Answer:
7.05 %
Explanation:
After tax cost of debt = interest x ( 1 - tax rate)
so, the initial step is to determine the interest rate :
The Bond Yield (i/yr) presents the market rate and this is what we want for our interest rate.
thus,
PV = - [$950 - ($950 x14%)] = - $817(remove floatation cost from market price)
FV = $1000
PMT = $1000 x 7 % = $70.00
P/YR = 1
N = 14
i/yr = ??
Using a financial calculator to input the values as above, the Bond Yield (i/yr) will be 9.40 %
therefore,
After tax cost of debt = 9.40 % x (1 - 0.25)
= 7.05 %
why do conduction band electrons posses very high energy's.h
Just because of band gap. The forbidden energy gap keeps the conduction band at high energy by an amount to equal to band gap energy from the valence band edge. If you compare energies of electrons present in conduction band and valence band, they significantly differ by an amount equal to band gap energy. The low energy electron presents in a valence band requires an energy equal to band gap energy to excite to conduction band. Consequently, the electrons present in conduction band possess high energy compared to electrons present in valence band. At absolute zero K, the low energy states present in valence band are usually completely occupied where as the high energy states present in the conduction band are unoccupied.
How do credit
scores play a role
in the inequity (a
lack of fairness
or justice) that
exists in our
society?
Answer: In response to aggressive marketing by the “big three” multinational credit bureaus – Equifax, Experian and TransUnion – employers, landlords and insurance companies now use credit reports and scores to make decisions that have major bearing on our social and economic opportunities. These days, your credit history can make or break whether you get a job or apartment, or access to decent, affordable insurance and loans. Credit reports and scores are not race neutral. Rather, they embed existing racial inequities in our credit system and economy – to the point that a person’s credit information serves as a proxy for race. For decades, banks have systematically redlined black and Latino neighborhoods, refusing to make conventional loans or locate branches in non-white and lower-income areas, notwithstanding laws that obligate banks to meet the credit needs of all communities they serve, consistent with safe and sound banking operations. Thanks to financial services deregulation and the advent of asset-backed securitization, a multi-billion dollar “fringe” financial system has filled the void, characterized by high-cost, destabilizing products and services, from payday loans to check-cashers – which banks typically also own or finance.
Explanation:
A company reports 2021 pretax accounting income of $38 million, but because of a single temporary difference, taxable income is only $21 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%.
Required:
Prepare the appropriate journal entry to record income taxes.
Answer:
Date Account Title Debit Credit
XX-XX-2021 Income tax expense $9,500,000
Deferred tax liability $4,250,000
Income tax payable $5,250,000
Explanation:
Income tax expense = Pretax income * tax rate
= 38,000,000 * 25%
= $9,500,000
Deferred tax liability = (Pretax income - Taxable income) * tax rate
= (38 million - 21 million) * 25%
= $4,250,000
Income tax payable = Taxable income * tax rate
= 21,000,000 * 25%
= $5,250,000
A business owner decides to give all her employees a living wage and benefits, including any new employees.
Which social responsibility stance did the business owner demonstrate?
Answer:
Proactive stance.
Explanation:
In Business management, social responsibility can be defined as an organization's obligation to act in a manner that benefits and adds significant value to the society and the people, usually as it conducts its business operations.
Hence, in addition to making profits and maximizing shareholders, organizations are required to lessen negative environmental impact or degradation and provide social amenities such as pipe-borne water, electricity, roads etc. It is also referred to as corporate social responsibility (CSR).
In this scenario, a business owner gave all her employees a living wage and benefits, which is also applicable to any new employees. Thus, the social responsibility stance which the business owner demonstrate is proactive stance.
A proactive stance can be defined as voluntary business practices adopted by an organization or business firm beyond the standard regulatory practice, so as to actively enhance and facilitate growth and development in a society.
