Answer:
a. Straight-Line method:
Year depreciation = (Cost - Residual value) / useful life
= (130,000 - 10,000) / 6
= $20,000
2019 = $20,000 2020 = $20,000
b. Double declining.
= Twice the rate of straight-line.
= 1 / 6 * 2
= 33%
2019 2020
= 130,000 * 33% = (130,000 - 42,900) * 33%
= $42,900 = $28,743
c. Units of Production:
Rate per unit = (Cost - residual) / Number of units in lifetime
= (130,000 - 10,000) / 1,000,000
= $0.12 per unit
2019 2020
= 180,000 * 0.12 = 140,000 * 0.12
= $21,600 = $16,800
Book Co. is an online book store which sells both fiction and non-fiction books. After analyzing the online book retail industry and assessing its current and predicted sales, Book Co. decides to move away from non-fictions and target only the fiction market which is expected to have a 20% growth in sales. This is an example of __________ strategy.
Answer:
A corporate-level strategy
Explanation:
Book Co. is an online book store that sells both fiction and non-fiction books. After analyzing the online book retail industry and assessing it's current and predicted sales, Book Co. decides to move away from non-fiction and target only the fiction market which is expected to have a 20% growth in sales. This is an example of a corporate-level strategy.
What are corporate-level strategies?That destination influences all the techniques and decisions in each other as a part of your enterprise. So, for instance, in case your commercial enterprise has reached market saturation and also you want to diversify to continue to exist, your company-degree method might be to unfold to new markets.
What are the 3 corporate strategies?To expand the business and increase profits.To maintain current business operations.To revive an ailing business.Learn more about corporate strategies here: https://brainly.com/question/17151786
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Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 52,000 Total fixed manufacturing overhead cost$291,200 Variable manufacturing overhead per direct labor-hour$5.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 20 Total direct labor-hours 100 Direct materials$780 Direct labor cost$5,200 The unit product cost for Job P951 is closest to
Answer:
Unitary cost= $352
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (291,200 / 52,000) + 5
Predetermined manufacturing overhead rate= $10.6 per direct labor hour
Now, we can calculate the total cost of Job P951:
Total cost= 780 + 5,200 + 10.6*100
Total cost= $7,040
Finally, the unitary cost:
Unitary cost= 7,040 / 20
Unitary cost= $352
Analyze Johnson Stores’ staffing budget for holidaysJohnson Stores is planning its staffing for the upcoming holiday season. From past history, the store determines that it needs one additional sales clerk for each $12,000 in daily sales. The average daily sales is anticipated to increase by $96,000 from Black Friday until Christmas Eve, or 27 shopping days. Each additional sales clerk will work an eight-hour shift and will be paid $14 per hour.a. Determine the amount to budget for additional sales clerks for the holiday season.Holiday staff budget for additional clerks $b. If Johnson Stores has an average 40% gross profit on sales. What is the additional profit generated if a staff is added for the increased sale?Additional profit $
Answer:
Johnson Stores
Staffing Budget for Holidays:
a. The amount to budget for additional sales clerks for the holiday season is:
= $24,192.
b. The additional profit generated if a staff is added for the increased sale is:
= $1,209.60.
Explanation:
a) Data and Analysis:
Number of sales clerk required for each $12,000 in daily sales = 1
Average sales increase = $96,000
Number of sales clerk required for the $96,000 sales increase = 8 ($96,000/$12,000)
Number of shopping days from Black Friday to Christmas Eve = 27
Sales clerk works a shift per day = 8 hours
Wages per hour = $14
Total hours to be worked by the additional sales clerk = 8 * 27 * 8 = 1,728
Total wages = 1,728 * $14 = $24,192
Average gross profit on sales = 40%
Total gross profit on sales = $24,192 * 40% = $9,676.80
Additional gross profit generated by adding a staff = $1,209.60 ($9,676.80/8)
what is a bond? in your own words. economics.
Answer:
A bond is simply a loan taken out by a company. Instead of going to a bank, the company gets the money from investors who buy its bonds. In exchange for the capital, the company pays an interest coupon, which is the annual interest rate paid on a bond expressed as a percentage of the face value.
Explanation:
Answer:
A bond is a fixed income Instrument that represents a loan made by investors to a borrower ( typically corporate or governmental).
