Answer:
Part 1
Revised depreciation expense = $32,000
Part 2
The entry to record depreciation expense :
Debit : Depreciation Expense $32,000
Credit : Accumulated Depreciation $32,000
Explanation:
Straight line method charges a fixed depreciation charge over the year of use of an asset.
Depreciation expense = (Cost - Salvage Value) ÷ Estimated Useful Life
2021
Depreciation expense = $80,000
2022
Old Depreciation expense = $80,000
New Depreciation expense = Depreciable Amount ÷ Remaining Useful Life
= ($240,000 - $80,000) ÷ 5
= $32,000
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 23%, while stock B has a standard deviation of return of 29%. Stock A comprises 70% of the portfolio, while stock B comprises 30% of the portfolio. If the variance of return on the portfolio is 0.042, the correlation coefficient between the returns on A and B is _________. Multiple Choice 0.088 0.304 0.213 0.091
Answer:
0.304
Explanation:
The calculation has been done step by step in order to understand the final result. Note that (p) in the below working refers to the correlation coefficient between Stock A and B.
0.042 = (0.70^2)(0.23^2) + (0.30^2)(0.29^2) + 2(0.70)(0.30)(0.23)(0.29)p
0.042 = 0.0259 + 0.0076 + 0.028p
0.042 = 0.0335 + 0.028p
0.042 - 0.0335 = 0.028p
0.0085 = 0.028p
p = 0.0085 / 0.028
p = 0.304
As 2017, Buttle Corp. has $10 par, 2% preferred stock, 6,500 shares outstanding, and $1 par common stock with 32,000 shares outstanding. The preferred stock is cumulative and preferred stockholders last received a dividend in 2014. If the company wants to distribute $4 per share to the common stockholders in 2017, what is the total amount of dividends that the company must pay at the end of the current year
Answer:
$131,900
Explanation:
Th computation of the total amount of dividend is shown below:
dividend per year for preferred stock is
= (10 × 6500) × 2%
= $1300
Now the total dividend for preferred stock is
= ($1300 × 3)
= $3900
And, the Total common dividend is
= (4 × 32,000)
= $128,000
So, the total dividend to be paid is
= $3,900 + $128,000
= $131,900
The Michael Miller Corporation has a sales budget for next month of $200,000. Cost of goods sold is expected to be $125,000. All goods are paid for in the month following their purchase. The beginning inventory of merchandise is $8,000, and an ending inventory of $6,000 is desired. Beginning accounts payable is $26,000. How much merchandise inventory will The Michael Miller Corporation need to purchase next month
Answer:
the inventory to be purchased next month is $123,000
Explanation:
The computation of the inventory to be purchased next month is shown below:
= Cost of goods sold + closing inventory - opening inventory
= $125,000 + $6,000 - $8,000
= $123,000
hence, the inventory to be purchased next month is $123,000
We simply applied the above formula so that the purchase value of the inventory could come
What macroeconomic goal is Real GDP used to measure for?
Answer:
"Economic growth " would be the correct answer.
Explanation:
Throughout a particular year, real GDP tests the overall production as well as commodities of the economy, including light of the price adjustments.People should measure or equate GDP throughout the year as inflation would be factored into the equation which would be a fair predictor about wherever the market cycle goes.Thus the above is the right answer.
Crane Company offered detachable 5-year warrants to buy one share of common stock (par value $5) at $20 (at a time when the stock was selling for $30). The price paid for 700, $1,000 bonds with the warrants attached was $810000. The market price of the Crane bonds without the warrants was $710000, and the market price of the warrants without the bonds was $71800. What amount should be allocated to the warrants
Answer:
$ 74,389.87
Explanation:
It is given that :
The cost of 700, $1000 bonds with warrant attached to the bond = $810,000
The cost of Crane bonds with warrant = $710,000
The cost of market price of the warrants without bonds = $71,800
Therefore, the amount should be allocated to the warrants :
[tex]$=\frac{\$71,800}{\$71,800+\$710,000}\times \$ 810,000$[/tex]
[tex]$=\frac{\$71,800}{\$781,800}\times \$ 810,000$[/tex]
= $ 74,389.87
The following information is given from The Gathering Sound, Inc. for the month of August, 2020: Beginning raw materials inventory $21,600 Ending raw materials inventory $18,600 Beginning work in process inventory $35,000 Ending work in process inventory $37,450 Beginning finished goods inventory $29,340 Ending finished goods inventory $28,995 Raw material purchases $88,210 Direct materials used $89,300 Direct labor used $51,730 Total factory overhead applied $62,076 Calculate the Cost of Goods Sold. a. $203,106 b. $203,656 c. $201,001 d. $200,311 e. $200,656
Answer:
Explanation:
Step 1 : Cost of Goods Manufactured
Step 2 : Cost of Goods Sold
Opening Finished Goods Inventory $29,340
Add Cost of Goods Manufactured
Less Finished Goods Inventory ($28,995)
Cost of Goods Sold
jasmine has too many files in her math folder and can't easily find her class notes. what should she do to help her find her notes easily?