Portfolio A is a well-diversified portfolio that is equally weighted among 5,000 different and diverse stocks. Portfolio A has an average amount of systematic risk, so it has exactly the same amount of systematic risk as the market portfolio Portfolio B consists of 2 stocks that operate in the restaurant industry: 500 shares of Gourmet Restaurant in stock, which has a price of $26 per share and a beta of 0.6; and 1,000 shares of Suppertime Restaurant Inc. stock, which has a price of $22 per share and a beta of 1.4. All stocks have some unsystematic risk and all stocks have the same level of unsystematic risk. Which one of the following assertions is most likely to be true?
a. Portfolio A has less systematic risk than portfolio B, and portfolio A and less unsystematic risk than portfolio B
b. Portfolio A has less systematic risk than portfolio B, and portfolio A and more unsystematic risk than portfolio B
c. Portfolio A has more systematic risk than portfolio B, and portfolio A and less unsystematic risk than portfolio B
d. Portfolio A has more systematic risk than portfolio B, and portfolio A and more unsystematic risk than portfolio B
Answer:
A
Explanation:
Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
the systemic risk of portfolio A = 1
systemic risk of portfolio B = (proportion of Gourmet Restaurant's stock x beta of Gourmet Restaurant's stock) + (proportion of Suppertime Restaurant's stock x beta of Suppertime Restaurant's stock)
([tex]\frac{500}{1500}[/tex] × 0.6) + ([tex]\frac{1000}{1500}[/tex] × 1.4) = 0.2 + 0.9 = 1.1
Portfolio B has a higher beta and thus a higher systemic risk than Portfolio A
Non systemic risk are risks that can be diversified away. they are also called company specific risk. Examples of this type of risk is a manager engaging in fraudulent activities.
Portfolio A is more diversified than portfolio B. Thus, Portfolio B has a higher non-systemic risk
Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $171,800. The fair market value of the interest is $188,980. In a proportionate current distribution, the LLC distributes $34,360 cash and equipment with an adjusted basis of $85,900 and a fair market value of $128,850 to him on that date. How much is Franco's adjusted basis in the LLC interest after the distribution and what is the amount of his basis in the equipment received?
Answer: See explanation
Explanation:
Franco's adjusted basis in the LLC interest after the distribution will be:
= Current year basis - Cash distributed - Equipment Adjusted basis
= $171,800 - $34,360 - $85,900
= $51540
Also, the basis on the equipment received from the information given will be $85,900.
Globe Travel Agency sells Spring Break trips to University of Houston undergraduate students. The fixed cost of Globe is $100,000 and its variable cost is $400 for every student who takes the trip Globe offers. The price elasticity of demand is -2.5 at all levels of price. At present, the price of the trip is $600/student and, at this price, demand is 1200 units. Assume that the number of trips sold always equals demand.
Required:
Compute the breakeven quantity at current price, P =$600.
Answer:
the breakeven quantity at current price is 500 units
Explanation:
The computation of the breakeven quantity at current price is shown below:
Breakeven point = Fixed cost ÷ (Price per unit - variable cost per unit)
= $100,000 ÷ ($600 - $400)
= 500 units
Hence, the breakeven quantity at current price is 500 units
We simply used the above formula so that the correct units could arrive
Suppose Eric and Ginny are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Eric chooses Right and Ginny chooses Right, Eric will receive a payoff of 9 and Ginny will receive a payoff of 5.
Ginny Left Right Eric Left 6, 6 8, 5 Right 3, 6 9, 5
The only dominant strategy in this game is for to _____. The outcome reflecting the unique Nash equilibrium in this game is as follows:_____.
Eric ______ and Ginny _______
Answer:
The only dominant strategy in this game is for Ginny to choose Left.
The outcome reflecting the unique Nash equilibrium in this game is as follows:
Eric chooses Left and Ginny chooses Left.
Explanation:
The following payoff matrix is given in the question:
Ginny
Left Right
Eric Left 6, 6 8, 5
Right 3, 6 9, 5
The explanation of the answer is now given as follows:
A dominant strategy can be described as a strategy that makes a player in a game better off no matter the choice of strategy his opponent.
Looking at this game, when Eric plays Left, Ginny will also play Left because 6 > 5. When Eric plays Right, Ginny will still play Left because 6 > 5. This is an indication that Ginny will always play Left no matter what Eric plays. Therefore, the dominant strategy for Ginny is Left.