You and your partner have become very interested in cross-country motorcycle racing and wish to purchase entry-level equipment. You have identified two alternative sets of equipment and gear. Package K has a first cost of $200,000, an operating cost of $6,000 per quarter, and a salvage value of $30,000 after its 2-year life. Package L has a first cost of $280,000 with a lower operating cost of $2,200 per quarter and an estimated $30,000 salvage value after its 4-year life. Which package offers the lower present worth analysis at an interest rate of 20% per year, compounded quarterly
Answer:
Package K offers the lower present worth analysis.
Explanation:
This can be determined using the following 3 steps.
Step 1: Calculations of present worth of Package K
First cost = $200,000
Present value of quarterly operating cost = quarterly operating cost * ((1- (1/(1 + r))^n)/r) ....... (1)
Where;
r = quarterly interest rate = interest rate per year / Number of quarters in a year = 20% / 4 = 5%, or 0.05
n = number of quarters = Number of years * Number of quarters in a year = 2 * 4 = 8
Substituting the values into equation (1), we have:
Present value of quarterly operating cost = $6,000 * ((1- (1/(1 + 0.05))^8)/0.05) = $38,779.28
Present value of salvage value = Salvage value / (1 + quarterly interest rate)^Number of quarters = $30,000 / (1 + 0.05)^8 = $20,305.18
Present worth of package K = First cost + Present value of quarterly operating cost - Present value of salvage value = $200,000 + $38,779.28 - $20,305.18 = $218,474.10
Step 2: Calculations of present worth of Package L
First cost = $280,000
Present value of quarterly operating cost = quarterly operating cost * ((1- (1/(1 + r))^n)/r) ....... (1)
Where;
r = quarterly interest rate = interest rate per year / Number of quarters in a year = 20% / 4 = 5%, or 0.05
n = number of quarters = Number of years * Number of quarters in a year = 4 * 4 = 16
Substituting the values into equation (1), we have:
Present value of quarterly operating cost = $2,200 * ((1- (1/(1 + 0.05))^16)/0.05) = $23,843.09
Present value of salvage value = Salvage value / (1 + quarterly interest rate)^Number of quarters = $30,000 / (1 + 0.05)^16 = $13,743.35
Present worth of package L = First cost + Present value of quarterly operating cost - Present value of salvage value = $280,000 + $23,843.09 - $13,743.35 = $218,474.10 = $269,900.25
Step 3: Comparison of present worth
Present worth of package K = $218,474.10
Present worth of package L = $269,900.25
Therefore, Package K offers the lower present worth analysis.
Lumens, Inc. is a lampshade manufacturer who uses a process costing system and calculates per-unit costs using the weighted average method. The following month of August data relates to the first production department (the Canvas Department) of its Golden Shade line of lampshades: How many units were started in the Canvas Department during the month of August
Answer:
the no of units to be started is 5,500 units
Explanation:
The computation of the number of units to be started in the canvas department is as follows:
= Units completed and transferred out + Ending work in process inventory
= 5100 units + 400 units
= 5500 units
Hence, the no of units to be started is 5,500 units
The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is: Multiple Choice Operating activities. Financing activities. Investing activities. Schedule of noncash investing or financing activity. This is not reported on the statement of cash flows.
Answer:
Financing activities.
Explanation:
In the financing activities of the cash flow statement the stockholder equity section should be considered i.e. if there is an issuance of the common stock or preferred stock or both so the same would be represented as cash inflow but if there is a dividend so it would be represent as a cash outflow
So as per the given situation it is a part of the financing activities
The rationale behind PPP is that: ________
1. Inflation and interest rate have positive relation.
2. Interest rate increases make local currency stronger in the future
3. Interest rate increases make local currency weaker in the future
4. Interest rate increases make local currency weaker in forward market
5. Interest rate increases make local currency stronger in forward market
6. Higher inflation makes local currency weaker in the future
7. Higher inflation makes local currency stronger in the future
8. Higher inflation makes local currency weaker in forward market
9. Inflation makes local currency stronger in forward market
Answer:
9. Inflation makes local currency stronger in forward market
Explanation:
The PPP consists of a measure of prices, in various nations that are used for the process of specific goods. In order to compare the absolute purchasing power of the nations. PPP makes an inflation rate and its equal to the price for a basket of goods. The PPP exchange rates may differ from those of market rates due to the tariffs and translation coats.a. Which of the following items might you include in the basket of goods and services for the average student? The basket should include:______
a. cafeteria meals.
b. washing machines.
c. textbooks.
d. pens.
b. One of the primary expenses in a student’s basket is tuition, which is also included in the BLS calculation of the CPI. Consider the portion of total expenditure tuition accounts for in a student's budget versus a typical household's budget. Given that difference, the value of the student's basket over time has likely changed ________than the CPI.