Answer:
used folders or sticky notes in a binder. Notes saying what they are help too.
Explanation:
The Low-Price auto insurance company offers a bottom-dollar deal that meets minimum car insurance policy requirements. It creates a marketing message that gives customers information on how expensive other insurances are in comparison. It invites consumers to shop around and compare prices. Low-Price focuses solely on price point and mentions very little about what is covered for that policy. Which type of psychological pricing communication does Low-Price use
Answer:
Inviting Price Comparison.
Explanation:
In this type of comparison, the company develop two scenarios in which the first situation, the people compare the product price with the existing product and in the other situation where the company inform the customer to compare the product price with the existing product
Hence, the given situation represent the inviting price comparsion
The PPP theory fails in reality for all of the following reasons EXCEPT Group of answer choices monopolistic or oligopolistic practices in goods markets. restrictions on trade. inflation rates are unrelated to money supply growth. transport costs. the inflation data reported in different countries are based on different commodity baskets.
Answer:
inflation rates are unrelated to money supply growth.
Explanation:
purchasing power parity which is regarded as (PPP) is a macroeconomic analysis metric which gives comparison between economic productivity aas well as standards of living existing between countries. It can be regarded as economic theory which gives comparison of currencies of different countries using an approach of "basket of goods". The PPP theory can hold in reality for instance, when inflation rates are unrelated to money supply growth.
EXCEPT Group of answer choices monopolistic or oligopolistic practices in goods markets. restrictions on trade. the inflation data reported in different countries are based on different commodity baskets.
A plant asset was purchased on January 1 for $140000 with an estimated salvage value of $20000 at the end of its useful life. The current year's Depreciation Expense is $10000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $40000. The remaining useful life of the plant asset is
Answer:
useful life= 12 years
Explanation:
Giving the following information:
Purchase price= $140,000
Salvage value= $20,000
Annual depreciation= $10,000
To calculate the useful life, we need to use the straight-line method formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
10,000= (140,00 - 20,000) / useful life
10,000useful life = 120,000
useful life= 120,000 / 10,000
useful life= 12 years
Transformational leaders enhance performance of employees by ________. Group of answer choices Restricting creativity among employees Focusing on short-term goals for employees Instilling pride in employees and gaining their respect and trust Establishing goals, roles, and requirements
Answer:
gaining their respect and trust establishing goals roles and requirements
Renata Corporation purchased equipment in 2018 for $244,800 and has taken $110,160 of regular MACRS depreciation. Renata Corporation sells the equipment in 2020 for $146,880. What is the amount and character of Renata's gain or loss? Renata Corporation has a gain of $fill in the blank 1 of which $fill in the blank 2 is treated as ordinary income due to § 1245 recapture
Answer and Explanation:
The computation of the amount and the character of the renata gain or loss is shown below;
purchased equipment in 2018 $244,800
regular MACRS depreciation taken -$110,160
WDV as per MACRS method $134,640
Less: Sell the equipment -$146,880
loss on sale of equipment -$12,240
There is a loss and that would be short term capital loss
Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following
Machine A could be purchased for $69,000. It will last 10 years with annual maintenance costs of $2,200 per year. After 10 years the machine can be sold for $7,245.
Machine B could be purchased for $57,500. It also will last 10 years and will require maintenance costs of $8,800 in year three, $11,000 in year six, and $13,200 in year eight. After 10 years, the machine will have no salvage value.
Required:
Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are paid at the end of each year. Calculate the present value of Machine A & Machine B. Which machine Esquire should purchase?
Answer:
Esquire should purchase Machine B
Explanation:
Below is the calculation of the present values of Machine A & Machine B.