On the other hand, when Ginny plays Left, Eric will also play Left because 6 > 3. And when Ginny plays Right, Eric will also choose Right because 9 > 8. This implies that Eric does not have any particular strategy that make him better off. Therefore, Eric does NOT have a dominant strategy.
Based on the analysis above, we have:
The only dominant strategy in this game is for Ginny to choose Left.
The outcome reflecting the unique Nash equilibrium in this game is as follows:
Eric chooses Left and Ginny chooses Left.
Regarding the Cost-Plus pricing, which of the following statement is NOT true? It is a pricing strategy liked by the Finance department It supports price differentiation It calculates the price based on the cost plus a standard margin It is an entirely inward-focused strategy that has nothing to do with the market and competition
Answer: It supports price differentiation
Explanation:
Cost-plus pricing works by adding a standard margin to the cost of producing or acquiring a good. The margin will be the gross profit per unit.
This does not support price differentiation because it would lead to the same price being charged to all customers for the goods regardless of who the customers are, whereas price differentiation calls for different types of customers to be charged different prices.
Examples of price discrimination
Complete the following table by indicating whether or not each scenario is an example of price discrimination.
Hint: To determine whether a scenario is an example of price discrimination, think about whether the market can be segmented into two groups that pay different prices for the same good.
Price Discrimination
Scenario Yes No
A local boutique is having a sale on sweaters, but customers are not aware of the sale until they are already in the store. In other words, there is no advertising of the sale other than signs in the back of the store that cannot be seen from the outside. All sweaters are marked as 25% off.
Southeast Airlines offers domestic flights to a variety of U.S. cities. The company's last-minute flight discount service, Ping, can be downloaded for free from its website. Each day, Ping will alert users to that day's deals. These deals are available for a short period of time and are good for travel only between certain locations during specified travel periods. Therefore, business travelers tend not to take advantage of these offers.
Answer:
It is not an example of price discrimination
It is an example of price discrimination
Explanation:
Price discrimination is when the same product is sold at different prices to customers in different markets
types of price discrimination
1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.
3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students
Requirements to practice successful price discrimination
1. The firm must have market power. If the firm does not have market power and attempts to price discriminate they would lose customers
2. The firm must have different elasticities of demand for their product in different markets
3. The firm must be able to segment the market for their products
the first scenario is not an example of price discrimination because both customers that know about the sale and those that do not, end up paying the same price. Consumers are not segmented.
the second scenario is an example of price discrimination because different prices are offered to different groups of consumers based on location travelled and specified travel period. this most likely is an example of third degree price segmentation
Ford Motor Company is considering launching a new line of hybrid diesel-electric SUVs. The heavy advertising expenses associated with the new SUV launch would generate operating losses of million next year. Without the new SUV, Ford expects to earn pre-tax income of $80 million from operations next year. Ford pays a 35% tax rate on its pre-tax income. The amount that Ford Motor Company owes in taxes next year without the launch of the new SUV is closest to ________ million.
Answer:
$28 million
Explanation:
Without the new SUV, Ford expects to earn pre-tax income of $80 million next year. Now as the SUV is not launched, we would not account for operating losses of $35 million next year. So, the Ford pays taxes on pre-tax income of $80 million next year without the new SUV launch.
The amount that Ford Motor Company owes in taxes next year:
= Tax rate * Pre-tax income
= 35% * $80 million
= $28 million
So, the amount that Ford Motor Company owes in taxes next year without the launch of the new SUV is $28 million
Dehnert Midwifery's cost formula for its wages and salaries is $2,030 per month plus $409 per birth. For the month of May, the company planned for activity of 112 births, but the actual level of activity was 114 births. The actual wages and salaries for the month was $50,800. The wages and salaries in the planning budget for May would be closest to: Group of answer choices $47,838 $50,800 $49,909 $48,656
Answer:
The Answer is A. $47,838.
Explanation:
Marle Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2018 with a performance bonus of $50,000 if the building is completed by July 31, 2018. The bonus is reduced by $10,000 each week that completion is delayed. Marle commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:
Completed by Probability
31-Jul-18 65%
7-Aug-18 25%
14-Aug-18 5%
21-Aug-18 5%
Required:
Determine the amount of the transaction price.