Answer:
A. a. cafeteria meals.
c. textbooks.
d. pens.
B. More
Explanation:
Students use textbooks and pens at school to study and take down notes. They also go to the cafeteria at meal times to eat. A student does not directly need a washing machine to be a student so the options are cafeteria meals, textbooks and pens.
Overtime, tuition fees have ballooned and are now much higher than they used to be. Students therefore spend a significant amount of their budget on tuition as opposed to Households. It can therefore be said that student's basket overtime has likely changes more than the CPI.
A registered representative at a member firm only deals in stocks and other equity investments. The registered representative helps an associate at that firm negotiate an underwriting of municipal bonds with a municipal issuer official that he knows very well from other business dealings. He does this as a 1-time event and is paid a finder's fee for his help. Which statement is TRUE?
a. the registered representative is considered to be a municipal finance professional and is subject to the political contribution rule.
b. an "mfp" - a municipal finance professional - is an associated person who solicits business from municipal issuers, renders financial advisory services to municipal issuers, or who performs research or writes reports on municipal issues.
c. because the representative was paid a finder's fee for get the municipal underwriting business from the issuer, that registered representative is defined as an mfp and comes under the $250 political contribution limit.
Answer: a. the registered representative is considered to be a municipal finance professional and is subject to the political contribution rule.
Explanation:
Municipal Finance Professionals are people who offer financial services to municipal issuers by soliciting business for them, advising them on financial matters and even performing research for them for which the MFP will be paid.
As the registered representative was paid a fee for helping negotiate an underwriting of municipal bonds, it can be said that he offered financial services to the municipal issuer and so is an MFP. As such, he is under the $250 political contribution limit that an MFP is subject to.
A loss contingency can be accrued when it is certain that funds are available to settle the disputed amount. the amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability has been incurred. it is probable that an asset has been impaired or a liability incurred even though the amount of the loss cannot be reasonably estimated. an asset may have been impaired.
Answer: The amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability has been incurred.
Explanation:
A loss contingent is an expense that is based on a future event for instance, if the company loses a law suit and would have to pay settlement costs.
Loss contingents are only permitted to be accrued if the probability that they will happen is likely and even at that, the amount of loss needs to be capable of being reasonably estimated. This way, a proper estimate can be made that will represent the situation adequately.
According the Kant, so long as good ends are accomplished, the action is good
True
False
Answer:
True :D
Explanation:
Scenario: Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. Freeland's efforts to provide opportunities to its emerging industries is an example of its ________.
Answer:
Economic motive.
Explanation:
An economic motive can be defined as the tendency of an investor or government to advocate and choose economic models, resources and factors of production that would positively and significantly impacts its economy.
In this scenario, Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. Freeland's efforts to provide opportunities to its emerging industries is an example of its economic motive because it would ensure that the jobs within the country is protected while creating opportunities for the company.
A person managing a dry-cleaning store for $30,000 per year decides to open a dry-cleaning store. The revenues of the store during the first year of operation are $100,000 and the expenses are $35,000 for salaries, $10,000 for supplies, $8,000 for rent, $2,000 for utilities, and $5,000 for interest on a bank loan. Calculate (a) the explicit costs, (b) the implicit costs, (c) the business profit, (d) the economic profit, and (e) indicate whether the person should open the dry-cleaning store.
Answer:
$60,000
$40,000
$30,000
$10,000
he can open the store
Explanation:
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
Explicit cost = $35,000 + $10,000 + $8,000 + $2,000 + $5,000 = $60,000
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. If he didn't open the dry cleaning stores he could be earning $30,000 as a manager. $30,000 is his implicit cost
Accounting profit or business profit = total revenue - explicit cost
$100,000 - $60,000 = $40,000
Economic profit = accounting profit - implicit cost
$40,000 - $30,000 = $10,000
Since his economic and accounting profit are positive, he can open the store
The balance sheet of Sheffield Company at December 31, 2019, includes the following.