Machine A Period Amount Present Value Factor Present Value
Purchase Cost 0 ($69,000) 1 ($69,000)
Maintenance Cost 1 - 10 ($2,200) 6.71008 ($14,762)
Salvage Value 10 $7,245 0.46319 $3,356
Present Value of A ($80,406)
Machine B Period Amount Present Value Factor Present Value
Purchase Cost 0 ($57,500) 1 ($57,500)
Maintenance Cost
Year 3 3 ($8,800) 0.79383 ($6,986)
Year 6 6 ($11,000) 0.63017 ($6.932)
Year 8 8 ($13,200) 0.54027 ($7,132)
Present Value of B ($78,550)
Note the Following:
The Net Present Value of B is lower than the Value of Machine A. So, Machine B should be opted.For the Present Value Factor of Machine A's Maintenance Cost, the 10 year annuity value of 8% was calculated.Machine B has no salvage value after the 10th year period.Batista Company management wants to maintain a minimum monthly cash balance of $19,900. At the beginning of April, the cash balance is $19,900, expected cash receipts for April are $244,400, and cash disbursements are expected to be $253,300. How much cash, if any, must be borrowed to maintain the desired minimum monthly balance
Answer:
the amount must be borrowed is $8,900
Explanation:
The computation of the amount must be borrowed is shown below:
Opening cash balance $19,900
Add: cash receipts $244,400
Less: cash disbursements -$253,300
Cash balance after disbursements $11,000
Minimum monthly cash balance $19,900
Amount to be borrowed $8,900
hence, the amount must be borrowed is $8,900
what is an example of a one-to-many relationship
Answer:
Owners-Pets.
Explanation:
The one-to-many relationship in database is when each record in Table A have several linked record in Table B. But in Table B, it has only one link in Table A.
An example of a one-to-many relationships is owners-pets relationship. In such databases, pet will have one owner but one owner may have many pets.
Therefore, owners-pets is an example of one-to-many relationship.
Following a systematic plan for the preparation of an e-mail, memo, letter, or oral presentation will make the composition process easier and will help you create more effective business messages. The writing process for business messages includes prewriting, drafting, and revising. Which of the following are steps involved in the prewriting phase of the writing process? Check all that apply. Analyzing Drafting Anticipating Researching Adapting Editing
Answer: Analyzing
Anticipating
Adapting
Explanation:
The writing process for business messages includes prewriting, drafting, and revising. We should note that the steps involved in the prewriting phase of the writing process:
• Analyzing
• Anticipating
• Adapting
The drafting phase is made up of:
• Researching
• Organizing
• Drafting
The revising phase include:
• Editing
• Proofreading
• Evaluating
Larry estimates that the costs of insurance, license, and depreciation to operate his car total $320 per month and that the gas, oil, and maintenance costs are 14 cents per mile. Larry also estimates that, on average, he drives his car 1,400 miles per month. Required: a. How much cost would Larry expect to incur during April if he drove the car 1,529 miles
Answer:
See below
Explanation:
The question above is incomplete. The concluding part is
b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 1,400 mile month. Yes or No
Given the above information,
a. Total number of miles driven = 1.529 miles
Total cost = Fixed cost + Variable cost × Number of miles driven
= $320 + $0.14 × 1,529
= $320 + $214.06
= $534.06
b. Since $320 per month is the fixed, the fixed cost per mile will decrease with the increase in number of miles driven . It means that if he drives less than 1,400 miles , the actual cost will be more than the cost based on predetermined overhead rate of the cost.
No. It would not be meaningful for Larry to calculate an estimated average cost per mile for a typical 1,400 mile month.
The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.
Deborah spends all of her money on magazines and donuts. In 2008 she earned $27.00 per hour, the price of a magazine was $9.00, and the price of a donut was $3.00.
Which of the following give the nominal value of a variable? Check all that apply.
a. The price of a donut is 0.33 magazines in 2008.
b. The price of a donut is $3.00 in 2008.
c. Deborah's wage is 3 magazines per hour in 2008.
Which of the following give the real value of a variable? Check all that apply.
a. The price of a magazine is $9.00 in 2008.
b. The price of a magazine is 3 donuts in 2008.
c. Deborah's wage is $27.00 per hour in 2008.
Suppose that the Fed sharply increases the money supply between 2008 and 2013. In 2013, Deborah's wage has risen to $54.00 per hour. The price of a magazine is $18.00 and the price of a donut is $6.00.
In 2013, the relative price of a magazine is:________
Between 2011 and 2016, the nominal value of Maria's wage _______________and the real value of her wage ____________________-
Monetary neutrality is the proposition that a change in the money supply ___________________ nominal variables and _____________real variables.
