Answer:
Realidades 2 WKBK page 109
Explanation:
Realidades 2 WKBK page 109
You purchased a 5-year, 6% annual-coupon bond with $1,000 par value. The yield to maturity at the time of purchase was 4%. You sold the bond after one year, right after receiving the first coupon payment. The bond's yield to maturity was 3.4% when you sold it. What is your holding period return on the bond
Answer:
6.12%
Explanation:
the market value of the bond when you purchased it was:
PV of face value = $1,000 / 1.04⁵ = $821.93
PV of coupon payments = $60 x 4.4518 (PV annuity factor, 4%, 5 periods) = $267.11
initial investment = $1,089.04
after 1 year, you receive $60 +
PV of face value = $1,000 / 1.034⁴ = $874.82
PV of coupon payments = $60 x 3.6818 (PV annuity factor, 3.4%, 4 periods) = $220.91
market price = $1,095.73
total holding return = ($1,095.73 + $60 - $1,089.04) / $1,089.04 = 6.12%
McCanless Co. recently purchased an asset for $2,550,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. What is the amount of depreciation in Year 2
Answer:
the depreciation expense in year 2 is $1,133,475
Explanation:
The computation of the depreciation expense in year 2 is given below:
depreciation in Year 2 is
= Asset amount × Depreciation percentage in year 2
= $2,550,000 × 44.45%
= $1,133,475
Hence, the depreciation expense in year 2 is $1,133,475
The Pioneer Company has provided the following account balances: Cash $39,800; Short-term investments $5,800; Accounts receivable $7,800; Supplies $57,000; Long-term notes receivable $3,800; Equipment $105,000; Factory Building $198,000; Intangible assets $7,800; Accounts payable $28,200; Accrued liabilities payable $3,100; Short-term notes payable $17,600; Long-term notes payable $101,000; Common stock $198,000; Retained earnings $77,100. What are Pioneer's total current assets
Answer:
Pioneer's total current assets are $110,400.
Explanation:
Pioneer's total current assets can be calculated using the following formula:
Current assets = Cash + Short-term investments + Accounts receivable + Supplies ............... (1)
Where;
Cash = $39,800
Short-term investments = $5,800
Accounts receivable = $7,800
Supplies = $57,000
Substituting the values into equation (1), we have:
Current assets = $39,800 + $5,800 + $7,800 + $57,000 = $110,400
Organizations sometimes choose robust strategies in which they know they will have no regrets regardless of what takes place. This route makes sense when: Select one or more: a. quantitative odds can be ascribed b. feedback occurs c. qualitative outcomes described d. technology is important
Answer:
b. feedback occurs
c. qualitative outcomes
Explanation:
In the given scenario a business is willing to take robust challenge with resultant effect that does not bother them.
The only scenario where businesses are comfortable with this is when there is feedback and when only qualitative outcomes like interventions in the job.
When a business has constant feed back strategies change accordingly to meet business needs.
When only qualitative outcomes are important, volume of production does not matter
Marketing and common sense
Use the following Year 3 data: Other Selling and Administrative Expenses $ 1,052,000 Other Expenses 249,300 Sales Revenue 4,887,000 Advertising and Promotion Expenses 553,350 Salaries and Wages Expense 2,527,800 Income Tax Expense 167,350 Interest Expense 114,750 Required: Prepare the annual income statement for Kvass, Inc.
Answer:
$222,450
Explanation:
Computation of annual income statement for Kvass Inc. is shown below
Sales revenue
$4,887,000
Less:
Selling and admn expenses
($1,052,000)
Other expenses
($249,300)
Advertising and promotion expenses
($553,350)
Salaries and wages expenses
($2,527,800)
Income tax expenses
($167,350)
Interest expense
($114,750)
Net income
$222,450
Using the income statement for Times Mirror and Glass Co., compute the following ratios:
TIMES MIRROR AND GLASS COMPANY
Sales $270,000
Cost of goods sold 130,000
Gross profit $140,000
Selling and administrative expense 43,200
Lease expense 11,700
Operating profit* $85,100
Interest expense 9,300
Earnings before taxes $75,800
Taxes (30%) 30,320
Earnings after taxes $45,480
*Equals income before interest and taxes.
