Answer:
An externality exists if a financial transaction affects the benefit to third parties. Externalities can be both positive and negative, depending if these affect the benefit to third parties on a positive or negative way.
An example of a negative external effect is air pollution; a factory owner may lack the incentive to limit air pollutant emissions because the damage mainly affects someone else, that is, it doesn't affect his property, but someone else's property or common property (such as the case of the environment).
Therefore, if there were more specific regulations regarding property and the effects of the misuse of this right, contamination could be avoided.
Problem 10-01A a-c (Video) (Part Level Submission)
On January 1, 2020, the ledger of Sheffield Corp. contains the following liability accounts.
Accounts Payable
$50,400
Sales Taxes Payable
7,500
Uneamed Service Revenue 16,500
During January, the following selected transactions occurred.
Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes.
12 Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.)
14 Paid state revenue department for sales taxes collected in December 2019 ($7,500).
Sold 930 units of a new product on credit at $50 per unit, plus 8% sales tax.
21 Borrowed $22,500 from Girard Bank on a 3-month, 8%, $22,500 note.
25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes.
20
(a)
Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent m.
in the problem.)
Date
Account Titles and Explanation
Debit
Credit
PLEASE HELP!!
A wholesale company sold one of its trucks for $5,150. The truck cost $28,795 when it was
bought eight years ago.
a. What was the total depreciation on the truck for the eight-year period?
Answer:
the answer is 23,645. i hope this helps :)
Explanation:
How do I solve this? It’s a real estate question.
Standard costs are used in the calculation of: Multiple Choice Quantity and sales variances. Price variances only. Price, quantity, and sales variances. Price and quantity variances. Quantity variances only.
Answer:
Price and quantity variances.
Explanation:
Standard cost in business management refers to the amount of money a product is supposed to cost in manufacturing it. It is a management tool that can be used to measure efficiency in the level of output or production of goods and services at a specific period of time.
In Financial accounting, the difference between the actual cost of each unit of a product and its standard cost is referred to as variance. In order to determine the standard cost of a product, the expected quantity of the product is multiplied by an expected price.
Standard costs are used in companies for a variety of reasons such as;
1. They're used to estimate the cost of an inventory.
2. They're used to plan direct labor, variable factory overhead and direct materials.
3. Standard costs are used to control costs.
However, standard costs cannot be used to indicate where changes in technology and machinery need to be made rather an actual cost should be used.
Additionally, the standard cost of each unit of a product manufactured in a business firm is categorized into two (2) and these are;
I. Price standard.
II. Quantity standard.
Firm X develops and licenses its designs to be produced by outside manufacturers. Firm Y develops and manufactures its own designs. If the total invested capital of the two firms is the same, which likely has more equity capital and why
Answer:
Firm X
Explanation:
In simple words, since the firm X is asset heavy they will have more equity capital in their accounts. On average, companies that adopt asset-light models achieve higher profits. Both provide the identical invested capital, but X has more equity wealth so it can have higher returns on investments.
Thus, from the above we can conclude that the correct answer is firm X.
Phishing:_______
a) A con executed using technology, typically targeted at acquiring sensitive information, or tricking someone into installing malicious software.
b) A term that, depending upon the context, may be applied to either, 1) someone who breaks into a computer system, or 2) a particularly clever solution.
c) When someone uncovers computer weaknesses, without exploiting them.
d) When a protester seeks to make a political point by leveraging technology tools, often via system integration, defacement, or damage.
Answer:
a)
Explanation:
Phishing is a type of deception in which an intruder disguises himself in email or other means of communication as a reputable individual or person. Attackers would normally use phishing e-mails to spread a range of malicious links or attachments. Some people will gather login credentials or victims' account details.
So as per above definition only option A seems the correct alternative among al the other option when discussing about Phishing.
A con executed using technology, typically targeted at acquiring sensitive information, or tricking someone into installing malicious software.
