Answer:
52.43
Explanation:
2.59 x (1.2007) = 3.11
Present value = 3.11 / 1.1120 = 2.80
2.59 x (1.2007²) = 3.73
Present value = 3.73 / 1.1120² = 3.02
3.73 (1.0444) / (0.1120 - 0.0444) = 57.63
Present value = 57.63 / 1.1120² = 46.61
Value of the stock = 2.80 + 3.02 + 46.61 = 52.43
economics
Which of the following is LEAST likely to be a cause of long-term secular slowness in increases in U.S. labor productivity? (a) transition of the economy increasingly toward services and away from manufacturing; (b) falling levels of the capital to labor ratio; (c) deglobalization and the shift of production from places outside the U.S. to places within the U.S.; (d) tighter labor markets and the infusion of more and more workers with below-average skills.
Answer:
(c) deglobalization and the shift of production from places outside the U.S. to places within the U.S.
Explanation:
The secular aspect of a trend is the main driver of that trend, and the secular aspect of the slowness in increases in U.S. labor productivity is not deglobalization and the shift of production from outside the U.S. to inside the U.S., since what has been happening in the latest decades is exactly the opposite.
Globalization has led many U.S. jobs, specially in manufacturing, to be shipped away from the country to other places where labor costs are cheaper, like China, Vietnam and Malasya.
Sheridan Company pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Sheridan accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2020 are as follows: Last payroll was paid on 12/26/20, for the 2-week period ended 12/26/20. Overtime pay earned in the 2-week period ended 12/26/20 was $24000. Remaining work days in 2020 were December 29, 30, 31, on which days there was no overtime. The recurring biweekly salaries total $444000.
Assuming a five-day workweek, Sheridan should record a liability at December 31, 2020 for accrued salaries of:_________.
a. $266400
b. $290400
c. $133200
d. $157200
Answer:
d. $157,200
Explanation:
Calculation for the amount that Sheridan should record a liability at December 31, 2020 for accrued salaries
Liability for accrued salary=$24,000 + ($444,000 ÷ 10 days × 3)
Liability for accrued salary=$24,000+$133,200
Liability for accrued salary= $157,200
Therefore the amount that Sheridan should record a liability at December 31, 2020 for accrued salaries will be $157,200
You are CEO of Rivet Networks, maker of ultra-high performance network cards for gaming computers, and you are considering whether to launch a new product. The product, the Killer X3000, will cost $900,000 to develop up front (year 0), and you expect revenues the first year of $800,000, growing to $1.5 million the second year, and then declining by 40% per year for the next 3 years before the product is fully obsolete. In years 1 through 5, you will have fixed costs associated with the product of $100,000 per year, and variable costs equal to 50% of revenues.
A. What are the cash flows for the project in years 0 through 51
B. Plot the NPV profile for this nvestment using discount rates from 0% to 50% in 5% increments.
C. What is the project's NPV if the project's cost of capital is 10%?
D. Use the NPV profile to estimate the cost of capital at which the project would become unprofitable; that is, estimate the project's IRR or calculate it using the data.
Initial investment $900,000
Revenues vear 1 $800,000
Revenues vear 2 $1,500,000
Revenues decline years 4000
Fixed costs vears 1-5 $100,000
Variable costs 50%
Answer:
F= (900,000)
F1= 300,000
F2 = 650,000
F3 = 350,000
F4 = 170,000
F5 = 62,000
NPV at 10% $327487
IRR 20.587%
Explanation:
F0 -900,000
revenues variable cost fixed cost net flow
F1 800,000 -400000 -100,000 = 300,000
F2 1,500,000 -750000 -100,000 = 650,000
F3 900000 -450000 -100,000 = 350,000
F4 540000 -270000 -100,000 = 170,000
F5 324000 -162000 -100,000 = 62,000
NPV at 10%:
For each cashflow, we apply the discount of a lump sum formula
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
And add them together for the net present value
[tex]\left[\begin{array}{ccc}Year&$cashflow&PV\\0&-900,000&-900,000\\1&300,000&272,727\\2&650,000&537,190\\3&350,000&262,960\\4&170,000&116,112\\5&62,000&38,497\\Total&&327487\\\end{array}\right][/tex]
We solve for the IRR using the excel IRR formula
we list the cashflow and use IRR to select them.