Required:
a. Compute the profit margin ratio.
b. Compute the total asset turnover ratio.
c. Compute the return on assets (investment).
Answer:
a. 9.15 times
b. 4.61 times
c. 31.52%
d. 1.08 times
e. 20.88 %
Explanation:
Note : I have attached the full question as image below.
Interest Coverage = Earnings Before Interest and tax ÷ Interest expense
= $85,100 ÷ $9,300
= 9.15 times
Fixed Charge Coverage = EBIT + Lease Payments ÷ Interest Payments + Lease Payments
= $85,100 + $11,700 ÷ $9,300 + $11,700
= 4.61 times
Profit margin = Operating Profit / Sales x 100
= $85,100 / $270,000 x 100
= 31.52%
Total asset turnover = Sales ÷ Total Assets
= $270,000 ÷ $249,000
= 1.08 times
Return on assets (investment) = Earning Before Interest after Tax / Total Assets x 100
= ($45,480 + $9,300 x 70%) / $249,000 x 100
= 20.88 %
Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example. (If an amount reduces the account balance then enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)
Required:
a. Purchased $133 of supplies for cash.
b. Recorded an adjusting entry to record use of $31 of the above supplies.
c. Made sales of $1,297, all on account.
d. Received $865 from customers in payment of their accounts.
e. Purchased equipment for cash, $2,528.
f. Recorded depreciation of building for period used, $610.
Solution :
Required :
Items Cash Net Income
a). Supplies of $133 purchased for cash - $ 133 --
b). Recorded the adjustment entry so as to
record use the $31 for the above supplies -- $ 31
c). Made sales of the $ 1297 on account -- $ 1,297
d). $865 received from customers as payment
of accounts $ 865 --
e). $ 2,528 purchased the equipment for cash - $ 2, 528 --
f). Recorded the depreciation of the building
for the period use of $ 610 -- $ 610
Assume that you live in California and are on vacation, traveling by car from California to Texas. You are injured in a motel room when the bed on which you are sleeping collapses, causing you to fall to the floor. You suffer substantial back and leg injuries, requiring many medical treatments and causing you to miss work for 15 weeks. Your medical bills total $50,000 and your lost wages total $15,000. You intend to sue the owner of the Texas motel.
Required:
a. Can you bring your case in federal court? Why or why not?
b. Can you commence the case in California? What additional information might you need to answer this question?
c. At the end of the trial, the jury awards you $100,000 ($50,000 for medical, $15,000 for lost wages and $35,000 for punitive damages). After the trial, the attorney for the hotel approaches and offers to settle the case for $50,000. Should you consider accepting the settlement? Why or why not?
Answer:
a. No. A state court will do a better job in this case because it exercises unlimited jurisdiction. Moreover, you can only bring your case to a federal court if the amount of your claim is up to $75,000 or the issue is exclusive to the federal court. This is not the case here.
b. Yes and No. We need some additional information about the accident location to help answer this question definitively.
c. No. You should not consider accepting the offered settlement. The jury award is meant to pay for your medical bills and also to help you recover financially as though the accident did not happen in the first place. Accepting any lesser amount after the judgment is rendered is in bad taste. The other party should have negotiated to settle out of court before the final judgment was rendered. But it did not. So, go with the jury award.
Explanation:
a) Data and Calculations:
Missed work for 15 weeks
Total medical bills incurred = $50,000
Total lost wages incurred = $15,000
Jury award = $100,000 ($50,000 for medical, $15,000 for lost wages and $35,000 for punitive damages)
Settlement offer = $50,000
Company B acquired the following piece of equipment. Your staff accountant computed the book and tax depreciation. It is up to you to determine the deferred tax amounts. Equipment cost $50,000 Salvage 5,000 Useful life 5 Tax rate 21% Depreciation for book and tax purposes is as follows: Book Tax 20X1 9,000 20,000 20X2 9,000 12,000 20X3 9,000 7,200 20X4 9,000 4,320 20X5 9,000 1,480 What is the deferred taxes payable balance as of December 31, 20X3?