Notes receivable $51,200
Accounts receivable 195,600
Less: Allowance for doubtful accounts 24,600 $222,200
Transactions in 2020 include the following.
1. Accounts receivable of $151,300 were collected including accounts of $67,500 on which 4% sales discounts were allowed.
2. $5,670 was received in payment of an account which was written off the books as worthless in 2019.
3. Customer accounts of $24,800 were written off during the year.
4. At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $20,900. This estimate is based on an analysis of aged accounts receivable.
Required:
Prepare all journal entries necessary to reflect the transaction above.
Answer:
S/n Accounts titles Debit Credit
1. Cash[$151,300 - ($67,500*4%)] $148,600
Sales Discounts ($67,500*4%) $2,700
Accounts Receivable $151,300
2. Accounts Receivable $5,670
Allowance for Doubtful Accounts $5,670
Cash $5,670
Accounts Receivable $5,670
3. Allowance for Doubtful Accounts $24,800
Accounts Receivable $24,800
4. Bad Debt Expense $15,430
Allowance for Doubtful Accounts $15,430
Workings:
$24,600 + $5,670 - $24,800 = $5,470
$20,900 - $5,470 =
Hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's: A. desire to increase prices throughout the economy. B. inability to conduct open-market operations. C. need to generate revenue to pay for spending. D. responsibility to increase nominal interest rates by increasing expected inflation.
Answer:
C. need to generate revenue to pay for spending.
Explanation:
Inflation can be defined as the persistent rise in the price of goods and services in an economy.
Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.
Furthermore, when this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation
Hence, hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's need to generate (tax) revenue to pay for spending.
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
Spirit Importers imports beverages to the USA from various countries. XYZ Liquor is a Texas company that purchases much of its stock from Spirit. The two contract for Spirit to provide XYZ with rum from Venezuela. To encourage the government of Venezuela to end human rights abuses. President Trump issues sanctions against Venenzuela, including a prohibition on the import and sale in the USA of Venezuelan rum. Which of the following is accurate about the enforceability of the Spirit-XYZ contract?
a. The sanctions are irrelevant to validity of this bilateral contract, so a court will enforce it.
b. The contract is voidable, so that either party can choose to terminate it.
c. The sanctions are irrelevant to the validity of this unilateral contract, so a court will enforce it.
d. The contract is void, so no US court will enforce it.
Answer: d. The contract is void, so no US court will enforce it.
Explanation:
Sanctions imposed on other countries bear the full weight of the law in the U.S. unless the Judiciary dissents.
The sanctions placed on Venezuela makes importing rum from Venezuela a illegal action. The contract between these two parties is therefore void because they should not be engaging in illegal actions and no U.S. court would enforce it because that would be enforcing an illegal action.
vaughn Inc. acquired all of the outstanding common stock of Roberts Co. on January 1, 2020, for $276,000. Annual amortization of $21,000 resulted from this acquisition. Vaughn reported net income of $80,000 in 2020 and $60,000 in 2021 and paid $24,000 in dividends each year. Roberts reported net income of $50,000 in 2020 and $57,000 in 2021 and paid $12,000 in dividends each year. What is the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied
Answer:
$317,000
Explanation:
Calculation for the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied
Investment in Roberts Co. balance = $276,000 + $50,000 - $ 12,000 - $21,000 + $ 57,000 - $12,000 - $ 21,000
Investment in Roberts Co. balance = $317,000
Therefore the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied is $317,000
Album Co. issued 10-year $200,000 debenture bonds on January 2. The bonds pay interest semiannually. Album uses the effective interest method to amortize bond premiums and discounts. The carrying value of the bonds on January 2 was $185,953. A journal entry was recorded for the first interest payment on June 30, debiting interest expense for $13,016 and crediting cash for $12,000. What is the annual stated interest rate for the debenture bonds
Answer: 12%
Explanation:
Stated interest rate is used in the calculation of the annual interest payment.