If national income is $5,000 billion, compensation of employees is $1,105 billion, proprietors’ income is $1,520 billion, corporate profits are $490 billion, and net interest is $128 billion, then rental income is equal to
Answer:
Rental income = $1,757 billion
Explanation:
National income is defined as the value of goods and services that a nation produces within a financial year.
Therefore it is made up of all economic actives that the nation is involved in.
The gross domestic product is a measure of the national income.
The formula for national income is given below
National income = employees compensation + proprietors' income + corporate profits + rental income +net interest
5,000 billion = 1,105 billion + 1,520 billion + 490 billion + rental income + 128 billion
Rental income = 5,000 billion - 3,243 billion
Rental income = $1,757 billion
If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:
Answer:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Explanation:
If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
For example:
Total estimated overhead= $150,000
Allocation base= direct labor hours
Estimated Total number of direct labor hours= 10,000
Predetermined manufacturing overhead rate= 150,000/10,000
Predetermined manufacturing overhead rate= $15 per direct labor hour
Assume that Ms. Sawyer's salary is $35,000, up from $31,000 last year, while the CPI is 187.5 this year, up from 180 last year. This means that Ms. Sawyer's real income has ____________ since last year.
Answer:
Increased
Explanation:
Based on the information given we were told Ms. Sawyer's salary is the amount of $35,000, up from the amount of $31,000 last year which means that Ms. Sawyer's salary had INCREASED from $31,000 last year to $35,000 this year
Secondly we were told that the CPI is 187.5 this year which is up from 180 last year which means that Ms. Sawyer's CPI had INCREASED
from 180 last year to 187.5 this year.
Therefore this simply means that Ms. Sawyer's real income has INCREASED since last year.
Nicole Boyd, an HR manager, receives many complaints that some line managers have rejected some employees request to work from home. Nicole reviews the situation and finds that the employees who made the request have high-quality work performance. Nicole takes up the case with the line managers; they finally reach an agreement that employees with a good track record will be allowed to work from home three days a week. According to the Uhlrich’s model, Nicole’s act of confronting the line managers with an issue faced by some employees represents this role of an HR manager.
a. True
b. False
Answer: True
Explanation:
According to the Uhlrich’s model, Nicole’s act of confronting the line managers with an issue faced by some employees represents this role of an HR manager. This is the employees advocate role of the human resource official.
Employee advocate simply means that the human resource official plays a vital role in order to achieve organizational success based on their advocacy of the workers and knowledge regarding them.
A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no beginning work in process; 39000 units were completed and transferred out; and there were 19000 units in the ending work in process that were 30% complete. During July, $87000 materials costs and $89400 conversion costs were charged to the department. The unit production costs for materials and conversion costs for July were:_________
Materials Conversion Costs
$2.77 $1.55
$2.04 $1.50
$3.09 $2.27
$1.60 $1.50
Answer:
Unit Production Cost for Materials = $1.5 per unit
Unit Production Cost for Conversion cost = $2 per unit
Explanation:
Materials Conversion
Beginning WIP 0 0
Started and Completed 39,000 39,000
Ending WIP (19,000*30%) 19,000 5,700
Equivalent Units 58,000 44,700
Cost Incurred $87,000 $89,400
Unit Production Cost for Materials = Cost / Equivalent units
Unit Production Cost for Materials = $87,000 / 58,000
Unit Production Cost for Materials = $1.5 per unit
Unit Production Cost for Conversion cost = Cost / Equivalent units
Unit Production Cost for Conversion cost = $89,400 / 44,700
Unit Production Cost for Conversion cost = $2 per unit
Which of the following BEST describes the primary role of a compliance and ethics professional?