Answer:
$995,000
Explanation:
The computation of the amount of the transaction price is shown below;
July 31, 2018 ($950,000+$50,000) × 0.65 = $650,000
August 7, 2018 ($950,000+$40,000) × 0.25 = $247,500
August 14, 2018 ($950,000 + $30,000) × .05 = $49,000
August 21, 2018 ($950,000 + $20,000) × .05 = $48,500
Total $995,000
In this way it should be calculated
Your dad has been away abroad for weeks ob a business trip and all has not been well at home. Write a letter informing him to intervene right away to restore sanitary at home no peace.
Cabot 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
Requried:
a-1. Compute the predetermined overhead rate under the current method.
a-2. Determine the unit product cost of each product for the current year.
b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below:
Activity Cost Pools Estimated Overhead Costs Expected Activity
Product C Product D Total
Machine setups $12,890 180 190 370
Purchase orders 77,340 960 1,300 2,260
General factory 94,680 7,885 5,025 12,910
Total $184,910
Determine the unit product cost of each product for the current period using the activity-based costing approach.
Answer:
Results are below.
Explanation:
a)
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= 177,910 / (1.2*3,800 + 0.8*3,000)
Predetermined manufacturing overhead rate= $25.56 per direct labor hour
Now, we can allocate overhead to each Product line:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product C= 25.56*4,560= $116,553.6
Product D= 25.56*2,400= $61,344
Unitary overhead Product C= 116,553.6/3,800= $30.67
Unitary overhead Product D= 61,344/3,000= $20.45
Finally, the unitary cost per product:
Product C= 30.67 + 11.6 + 10.8= $53.07
Product D= 20.45 + 23.7 + 7.2= $51.35
b)
First, we need to calculate the activities rates:
Machine setups= 12,890/370= $34.84
Purchase orders= 77,340/2,260= $34.22
General factory= 94,680/12,910= $7.33
Now, we allocate costs to each product:
Product C:
Machine setups= 34.84*180= 6,271.2
Purchase orders= 34.22*960= 32,851.2
General factory= 7.33*7,885= 57,797.05
Total= $96,919.45
Product D:
Machine setups= 34.84*190= 6,619.6
Purchase orders= 34.22*1,300= 44,486
General factory= 7.33*5,025= 36,833.25
Total= $87.938.85
Finally, the unitary overhead and unitary total cost:
Product C:
Unitary overhead= 96,919.45/3,800= $25.51
Unitary product cost= 25.51 + 11.6 + 10.8= $47.91
Product D:
Unitary overhead= 87,938.85/3,000= $29.31
Product D= 29.31 + 23.7 + 7.2= $60.21
The Laramie Factory produces expensive boots. It has two departments that process all the items. During January, the beginning work in process in the tanning department was 40% complete as to conversion and 100% complete as to direct materials. The beginning inventory included $6,000 for materials and $18,000 for conversion costs. Ending work-in-process inventory in the tanning department was 40% complete. Direct materials are added at the beginning of the process. Beginning work in process in the finishing department was 60% complete as to conversion. Beginning inventories included $7,000 for transferred-in costs and $10,000 for conversion costs. Ending inventory was 30% complete. Additional information about the two departments follows: Tanning Finishing Beginning work-in-process units 5,000 4,000 Units started this period 14,000 ? Units transferred this period 16,000 18,000 Ending work-in-process units ? 2,000 Material costs added $18,000 ? Conversion costs 32,000 $19,000 Transferred-out cost 50,000 ?
Required: Prepare a production cost worksheet using weighted-average costing for the finishing department.
