to cut back C. Knowing how to do everything so you never need to say no. D. All of the above
Answer:
A. Knowing how long it will take you to accomplish a task
Explanation:
Knowing your limits refers to understanding one potential and abilities. It is recognizing one's strengths and weaknesses. The time management skill of knowing your limits refers to the ability to accurately estimates how long it will take one to accomplish a specific task. It implies that an individual is fully aware of their true potential, what they can achieve, and how long it will take them to achieve it.
Answer:
The answer is A
Explanation:
Martha is a regional supervisor who earns a base salary of $34,400 per year plus a 1% commission on all service contracts that she sells to existing customers. The company pays salaries on a semi monthly basis and contract commissions on a quarterly basis. As of September 30, Martha had made $38,200 in contract sales for the third quarter. What will be her gross pay on her next pay date
Answer:
Martha gross pay on her next pay date is $1,815.33.
Explanation:
This can be calculated as follows:
Number of semi months in a year = 24
Semi monthly salary = Salary per year / Number of semi months in a year = $34,400 / 24 = $1,433.33
Commission from contract sales for the third quarter = Contract sales for the third quarter * Commission percentage = $38,200 * 1% = $382
Martha gross pay on her next pay date = Semi monthly salary + Commission from contract sales for the third quarter = $1,433.33 + $382 = $1,815.33
Therefore, Martha gross pay on her next pay date is $1,815.33.
Which function on the Capital IQ platform allows users to receive notifications when there are any news or key developments entered for selected companies?
Answer: Create New Alert
Explanation:
To receive notification on the Capital IQ platform, an alert would have to be created by "create new alert". To do that navigate to My Capital IQ - My Alerts. Click on “Create New Alert” link and enter a name for the alert you want to create. Select the box next to Key Developments and add companies to your alert.
Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $480 100 Variable costs 312 65 Unit contribution margin $168 35 Assume that Staley Co. is currently selling 600 computer monitors per month and monthly fixed costs are $80,000. Staley Co.'s margin of safety ratio (MOS%) if 600 units are sold would be (round intermediate calculation up to nearest whole number of units): 79.5%. 19.5%. 33.4%. 17.7%. 20.5%.
Answer:
20.5%
Explanation:
Calculation for what Staley Co.'s margin of safety ratio (MOS%) if 600 units are sold would be
First step is to calculate Break-even amount
Break-even = $80,000/($480-$312)
Break-even= 476.19
Break-even= 477 approximately
Second step is to calculate the Margin of Safety
Margin of Safety = 600-477
Margin of Safety= 123
Now let calculate the margin of safety ratio
Margin of safety ratio=123/600
Margin of safety ratio=20.5%
Therefore Staley Co.'s margin of safety ratio (MOS%) if 600 units are sold would be 20.5%
A company's ledger is: Group of answer choices A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item. A journal in which transactions are first recorded. A collection of documents that describe transactions and events entering the accounting process. A list of all accounts a company uses with an assigned identification number. A record containing all accounts and their balances used by the company.
Answer:
A record containing all accounts and their balances used by the company.
Explanation:
A company's ledger is a record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item.
When a transaction occurs, it is initially recorded in a journal, which serves as the first entry point for documenting transactions. The journal provides a chronological order of transactions. These transactions are then transferred to the ledger, where they are organized by account.
The ledger consists of individual accounts, each assigned an identification number. These accounts represent different categories, such as cash, accounts payable, inventory, sales revenue, etc. Every transaction affecting these accounts is recorded in the ledger, indicating the increases or decreases in their respective balances.
Overall, the ledger provides a comprehensive snapshot of the company's financial position and helps in generating financial statements. It allows businesses to monitor their financial health, track transactions accurately, and prepare financial reports for analysis and decision-making.
Hence the correct option is (a).
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Following is financial information for three ventures:
VENTURE XX VENTURE YY VENTURE ZZ
After-tax profit margins 5% 25% 15%
Asset turnover 2.0 times 3.0 times 1.0 times
a. Calculate the return on assets (ROA) for each firm.
b. Which venture is indicative of a strong entrepreneurial venture opportunity?
c. Which venture seems to be more of a commodity type business?
Answer:
a. The ROA:
Venture XX = After tax profit margin * Asset turnover = 5% * 2 = 10%
Venture YY = 25% * 3 = 75%
Venture ZZ = 15% * 1 = 15%
B) The strong entrepreneurial venture opportunity is Venture YY being havibg higher ROA at 75%.