Answer:
$2,562
Explanation:
Excess tax depreciation 20X1 = 20,000 - 9,000 = $11,000
Excess tax depreciation 20X2 = 12,000 - 9,000 = $3,000
Excess tax depreciation 20X3 = 7,200 - 9,000 = ($1,800)
Total Excess tax depreciation $12,200
Deferred taxes payable balance,Dec 31. 20X3 = Total Excess tax depreciation * Tax rate = $12,200 * 21% = $2,562 Credit
Consider a town in which only two residents, Bob and Cho, own wells that produce water safe for drinking. Bob and Cho can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water.
Price Quantity Demanded Total Revenue
(Dollars per gallon) (Gallons of water) (Dollars)
4.20 0 0
3.85 40 $154.00
3.50 80 $280.00
3.15 120 $378.00
2.80 160 $448.00
2.45 200 $490.00
2.10 240 $504.00
1.75 280 $490.00
1.40 320 $448.00
1.05 360 $378.00
0.70 400 $280.00
0.35 440 $154.00
0 480 0
Suppose Bob and Cho form a cartel and behave as a monopolist. The profit-maximizing __________price isper gallon, and the total output is__________gallons. As part of their cartel agreement, Bob and Cho agree to split production equally. Therefore, Bob's profit is__________, and Cho's profit is____________.
Suppose that Bob and Cho have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Bob says to himself, "Cho and I aren't the best of friends anyway. If I increase my production to 40 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow."
After Bob implements his new plan, the price of water ________ to__________per gallon. Given Cho and Bob's production levels, Bob's profit becomes________ and Cho's profit becomes___________. Because Bob has deviated from the cartel agreement and increased his output of water to 40 gallons more than the cartel amount, Cho decides that she will also increase her production to 40 gallons more than the cartel amount. After Cho increases her production, Bob's profit becomes__________, Cho's profit becomes_________, and total profit (the sum of the profits of Bob and Cho) is now____________.
Answer:
Suppose Bob and Cho form a cartel and behave as a monopolist. The profit-maximizing price is 2.10 per gallon, and the total output is 240 gallons. As part of their cartel agreement, Bob and Cho agree to split production equally. Therefore, Bob's profit is $252 and Cho's profit is $252.
Suppose that Bob and Cho have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Bob says to himself, "Cho and I aren't the best of friends anyway. If I increase my production to 40 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow."
After Bob implements his new plan, the price of water decreases to 1.75 per gallon. Given Cho and Bob's production levels, Bob's profit becomes 280 and Cho's profit becomes 210 . Because Bob has deviated from the cartel agreement and increased his output of water to 40 gallons more than the cartel amount, Cho decides that she will also increase her production to 40 gallons more than the cartel amount. After Cho increases her production, Bob's profit becomes 224 , Cho's profit becomes 224 , and total profit (the sum of the profits of Bob and Cho) is now 448.
Explanation:
Suppose Bob and Cho form a cartel and behave as a monopolist. The profit-maximizing price is 2.10 per gallon, and the total output is 240 gallons. As part of their cartel agreement, Bob and Cho agree to split production equally. Therefore, Bob's profit is $252 and Cho's profit is $252.
Suppose that Bob and Cho have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Bob says to himself, "Cho and I aren't the best of friends anyway. If I increase my production to 40 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow."
After Bob implements his new plan, the price of water decreases to 1.75 per gallon. Given Cho and Bob's production levels, Bob's profit becomes 280 and Cho's profit becomes 210 . Because Bob has deviated from the cartel agreement and increased his output of water to 40 gallons more than the cartel amount, Cho decides that she will also increase her production to 40 gallons more than the cartel amount. After Cho increases her production, Bob's profit becomes 224 , Cho's profit becomes 224 , and total profit (the sum of the profits of Bob and Cho) is now 448.
The courts ruled that the pay disparity between the sexes at Jaxon Corp. was illegal and ordered the company to remedy it. Jaxon Corp. cannot lower the wages of the higher-paid group in order to comply with the law.
True Or False
Answer:
True
Explanation:
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The statement "The courts ruled that the pay disparity between the sexes at Jaxon Corp. was illegal and ordered the company to remedy it. Jaxon Corp. cannot lower the wages of the higher-paid group in order to comply with the law" is true.