Answer:
Nominal variable - Price of a donut is $3.00 in 2008
Real variable- Price of a magazine is 3 donuts in 2008.
Explanation:
In 2008 the price of a magazine was $9.00. While the price of a donut was $3.00. Deborah's income was $27.00 per hour.
Nominal variable's are those which are expressed in terms of money. While, real variables are those variables which are expressed in terms of other goods or services.
The nominal variables will include:
a. The price of a donut is $3.00 in 2008.
The other two options are not nominal variables as they are expressed in terms of the other variable.
The following variables give us the real value of a variable:
b. The price of a magazine is 3 donuts in 2008.
Deborah's wage and price of a magazine are both nominal variables. They are not expressed in terms of any other variable.
In 2013, Deborah's wage is $54.00. The price of a magazine is $18.00 and price of a donut is $6.00.
Relative price is the price price of a good expressed in terms of the other good. The price of magazine in 2013 is $18.00. While, price of donut is $6.00.
[tex]Relative price = \frac{Price of a magazine}{Price of a donut} \\ = \frac{18}{6}\\ = 3[/tex]
Thus, in 2013, the relative price of a magazine is 3 donuts.
As can be seen that from 2008 - 2013, the wage doubles. But at the same time the price of both magazine and donuts also doubles. This can be seen from the relative purchasing power of income. So, between 2008-2013 the nominal value of wage increased and the real value of her wage remained the same.
Monetary neutrality is the proposition that a change in the money supply affects nominal variables and does not affect real variables.
Your bank card has an APR of 21% and there is a 3% fee for cash advances. The bank starts charging interest on cash advances immediately. You get a cash advance of $500 on the first day of the month. You get your credit card bill at the end of the month. What is the approximate total finance charge you will pay on this cash advance for the month
Answer:
Total finance charge=$23.75
Explanation:
The amount charged for the use of the fund by a bank is called interest rate. Here it is quoted as 21% per annum but we will need to determine the approximate monthly rate by dividing by 12.
The total finance charge will be equal = Interest rate + advance fee
Monthly interest rate = 21/12 =1.75%
Interest payment = 1.75%× $500=$8.75
Advance fee = 3%× $500= $15
Total finance charge = $8.75 + $15= $23.75
Total finance charge=$23.75
9. A Japanese car manufacturer built a factory in the United
States, It did so to reduce shipping and other costs. Make a list
of who will benefit and who will not benefit from this factory.
Answer:
Se benefician los estado unidenses porque no tienen que pagar más por el coche, también porque al abrir una fábrica pueden llegar a crear más de 5.000 puestos de trabajo. Y los japoneses no salen beneficiados porque la empresa que lleva los coches de Japón a estados unidos seguramente sea japonesa y también los trabajadores japoneses pierden trabajo
Explanation:
5
Select the correct answer.
Which type of investment offers both capital gains and interest income?
ОА.
property
OB.
CDs
Ос.
stocks
OD
bonds
Plato
Answer:
stocks
Explanation:
stocks have both a postitiveand negitive pole its the only one that makes sence.
Answer:
Stocks
Explanation:
Stocks is the type of investment offers both capital gains and interest income.
On January 1, 2011, The Miller Corporation purchased 300,000 shares of The Mayfair Corporation for $5.7 million. The investment represented 40% of The Mayfair Corporation's outstanding common shares. During 2011, Mayfair reported net earnings of $2.25 million and paid a cash dividend of $0.15 per share. During 2012, Mayfair reported a net loss of $180,000 and again paid a dividend of $0.15 per share. Calculate the book value of Miller's investment in Mayfair as of December 31, 2011, and December 31, 2012
Answer:
2011 Value of investment in Mayfair
= Beginning investment value + Portion of Mayfair net income - Portion of Mayfair dividends
= 5,700,000 + (40% * 2,250,000) - (300,000 shares * 0.15)
= $6,555,000
2012 Value of investment
= Beginning investment value + Portion of Mayfair net income - Portion of Mayfair dividends
= 6,555,000 + (40% * -180,000) - (300,000 * 0.15)
= $6,438,000
Karl's Keychain Company produces keychains that sell in its stores for $1 each. On January 1, 2015, the company had inventory of 10,000 keychains. During 2015, the company produced 900,000 keychains. At the end of the business year on December 31, 2015, the company's inventory of keychains was 8,000. What was the value of Karl's inventory investment in 2015
Answer:
$2,000
Explanation:
Calculation to determine the value of Karl's inventory investment in 2015
On January 1, 2015, beginning inventory $10,000
Less December 31, 2015, ending inventory $8,000
2016 value of Karl's inventory investment $2,000
Therefore the value of Karl's inventory investment in 2015 will be $2,000
Wright Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $1,000,000 and a 5-year life. There is no salvage value for the equipment. The increase in cash flow each year of the equipment's life would be as follows: Year 1 $ 379,000 Year 2 $ 354,000 Year 3 $ 289,000 Year 4 $ 234,000 Year 5 $ 189,000 What is the payback period
Answer:
The payback period is 2 years and 337 days to cover the initial investment.