O A. ensures that risks are appropriately prioritized
B. performs background checks on new employees
C. Includes compliance and ethics questions in exit interviews
D. promotes a culture of compliance and ethics throughout the organization
Answer:
D. Promotes a culture of compliance and ethics throughout the organization
Explanation:
Every negative actions that conducted by a member of company will expose the company to the risk of lawsuits.
To prevent this from happening, the company often hire compliance and ethics professional to ensure that the employees are following a set of procedures that prevent them from violating the social norms.
Example of program that conducted by compliance and ethics professional are: providing guidelines to avoid sexual harassment, providing training to deal with conflicts against the customers, etc.
On August 20th, one of your employees comes to you with a vacation request. The employee’s available vacation time expires on September 1st, however she wants to take her vacation between September 20th through the 25th.
She asks you to submit her vacation request to the corporate office for the week prior to September 1st, and wants you to not schedule her for the days between the 20th and 25th, and she wants her "vacation" pay for those days.
Would you do it? Why? or Why Not?
Answer:
No
Explanation:
Her vacation is expired and therefore invalid. Also she is requesting for a pay during this period which counters Amy form of sympathy for this employee. However, depending on the relationship the employee has with her employer, there might be a compromise especially if the employee really does need the vacation as she may be burned out or may have postponed vacation till expiration for the interest of the company
Consider the following story:
Woody loves bowling, and he also loves Beth.
Woody does not particularly like the beach.
The best outcome for Woody is to be at the bowling alley with Beth.
Given the choice of going bowling alone or being at the beach with Beth, Woody would choose to be with Beth.
The worst outcome for Woody is to be at the beach alone.
Beth loves the beach, and she also loves Woody.
Beth does not particularly like bowling.
The best outcome for Beth is to be at the beach with Woody.
Given the choice of going to the beach alone or bowling with Woody, Beth would choose to be with Woody.
The worst outcome for Beth is to be at the bowling alley alone. Woody and Beth plan to meet after work, but each has forgotten where. Suppose the following payoff matrix tells the story, given Woody and Beth's preferences above.
Complete the matrix by filling in the missing payoffs. (Enter your responses as integers.)
Beth
Bowling Beach
Woody Bowling
Beach
a. Find all Nash equilibria in this game, if any.
b. Is this game an archetype? If yes, identify the archetype and explain your selection.
Answer:
a. Both beth and Woody are comfortable at their own preferences and feel dominant in their own strategy.
The outcome to meet somewhere will be either the bowling alley or the beach, any one of Beth and Woody will dominate, however both's priority is to stay together which is fulfilled in both the scenarios.
Explanation:
a. Both beth and Woody are comfortable at their own preferences and feel dominant in their own strategy.
The outcome to meet somewhere will be either the bowling alley or the beach, any one of Beth and Woody will dominate, however both's priority is to stay together which is fulfilled in both the scenarios.
The Board acknowledges your analysis and agrees with your conclusion. They are now curious about how Charles Schwab can use strategies of a mature industry to increase its revenue. You present them two options. One is to implement a product proliferation strategy to establish a presence in the niches that the new entrants are targeting. This strategy has proven to be very successful in the past and can be a very timely advantage. Another plausible strategy is product development to enhance current products. Research shows that the current product line is still fresh in the consumers’ eyes. Which is the wiser choice?
Explanation:
Analyzing the two strategies, the wisest choice would be the product proliferation strategy to establish a presence in the niches that the new competitors are aiming for.
This strategy consists of increasing a company's product mix, in order to increase its positioning in the market through the conquest of new market shares, which consists in the increase of consumers and a greater competitiveness for the company in entering new niches.
The other product development strategy to improve current products may not be a good strategy at the moment, as we have information that the current product is still fresh in the eyes of consumers, so the product is growing, which means that consumers already know the product and there are growth rates in the purchase and repurchase of the product.
Sheridan Company sells radios for $50 per unit. The fixed costs are $445000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $65000 and variable costs will be 50% of the selling price. The new break-even point in units is:
Answer:
Break-even point in units= 2,600
Explanation:
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Fixed costs= $65,000
Contribution margin per unit= 50*0.5= $25
Break-even point in units= 65,000/25
Break-even point in units= 2,600
On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.
