Answer:
1.9058n n=15x x=17g g=5L
Explanation:
Santos Unlimited (SU) was originally unlevered with 4200 shares outstanding. However, after a major financial restructure, SU now has $37000 of debt, with an annual interest expense of 8 percent. The restructuring has reduced the number of shares to 3800. A group of shareholders of SU are not convinced that this move towards adopting financial leverage is a good idea. Their main argument is that there is now some range of EBIT, however low, that will make the shareholders worse off than before.
Required:
Help understand the situation better by computing the level of earnings before interest and tax (EBIT) that would make shareholders indifferent between being unlevered (i.e. not having any debt) and levered (i.e. having debt). Assume a 34 percent corporate tax rate.
Answer:
Unlevered Levered
EAT EBIT * (1-t) EBIT - Interest - Tax
No. of shares 4,200 3,800
Payoff per share holder = EAT / Number of shares. At Indifference point, per share payoff should be equal in both cases
EBIT * 0.66 / 4,200 = (EBIT - (37,000*8%) * 0.66) / 3,800
0.66*EBIT / 4,200 = [0.66*EBIT - 2,960*0.66] / 3,800
3,800 * 0.66EBIT = 4,200*[0.66EBIT - 1,954]
2,508 EBIT = 2,772 EBIT - 8,206,800
2,772 EBIT - 2,508 EBIT = 8,206,800
264 EBIT = 8,206,800
EBIT = 8,206,800/264
EBIT = 31086.36363636364
EBIT = $31,086.36
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
Journalize the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:
May 24 Sold merchandise on account to Old Town Cafe, $19,400. The cost of goods sold was $14,000.
Sept. 30 Received $4,100 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible.
Dec. 7 Reinstated the account of Old Town Cafe that had been written off on September 30 and received $15,300 cash in full payment.
Answer:
Zippy Interiors Company
Journal Entries:
May 24 Debit Accounts receivable (Old Town Cafe) $19,400
Credit Sales revenue $19,400
To record the sale of goods on account.
Debit Cost of goods sold $14,000
Credit Inventory $14,000
To record the cost of goods sold.
Sept. 30 Debit Cash $4,100
Debit Allowance for Uncollectible Accounts $15,300
Credit Accounts receivable (Old Town Cafe) $19,400
To record the receipt of cash and write-off of balance as uncollectible.
Dec. 7 Debit Accounts receivable (Old Town Cafe) $15,300
Credit Allowance for Uncollectible Accounts $15,300
To revise the previously written-off uncollectible account.
Debit Cash $15,300
Credit Accounts receivable (Old Town Cafe) $15,300
To record the receipt of cash in full settlement of account.
Explanation:
a) Data and Calculations:
May 24 Accounts receivable (Old Town Cafe) $19,400 Sales revenue $19,400 Cost of goods sold $14,000 Inventory $14,000
Sept. 30 Cash $4,100 Allowance for Uncollectible Accounts $15,300 Accounts receivable (Old Town Cafe) $19,400
Dec. 7 Accounts receivable (Old Town Cafe) $15,300 Allowance for Uncollectible Accounts $15,300
Cash $15,300 Accounts receivable (Old Town Cafe) $15,300
Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $420 million on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 14%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows:
January 1, 2021
Cash (price) 375,505,452
Discount on bonds (difference) 44,494,548
Bonds payable (face amount) 420,000,000
Required:
What would be the amount(s) related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2021? (List any cash outflow with a minus sign. Enter your answers in whole dollars.)
Answer:
Most Solutions, Inc.
Amounts related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2021:
Operating activities:
Interest payments -$50.4 million
Financing activities:
Bonds issue $375,505,452
Explanation:
a) Data and Calculations:
January 1, 2021:
Face value of bonds issued = $420 million
Maturity period of bonds = 10 years (2031)
Coupon interest rate = 12%
Market yield = 14%
Payment of interest expense = semiannually (June 30 and December 31)
Debit Cash (price) 375,505,452
Debit Discount on bonds (difference) 44,494,548
Credit Bonds payable (face amount) 420,000,000
To record the bonds proceeds and discount.