What is disparity?The disparity can be defined as a lack of equality or likeness, particularly in an unfair way: the widening discrepancy between the affluent and poor.
Inequalities in other parts of society, such as the legal system, education, academe, commercial institutions, and politics, are referred to as social disparities. Most of the time, the social discrepancies listed above are the result of other disparities, such as economic disparity, gender disparity, or racial disparity.
The courts determined that Jaxon Corp.'s wage inequality between the sexes was unconstitutional and ordered the corporation to correct it. To comply with the legislation, Jaxon Corp. cannot reduce the compensation of the higher-paid group. Therefore, the above statement is true.
Learn more about the disparity here:
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Common-size and trend percents for Rustynail Company's sales, cost of goods sold, and expenses follow. Common-Size Percents Trend Percents Current Yr 1 Yr Ago 2 Yrs Ago Current Yr 1 Yr Ago 2 Yrs Ago Sales 100.0 % 100.0 % 100.0 % 104.5 % 103.3 % 100.0 % Cost of goods sold 63.7 61.5 57.4 116.0 110.7 100.0 Total expenses 14.3 13.8 14.1 106.1 101.1 100.0 Determine the net income for the following years. Did the net income increase, decrease, or remain unchanged in this three-year period?
Answer:
Rustynail Company
1. The net income for the following years:
Common-Size Percents and Trend Percents
Current 1 Yr 2 Yrs Current 1 Yr 2 Yrs
Yr Ago Ago Yr Ago Ago
Sales 100.0 % 100.0 % 100.0 % 104.5 % 103.3 % 100.0 %
Cost of goods sold 63.7 61.5 57.4 116.0 110.7 100.0
Total expenses 14.3 13.8 14.1 106.1 101.1 100.0
Net Income 22.0 24.7 28.5 77.2 86.7 100.0
2. The net income decrease in this three-year period.
Explanation:
a) Data and Calculations:
Common-Size Percents and Trend Percents
Current 1 Yr 2 Yrs Current 1 Yr 2 Yrs
Yr Ago Ago Yr Ago Ago
Sales 100.0 % 100.0 % 100.0 % 104.5 % 103.3 % 100.0 %
Cost of goods sold 63.7 61.5 57.4 116.0 110.7 100.0
Total expenses 14.3 13.8 14.1 106.1 101.1 100.0
Net Income 22.0 24.7 28.5 77.2 86.7 100.0
b) The net incomes for the common-size percents are obtained by deducting the cost of goods sold and the total expenses from sales. The net incomes for the trend percents are obtained by stating the base year as 100% and then calculating the other years. This takes the form of taking the net income for the analysis year/base year's and then multiplying by 100.
Return to questionItem 4 Required information Skip to question Retained earnings at the beginning of the period was $300. During the period, Kilgore Company earned revenue of $1,100 and incurred expenses of $400. Assuming dividends paid to stockholders were $200, the ending balance in retained earnings must have been:
Answer:
$800
Explanation:
The first task here is to determine the amount of net income recognized in the year which is the earned revenue minus incurred expenses as shown thus:
net income=earned revenue-incurred expenses
earned revenue= $1,100
incurred expenses=$400
net income=$1,100-$400=$700
retained earnings for the period=net income-dividends paid
dividends paid=$200
retained earnings for the period=$700-$200=$500
ending balance of retained earnings=beginning retained earnings+retained earnings for the period
beginning retained earnings=$300
ending balance of retained earnings=$300+$500=$800
Exercise 1-16 Cost Classifications for Decision Making [LO1-5] Warner Corporation purchased a machine 7 years ago for $383,000 when it launched product P50. Unfortunately, this machine has broken down and cannot be repaired. The machine could be replaced by a new model 300 machine costing $373,650 or by a new model 200 machine costing $342,000. Management has decided to buy the model 200 machine. It has less capacity than the model 300 machine, but its capacity is sufficient to continue making product P50. Management also considered, but rejected, the alternative of dropping product P50 and not replacing the old machine. If that were done, the $342,000 invested in the new machine could instead have been invested in a project that would have returned a total of $445,600. Required: 1. What is the total differential cost regarding the decision to buy the model 200 machine rather than the model 300 machine
Answer:
Missing word "2. What is the total sunk cost regarding the decision to buy the model 200 machine rather than the model 300 machine? 3. What is the total opportunity cost regarding the decision to invest in the model 200 machine?"