Witt Corporation received its charter during January of this year. The charter authorized the following stock:
Preferred stock: 10 percent, $10 par value, 21,000 shares authorized
Common stock: $8 par value, 50,000 shares authorized
During the year, the following transactions occurred in the order given:
a. Issued a total of 40,000 shares of the common stock at $12 cash per share
b. Sold 5,500 shares of the preferred stock at $16 cash per share
c. Sold 3,000 shares of the common stock at $15 cash per share and 1,000 shares of the preferred stock at $26 cash per share
d. Net income for the year was $96,000
Required:
Prepare the Stockholders' Equity section of the balance sheet at December 31, 2011.
Answer:
Stockholders' Equity = $735,000
Explanation:
This can be prepared as follows:
Witt Corporation
Stockholders' Equity Section of the Balance Sheet
At December 31, 2011
Details Amount ($)
Common stock (w.1) 344,000
Preferred stock (w.2) 65,000
Additional paid in capital - Common stock (w.3) 181,000
Additional paid in capital - Preferred stock (w.4) 49,000
Net income 96,000
Stockholders' Equity 735,000
Workings:
w.1. Common stock = (Number of common shares issued in transaction a + Number of common shares issued in transaction c) * Par value of common stock = (40,000 + 3,000) * $8 = $344,000
w.2. Preferred stock = (Number of preferred shares issued in transaction b + Number of preferred shares sold in transaction c) * Par value of preferred stock = (5,500 + 1,000) * $10 = $65,000
w.3. Additional paid in capital - Common stock = (Number of common shares issued in transaction a * (Selling price per share of the transaction - Par value of common stock)) + (Number of common shares issued in transaction c * (Selling price per share of the transaction - Par value of common stock)) = (40,000 * ($12 - $8)) + (3,000 * ($15 - $8)) = $181,000
w.4. Additional paid in capital - Preferred stock = (Number of preferred shares issued in transaction b * (Selling price per share of the transaction - Par value of preferred stock)) + (Number of preferred shares issued in transaction c * (Selling price per share of the transaction - Par value of preferred stock)) = (5,500 * ($16 - $10)) + (1,000 * ($26 - $10)) = $49,000
The preparation of the Stockholders' Equity Section of the Witt Corporation's Balance Sheet as of December 31, 2011, is as follows:
Witt Corporation
Balance Sheet
As of December 31, 2011
Stockholders' Equity Section
Authorized Shares:
21,000 shares, 10% Preferred Stock at $10
50,000 shares, Common Stock at $8
Issued and Outstanding:
Common Stock, 43,000 shares $344,000
Additional Paid-in Capital- Common 181,000
10% Preferred Stock, 6,500 shares 65,000
Additional Paid-in Capital- Preferred 49,000
Retained Income 96,000
Total stockholders' equity $735,000
Data Analysis:
a. Cash $480,000 Common Stock $320,000 Additional Paid-in Capital-Common $160,000
b. Cash $88,000 10% Preferred Stock $55,000 Additional Paid-in Capital- Preferred $33,000
c. Cash $45,000 Common Stock $24,000 Additional Paid-in Capital-Common $21,000
Cash $26,000 10% Preferred Stock $10,000 Additional Paid-in Capital- Preferred $16,000
d. Net income for the year = $96,000
Learn more: https://brainly.com/question/17177730
Determine Jennifer's qualified business income deduction if her CPA practice generates qualified business income of $273,800.
Answer: hello your question has some missing details
Jennifer is a CPA and a single taxpayer using the standard deduction. In 2020, her CPA practice generates qualified business income of $162,400 and she has no other income or losses. Jennifer's taxable income before the QBI deduction is $150,000 ($162,400 – $12,400 standard deduction). Jennifer employs an administrative assistant in her practice and pays him $75,000 in wages. The unadjusted basis of depreciable assets employed in the practice totals $30,000.
answer : $0
Explanation:
As per the Taxation rules ; Jennifer been a single taxpayer with a specified service exceeding $2,07,500 for year 2020, makes her ineligible to claim a qualified Business income deduction.