Cash payments for Bonds Interests:
June 30 $25.2 million
December 31 $25.2 million
Jonathon Maine is the inventory control manager of the Aucetics Company. In 2020, the annual demand for product X was 7500 units, and the order quantity Q was set to be 535 units per order. Jonathon Maine is planning for next year inventory. The annual demand of product X is expected to remain the same (7500 units per year). Utilizing the EOQ model, if Jonathon changes the order quantity Q to 680 units per order, the total annual ordering cost wil:__________
Answer:
decrease
Explanation:
The ordering quantity for the current year is 535 units, this means that the company must make 7,500 / 535 = 14.02 orders.
If the ordering quantity increases to 680, the number of orders will be 7,500/ 680 = 11.03.
Regardless of how much it costs to place an order, the number of orders made is 3 less than in the previous year, therefore, the ordering costs must decrease.
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.
LaTanya Corporation is planning to issue bonds with a face value of $107,000 and a coupon rate of 6 percent. The bonds mature in seven years. Interest is paid annually on December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.
Round your final answer to whole dollars.) Required: Compute the issue (sale) price on January 1 of this year for each of the following independent cases:
a. Case A: Market interest rate (annual): 6 percent.
b. Case B: Market interest rate (annual): 4 percent.
c. Case C: Market interest rate (annual): 7 percent.
Answer:
A. $107,005
B. $119,842
C. $101,228
Explanation:
Computation for the issue (sale) price on January 1 of this year
a. Case A: Market interest rate (annual): 6 percent
Table value are based on:
n= 7
i= 6%
Cash Flow Table Value Amount Present Value
Par (maturity value) 0.6651 $107,000 $71,166
Interest (annuity) 5.5824 6,420 35,839
($107,000*6%=$6,420)
Issue Price 107,005
Therefore The Issue Price for Case A is $107,005
b. Case B: Market interest rate (annual): 4 percent
Table value are based on:
n= 7
i= 4%
Cash Flow Table Value Amount Present Value
Par (maturity value) 0.7599 107,000 81,309
Interest (annuity) 6.0021 6,420 38,533
Issue Price $119,842
Therefore the Issue Price for Case B is $119,842
c. Case C: Market interest rate (annual): 7 percent.
Table value are based on:
n= 7
i= 7%
Cash Flow Table Value Amount Present Value
Par (maturity value) 0.6227 107,000 66,629
Interest (annuity) 5.3893 6,420 34,599
Issue Price $101,228
Therefore The Issue Price for Case C is $101,228
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
Suppose the Digby company shifts focus to only competing in the Thrift and Nano segments, while competing on price by reducing costs and passing the savings to the customers, what strategy would they be implementing
Answer:
Niche cost leader strategy
Explanation:
In simple words, A niche cost pioneer or leader aims to exploit consumer markets that are price responsive. Its objective is to undercut all rivals' costs while remaining sustainable. Under this business strategy, the producer try to create a strong customer base by offering lower prices as it is the best motivation for the customer to try a specific product.
Thus, from the above we can conclude that the correct answer is niche cost leader.
Select the correct answer from each drop-down menu.
Which functions of management do manufacturing and service businesses use to maximize their operations?
Manufacturing and service businesses use the four management functions—planning,
,
, and controlling—to increase the productivity of their operations.
Answer:
organising and staffing
Explanation:
Answer:
Organizing and staffing
Explanation:
Plato/Edmentum
One day, while Barbara was parking her car at the mall, she backed into another car. She got out of her car to see what happened. The other driver was not there at the time. Barbara could not see any damage, so she continued on her way. Which of the following statements is true about this situation? Because there was no obvious damage, Barbara has no liability. Barbara should have left a note for the other driver. Barbara’s action is an example of a hit-and-run. Barbara should have left a note for the other driver and Barbara’s action is an example of a hit and run.
Answer: Barbara should have left a note for the other driver and Barbara’s action is an example of a hit and run.
Explanation:
Hit and run occurs when there's a traffic collision with another car or human being and the person who caused the collision doesn't stop and therefore doesn't provide necessary information details which are required by law to the other person affected.