1. Differential cost of buying model 200 machine = Cost of model 200 machine - Cost of model 300 machine
= $342,000 - $373,650
= -$31,650
We'll have a savings of $31,650 if model 200 is purchased rather than model 300
2. $383,000 (The Cost of existing machine). Note: $383,000 is a sunk cost since it has already been incurred.
3. Opportunity cost is the total return of the project if the money was invested elsewhere. The Opportunity cost of investing in model 200 machine is $445,600 (Returns from the alternate project)
Elliot, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $10.50 per hour. When activity jumped to 24,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $9.75. On the basis of this information, the company's fixed maintenance costs were:
Answer:
$90,000
Explanation:
At the activity level of 20,000 machine hours:
total maintenance costs=20,000* $10.50=$210,000
At the activity level of 24,000 machine hours:
total maintenance costs=24,000*$9.75=$234,000
variable maintenance cost per hour=(total maintenance costs at higher activity level-total maintenance costs at lower activity level)/(higher activity level-lower activity level)
variable maintenance cost per hour=($234,000-$210,000)/(24000-20000)
variable maintenance cost per unit=$6
Using the higher activity level data:
total cost=fixed cost+(variable maintenance cost per unit*number of hours)
$234,000=fixed cost+($6*24000)
234,000=fixed cost+$144,000
fixed cost=$234,000-$144,000
fixed cost=$90,000
Tirri Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.50 Direct labor $ 3.85 Variable manufacturing overhead $ 1.55 Fixed manufacturing overhead $ 24,400 Sales commissions $ 1.05 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 8,800 If the selling price is $28.10 per unit, the contribution margin per unit sold is closest to:
Answer:
$13.55
Explanation:
The contribution margin per unit is computed as;
= Selling price - (Direct materials + Direct labor + Variable manufacturing overhead + Sales commission + Variable administrative expense)
= $28.10 - ($7.50 + $3.85 + $1.55 + $1.05 + $0.60)
= $28.10 - $14.55
= $13.55
Therefore , the contribution margin per unit is $13.55
On January 1, 2021, Essence Communications issued $800,000 of its 10-year, 8% bonds for $700,302. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Essence Communications records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the market interest rate for bonds of similar risk and maturity was 9%. The bonds are not traded on an active exchange. The decrease in the market interest rate was due to a 1% decrease in general (risk-free) interest rates.
Required:
a. Using the information provided, estimate the fair value of the bonds at December 31, 2021.
b. Prepare the journal entry to record interest on June 30, 2021 (the first interest payment).
c. Prepare the journal entry to record interest on December 31, 2021 (the second interest payment).
d. Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet.
Answer:
A)
before decrease in rates: 706,483
after rate decrease: 751,360
B)
interest expense 35,015.12
discount on BP 3,015.12
cash 32,000
--bonds first interest payment--
C)
interest expense 35,165.87
discount on BP 3,165.87
cash 32,000
--second interest payment--
D)
unrealized loss 44,877
discount on bonds payable 44,877
--to adjust bonds valuation--
Explanation:
First, we solve for the present value of the bond to get the proceeds from the issuance.
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 32,000
time 20
rate 0.05
[tex]32000 \times \frac{1-(1+0.05)^{-20} }{0.05} = PV\\[/tex]
PV $398,790.7310
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 800,000.00
time 20.00
rate 0.05
[tex]\frac{800000}{(1 + 0.05)^{20} } = PV[/tex]
PV 301,511.59
PV c $398,790.7310
PV m $301,511.5863
Total $700,302.3173
Now, we do the table for the first year:
# / Principal/ paid / interest / Amort/End. P
1 700,302 32000 35015.12 3015.12 703,317
2 703,317 32000 35165.87 3165.87 706,483
Now, we have to redo the calculations for the bonds market value considering a decrease in the market rate to 9%
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 32,000
time 18
rate 0.045
[tex]32000 \times \frac{1-(1+0.045)^{-18} }{0.045} = PV\\[/tex]
PV $389,119.7377
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 800,000.00
time 18.00
rate 0.045
[tex]\frac{800000}{(1 + 0.045)^{18} } = PV[/tex]
PV 362,240.30
PV c $389,119.7377
PV m $362,240.2951
Total $751,360.0328
We adjust for: 751,360 - 706,483 = 44,877
This will be an unrealized loss as the liability increases but, will be realized on the redemption of the bonds or at the end of the bonds' life.