Jennifer's Qualified business income deduction = $0
On May 8, Dome filed a financing statement that adequately identified the collateral. On June 9, Tint sold one computer to Bean for personal use and four computers to Green Co. for its business. Which of the following is correct?
A. The computer sold to Bean will riot be subject to Dome's security interest
B The computers sold to Green will be subject to Dome's security interest
C. The security interest cloes rnot include the prioceeds from the sale of the.computers to Green
D. The security interest muy not cover after-acquired property evenif the parties agree 2 pts
Answer: A. The computer sold to Bean will not be subject to Dome's security interest
Explanation:
The computers sold to Bean have passed ownership from Tint to Bean and so cannot be subject to whatever agreements Tint had with Dome Bank because those agreements were contingent on Tint owning the computers.
For instance, if you buy a car from a dealership which had acquired those cars by using loans from a bank, you are not liable to pay the interest on the loan that the dealership took to buy the car.
On January 1, 2018, the Chaucer’s Restaurant decides to invest in Lake Turner bonds. The bonds mature on December 31, 2023, and pay interest on June 30 and December 31 at 4% annually. The market rate of interest was 4% on January 1, 2018, so the $90,000 maturity value bonds sold for face value. Chaucer’s intends to hold the bonds until December 31, 2023.
Required:
a. Journalize the transactions related to Chaucer’s investment in Lake Turner bonds during 2018.
b. In what category would Chaucer’s report the investment on the December 31, 2018, balance sheet?
Answer:
a)
January 1, 2018
Dr Investment in bonds 90,000
Cr Cash 90,000
June 30, 2018
Dr Cash 1,800
Cr interest revenue 1,800
December 31, 2018
Dr Cash 1,800
Cr interest revenue 1,800
b) This investment must be reported under long term assets since they are classified as Held to Maturity.
Management team of Wolverine Corp. is considering the purchase of a new piece of equipment. They believe that new equipment is more efficient and would result in cost savings. Management estimates that the cost savings from the new equipment would result in an annual increase in net income of $200,000. The new equipment will have an initial cost of $1,200,000 and have an 8 year life. The salvage value of the new equipment is estimated to be $200,000. The hurdle rate is 10%. Ignore income taxes.
a. What is the accounting rate of return?
b. What is the payback period?
c. What is the net present value?
d. What would the net present value be with a 15% hurdle rate?
Answer:
Wolverine Corp.
a. The accounting rate of return = 50%
b. The payback period = 6 years ($200,000 * 6)
c. The net present value = ($39,600)
d. The net present value at 15% = ($237,200)
Explanation:
a) Data and Calculations:
Initial investment cost in new equipment = $1,200,000
Annual incremental net income from cost savings = $200,000
Salvage value of the new equipment = $200,000
Estimated useful life of equipment = 8 years
Hurdle rate = 10%
a. Accounting rate of return = (($200,000 * 8 + $200,000) - $1,200,000)/$1,200,000
= ($1,800,000 - $1,200,00)/$1,200,000
= $600,000/$1,200,000 * 100 = 50%
NPV at 10% hurdle rate:
Initial investment = $1,200,000 * 1 = $1,200,000
Annual incremental savings:
= $200,000 * 5.335 = $1,067,000
Salvage value = $200,000 * 0.467 93,400
Total benefits $1,160,400
NPV = ($39,600)
NPV at 15% hurdle rate:
Initial investment = $1,200,000 * 1 = $1,200,000
Annual incremental savings:
= $200,000 * 4.487 = $897,400
Salvage value = $200,000 * 0.327 65,400
Total benefits $962,800
NPV = ($237,200)
Several critics of the drug companies have claimed that the companies' practice of testing drugs on poor people in developing countries violates principles of justice. Why would they say this
Answer:
Because people in developing countries are less educated and don't understand the implications of being used for drug trials
Explanation:
Drug trials are carried out to test new drugs that companies want to introduce to the market.
The drugs are usually first tested on animals and in the final testing phase human trials are used to gauge how the drug will affect people.