Answer:
The Laramie Factory
Finishing Department
Production Cost Worksheet, using weighted-average costing
Cost assigned to: Materials Conversion Total
Units transferred out $66,348 $28,062 $94,410
Ending work in process 7,372 935 8,307
Total cost accounted for $73,720 $28,997 $102,717
Explanation:
a) Data and Calculations:
Materials Conversion
Tanning Finishing Tanning Finishing
Beginning work in process 100% 100% 40% 60%
Cost of beginning WIP $6,000 $7,000 $18,000 $10,000
Ending work in process 100% 100% 40% 30%
Additional information:
Tanning Finishing
Beginning work-in-process units 5,000 4,000
Units started this period 14,000 16,000
Units transferred out this period 16,000 18,000
Ending work-in-process units 3,000 2,000
Materials Conversion
Tanning Finishing Tanning Finishing
Beginning work in process 100% 100% 40% 60%
Beginning work in process done this period 60% 40%
Ending work in process 100% 100% 40% 30%
Cost of beginning WIP $6,000 $7,000 $18,000 $10,000
Costs added 18,000 $66,720 32,000 19,000
Total costs of production $24,000 $73,720 $50,000 $29,000
Transferred-out cost
Equivalent units
Materials Conversion
Tanning Finishing Tanning Finishing
Units started and completed 16,000 18,000 16,000 18,000
Ending work-in-process units 3,000 2,000 1,200 600
Equivalent units of production 19,000 20,000 17,200 18,600
Cost per equivalent units Materials Conversion
Tanning Finishing Tanning Finishing
Total cost of production $24,000 $73,720 $50,000 $29,000
Equivalent units of production 19,000 20,000 17,200 18,600
Cost per equivalent unit $1.263 $3.686 $2.907 $1.559
Tanning Department
Cost assigned to: Materials Conversion Total
Units transferred out $20,208 $46,512 $66,720
Ending work in process 3,789 3,488 7,277
Total costs $23,997 $50,000 $73,997
Finishing Department
Cost assigned to: Materials Conversion Total
Units transferred out $66,348 $28,062 $94,410
Ending work in process 7,372 935 8,307
Total cost accounted for $73,720 $28,997 $102,717
Coronado Company is authorized to issue 9000 shares of 9%, $100 par value preferred stock and 522000 shares of no-par common stock with a stated value of $1 per share. If Coronado issues 4500 shares of preferred stock for land with an asking price of $571000 and a market value of $547000, which of the following would be the journal entry for Coronado to record?
(a) Land 571000
Preferred Stock 450000
Paid-in Capital in Excess of Par-Preferred 121000
(b) Land 547000
Preferred Stock 450000
Paid-in Capital in Excess of Par-Preferred 97000
(c) Land 450000
Preferred Stock 450000
(d) Land 547000
Preferred Stock 547000
Answer:
(b) Land 547000
Preferred Stock 450000
Paid-in Capital in Excess of Par-Preferred 97000
Explanation:
The journal entry is shown below;
Land $547,000
To Preferred stock $450,000 (4,500 shares × $100)
To Paid in capital, in excess of par- preferred $97,000
(being the preferred stock is issued in exchange of land)
Here the land is debited as it increased the asset and credited the preferred stock & paid in capital as it increased the equity
Therefore the correct option is b.
On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus addi- tional costs necessary to prepare the mine for extraction of the coal totaled $4,500,000. The company expects to extract 900,000 tons of coal during a four-year period. During 2021, 240,000 tons were extracted and sold immediately. Required: 1. Calculate depletion for 2021. 2. Is depletion considered part of the product cost and included in the cost of inventory (yes/no)
Answer and Explanation:
The computation is shown below;
1. The depletion expense for the year 2021 is as follows;
= $4,500,000 ÷ 900,000 tons × 240,000 tons
= $1,200,000
2. Yes the depletion would be the part of the product cost and the same would be involved in the inventory cost as it is to be shown under the cost of goods sold when the income statement is prepared
Coakley Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $56 to buy from farmers and $18 to crush in the company's plant. Two intermediate products, beet fiber, and beet juice emerge from the crushing process. The beet fiber can be sold as is for $32 or processed further for $24 to make the end product industrial fiber that is sold for $44. The beet juice can be sold as is for $52 or processed further for $32 to make the end product refined sugar that is sold for $78. How much profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is?
a. $(6)
b. $(12)
c. $(39)
d. $(60)
Answer:
The answer is A. $ 6
Explanation:
If the beet juice is sold as is:
Selling price: $52
Costs: $56 + $18 = $74
Loss: $(22)
If beet juice is processed into sugar and sold:
Selling price: $78
Costs: $56+ $18+ 32= $106
Loss:($28)
Therefore there is an additional $6 loss.
Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling. In the Cooking Department, all materials are added at the beginning of the process. Output is measured in ounces. The production data for July are as follows:
Production:
Units in process, July 1, 60% complete* 10,000
Units completed and transferred out 80,000
Units in process, July 31, 80% complete* 15,000
* With respect to conversion costs.
Required:
a. Prepare a physical flow schedule for July.
b. Prepare an equivalent units schedule for July using the FIFO method.
Answer:
Physical Flow units 105000 ounces
FIFO Equivalent Units = Materials 85000 and Conversion 86000 ounces
Explanation:
Jackson Products
Physical flow Schedule
For the month of July.
Units to account For
BWIP 60 % complete 10,000
Units Started 95000
Total units to account for 105000
Units accounted For
Units completed and Transferred out 80,000
BWIP 10000
EWIP 15000
Total Units accounted For 105,000
Jackson Products
Equivalent Units Schedule
For the month of July.
Particulars Units % OF Completion Equivalent Units
Materials Conversion Materials Conversion
Units Started &
Completed 100 100 80000 80000
EWIP 100 80 15000 12000
Less Beg. WIP 100 60 10,000 6000
Total Equivalent Units 85000 86000
The difference between Weighted and FIFO Equivalent units is that FIFO accounts only for the current units . Thus the beginning inventory is deducted from the Total of completed and ending units.
Explanation:
order the steps for inserting a video into a presentation, using a media slide template
Answer:
The answer is below
Explanation:
To embed a video file for a presentation in a Microsoft Powerpoint, here are the following steps to take in order:
1. Click on the specific file you want to add the video, follow up by clicking on the Menu, then Insert.
2. From the Insert tab, click the Video drop-down arrow, follow up by clicking the Video on My PC.
3. Find and select your specific video file, then click Insert.
4. Modify the settings in the Video Format toolbar to ensure the video plays accordingly
5. Make a preview of your presentation to confirm that your video plays accordingly.
Answer:
1. Insert a new slide based on the template
2. click the video icon
3. locate and select a video file
4. click the insert button
5. adjust the appearance of the video
Explanation:
edge answer. hope this helps :)
Many companies secure financing from various sources with various payback periods. Not all funding sources are the same, and in fact, some can come with a pretty high cost to the firm. These costs could include high interest rates, long payback periods, and increased ownership in the firm which could result in lost control.
Analyze the funding options listed, and determine if the option is usually a short-term or long-term strategy.
a. Line of credit
b. Commercial paper
c. Trade credit
d. Bank load of 10 months
e. Bond
f. Stock
g. Bank load of 20 months
Answer and Explanation:
The classification of the funds as a short term or long term strategy as follows;
a. Line of credit = short term financing
b. Commercial paper = short term financing
c. Trade credit = short term financing
d. Bank load of 10 months = short term financing
e. Bond = long term financing
f. Stock = long term financing
g. Bank load of 20 months = long term financing
In this way, the classifications of the funds has to be done
Alt Corporation enters into an agreement with Yates Rentals Co. on January 1, 2021 for the purpose of leasing a machine to be used in its manufacturing operations. The following data pertain to the agreement:
(a) The term of the noncancelable lease is 3 years with no renewal option. Payments of $574,864 are due on January 1 of each year.
(b) The fair value of the machine on January 1, 2021, is $1,600,000. The machine has a remaining economic life of 10 years, with no salvage value. The machine reverts to the lessor upon the termination of the lease.
(c) Alt depreciates all machinery it owns on a straight-line basis.
(d) Alt’s incremental borrowing rate is 10% per year. Alt does not have knowledge of the 8% implicit rate used by Yates.