C) The Venture ZZ seems to be more of a commodity-type business because the return on sales and asset turnover is moderate one.
The study of the role consumers play in a economic system is called what
Answer: Can i get OWA OWA
Explanation:
The chart below gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP for both years. Use 2001 as the base year.
Year 2000 2001
Price Quantity Price Quantity
Ice Cream $7.00 600 $3.00 400
Blue Jeans $70.00 20 $20.00 90
Laptops $300.00 5 $300.00 5
2000 nominal GDP = $_________
2001 nominal GDP = $_________
2000 real GDP = $_________
2001 real GDP = $_________
Answer and Explanation:
The computation is shown below:
As we know that
Nominal GDP = Sum of (Present Year Price × Present Year Quantity)
And,
Real GDP = Sum of (Base Year Price × Present Year Quantity)
Now
(a) Nominal GDP, 2000 is
= $[(7 × 600) + (70 × 20) + (300 × 5)]
= $4,200 + $1,400 + $1,500
= $7,100
(b) Nominal GDP, 2001 is
= $[(3 × 400) + (20 × 90) + (300 × 5)]
= ($1,200 + $1,800 + $1,500)
= $4,500
(c) Real GDP, 2000 is
= $[(3 × 600) + (20 × 20) + (300 × 5)]
= $1,800 + $400 + 1,500
= $3,700
(d) Real GDP, 2001 is
= $[(3 × 400) + (20 × 90) + (300 × 5)]
= $1,200 + $1,800 + $1,500
= $4,500
Over the past several years it has become increasingly important for firms to improve achievement towards their social and environmental responsibilities. What is the best way the management accountant can help the firm improve on sustainability?
Answer: Develop and implement a sustainability scorecard
Explanation:
Sustainability simply has to do with how our needs are being met without it leading to depletion of the resources or compromising the future generations from meeting their own needs as well.
The best way the management accountant can help the firm improve on sustainability will be to develop and implement a sustainability scorecard. This will be vital in showing how everyone getting along with sustainability.
The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered 5 Years employed as of January 1 4 (each) Attribution period 20 years EPBO, January 1 $ 64,000 EPBO, December 31 $ 68,480 Interest rate 7 % Funding and plan assets None What is the service cost to be included in the current year's postretirement benefit expense?
Answer:
$3,424
Explanation:
Calculation for What is the service cost to be included in the current year's postretirement benefit expense
Service cost=December 31 $ 68,480*1/20 years
Service cost=$3,424
Therefore the service cost to be included in the current year's postretirement benefit expense will be $3,424
The essential characteristics of financial statement fraud are: The misstatement is material and intentional and the users of the financial statements are investors in publicly traded companies. This misstatement is material and intentional and the preparers of the financial statements have a fiduciary obligation to the organization. The misstatement is material and intentional and the preparers of the financial statements fail to report the misstatement to the SEC or other applicable authority. The misstatement is material and intentional and the users of the financial statements have been misled.
Answer:
The misstatement is material and intentional and the users of the financial statements have been misled.
Explanation:
Financial statement fraud is defined as the intentional misstatement or ommision of information on the financial statement that is aimed at deceiving users of financial statement.
When a fraud is perpetrated the act is an intentional attempt to misrepresent a situation to illegally gain something that is not legally yours.
For example financial statement fraud can be done to obtain a loan or inflate the price of company shares.
Usually profits, assets, and revenue are overstated. While liabilities, expenses, and losses are understated
Boyd Docker engaged in the following activities in establishing his photography studio, SnapShot!:
1. Opened a bank account in the name of SnapShot! and deposited $8,290 of his own money into this account in exchange for common stock.
2. Purchased photography supplies at a total cost of $980. The business paid $390 in cash, and the balance is on account.
3. Obtained estimates on the cost of photography equipment from three different manufacturers.
In what form (type of record) should Joel record these three activities?
Prepare the entries to record the transactions.
Answer:
1. Dr Cash $8,290
Cr Common stock $8,290
2. Dr Supplies $980
Cr Cash $390
Cr Accounts payable $590
3. No Entry $0
No Entry $0
Explanation:
Preparation of the entries to record the transactions
1. Based on the information given if he deposited the amount of $8,290 of his own money into this account in exchange for common stock the journal entry will be:
Dr Cash $8,290
Cr Common stock $8,290
(Being To record the investment)
2. Based on the information given in a situation where he Purchased photography supplies at a total cost of the amount of $980 which means that if The business paid the amount of $390 in cash, and the balance is on account the journal entry will be:
Dr Supplies $980
Cr Cash $390
Cr Accounts payable $590
($980-$390)
(Being To record the purchase of supplies)
3. Based on the information given in a situation where he Obtained the estimates on the cost of photography equipment from the three different manufacturers which means that no transaction or entry will be recorded.