In 1980 the FDA gave approval for testing in other countries. A lot of companies now started using developing countries for their drug trials.
This practice violates the principles of justice because the people in developing countries are mostly illiterates that don't the potential risks drug trials have.
The subjects of the trials are usually given some cash to participate in the trials. They consider it easy money.
Which one has the objective of "long-term financial success"?
A. Plotting
B. Spending
C. Saving
D. Investing
Answer:
C saving
MARK ME BRAINLIEST THANKS MY ANSWER PLEASE
This is nearly double the proposed US contribution to which of the following?
A
Kyoto Protocol
B
London Accords
C
Paris Agreement
D
Geneva Convention
Answer: C . Paris Agreement
Explanation:
You included no background passage or additional details to the question for me to know what contribution you speak of but the above is most probably the answer.
The U.S. never ratified the Kyoto Protocol so I don't think they had contribution requirements. The London Accords produces research for financial investors so has little to do with the U.S. as a whole.
The Geneva Convention is simply an agreement on conduct during wars so this does not require contributions. This leaves the Paris Agreement ... on Climate Change which has set targets on the emissions to be cut by developed countries so it is most likely the answer.
statical results are
Answer:
A result of an experiment is said to have statistical significance, or be statistically significant, if it is likely not caused by chance for a given statistical significance level. Your statistical significance level reflects your risk tolerance and confidence level.
Explanation:
4)
(i) Outline a minimum of two of the key functions of money in an economy. [15 marks]
(ii) State and explain at least one key characteristic of money. [10 marks]
Answer:
I. The three (3) main functions of money in an economy are;
a. Medium of exchange.
b. Unit of account.
c. Store of value.
II. Liquidity is a characteristic of money.
Explanation:
In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.
Simply stated, money refers to any asset which can be used to purchase goods and services by customers.
This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.
I. The three (3) main functions of money all over the world are;
a. Medium of exchange.
b. Unit of account.
c. Store of value.
II. The rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange.
In conclusion, money is a generally accepted medium of exchange around the world and money being a store of value makes it possible to transfer purchasing power between traders and buyers from the present to the future.
Company manufactures two products, Product C and Product D. The company estimated it would incur $177,910 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor hours. Data concerning the current period's operations appear below:
Product C Product D
Estimated volume 3,800 units 3,000 units
Direct labor hours per unit 1.20 hours 0.80 hour
Direct materials cost per unit $11.60 $23.70
Direct labor cost per unit $10.80 $7.20
Required:
a. Compute the predetermined overhead rate under the current method.
b. Determine the unit product cost of each product for the current year.
Answer:
Following are the responses to the given question:
Explanation:
[tex]\text{Predetermined Overhead Rate} = \frac{\text{Total Overhead cost}}{\text{Total Direct Labor hours}}[/tex]
[tex]= \frac{177910}{( 3800 \times 1.2+3000 \times 0.80 )}\\\\ = \frac{177910}{(4560+2400)}\\\\ = \frac{177910}{6960}\\\\ = \$25.56 / DLH[/tex]
[tex]Product C \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Product D[/tex]
[tex]\text{Cost of direct materials per unit} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 11.6 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 23.7\\\\\text{Cost of direct labor per unit} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 10.80 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 7.20\\\\\text{Cost of overhead per device} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 30.67 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 20.45\\\\[/tex]
[tex]\text{Cost per unit total} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 53.04 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 51.35\\\\\\\to 3800 \times 1.20 \times \frac{25.56}{3800} = 30.67\\\\\to 3000 \times 0.80 \times \frac{25.56}{3000} = 20.45[/tex]
On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 5,500 units of Comfort Office Keyboard to one of its clients, Bionics, Inc., at a fixed price of $94,600, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2021. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher, and that the coupon will be applied to $44,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.20 per unit.
Required:
a. . How many performance obligations are in this contract?
b. Prepare the journal entry that Meta would record on May 1, 2021.
c. Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to Bionics instead of 25%. In this case, what journal entry would Meta record on May 1, 2021?