(e) Immediately after signing the lease, Yates finds out that Alt Corp. is the defendant in a suit which is sufficiently material to make collectibility of future lease payments doubtful. If Alt accounts for the lease as an operating lease, what expenses will be recorded as a consequence of the lease during the fiscal year ended December 31, 2021?
a. Amortization Expense
b. Lease Expense
c. Interest Expense
d. Amortization Expense and Interest Expense
If Alt accounts for the lease as an operating lease, these are the Amortization Expense and Interest Expense that will be recorded as a consequence of the lease during the fiscal year ended December 31, 2021. Hence, Option D is correct.
What is the meaning of the term “Expense”?An expense is something that requires paying cash, or fortune in general, to another person or organization in exchange for a good, service, or other kind of cost. Rent is an expense for a tenant. Tuition is an expense for both parents and students.
An expense is a cost a firm faces while carrying out its operations. Payroll costs, maintenance costs, rent costs, and depreciation are all expenses. Profits are calculated by deducting expenses from revenue.
These expenses will be incurred as a result of the lease throughout the fiscal year that ends on December 31, 2021, if Alt treats the lease as an operational lease.
Therefore, Option D is correct.
Learn more about Expense from here:
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Type the first thing that come to your mind
Answer:
testing </3
Explanation:
Answer:
i like your pfp because its a cat
Ginger feels like she is very qualified for a Revenue job. Which qualifications does Ginger most likely have?
foreign language fluency, communication skills, and teamwork
physical fitness, stress management, and communication skills
public speaking skills, stress management, and debating skills
integrity, ability to analyze tax forms, and good math skills
integrity, ability to analyze tax forms, and good math skills.
Answer:
integrity, ability to analyze tax forms, and good math skills.
Explanation:
Analyzing and Distributing Cash Dividends to Preferred and Common Stocks Potter Company has outstanding 16,000 shares of $60 par value, 5% preferred stock and 60,000 shares of $5 par value common stock. During its first three years in business, it declared and paid no cash dividends in the first year, $260,000 in the second year, and $48,000 in the third year. a. If the preferred stock is cumulative, determine the total amount of cash dividends paid to each class of stock in each of the three years.
Answer:
Year 1
Preferred Stock Dividend = $ 0
Common Stock Dividend = $0
Year 2
Preferred Stock Dividend = $96,000
Common Stock Dividend = $164,000
Year 3
Preferred Stock Dividend = $48,000
Common Stock Dividend = $0
Explanation:
Preferred Stock has preference when it comes to payments of dividends. The remainder of the dividends will then be paid to Common Stock Holders after distributions have been made to Preference Stock Holders.
Then, If preferred stock is cumulative, this means all outstanding preferred stock dividends not paid are not waived, but are paid up in the year that the cash for dividend is available.
Preferred stock dividend is fixed calculated as :
Preferred Stock Dividend = 16,000 share x $60 x 5% = $48,000
thus
Cash dividends paid to each class of stock in each of the three years will be determined as :
Year 1
Preferred Stock Dividend = $ 0 , but $48,000 carried over to next year.
Common Stock Dividend = $0
Year 2
Preferred Stock Dividend = $48,000 (current year) + $48,000 (previous year) = $96,000
Common Stock Dividend = $260,000 - $96,000 = $164,000
Year 3
Preferred Stock Dividend = $48,000
Common Stock Dividend = $0
Pina Company issued $2,500,000 face value of 12%, 20-year bonds at $2,928,977, a yield of 10%. Pina uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.
Required:
Prepare the journal entries.
Answer:
Pina Company
Journal Entries:
Debit Cash $2,928,977
Credit 12% Bonds Payable $2,500,000
Credit Bonds Premium $428,977
To record the proceeds from the bonds issue, the bonds liability, and the premium.
June 30:
Debit Interest expense $146,449
Debit Amortization of premium $3,551
Credit Cash $150,000
To record the first interest payment and amortization of bonds premium.
December 31:
Debit Interest expense $146,271
Debit Amortization of Premium $3,729
Credit Cash $150,000
To record the second interest payment and amortization of bonds premium.