With regards to the scenario discussed in the question, Barbara should have left a note for the other driver and Barbara’s action is an example of a hit and run.
She should have left a note which will consist of details of how she can be reached in case there's further damage on the car.
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:
In 2019, Henry Jones (Social Security number 123-45-6789) works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2019, Henry's qualified business income from driving is $61,200. Assume Henry takes the standard deduction of $12,200. Click here to access the 2019 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction.
Required:
a. Compute Henrys QBI deduction and his tax liability for 2019.
b. Complete Henry's 2019 Form 8995 (Qualified Business Income Deduction Simplified Computation).
Answer:
a. QBI Deduction = $9,800
Tax liability = $4,510
Explanation:
a. The BI deduction in 2019 was 20% of the qualified business income in excess of the standard deduction:
QBI deduction = (61,200 - 12,200) * 20%
= $9,800
We then use this to find the taxable income:
= Qualified business income - standard deduction - QBI deduction
= 61,200 - 12,200 - 9,800
= $39,200
Tax liability for a single person in 2019 as shown by the attached file is:
= 970 + 12% * (39,200 - 9,700)
= 970 + 3,540
= $4,510
b. Form not attached but the main item should be the taxable income which is calculated above.
Suppose that in your first year of college you spend $31,300.00 more than you eam. In your second year, your expenses increase a bit, leading you to spend $31.900.00 more than you earn. This gap goes to $32.150.00 in your third year of college, then falls a bit to $32,150.00 in your fourth and final year ist attempt What is your deficit in your third year of college? s s How much debt do you have that year? S
Answer: See explanation
Explanation:
Based on the information provided in the question, the deficit in the 3rd year of college will be: = $32,150
The total debt that one owes in the 3rf year will then be the addition of the debts from the 1st to the 3rd year and this will be:
= $31,300 + $31,900 + $32,150
= $63,232
Answer:
1. $32,150
2. $95,350
Explanation:
The deficit in the third year is given in the introduction: $32,150
The deficit measures how expenditures in a given year match up with earnings, whereas the debt is the total accumulation of deficits.
The debt after your third year is the sum of the deficits from your first three years: $31,300 + $31,900 + $32,150 = $95,350
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
The following information is available for Tamarisk Corporation for the year ended December 31, 2022: Collection of principal on long-term loan to a supplier $33,000 Acquisition of equipment for cash 12,000 Proceeds from the sale of long-term investment at book value 25,000 Issuance of common stock for cash 21,800 Depreciation expense 25,000 Redemption of bonds payable at carrying (book) value 38,100 Payment of cash dividends 6,500 Net income 33,500 Purchase of land by issuing bonds payable 40,800 In addition, the following information is available from the comparative balance sheet for Tamarisk at the end of 2022 and 2021: 2022 2021 Cash $165,000 $91,000 Accounts receivable (net) 33,500 17,200 Prepaid insurance 19,900 13,600 Total current assets $218,400 $121,800 Accounts payable $34,400 $18,400 Salaries and wages payable 6,200 7,300 Total current liabilities $40,600 $25,700 Prepare Tamarisk's statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
TAMARISK CORPORATION Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flow From Operating Activities Net Income Adjustments to reconcile net income to S $
Answer:
Let me give you an example of a segment addition problem that uses three points that asks the student to solve for x but has a solution x = 20.
First, I assumed values for each x, y and z and then manipulated their coefficients to get the total at the end of each equation.
20 + 10 +30 = 60
40 + 0 + 40 = 80
40 + 10 = 50
Then exchangeing these numbers into values and we have the following equation.
x + 2y + 3z = 60
2x + 4z = 80
2x + z = 50
If you will solve them m bcccbvqcve2anually by substituting their variables into these equations, you can get
x = 20
y = 5
z = 10
Explanation:
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:
what is operating a vocation? explain with example.