Answer:
A. 2
B. May 1, 2021
Dr Cash $94,600
Cr Deferred revenue $89,870
Cr Deferred revenue-coupons $4,730
C. May 1, 2021
Dr Cash $94,600
Cr Deferred Revenue $94,600
Explanation:
A. Based on the information given the numbers of PERFORMANCE OBLIGATIONS that are in this contract is 2 which are:
KEYBOARD and CUSTOMER OPTION FOR FUTURE DISCOUNT
B. Preparation of the journal entry that Meta would record on May 1, 2021.
May 1, 2021
Dr Cash $94,600
Cr Deferred revenue $89,870
($94,600-$4,730)
Cr Deferred revenue-coupons $4,730
(5%*$94,600)
C. Preparation of the journal entry that Meta would record on May 1, 2021
May 1, 2021
Dr Cash $94,600
Cr Deferred Revenue $94,600
the preferred stock of BGE, inc. is sold at $37 and pays a divident of $5. And the net price of the secuirty after issurancee costs is estimated to be $32.93 what is the cost of preferred stock for BGE? g
Answer:
15.18%
Explanation:
Cost of preferred stock = Annual dividend/Net Proceeds
Cost of preferred stock = $5 / $32.93
Cost of preferred stock = 0.1518372305
Cost of preferred stock = 15.18%
So, the cost of preferred stock for BGE is 15.18%.
Five years ago, you invested in the Future Investco Mutual Fund by purchasing shares of the fund at the price of per share. Because you did not need the income, you elected to reinvest all dividends and capital gains distributions. Today, you sell your shares in this fund for $ per share. If there were a % load on this fund, what would your rate of return be?
Answer:
7.12%
Explanation:
Full question "Three years? ago, you invested in the Future Investco Mutual Fund by purchasing 1,000 shares of the fund at the price of $ 19.51 per share. Because you did not need the? income, you elected to reinvest all dividends and capital gains distributions. ? Today, you sell your 1,100 shares in this fund for ?$22.02 per share. If there were a 1?% load on this? fund, what would your rate of return? be? The compounded rate of return on this investment over the? three-year period is?"
Value of investment three year ago = 1,000 * $19.51 = $19,510
Value of investment today = 1,100 * $22.02 = $24,222
Load = 1%. Net Proceed from sale of investment = $24,222 * (1 - 1%) = $23,979.78
Rate of return in three year = ($23,979.78 - $19,510) / $19,510
Rate of return in three year = $4,469.79 / $19,510
Rate of return in three year = 0.229103
Rate of return in three year = 22.91%
Annual Return = [(1 + 22.91%)^(1 / 3)] - 1
Annual Return = 1.0712 - 1
Annual Return = 0.712 - 1
Annual Return = 7.12%
Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $400,000 of net income, declared no dividends, and the following selected transactions occurred in the order given: Issued 100,000 shares of the common stock at $55 cash per share. Reacquired 25,000 shares at $50 cash per share. Reissued 10,000 shares from treasury for $51 per share. Reissued 10,000 shares from treasury for $49 per share.
a. Issued 100,000 shares of the common stock at $55 cash per share.
b. Reacquired 25,000 shares at $50 cash per share.
c. Reissued 10,000 shares from treasury for $51 per share.
d. Reissued 10,000 shares from treasury for $49 per share.
Required:
a. Indicate the account and amount for the above transactions.
b. Prepare journal entries to record each transaction.
c. Prepare the stockholders equity section of the balance sheet at December 31, 2013.