No Entry $0
No Entry $0
HELP ASAP:
In the open market, oil shares are an example of:
A. finance.
B. accounting.
C. a commodity.
D. a security.
Answer:
C. A commodity
Explanation:
Cost of Goods Sold Section, Multiple-Step Income Statement
Based on the information that follows, prepare the cost of goods sold section of a multiple-step income statement.
Merchandise Inventory, January 1, 20-- $37,000
Estimated Returns Inventory, January 1, 20-- 1,000
Purchases 102,000
Purchases Returns and Allowances 4,200
Purchases Discounts 2,040
Freight-In 800
Merchandise Inventory, December 31, 20-- 30,500
Estimated Returns Inventory, December 31, 20-- 1,500
Income Statement
For Year Ended December 31, 20--
Cost of goods sold:
$
$
$
$
$
$
$
Cost of goods sold $
Answer and Explanation:
The preparation of the cost of goods sold section of a multiple-step income statement is presented below:
Cost of goods section
Multiple-income statement
Opening inventory $37,000
Estimated return inventory $1,000
Purchase $102,000
Less purchase returns -$4,200
Less: Purchase discount -$2,040
Add: Freight in $800
Less: closing inventory -$30,500
Less: estimated return inventory -$1,500
Cost of goods sold $102,560
The residents of cities A, B, C, D and E consume wi-fi routers, with consumption in each city is 150 routers (see the map below). The firm that produces routers must decide how to set-up production. It could set up five factories, dispersed across each city, with each factory producing 150 routers and supplying to its own local city market. In this case, the firm incurs no cost for shipping output. Alternatively, the firm could locate its factory at centrally located city C, and supply routers to the entire region. The single factory in city C must then produce 750 routers, 600 of which are shipped to the cities A, B, D and E for a shipping cost of $6 per router.
A E
C
B D
(a) Suppose the average cost of producing a router is AC (Q) = 1500/Q, where Q is the number of routers produced in a factory. Calculate AC with Q = 150 and Q = 750, respectively. Note and explain how this production process exhibit economies of scale.
(b) Based on the AC function from part (a), find the optimal arrangement of production for the firm (one central factory or five dispersed factories). The optimal arrangement minimizes total cost for the firm, where total cost is the sum of production cost and shipping cost. Clearly write down all your calculations.
(c) Now suppose the average cost of producing a router is AC = 14000/(Q+1250). Now, repeat the calculation of AC with Q = 150 and Q = 750.
(d) Based on the AC function from part (c), now repeat your calculations to find the cost-minimizing arrangement of production in the case. (e) Explain intuitively the difference is results between responses to part (b) and (d).
(f) Suppose now production costs are those given in part (a) but let shipping cost per router be given by t (in the preceding discussion, we had t = 6, now we assume we don’t know the cost of shipping). What value of t would make the two arrangements for production (centralized versus separate factories) equivalent in terms of cost? i.e. what value of t would make the firm indifferent between a centralized versus a dispersed set-up?
Answer:
a. The production process shows that the more the quantity produced, the less the average cost of production. It proves that there are advantages arising from economies of scale.
AC with Q = 150 = $10 ($1,500/150) and
AC with Q = 750 = $2 ($1,500/750)
b. The optimal arrangement is (centralized production) to produce the 750 routers at city C and ship to the 4 other cities.
c. AC with Q = 150 = $10 (14000/(150+1250) and
AC with Q = 750 = $7 (14000/(750+1250)
d. The cost-minimizing arrangement of production in this case is decentralized production.
e. The average cost of producing 150 units at the various cities has remained unchanged while the average cost of producing the 750 units at city C has increased from $2 to $7.
f. Suppose now production costs are those given in part (a) but let shipping cost per router be given by t (in the preceding discussion, we had t = 6, now we assume we don’t know the cost of shipping).
The value of t that would make the two arrangements for production (centralized versus separate factories) equivalent in terms of cost is:
t = $10 per router
Therefore, centralized production cost will be equal to $7,500 ($1,500 + ($10 * 600), and decentralized production cost will remain at $7,500 (750 * $10).