Sept. 6 Purchased with cash 80 calculators at $20 each from Guthrie Co.
Sept. 9 Paid freight of $80 on calculators purchased from Guthrie Co.
Sept. 10 Returned 3 calculators to Guthrie Co. for $63 cash (including freight) because they did not meet specifications.
Sept. 12 Sold 26 calculators costing $21 (including freight) for $31 each on account to Lee Book Store, terms n/30.
Sept. 14 Granted credit of $31 to Lee Book Store for the return of one calculator that was not ordered.
Sept. 20 Sold 30 calculators costing $21 for $32 each on account to Orr's Card Shop, terms n/30.
Journalize the September transactions.
Answer and Explanation:
The journal entries are shown below:
Inventory $1,600 (80 × $20)
To Accounts Payable $1,600
(Being inventory purchased on account)
Inventory $80
To Cash $80
(Being the freight charges is paid)
Accounts Payable $63
To Inventory $63
(being returned inventory is recorded
Accounts Receivable $806 (26 × $31)
To Sales Revenue $806
(Being sale of calculators on account is recorded)
Cost of Goods Sold $546 (26 × $21)
To Inventory $546
(being cost of calculators sold is recorded)
Sales Returns and Allowances $31
To Accounts Receivable $31
(Being return of calculator that is recorded)
Inventory $31
Cost of Goods Sold $31
(Being cost of calculators returned is recorded)
Accounts Receivable $960 (30 × $32)
To Sales Revenue $960
(Being sale of calculators on account is recorded)
Cost of Goods Sold $630 (30 × $21 )
To Inventory $630
(Being cost of calculators sold is recorded)
Write down
any
four importance of employment
Answer:
1. to make money to pay bills.
2. to sopport your family.
3. to so responce abilaty.
sorry I can't think of a fourth one.
Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2019, Bigham sold the following customer contracts:
Length of contract Total Proceeds
12 months $40,000
24 months $80,000
Determine the income to be recognized in taxable income in 2019 and 2020.
Length of Contract 2019 Income 2020 Income
12 months $ $
24 months $ $
Answer: See explanation
Explanation:
Length of contract: 12 months
Income recorded in 2019:
= $40,000 × 6/12
= $40,000 × 1/2
= $20,000
Income recorded in 2020:
= $40,000 × 6/12
= $40,000 × 1/2
= $20,000
Length of contract: 24 months
Income recorded in 2019:
= $80,000 × 6/24
= $80,000 × 1/4
= $20,000
Income recorded in 2020:
= $80,000 × 18/24
= $80,000 × 3/4
= $60,000
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.25 coming 3 years from today. The dividend should grow rapidly - at a rate of 32% per year - during Years 4 and 5; but after Year 5, growth should be a constant 6% per year. If the required return on Computech is 17%, what is the value of the stock today? Round your answer to the nearest cent. Do not round your intermediate calculations.
Answer:
P₀ = $12.23
Explanation:
Div₃ = $1.25
Div₄ = $1.65
Div₅ = $2.178
Div₆ = $2.30868
first we must calculate the terminal value using the dividend discount model = $2.30868 / (17% - 6%) = $20.988
now we must discount all the future dividends + terminal value
P₀ = $1.25/1.17³ + $1.65/1.17⁴ + $2.178/1.17⁵ + $20.988/1.17⁵ = $12.23
Assume Merck (MRK) just announced that its next dividend will be $2, paid one year from now (you just missed the prior annual dividend). You expect the dividend will grow (after the $2 dividend) by 3% per year forever. Your required return is 10%. What are you willing to pay for a share of Merck stock
Answer:
$28.57
Explanation:
Current price = D1/(Required return-Growth rate)
D1 (Next dividend) = $2
Required return = 10% = 0.1
Growth rate = 3% = 0.03
Current price = $2/(0.1-0.03)
Current price = $2 / 0.07
Current price = $28.57143
Current price = $28.57
Hence, i will be willing to pay $28.57 for a share of Merck stock.
Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2021-2023. At December 31, 2020, the corporation's accounts included:
Common stock, 111 million shares at $1 par $111,000
Paid-in capital-excess of par 666,000
Retained earnings ($ in thousands) 900,000
a. November 1, 2021, the board of directors declared a cash dividend of $0.50 per share on its common shares, payable to shareholders of record November 15, to be paid December 1.
b. On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $2.6 million, but were purchased two years previously for $2.3 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The property dividend was payable to shareholders of record March 13, to be distributed April 5.
c. On July 12, 2022, the corporation declared and distributed a 6% common stock dividend (when the market value of the common stock was $18 per share). Cash was paid in lieu of fractional shares representing 660,000 equivalent whole shares.
d. On November 1, 2022, the board of directors declared a cash dividend of $0.50 per share on its common shares, payable to shareholders of record November 15, to be paid December 1.
e. On January 15, 2023, the board of directors declared and distributed a 3-for-2 stock split effected in the form of a 50% stock dividend when the market value of the common stock was $19 per share.
f. On November 1, 2023, the board of directors declared a cash dividend of $0.35 per share on its common shares, payable to shareholders of record November 15, to be paid December 1.
Answer:
a)
dividends 55.5 million debit
dividends payable 55.5 million credit
--Nov 1st, 2021--
dividends payable 55.5 million debit
cash 55.5 million credit
b)
dividends 2,600,000 debit
dividends distributable 2,600,000 credit
--March 1st--
dividends distributable 2,600,000 debit
Warner Securities 2,300,000 credit
Gain on Investment 300,000 credit
--April 5th--
c)
dividends 119.88 million debit
cash 11.88 million credit
common stock 18 million credit
additional paid-in CS 90 million credit
d)
dividends 58.5 debit
Dividends Payable 58.5 credit
--Nov 1st
Dividends payable 58.5 million debit
cash 58.5 million credit
--Dec 1st--
e) NO ENTRY REQUIRED
f)
dividends 61.425 debit
Dividends Payable 61.425 credit
--Nov 1st
Dividends payable 61.425 million debit
cash 61.425 million credit
--Dec 1st--
Explanation:
a) 111 millions shares x $0.50 = $55.5 millions
c)
111 millions x $18 per share x 6% = 119.88 millions
660,000 x $18 = 11.88 millions
net: 119.88 - 11.88 = 108 millons on shares
$108 millons / $18 per share = 6,000,000 shares
d)
111 + 6 new shares = 117 shares
$117 x $0.50 = $58.5 millons
f) 3-2 split gives 3 shares for every 2 shares
117 x 3/2 = 175.5 millons
175.5 millions x 0.35 per share = 61.425 million cash dividends
Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts.
Jul.
1. Yardley contributed $68,000 cash to the business in exchange for common stock.
5. Paid monthly rent on medical equipment, $510.
9. Paid $16,000 cash to purchase land to be used in operations.
10. Purchased office supplies on account, $1 ,600.
19. Borrowed $26,000 from the bank for business use.
22. Paid $1 , 100 on account.
28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.
31. Revenues earned during the month included $6,300 cash and $5,300 on account.
31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.
31. The business received $1 ,340 for medical screening services to be performed next month.
31. Paid cash dividends of $6,900.
Answer:
July 1. Yardley contributed $68,000 cash to the business in exchange for common stock.
Dr cash 68,000
Cr common stock 68,000
July 5. Paid monthly rent on medical equipment, $510.
Dr rent expense 510
Cr cash 510
July 9. Paid $16,000 cash to purchase land to be used in operations.
Dr land 16,000
Cr cash 16,000
July 10. Purchased office supplies on account, $1 ,600.
Dr office supplies 1,600
Cr accounts payable 1,600
July 19. Borrowed $26,000 from the bank for business use.
Dr cash 26,000
Cr notes payable 26,000
July 22. Paid $1,100 on account.
Dr accounts payable 1,100
Cr cash 1,100
July 28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.