Answer:
Global Marine
a. Indication of the accounts and amounts for each transaction:
a. Cash $5,500,000 Common stock $500,000 Additional Paid-in Capital $5,000,000
b. Treasury stock $125,000 Additional Paid-in Capital $1,125,000 Cash $1,250,000
c. Cash $510,000 Treasury stock $50,000 Additional Paid-in Capital $460,000
d. Cash $490,000 Treasury stock $50,000 Additional Paid-in Capital $440,000
b. Journal Entries:
a. Debit Cash $5,500,000
Credit Common stock $500,000
Credit Additional Paid-in Capital $5,000,000
To record the issuance of 100,000 shares of the common stock at $55 cash per share.
b. Debit Treasury stock $125,000
Debit Additional Paid-in Capital $1,125,000
Credit Cash $1,250,000
To record the repurchase of 25,000 shares at $50 cash per share.
c. Debit Cash $510,000
Credit Treasury stock $50,000
Credit Additional Paid-in Capital $460,000
To record the re-issuance of 10,000 shares from treasury for $51 per share.
d. Debit Cash $490,000
Credit Treasury stock $50,000
Credit Additional Paid-in Capital $440,000
To record the re-issuance of 10,000 shares from treasury for $49 per share.
Explanation:
a) Data and Calculations:
Authorized common stock shares, 1,000,000 at $5 par value
Net income earned during the year = $400,000
Selected transactions:
a. Cash $5,500,000 Common stock $500,000 Additional Paid-in Capital $5,000,000
100,000 shares of the common stock at $55 cash per share.
b. Treasury stock $125,000 Additional Paid-in Capital $1,125,000 Cash $1,250,000
25,000 shares at $50 cash per share.
c. Cash $510,000 Treasury stock $50,000 Additional Paid-in Capital $460,000
10,000 shares from treasury for $51 per share.
d. Cash $490,000 Treasury stock $50,000 Additional Paid-in Capital $440,000
10,000 shares from treasury for $49 per share.
A checking deposit functions as a.a medium of exchange and as a store of value. b.a store of value, but not as a medium of exchange. c.a medium of exchange, but not as a store of value. d.neither a medium of exchange nor as a store of value.
Answer:
a.a medium of exchange and as a store of value.
Explanation:
The checking account would be used in order to kept the money also it is used to buy the goods and services via online banking or writing the check
So as per the given situtation, the function of the checking deposit would be treated as the medium of exchange and the store of the value. Both should be considered
hence, the correct option is a.
Match the accounting terms with the corresponding definitions.
1. Specific identification
2. Materiality concept
3. Last-in, first-out (LIFO)
4. Conservatism
5. Consistency principle
6. Weighted-average
7. Disclosure principle
8. First-in, first-out (FIFO)
a. Treats the oldest inventory purchases as the first units sold.
b. Requires that a company report enough information for outsiders to make knowledgeable decisions.
c. Identifies exactly which inventory item was sold. Usually used for higher cost inventory.
d. Calculates a weighted-average cost based on the cost of goods available for sale and the number of units available.
e. Principle whose foundation is to exercise caution in reporting financial statement items.
f. Treats the most recent/newest purchases as the first units sold.
g. Businesses should use the same accounting methods from period to period.
Answer and Explanation:
The matching is as followS;
1. Option c as it shows the exact item to be sold and generally used for higher inventory
2. Option h. Here the significant or useful information should be reported
3. Option f, Here the recent purchased would be sold first
4. Option e. It exercised the caution for reporting the items of the financial statements
5. Option g. Here the same method to be followed every year like for straight line depreciation method
6. Option d. Here the weighted average cost would be depend upon the cost of goods available
7. Option b. Here the company should report the sufficient information in order to make the sound decisions
8. Option a. Here the old inventory sold first
What are the differences between progressive, regressive and flat taxes?
Answer:
Find answers below.
Explanation:
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.
The difference between a progressive, regressive and flat tax are;
1. Progressive taxation: it involves charging individuals having higher incomes a higher percentage of their total income.
- For instance, John pays 30% on $70,000 and Joyce pays 10% on $45.000.
2. Regressive taxation: it involves charging individuals with low incomes a higher percentage of their total income and vice-versa.
- For instance, John pays 15% on $60,000 and Joyce pays 20% on $36,000.
3. Flat tax: it's a tax system which typically involves applying a single tax rate to all levels of income earned by employees, regardless of the amount being earned.