I'm not really sure about that tho
2. For the fiscal year of 2017, Excel Sports Inc. had a net income of $255,000 and paid out $51,000 as common dividend. Meanwhile, the retained earnings in its 2017 Balance Sheet was $1,297,000. How much was the retained earnings in its 2016 Balance Sheet
Answer:
$1,093,000
Explanation:
Given the above information, retained earnings in the balance sheet for 2016 would be computed as;
Beginning retained earnings + Net income - Dividends = Ending retained earnings
Fixing in the values, then we'll have
Beginning retained earnings + $255,000 - $51,000 = $1,297,000
Beginning retained earnings = $1,297,000 - $255,000 + $51,000
Beginning retained earnings = $1,093,000
It therefore means that the sum of $1,093,000 is the retained earnings in Excel Sports Inc. 2016 balance sheet.
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $600,000. The terms of the loan are 3.5% annual interest rate and payable in 8 months. Interest is due in equal payments each month. A. Compute the interest expense due each month. If required, round final answer to two decimal places. $fill in the blank 168512f2f010003_1 B. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. If required, round final answers to two decimal places. If an amount box does not require an entry, leave it blank.
Answer:
a. Total interest due for the loan = Loan amount * Interest rate p.a * Months/12 months = $600,000 * 3.5% * 8/12 = $14,000
Interest due for each month = $14,000 / 8 months = $1,750
b. Journal Entries for payment of interest and final settlement
Date Account Title and Explanation Debit Credit
Oct 20 Interest Expenses $1,750
Cash $1,750
(Interest payment entry passed)
May 20 Interest Expenses $1,750
Loan $600,000
Cash $601,750
(Entry passed for loan and final interest payment)
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.
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Problem 9-52 Part-b (Static) b. $800 of interest on a short-term loan incurred in September and repaid in November. Half of the loan proceeds was used immediately to pay salaries and the other half was invested in municipal bonds until November After-tax cost
Answer:
After-tax cost $652
Explanation:
$652 = $800 [1 − (0.5 × 0.370)]. Half of the interest is not deductible because it was used to purchase tax-exempt securities.
Charlie Plopp is selling a horse. If he does not sell the horse, then he gets no revenue. Three types of people are interested in buying the horse: professional cowboys who value the horse at $H, recreational riders who value the horse at $M, and glue factory representatives who value the horse at $L, where H>M>L. There are two buyers visiting Charlie's barn, and while Charlie can't tell what type of buyers they are, he knows that each one is independently and equally likely to be one of the three types. He is considering two methods of selling the horse: Method 1: He posts the horse at a price of $M. Method 2: He runs a sealed-bid auction and sells to the highest bidder at the second highest bid. Assume bidders bid rationally, and if a buyer is indifferent between buying and not buying, he buys. Charlie gets higher expected revenue from Method 2 if and only if which of the following conditions holds?
A) H+ 5L > SM
B) H+4L > 7M
C) 2H + 5M > 4M
D) H+ 5L <8M
E) H+ 5L <5M
The Holdsworth Corporation has purchased an executive jet. The company has agreed to pay $201,100 per year for the next 10 years and an additional $2,011,000 at the end of the 10th year. The seller of the jet is charging 8% annual interest.
Required:
Determine the liability that would be recorded by Jenkins.
Answer:
$2,280,872
Explanation:
The computation of the liability that would be recorded by Jenkins is shown below
= Payment per year × annuity factor at 8% for 10 years + extra amount × discounting factor at 8% and 10 year
= $201,100 × 6.71008 + $2,011,000 × 0.46319
= $1,349,397 + $931,475
= $2,280,872
hence, the liability is $2,280,872
Joe obtained a box of antique Lenox china dishes that had been left at the town dump. He supplemented the sizeable buy incomplete set of dishes with other Lenox pies found at antique dealers. At dinner parties, he proudly told of the origin of the china. When Marlene discovered that Joe had taken her dishes from the town dump, she hired an attorney to obtain their return. What result?