Interest payment = Face value of bonds * Stated interest rate
Annual Interest payment = Semi annual interest payment * 2
= 12,000 * 2
= $24,000
24,000 = 200,000 * Stated interest
Stated interest = 24,000 / 200,000
= 0.12
= 12%
One can solve for payments (PMT), periods (N), and interest rates (I) for annuities. The easiest way to solve for these variables is with a financial calculator or a spreadsheet.Quantitative Problem 1: You plan to deposit $2,200 per year for 5 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today.What amount will be in your account at the end of 5 years
Answer:
FV= $11,680.1
Explanation:
Giving the following information:
Annual deposit= $2,200
Number of peridos= 5 years
Interest rate= 3%
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,200*[(1.03^5) - 1]} / 0.03
FV= $11,680.1
Using a financial calculator:
CMPD:
n= 5
i=3
PMT= 2,200
FV= ? = 11,680.1
Discuss the benefits of businesses that are involved in the macro environment
The point has been reached where a biotechnology research and development company must expand by building a new facility. The search has been narrowed to four locations, all of which are acceptable to management. The assessment of these sites is being made on the basis of the six subjective location factors that follow. Management has agreed to use a five-point scale (Excellent = 5, Very good = 4, Good = 3, Fair = 2, Poor = 1 to quantify and compare their subjective opin ons about the relative goodness of the sites. The weight reflects the importance of each factor in the decision.
Facter Evaluation by Location
Factor Weight A B C D
Labor climate 35 Excellent Very Good Very Good Excellent
Quality of life 25 Fair Good Very Good Poor
Transportation 15 Good Very Good Good Fair
Markets 10 Excellent Very Good Very Good Very Good
Taxes 10 Fair Excellent Excellent Very Good
Utilities 5 Excellent Very Good Good Good
Calculate the weighted score for each alternative. Which location would you recommend?
A. A.
B. B.
C. C.
D. D.
Answer:
A. A
Explanation:
Location A is best suited for the management. Location A offers Excellent Labor climate, Utilities and Markets. It is fair in Quality of Life and Taxes. The best possible alternative is location A for the management of biotech research company.
Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,500 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.)
Answer:
Underapplied overhead= $1,640
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 497,040 / 21,800
Predetermined manufacturing overhead rate= $22.8 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 22.8*21,500
Allocated MOH= $490,200
Finally, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 492,040 - 490,200
Underapplied overhead= $1,640
Spindler, Inc. (a U.S.-based company), imports surfboards from a supplier in Brazil and sells them in the United States. Purchases are denominated in terms of the Brazilian real (BRL). During 2020, Spindler acquires 400 surfboards at a price of BRL 1,600 per surfboard, for a total of BRL 640,000.00. Spindler will pay for the surfboards when it sells them. Relevant exchange rates are as follows:
Date U.S. Dollar per Brazilian Real (BRL)
1-Sep-20 $0.24
1-Dec-20 0.23
31-Dec-20 0.25
1-Mar-21 0.235
Required:
a. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December 1, 2020. What is the effect of the exchange rate fluctuations on reported income in 2020?
b. Assume that Spindler acquired the surfboards on December 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and 2021?
c. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and in 2021?
Answer:
a. The effect on reported income in 2020 is a foreign exchange gain of $6,400.
b-1. The effecton reported income in 2020 is a foreign exchange loss of -$12,800.
b-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.
c-1. The effect on reported income in 2020 is a foreign exchange loss of -$6,400.
c-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.
Explanation:
a. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December 1, 2020. What is the effect of the exchange rate fluctuations on reported income in 2020?
Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is higher than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange gain calculated as follows:
Foreign exchange gain on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.23) = $6,400
b. Assume that Spindler acquired the surfboards on December 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and 2021?
b-1. Since the U.S. Dollar per Brazilian Real on 1-Dec-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:
Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-De-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.23 - $0.25) = -$12,800
b-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:
Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600
c. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and in 2021?
c-1. Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:
Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.25) = -$6,400
c-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:
Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600
what is capital? in your own words. economics.
Answer:
In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business. ... In classical economics, capital is one of the four factors of production. The others are land, labor and organization
1. Cash balance per bank, July 31, $7,308.
2. July bank service charge not recorded by the depositor $42.
3. Cash balance per books, July 31, $7,392.
4. Deposits in transit, July 31, $2,982.
5. $1,680 collected for Cullumber Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Cullumber Company.