- For example, all of the employees in a country are levied 15% tax on the amount of money earned.
Microsoft sells two types of office software, a word processor it calls Word, and a spreadsheet it calls excel. Both can be produced at zero marginal cost. There are two types of consumers for these products, who exist in roughly equal proportions in the population: authors, who are willing to pay $120 for Word and $40 for excel, and economists who are willing to pay $50 for word and $150 for excel.
a. Ideally, Microsoft would like to charge authors more for Word and economists more for excel. Why would it be more difficult for microsoft to do this?
b. Suppose that Microsoft execs decide to sell word and Excel Seperately, what price should Microsoft set for word? (Hint: is it better to sell only to authors, or try to sell to both authors and economists?) What price should Microsoft set for excel? What will microsoft's profit be from a representative group of one author and one economist?
c. Suppose the Microsoft decides to bundle together Word and Excel in a package called Office, and not offer them individually. What price should Microsoft set for the package? Why? How much profit will Microsoft generate from a representative group of one author and one economist?
d. Does bundling allow Microsoft to generate higher profit than selling Word and Excel seperately?
Answer:
a
Explanation:
For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,592,000. Its useful life was estimated to be six years with a $168,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: ($ in 1000)
Year Straight-Line Declining Balance Difference
2018 $404 $864 $460
2019 404 576 172
2020 404 384 (20)
$1,212 $1,824 $612
Required:
Prepare any 2013 journal entry related to the change.
Answer:
Dr Accumulated Depreciation $612
Cr Retained Earnings $612
Explanation:
Preparation of journal entry related to the change.
Based on the information given the Journa entry related to the change is:
Dr Accumulated Depreciation $612
Cr Retained Earnings $612
($1,212-$1,824)
( To record the change of depreciation methods)
Quelle è il articolo che parla dalla ugualianza
Heuser Industries recently projected the following data (in thousands) for a coming year. The dividend payout is expected to be 40% of net income. What is the dollar amount of expected dividends (in thousands)
Answer:
$84.00
Explanation:
Note that the below projected income statement is missing from the question:
Sales $ 6,000.00
Operating costs $ 4,900.00
EBITDA $ 1,100.00
Depreciation $ 500.00
EBIT $ 600.00
Interest $ 250.00
EBT $ 350.00
Taxes (40%) $ 140.00
Net income $ 210.00
Also, it should be noted that dividends are paid out of the net income such that the balance of the net earnings after payment of dividends is added to the balance of the retained earnings
Dividends=dividend payout ratio*net income
projected net income=$210.00
dividend payout ratio=40%
Dividends=40%*$210.00
Dividends=$84.00
ABC Corporation is considering the purchase of a machine that would cost $220,000 and would last for 9 years. At the end of 9 years, the machine would have a salvage value of $20,500. By reducing labor and other operating costs, the machine would provide annual cost savings of $35,000. The company requires a minimum pretax return of 9% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
a. $(745)
b. $(95,000)
c. $(16,092)
d. $9,665
Answer:
a. $(745)
Explanation:
The computation of the net present value is shown below;
As we know that
Net present value = Present value of Cash inflow - Present value of Cash outflow
= ($35,000 × 5.995+ $20,500 × 0.46) - $220,000
= -$745
We simply deduct the cash outflow present value from the cash inflow present value so that the net present value could come
hence, the option a is correct
Pick of the Litter has just purchased a sizable plot of land on which it will build a store building with a large parking lot. Across the street is a collection of specialty shops and a furniture store. Pick of the Litter will be part of a strip shopping center.
a. True
b. False
Answer:
b. False
Explanation:
A strip mall or a strip shopping centre is made up of a set of businesses that are arranged adjacent to themselves and usually have a side walk in front of them.
It's is a row of shops.
I'm the given instance Pick of the Litter built a store building across the street is a collection of specialty shops and a furniture store.
Since Pick of the Litter is not on the same side of the street as the other shops it is in a row with them, so it is not part of the strip shopping centre.