Answer:
The result of Marlene hiring an attorney to obtain her return would only be successful if she did not voluntarily give up her right to ownership of the plates and can provide an evidence to that effect
Explanation:
The result of Marlene hiring an attorney to obtain her return would only be successful if M can produce an evidence showing that she did not intentionally dump the plates into the town dump ( i.e. she did not voluntarily give up her right to ownership of the plates ) If not the plates will be transferred to give to Joe under the code name " finders keepers "
1. Combined, Barry and Cheri bring home $3,500 each month (after taxes) from their full-time jobs. Additionally, Barry receives $100 per month for the lawn maintenance services he provides to his relative. The typical American family spends money in the categories listed below. Use the suggested percentages to help you figure what Barry and Cheri will spend in each category. Put your answers in the blanks below.
Housing 30% _________
Transportation 20% _________
Food 15% _________
Insurance 07% _________
Savings 10% _________
Other 18% _________
Please help I will mark brainliest. Do NOT post any links or you will be reported
Answer:
Housing - $1080
Transportation $720
Food - $ 540
Insurance- $252
Savings- $360
Other - $648
Explanation:
The total money earned by both Barry and Cheri is $3,500 + $ 100 = $3600
Housing 30% ____0.3 * 3600_____ = 1080
Transportation 20% ___0.2 * 3600______= 720
Food 15% _____0.15 * 3600____= 540
Insurance 07% ___0.07* 3600______= 252
Savings 10% ___0.1* 3600______= 360
Other 18% ____0.18 * 3600_____ = 648
First Fiddler's Bank has foreclosed on a home mortgage and is selling the house at auction. There are three bidders for the house, Ernie and Betsy. First Fiddler's does not know the willingness to pay of these three bidders for the house, but on the basis of its previous experience, the bank believes that each of these bidders has a probability of 1/3 of valuing it at $700, 00 a probability of 1/3 of valuing at $400, 000, and a probability of 1/3 of valuing it at $300, 000. First Fiddler's believes that these probabilities are independent among buyers, and that Ernie and Betsy are rational bidders. If First Fiddler's sells the house by means of a second-price, sealed-bid auction (Vickrey auction), what will be the bank's expected revenue from the sale? (Choose the closest option.)
A) $466, 667
B) $400, 000
C) $300, 000
D) $420, 000
E) $377, 778
Answer:
First Fiddler's Bank
If First Fiddler's sells the house by means of a second-price, sealed-bid auction (Vickrey auction), the bank's expected revenue from the sale is:
A) $466, 667.
Explanation:
a) Data and Calculations:
Probability Property Value Expected Value
1/3 $700,000 $233,333 ($700,000 * 1/3)
1/3 400,000 133,333 ($400,000 * 1/3)
1/3 300,000 100,000 ($300,000 * 1/3)
Bank's expected revenue from the sale = $466,666
b) The bank's expected revenue is calculated as the product of the possible revenue outcomes and their probabilities. Then the dividends are added up to arrive at the expected revenue.
n order for an item to be considered a gift: Group of answer choices a. It must be given without any characteristics of control left with the giftor. b. The item cannot be exchanged for an agreement to provide a contra gift or service. c. It must represent a contract. d. Both a and b are required for an item to be considered a gift. e. Both a and c are required for an item to be considered a gift.
Answer:
a. It must be given without any characteristics of control left with the giftor.
b. The item cannot be exchanged for an agreement to provide a contra gift or service.
Explanation:
According to the Internal revenue system (IRS) gift means any transfer made to an individual either in direct way or indirect and the full considered would not be collected in return. In other way, lets take an example that you gave a big amount check and gift some investment to the individual other than your dependent or your wife so here it means you gave a gift
Therefore the option a and b is correct
The graph above shows supply and demand for a popular brand of coffee. A gas crisis affects shipping costs. What would a coffee company do in anticipation of a rise in shipping costs, and how would that effect the equilibrium price? (1 point)
Group of answer choices
Add S2 to the right of S, showing increase in supply and equilibrium price.
Add S2 to the left of S, showing decrease in supply and increase in equilibrium price.
Add D3 to the left of D2, showing decrease in equilibrium supply and equilibrium price.
Add D3 to the right of D2, showing increase in equilibrium supply and equilibrium price.
Answer:
Add S2 to the left of S, showing decrease in supply and increase in equilibrium price.
Explanation:
I did this and got it right
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