The following are independent situations.
a. A new company is formed and shareholders invest $12,000 cash.
b. A company purchases for $18,000 cash a new truck that has a list price of $21,000.
c. A company pays stockholders a $10,000 cash dividend.
d. A company purchases a piece of land for $50,000 cash. An appraiser suggests that the value of this land is $55,000.
e. A company declares dividends of $1,100 to the shareholders but does not pay them yet; the company will pay these dividends in 60 days.
f. A company has to pay monthly wages of $5,600 to its employees; the company will pay them in two weeks.
Required:
1. Indicate the appropriate account titles, if any, affected in each of the preceding events. Consider what is received and what is given.
2 At what amount would you record the truck in (b)? The land in (h)? What measurement principle are you applying?
3. For (c), what accounting concept did you apply? For (J), what accounting concept did you apply?
Answer:
1. Indication of the appropriate account titles:
a. Cash ($12,000) is received, Common Stock ($12,000) is given.
b. Truck ($18,000) is received, Cash )$18,000) is given.
c. Dividend ($10,000) is incurred, Cash ($10,000) is given.
d. Land ($50,000) is received, Cash ($50,000) is given.
e. Dividend ($1,100) is incurred, Dividend Payable ($1,100) will be given.
f. Wages ($5,600) are incurred, Wages Payable ($5,600) will be given.
2. Truck will be record at $18,000.
b. Land in d will be recorded at $50,000.
The measurement principle being applied is the cost basis.
3. The accrual concept is applied for 'c.'
The accrual concept is applied for 'f' also.
Explanation:
Purchased assets are recognized at cost. This is the amount paid for the acquisition of the asset. The value of the asset may vary after the initial recognition. This is when the fair value of the asset is considered. The purpose is to recognize assets at the values they be sold or bought in the market.
Transactions for the Bridgeport Company, which provides welding services, for the month of June are presented as follows.
June 1 Bridgeport invests $4,180 cash in exchange for shares of common stock in a small welding business.
2 Purchases equipment on account for $1,070.
3 $740 cash is paid to landlord for June rent.
12 Bills P. Leonard $370 after completing welding work done on account.
Required:
Journalize the transactions.
Answer:
Explanation: see attached
Summary of opportunity cost
Joanna is a Master Sergeant in the U.S. Air Force. In June of 2019, her duty station changed from Offutt Air Force Base in Nebraska to Lackland Air Force Base in Texas. She drove 918 miles and spent $1,300 to move her household items. Joanna also incurred costs of $880 when she sold her home in her former city. Included on her Form W-2, in box 12, is code P for $1,484. Joanna's moving expenses adjustment is
Answer:
$1,300
Explanation:
Based on the information given we were told that She drove 918 miles in which spent the amount of $1,300 to move all her household items which simply means that her moving expenses adjustment will be the amount of $1,300 which was the amount spent to move her household items from Nebraska to Texas.
Therefore Joanna's moving expenses adjustment is $1,300.
a) Calculate the PV of a perpetuity with a cash flow of $111,111 received every year. The first cash flow occurs in year 1. The interest rate is 11% simple annual rate. b) Calculate the PV of a perpetuity with a cash flow of $222,222 received every second year. The first cash flow occurs in year 2. The interest rate is 11% simple annual rate. c) Calculate the PV of a perpetuity with a cash flow of $333,333 received every third year. The first cash flow occurs in year 3. The interest rate is 11% simple annual rate.
Answer:
a) Calculate the PV of a perpetuity with a cash flow of $111,111 received every year. The first cash flow occurs in year 1. The interest rate is 11% simple annual rate.