Dr advertising expense 250
Cr accounts payable 250
July 31. Revenues earned during the month included $6,300 cash and $5,300 on account.
Dr cash 6,300
Dr accounts receivable 5,300
Cr service revenue 11,600
July 31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.
Dr wages expense 1,900
Dr rent expense 1,400
Dr utilities expense 600
Cr cash 3,900
July 31. The business received $1 ,340 for medical screening services to be performed next month.
Dr cash 1,340
Cr unearned revenue 1,340
July 31. Paid cash dividends of $6,900.
Dr dividends 6,900
Cr cash 6,900
cash
debit credit
July 1 68,000
July 5 510
July 9 16,000
July 19 26,000
July 22 1,100
July 31 6,300
July 31 3,900
July 31 1,340
July 31 6,900
101,640
accounts receivable
debit credit
July 31 5,300
office supplies
debit credit
July 10 1,600
land
debit credit
July 9 16,000
accounts payable
debit credit
July 10 1,600
July 22 1,100
July 28 250
750
unearned revenue
debit credit
July 31 1,340
notes payable
debit credit
July 19 26,000
common stock
debit credit
July 1 68,000
service revenue
debit credit
July 31 11,600
rent expense
debit credit
July 5 510
July 31 1,400
advertising expense
debit credit
July 28 250
wages expense
debit credit
July 31 1,900
utilities expense
debit credit
July 31 600
dividends
debit credit
July 31 6,900
Brief Exercise 14-08 Ziegler Corporation reports net income of $380,000 and a weighted-average of 200,000 shares of common stock outstanding for the year. Compute the earnings per share of common stock.
Answer:
$1.9
Explanation:
The computation of the earning per share is shown below:
Earning per share is
= Net income ÷ Weighted number of oustanding shares
= $380,000 ÷ 200,000 shares
= $1.9
By simply divide the net income from the Weighted number of oustanding shares, the earning per share could be determined
Hence, the earning per share is $1.9
The adjusted trial balance of Norton Company contained the following information. Assume the tax rate is 25%:
Debit Credit
Sales revenue $390,000
Sales returns and allowances $10,000
Sales discounts 5,000
Cost of goods sold 200,000
Operating expenses 110,000
Interest revenue 8,000
Interest expense 3,000
Required:
Compute income from operations.
a. $175,000
b. $65,000
c. $50,000
d. $70,000
Answer:
b. $65,000
Explanation:
Particulars Amount
Revenues
Service Revenue $390,000
Less: Sales Return and allowance $10,000
Less: Sales Discount $5,000
Net Sales Revenue $375,000
Less: Cost of Goods Sold $200,000
Gross Profit $175,000
Less: Operating Expenses $110,000
Operating Income $65,000
Thus, income from operation is $65,000
How is a proceeding for violation of the regulations in Circular 230 instituted against a tax practitioner
Incomplete question. The options read;
A. An aggrieved taxpayer files a petition with the United States Tax Court stating a claim against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary
B. The IRS representative signs a complaint naming the tax practitioner and files the complaint with the Administrative Law Judge (ALJ)
C. The Secretary of the Treasury files a complaint against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary in the United States District Court for the District of Columbia
D. The Commissioner of the IRS files a complaint against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary with the United States Tax Court
Answer:
D. The Commissioner of the IRS files a complaint against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary with the United States Tax Court
Explanation:
According to the information on the thetaxadviser website, when there is a violation of the regulations in Circular 230 instituted by a tax practitioner a complaint would be filed, and if found guilty, he or she "may be censured, suspended, or disbarred from practice before the IRS."
Usually, the Office of Professional Responsibility would take up the case against the tax practitioner.
Consider the following data on U.S. GDP:
Year Nominal GDP (Billions of dollars) GDP Deflator (Base year 2009)
2015 17,947 109.8
1995 7,664 75.3
The growth rate of nominal GDP between 1995 and 2015 was _____, and the growth rate of the GDP deflator between 1995 and 2015 was _____.
Measured in 2009 prices, real GDP was _____ billion in 1995 and _____ billion in 2015.