6. Outstanding checks, July 31, $1,260.
(a) Prepare a bank reconciliation at July 31, 2010
(b) Journalize the adjusting entries at July 31 on the books
Answer:
Part a
Bank reconciliation at July 31, 2010
Balance as per Bank Statement $ 7,308
Add Outstanding Lodgments $2,982
Less Unpresented Checks ($1,260)
Balance as per Cash Book $9,030
Part b
Adjusting entries at July 31 on the books
Item 2
Debt : Bank service charge $42
Credit : Cash $42
To record the Bank service charge
Item 5
Debt : Cash $1,680
Credit : EFT Payment - Account Receivable $1,680
To record the amount collected on behalf of Cullumber Company
Explanation:
The Bank Reconciliation Statement is used to determine the true Cash Balance at the end of the month.
Updated Cash Book
Debit :
Balance $7,392
Credit Transfer $1,680
Total $9,072
Credit
Bank service charge $42
Balance (Balancing amount) $9,030
Total $9,072
On January 1st, 2020, Baker Pump Corporation had 100,000 shares of common stock outstanding. On March 1st the corporation issued 50,000 additional common shares to raise cash. On July 1st, the corporation declared and issued a 4% stock dividend. On October 1st, the corporation purchased on the market 3,000 shares of its own outstanding stock. On November 30th, the corporation issued a 3:1 stock split.
InstructionsCompute the weighted average number of shares to be used in computing earnings per share for 2020.
Answer:
The weighted average number of shares to be used in computing earnings per share for 2020 is 439,750 shares.
Explanation:
Note: See the attached excel file for the computation of the weighted average number of shares.
The weighted average number of shares refers to the sum of the each portion of the multiplication of the number of outstanding shares and the portion of the reporting period covered by those shares.
Note: All the formulae used in calculating each element of the weighted average number of shares are shown in the attached excel file. Kindly take note.
From the attached excel file (see the bold red color), the weighted average number of shares to be used in computing earnings per share for 2020 is 439,750 shares.
Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $15,000 cash, an investment with a fair value of $20,000 (inside basis of $10,000), and a parcel of land with a fair value of $10,000 (inside basis of $5,000) to Randolph in complete liquidation of his interest. RD has no liabilities at the date of the distribution. Randolph's basis in his RD Partnership interest is $48,000. What is Randolph's basis in the distributed investment and land
Answer:
Randolph's basis in the distributed investment and land are as follows:
Investment = $10,000
Land = $23,000
Explanation:
The first step is that Randolph's basis in his RD Partnership interest of $48,000 is allocated to the distributed assets in an amount equal to the basis RD Partnership.
After this, Randolph will allocate remaining basis to assets which are not cash, hot assets and investment with unrealized appreciation.
Based on the above explanation, Randolph's basis in the distributed are as follows:
Cash = $15,000
Investment = Investment's Inside basis = $10,000
Land = Randolph's basis in his RD Partnership interest - Cash - Investment = $48,000 - $15,000 - $10,000 = $23,000
Arthur deposits Kenya shillings P into a savings account at time 0, which pays interest at a nominal rate of j, compounded semi-annually. In the last 6 months of the 7th year, he earns interest that is 2.4 times what he earned in the last 6 months of the 4th year. Calculate j
Answer:
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Of the following, the most important cause of the Great Depression was soaring energy costs soaring energy costs:________
A. serious dislocation in international trade serious dislocation in international trade
B. European abandonment of the gold standard European abandonment of the gold standard
C. confiscatory social security taxes confiscatory social security taxes
D. excessive government spending
Answer:
The correct answer is the option A: Serious dislocation in international trade.
Explanation:
To begin with, the Great Depression is the famous name that receives the financial crisis that started in the United States with the breakdown of the New York's stock exchange market and that quickly spread throught out the whole world ended up shooking the entire global economy for about a complete decade.
The major causes of it where a couple of various things and situation that finally tended to the explosion of the stock market. The context was that the United States after winning the First War became the most powerful nation in the world and with that also the country with more gold reserves so it obligate the european nations to pay the debts of the war as well as difficult them to trade in the international market by elevating the taxes to their imports and pushing its own exports to every other country. So thats basically how the whole international trade suffered from a dislocation.
The most important cause of the Great Depression was A. serious dislocation in international trade.
What was the Great Depression?The Great Depression was the global economic meltdown that was experienced by many nations following the end of the first world war.
After the defeat of Germany, many reparation sanctions were imposed on it for civilian damages caused by aggressive Germany.
Many nations who participated in the war also experienced economic stagnation and uncertainty with war debts suffocating economic activities.
Thus, the most important cause of the Great Depression was Option A.
Learn more about the Great Depression at https://brainly.com/question/441267