Explanation:
a) Data and Calculations:
Face value of 12% bonds = $2,500,000
Proceeds from bonds issue 2,928,977
Premium = $428,977
Coupon rate = 12%
Market yield rate = 10%
June 30:
Cash payment = $150,000 ($2,500,000 * 6%)
Interest expense $146,449 ($2,928,977 * 5%)
Amortized Premium 3,551 ($150,000 - $146,449)
Bonds value = $2,925,426 ($2,928,977 - $3,551)
December 31:
Cash Payment = $150,000 ($2,500,000 * 6%)
Interest expense $146,271 ($2,925,426)
Amortized premium 3,729 ($150,000 - $146,271)
Bonds value = $2,921,697 ($2,925,426 - $3,729)
Which are options for filtering specific categories in a record? Check all that apply.
right-clicking and choosing "Equals"
right-clicking and choosing "Does not equal"
right-clicking and choosing "Contains"
right-clicking and choosing "Does not contain"
placing cursor on desired data and clicking "Filter by selection"
right-clicking and choosing "Sort A to Z"
placing cursor on desired data column and clicking "Equal filter"
Answer:
placing cursor on desired data and clicking "Filter by selection"
right-clicking and choosing "Sort A to Z"
Explanation:
The data can be filtered according to user requirements. There are several options to sort and filter data. The user can filter data according to different groups. He can sort the data according to ascending and descending.
You are the Cancer Program Director for a large hospital. The Vice President you report to has just informed you that the Board of Directors has approved the development of a radiation treatment department. The feasibility study listed the employees that will be needed by job title and an estimated total payroll. It did not include further details about staffing. The types of positions include entry level service and support staff, licensed technical and nursing staff, and a supervisor. You have four months, while the facility is remodeled and equipment installed, to hire the staff so they can begin training and open the center five months from now. Your first step will be to consult with the Human Resources staff.
Required:
Show the work plan that you would develop for this assignment.
Answer:
I tink its 74 if not punish me
The following phases are part of the work plan for hiring staff for the radiation treatment department .
What are the working plans ?Stage 1: Consultation with Human Resource Staff: We will obtain approval for people recruiting from the HR officer and council members in this step. We will also confer with the human resource manager regarding the expertise, qualifications, and salary of the employees who will be employed.
Step 2: Accepts Applications: The HR officer will take applications from a variety of sources, review the employees' applications, and forward the relevant resumes to the Head of Department for their review.
The third step is to conduct the interview after notifying the shortlisted candidates of their selection. Two rounds are available forthe interview, the first round of selection, and the last interview.
The interviewer evaluates the candidate's communication skills in the first round, and the technical interview takes place in the second.
Step 5: Introducing the Job: The list is created following the completion of the employee's medical examination and document verification for positions such as entry-level personnel.
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Billy and Bobby each sells bagels, and each says it has a trade secret for the bagel recipe. Billy accuses Bobby of stealing his trade secret, and files a lawsuit. Bobby proposes that Billy pay him $100,000 per year in exchange for not making any bagels, until their lawsuit can be resolved. Under Case Example 19.3, In re Cardizem CD Antitrust Litigation, this would be a per se violation of the Sherman Act.
a. True
b. False
Answer:
True
Explanation:
According to the Sherman Antitrust Act of 1890,
It is unlawful in the US to establish a trust, create and operate a monopoly, and or a cartel.
Under the above said Act, contracts, schemes, strategies, practices, and or conspiracies that put a restriction on the way trade ought to be conducted within industries are illegal.
So in the case of Billy Vs Bobby, (if they are the only players in the market) it means that as competitors, they cannot divide the market intentionally amongst themselves via some agreement or the other.
It may not have been the intention of Bobby to create a trust, however, if Billy had agreed, then it would count as such. Because it can then be inferred that both of them have shared the market amongst themselves.
In the case of Cardizem CD Antitrust Litigation, we know that there were only two players. Both agreed to a monopoly.
The defendants HMRI/Andrx had agreed to play the monopoly for 180 days with HMRI agreeing to pay Andrix $89 Million. HMRI was the older player. Adrix was the latest entrant in the market with a bioequivalent alterntive t HMRI's drug.
When the news got to the public, stakeholders were irked. They were suited and the court ruled that their actions violated the Sherman Act and that the agreement be terminated immediately.
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