Explanation:
Giving the following information:
Cash flows:
Year 1 $ 379,000
Year 2 $ 354,000
Year 3 $ 289,000
Year 4 $ 234,000
Year 5 $ 189,000
Initial investment= $1,000,000
The payback period is the time required for the cash flows to cover the initial investment:
Year 1= 379,000 - 1,000,000= -621,000
Year 2= 354,000 - 621,000= -267,000
Year 3= 289,000 - 267,000= 22,000
To be more accurate:
(267,000 / 289,000)= 0.923*365= 337
The payback period is 2 years and 337 days to cover the initial investment.
Ron was vacationing in France, when his camera was stolen. As he walked into a camera store, Ron noticed that camera prices were in euros. If Ron was willing to pay $ for a new digital camera and the exchange rate is $ per euro, how much will Ron be paying in euros? Ron will be paying nothing euros for the camera. (Instructions: Enter your response by rounding two places after the decimal.)
Answer:
130.43 euros
Explanation:
Since Ron willing to Pay is $150
Now we have to convert $150 in euros
As we know that
exchange rate × willing to pay in euro = Willing to pay in Dollar
i.e.
willing to pay in euro = Willing to pay in Dollar ÷ Exchange rate
= 150 ÷ 1.15
= 130.43 euros
Hence, the ron be paying in euros is 130.43
The same would be relevant
Interest rates on 4-year Treasury securities are currently 5.55%, while 6-year Treasury securities yield 7.7%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Calculate the yield using a geometric average. Do not round your intermediate calculations. Round your answer to two decimal places.
Answer:
12.13%
Explanation:
Calculation to determine what the market believe that 2-year securities will be yielding 4 years from now using a geometric average
Yield=((1+6 year rate)^6/(1+4 year rate)^4)^(1/2)-1
Yield =((1+7.7%)^6/(1+5.55%)^4)^(1/2)-1
Yield =0.1213*100
Yield =12.13%
Therefore what the market believe that 2-year securities will be yielding 4 years from now
using a geometric average will be 12.13%
At a movie theater box office, all tickets are sequentially prenumbered. At the end of each day, the beginning ticket number is subtracted from the ending number to calculate the number of tickets sold. Then, ticket stubs collected at the theater entrance are counted and compared with the number of tickets sold. Which of the following situations does this control detect?
a. Some customers presented tickets purchased on a previous day when there wasn't a ticket taker at the theater entrance (so the tickets didn't get torn.)
b. A group of kids snuck into the theater through a back door when customers left after a show.
c. The box office cashier accidentally gives too much change to a customer.
d. The ticket taker admits his friends without tickets.
What types of decision need to be made by groups?
A lottery winner can take $6million now or be paid $600,000 at the end of each year for the next 16 years. The winner calculates the internal rate of return of taking the money at the end of each year, and estimating that the discount rate across this period will be 5%, decides to take the money at the end of each year. Was her decision correct
Answer:
yes
the present value of the 16 year annuity is 6502661.74. this is greater than $6 million
Explanation:
As the new profit center manager, you switch carriers to a more expensive, but quicker, more responsive transportation carrier. You justify this because when using a(n) ____________ perspective, your overall inventory and warehouse savings more than offset the increase in transportation costs. Group of answer choices lane operations economic order quantity total cost ABC
Answer:
You justify this because when using a(n) _____ABC_____ perspective, your overall inventory and warehouse savings more than offset the increase in transportation costs.
Explanation:
The ABC perspective allocates overhead costs based on the cost drivers and the level of activity consumed by each cost driver. This is the best cost allocation basis. ABC is justified by the fact that activities consume resources or cause costs to be incurred. As a profit center manager, your focus should be on minimizing the activities that drive up costs instead of just focusing on mere cost reduction without paying attention to the cost drivers.