The growth rate of real GDP between 1995 and 2015 was _____.
The growth rate of nominal GDP between 1995 and 2015 was _____ than the growth rate of real GDP.
Answer:
The growth rate of nominal GDP between 1995 and 2015 was 4.35%
Growth rate over a period is calculated as;
= 100 * (((Current variable/initial variable)^1/n) - 1)
= 100 * (((17,947 / 7,664) ^1/20) -1)
= 4.35%
Growth rate of the GDP deflator between 1995 and 2015 was 1.90%.
= 100 * (((109.8/75.3)^1/20) -1)
= 1.90%
Measured in 2009 prices, real GDP was $ 10,177.95 billion in 1995 and $ 16,345.17 billion in 2015.
Real GDP = (Nominal GDP / GDP Deflator) * 100
1995 = (7,664/75.3) * 100
= $ 10,177.95
2015 = (17,947/109.8) * 100
= $ 16,345.17
The growth rate of real GDP between 1995 and 2015 was 2.397% .
= 100 x (((16,345.17 / 10,177.95)^1/20) -1)
= 2.397%
The growth rate of nominal GDP between 1995 and 2015 was more than the growth rate of real GDP.
Nominal GDP growth was 4.35% whilst Real GDP was 2.397%.
You first look at the trial balance. In addition to the account balances reported in the income statement, the ledger contains these selected balances at March 31, 2022. Supplies $4,600 Prepaid Insurance 7,500 Notes Payable 21,000 You then make inquiries and discover the following.
1. Rent revenue includes advanced rentals for summer-month occupancy, $21,500.
2. There were $530 of supplies on hand at March 31.
3. Prepaid insurance resulted from the payment of a 1-year policy on January 1, 2022.
4. The mail on April 1, 2022, brought the following bills: advertising for week of March 24, $150; repairs made March 10, $1,050; and utilities $200.
5. Wage expense totals $270 per day. At March 31, 3 days’ wages have been incurred but not paid.
6. The note payable is a 3-month, 8% note dated January 1, 2022.
Answer:
rent revenue 21,500 debit
unearned revenue 21,500 credit
--to amend incorrect recognition of revenue--
Supplies expense 4,070 debit
Supplies 4,070 credit
--to record use of supplies--
Insurance expense 1,875 debit
Prepaid Insurance 1,875 credit
--to record use of supplies--
advertizing expense 150 debit
repair expense 1050 debit
utilities expense 200 debit
account payable 1,400 credit
--to record accrued expenses--
wages expense 810 debit
wages payable 810 credit
--to record accrued wages--
interest expense 420 debit
interest payable 420 credit
--to record accrued interest--
Explanation:
#1 unearned revenue
The company should not recognize the summer-month occupancy as this occurs between April and June thereofre it is unearned The company has an obligation to perform. To give the rental space thus it is a liability not earnings.
#2 Supplies adjustment:
Jan 1st $4,600 - March 31st $530 = $4,070 supplies expense
#3 expired insurance:
value per month: $7,500 / 12 months = 625
month expired between Jan 1st and March 31st: 3
total value f expired insurance: $625 per month x 3 month = 1,875
#4 accured expenses concetps were incurred and we most recognize them
#5 each day $270 times 3 days accrued = 810 total wages accrued
#6 accrued interest expense: principal x rate x time
$21,000 x 0.08 x 3/12 = $420
Help pleaseee!
The members of the Federal Reserve System must hold some of their deposits in cash in their vaults. This represents?
A - discount rates
B - reserved requirements
C - selective credit controls
D - open market operations.
Answer:
B-reserved requirements
Explanation:
Firms often seek to borrow money to expand their capital stock, and the price they pay for the money is the interest rate. What happens to quantity of money demanded if the interest rate increases
Answer:
When interest rate rises, the quantity of money demanded reduces
Explanation:
As interest rate increases firms seeking to borrow money for capital stock expansion are likely not going to go ahead with it. The reason is simply because, interest rate and money demanded have an inverse relationship. As interest rate rises money demanded falls because it means that for any amount of money borrowed the interest rate attached to it is higher making the cost of borrowing heavier on the borrower.
Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $12,270. The bank statement indicated a balance of $15,440 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: Checks outstanding totaled $5,560. A deposit of $5,790, representing receipts of July 31, had been made too late to appear on the bank statement. The bank had collected $3,010 on a note left for collection. The face of the note was $2,860. A check for $800 returned with the statement had been incorrectly recorded by Stone Systems as $880. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account. A check drawn for $400 had been incorrectly charged by the bank as $40. Bank service charges for July amounted to $50.
Required:
Prepare a bank reconciliation.
Answer: Please see below for the reconciliation of bank and book balance for Stone systems as $15,310
Explanation:
Bank Reconciliation Statement for July 31 , 20Y5 for Stone Systems
Particulars Amount
Balance on bank statement $15,440
Additions:
Outstanding Deposits $5,790
Deductions:
Outstanding checks $5,560
Bank Error (400-40) $360
Adjusted bank balance $15,310
Balance in books $12,270.
Additions:
Note Collection plus interest $3,010
Incorrect recording of check
($880-$800) $80
Deductions
Bank Service charges $50
Adjusted book balance $15,310
Jupiter Explorers has $8,800 in sales. The profit margin is 4 percent. There are 5,300 shares of stock outstanding. The market price per share is $1.60. What is the price-earnings ratio
Answer:
Price earnings ratio = 24.09 (Approx)
Explanation:
Given:
Sale = $8,800
Profit margin = 4% = 0.04
Number of share = 5,300
Market price per share = $1.60
Find:
Price-earnings ratio
Computation:
Earnings Per share = Profit / Number of shares
Earnings Per share = [8,800 x 0.04] / 5300
Earnings Per share = $0.0664
Price earnings ratio = Market price per share / Earnings Per share
Price earnings ratio = 1.60/0.0664
Price earnings ratio = 24.09 (Approx)
There are two machines for sale that you are considering purchasing for your sawmill to produce hardwood flooring. You want to find the one that has a higher process capability index, or Cpk. The goal is to produce flooring that is between 46 and 50 millimeters thick. The first machine is more accurate on average, producing to a mean of 48 millimeters...but unfortunately it has more variation with a standard deviation of 7 millimeters. The second machine is not as accurate, with a mean of 47mm, but does deliver a more consistent output, with standard deviation of 3mm.
[ Select] What is the Cpk of machine 1?
[Select] What is the Cpk of machine 2?
[ Select] If your goal is to be capable', what would you do?
[ Select] If (somehow) you could combine the best of both machines (the centering or average of machine 1 coupled with the constancy or standard deviation of machine 2, what would the Cpk be?
Answer:
Machine 1 = 0.092
Machine 2 = 0.111
Combined = 0.222
Explanation:
Given the following :
Lower specification limit (LSL) = 46 mm
Upper specification limit (USL) = 50 mm
MACHINE 1:
Mean 1 (m1) = 48
Standard deviation 1 (σ1) = 0.7
MACHINE 2:
Mean 2 (m2) = 47
Standard deviation 2 (σ2) = 0.3
Cpk formula:
Min(USLcpk, LSLcpk)
USLcpk = (USL - m) / 3σ
LSLcpk = (m - LSL) / 3σ
FOR MACHINE 1:
USLcpk = (50 - 48) / 3(7) = 0.0952
LSLcpk = (48 - 46) / 3(7) = 0.0952
Cpk = Min(0.952, 0.952) = 0.952
FOR MACHINE 2:
USLcpk = (50 - 47) / 3(3) = 0.333
LSLcpk = (47 - 46) / 3(3) = 0.111
Min(USLcpk, LSLcpk)
Cpk = Min(0.333, 0.111) = 0.111
When combined :
Mean = 48
σ = 3
USLcpk = (50 - 48) / 3(3) = 0.222
LSLcpk = (48 - 46) / 3(3) = 0.222
Min(USLcpk, LSLcpk)
Cpk = Min(0.222, 0.222) = 0.222