PV of a perpetuity = annual payment / interest rate = $111,111 / 11% = $1,010,100
b) Calculate the PV of a perpetuity with a cash flow of $222,222 received every second year. The first cash flow occurs in year 2. The interest rate is 11% simple annual rate.
PV of a perpetuity = annual payment / interest rate = $222,222 / (11% x 2) = $1,010,100
c) Calculate the PV of a perpetuity with a cash flow of $333,333 received every third year. The first cash flow occurs in year 3. The interest rate is 11% simple annual rate.
PV of a perpetuity = annual payment / interest rate = $333,333 / (11% x 3) = $1,010,100
Explanation:
Since the interest rate is simple, not compounded, the three perpetuities have the same present value.
Equipment with a book value of $83,500 and an original cost of $162,000 was sold at a loss of $32,000. Paid $106,000 cash for a new truck. Sold land costing $320,000 for $400,000 cash, yielding a gain of $80,000. Long-term investments in stock were sold for $91,400 cash, yielding a gain of $16,250. Use the above information to determine cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Net cash flow from investing activities $417,400
Explanation:
The computation of cash flow from investing activity is given below:
Cash flow from investing activities
Add: Equipment sold ($83,500 - $32,000) $51,500
(Book value - loss )
Less : Acquisition of new truck -$106,000
Add : Land sold $400,000
Add : Long term investment sold $91,400
Net cash flow from investing activities $417,400
Indiana Co. began a construction project in 2018 with a contract price of $161 million to be received when the project is completed in 2020. During 2018, Indiana incurred $33 million of costs and estimates an additional $89 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. Suppose that, in 2019, Indiana incurred additional costs of $66 million and estimated an additional $53 million in costs to complete the project. Indiana:________
a. Recognized $3.75 million loss on the project in 2022.
b. Recognized $5.25 million gross profit on the project in 2022.
c. Recognized $7.5 million gross profit on the project in 2022.
d. Recognized $1.5 million loss on the project in 2022.
Answer:
Recognized $3.75 million loss on the project in 2017.
Explanation:
Calculation for what Indiana Co. Recognized
First step is to calculate the Percentage of contract is completed in 2019
Percentage of contract is completed in 2019=($33 million+$66 million )/($33 million+$66 million + $53 million)
Percentage of contract is completed in 2019=$96 million/$149 million
Percentage of contract is completed in 2019=0.64429*100
Percentage of contract is completed in 2019=64.43%
Second step is to calculate The estimated gross profit
Estimated gross profit=$161 million-$149 million
Estimated gross profit=$12 million
Fourth step is to calculate gross profit to date
Gross profit to date=64.43%*161=103.7
gross profit to date=33 million / (33 + 89 million) * 161 million
gross profit to date=33 million/122 million* 161 million
gross profit to date=43.54
= $44.01 million in revenue in 2021 (4)
Now let calculate the amount recognized
Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended January 30, 2016, are available in the Connect. This material also is available under the Investor
1. What amounts did Target report for the following items for the year ended January 30, 2016?
b) Income from current operations
c) Net income or net loss
d) Total assets
e) Total equity
2) What was Target’s basic earnings per share for the year ended January 30, 2016?
Why do you think Target has chosen to have its fiscal year end on January 30, as opposed to December 31?
3) Regarding Target’s audit report:
Who is Target’s auditor?
Did Target receive a "clean" (unmodified) audit opinion?
Answer:
1. What amounts did Target report for the following items for the year ended January 30, 2016?
b) Income from current operations
$2,669 million
c) Net income or net loss
$2,737 million
d) Total assets
$37,431 million
e) Total equity
$10,953
2) What was Target’s basic earnings per share for the year ended January 30, 2016?
$4.74 per share
Why do you think Target has chosen to have its fiscal year end on January 30, as opposed to December 31?
I guess that Christmas Holiday season is very important for them and a large percentage of their revenue is generated during November and December. It reports at the end of January to have time to consolidate its financial statements.
3) Regarding Target’s audit report:
Who is Target’s auditor?
Ernst & Young
Did Target receive a "clean" (unmodified) audit opinion?
yes, it did
Oriole Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020.