Explanation:
a) Data and Calculations:
Cities with consumers of wi-fi routers = A, B, C, D and E
Demand for routers by each city = 150
Total number of routers required = 750 (150 * 5)
b) Suppose the average cost of producing a router is AC (Q) = 1500/Q, where Q is the number of routers produced in a factory:
Therefore AC with Q = 150 = $10 ($1,500/150) and
AC with Q = 750 = $2 ($1,500/750)
Cost of Production of routers in city C:
cost of producing 750 routers at $2 per router = $1,500
Shipping cost of 600 routers to 4 cities at $6 per router = $3,600
Total cost of producing at city C = $5,100 ($1,500 + $3,600)
Total cost of producing 750 routers at 5 cities = $7,500 ($1,500/150 * 750)
c) Suppose the average cost of producing a router is AC = 14000/(Q+1250):
Therefore, AC with Q = 150 = $10 (14000/(150+1250) and
AC with Q = 750 = $7 (14000/(750+1250)
Cost of Production of routers in city C:
cost of producing 750 routers at $7 per router = $5,250
Shipping cost of 600 routers to 4 cities at $6 per router = $3,600
Total cost of producing at city C = $8,850 ($5,250 + $3,600)
Total cost of producing 750 routers at 5 cities = $7,500 ($1,500/150 * 750)
d) $7,500 = $1,500 + tQ
where Q = 600 (150 * 4)
Therefore, $7,500 - $1,500 = t600
simplifying
t600 = $6,000
t = $6,000/600 = $10
When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _________________ of investing in physical capital.
Answer:
opportunity cost
Explanation:
When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the opportunity cost of investing in physical capital.
Use the following tax rates, ceiling and maximum taxes:
Employee and Employer OASDI: 6.20% $127,200 $7,886.40
Employee* and Employer HI: 1.45% No limit No maximum
Self-employed OASDI: 12.4% $127,200 $15,772.80
Self-employed HI: 2.9% No limit No maximum
*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.
Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows:
Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate).
If the third decimal place is 5 or more, round to the next higher cent.
If the third decimal place is less than 5, drop the third decimal place.
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.
Jax Company's (a monthly depositor) tax liability (amount withheld from employees' wages for federal income tax and FICA tax plus the company's portion of the FICA tax) for July was $1,210. No deposit was made by the company until August 24, 20--. Determine the following:
Note: Round your answers to the nearest cent and assume 365 days in a year.
a. The date by which the deposit should have been made August 25
b. The penalty for failure to make timely deposit $________
c. The penalty for failure to fully pay tax when due $________
d. The interest on taxes due and unpaid (assume a 4% interest rate) $________
Answer:
A. 15th August
B. 60.5
C. 6.05
D. 1.19
Explanation:
Let assume that during the lookback period, you reported a tax rate of $50000 or less. It implies that you're a monthly depositor(based on schedule) and all taxes much be deposited on or before the 15th day of the next month.
Inability to meet up with the timely deposit has penalty based on their tiers.
For 1 - 5 days late = 2% of upaod depsot
6 - 15 late = 5% on tax payment
15 days late = 10% on deposits
10 days late of IRS = 15% on deposit
Since no deposits were made till Aug 24, then deposit has been delayed by 9 days (i.e. Aug 15 - 24)
Thus, the penalty for making timely deposit = 1210 × 0.05 = 60.5
Inability to pay the penalty = 0.5 percent per month ( for unpaid taxes).
So, the penalty for failure of fully paid tax = 120 × 0.5% = 6.05
Assuming a 4% interest rate; the interest on taxes due & unpaid is
= 1210 × 0.04 × 9/365
= 1.19
Therefore, the total penalty imposed = 60.5 + 6.05 + 1.19 = 67.74
Isaac Inc. began operations in January 2018. For certain of its property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2018, Isaac had $688 million in sales of this type. Scheduled collections for these sales are as follows:
2018 $ 60 million
2019 120 million
2020 120 million
2021 150 million
2022 150 million
$ 600 million
Assume that Isaac has a 30% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses and additional sales in 2019, what deferred tax liability would Isaac report in its year-end 2019 balance sheet?
a. $126 million.
b. $54 million.
c. $144 million.
d. $180 million.
Answer:
a. $126 million.
Explanation:
The computation of the deferred tax liability is as follows
Particulars 2018 2019
(in $ millions)
Income for
Finan reporting 600 0
Income for income
tax purpose 60 120
Difference 540 120
Opening balance 162
of dtl
Dtl creation
(30% of 540) 162 0
Reversal of dtl
(30% of 120) 0 -36
Ending balance 162 126