1/2/20 Purchased patent (7-year life) $311,500
4/1/20 Purchase goodwill (indefinite life) 355,000
7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 435,000
8/1/20 Payment of copyright (5-year life) 162,000
9/1/20 Research and development costs 225,000
$1,488,500
Required:
1. Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles.
2. Make the entry as of December 31, 2020, recording any necessary amortization.
3. Reflect all balances accurately as of December 31, 2020.
Answer:
Oriole Company
a. Journal Entries:
1. December 31, 2020:
Accounts Titles Debit Credit
Patent $311,500
Goodwill 355,000
Franchise 435,000
Copyright 162,000
R & D expense 225,000
Intangibles $1,488,500
To transfer out to individual intangible accounts.
2. Amortization Expense:
Accounts Titles Debit Credit
Debit Amortization Expenses:
Patent $44,500
Franchise $21,750
Copyright $13,500
Accumulated amortization $79,950
To record amortization expense for the year.
3. December 31, 2020 balances:
December 31, 2020 Balances:
Book Value Amortization Expense Net Book Balance
Patent $311,500 $44,500 $267,000
Goodwill 355,000 $0 $355,000
Franchise 435,000 $21,750 $413,250
Copyright 162,000 $13,500 $148,500
R & D expense 225,000 $225,000 $0
Explanation:
a) Data and Calculations:
1/2/20 Purchased patent (7-year life) $311,500
4/1/20 Purchase goodwill (indefinite life) 355,000
7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 435,000
8/1/20 Payment of copyright (5-year life) 162,000
9/1/20 Research and development costs 225,000
$1,488,500
Amortization Expenses:
Patent = $44,500 ($311,500/7)
Goodwill = $0
Franchise = $21,750 ($435,000/10 * 6/12)
Copyright = $13,500 ($162,000/5 * 5/12)
Total = $79,950
December 31, 2020 Balances:
Book Value Amortization Expense Net Book Balance
Patent $311,500 $44,500 $267,000
Goodwill 355,000 $0 $355,000
Franchise 435,000 $21,750 $413,250
Copyright 162,000 $13,500 $148,500
R & D expense 225,000 $225,000 $0
You discover that your supervisor/team leader stole a password and she has been secretly logging into the computer of another team leader to get information about their team’s funding sources. She is aware that you caught her and tells you that this information has helped your team stay competitive and get ahead. She prefers that you keep her secret. How would you handle this situation?
Answer:
I would probably tell him/her that I wouldn't really keep it a secret if she keeps doing the same things over and OVER again the first time I would keep it a secret though if she does it again I'll have to tell someone right away.
Explanation:
Which of the following examples best illustrates scarcity:
a. The city of Honolulu increases the availability of parking next to an old stadium to accommodate the increase in visitors and audiences in recent years.
b. The value of land in the Central Business District of Kuala Lampur, Malaysia has been increasing as the city continues to enjoy an economic boom.
c. Due to an increase in demand for craft beer in New York City, the number of microbreweries has increased.
d. The code for a film editing software has been made open source and the software is now being replicated by a number of other companies.
Answer:
c. Due to an increase in demand for craft beer in New York City, the number of microbreweries has increased.
Explanation:
In economics, Scarcity can be regarded as paucity, it's the basic fact about life, which explain that there is finite and limited resources in life. It's a concept that explains the gap that exist between insufficient resources as well as theoretical needs that is needed to be met by the mentioned resources.
Peach Company uses a weighted-average process-costing system. Company records disclosed that the firm completed 84,000 units during the month and had 18,700 units in process at month-end, 50% complete. Conversion costs associated with the beginning work-in-process inventory amounted to $248,000, and amounts that relate to the current month totaled $990,000. If conversion is incurred uniformly throughout manufacturing, Peach's equivalent-unit cost is:
Answer:
the equivalent unit cost is $13.26
Explanation:
The computation of the equivalent unit cost is shown below:
Calculation of Peach Equivalent-unit cost is
= Total Cost ÷ Units
= ($990,000 + $248,000) ÷ (84,000 units + (18,700 units × 50% completion)
= ($1,238,000) ÷ (93,350 units)
= $13.26 per unit
Hence, the equivalent unit cost is $13.26