Answer: $335,000 gain recognized and a basis in the land of $637,500
Explanation:
We should realise that this is a taxable exchange, therefore, the amount of gain that Red Blossom recognize in the exchange will be the difference between the fair market value of $637,500 and the corporation's basis in the Tea Company stock which was $302,500. This will be:
= $637500 - $302500
= $335000
Its basis in the land will be the value of the fair value which will be $637500
Hull Company reported the following income statement information for the current year: Sales $ 423,000 Cost of goods sold: Beginning inventory $ 151,500 Cost of goods purchased 286,000 Cost of goods available for sale 437,500 Ending inventory 157,000 Cost of goods sold 280,500 Gross profit $ 142,500 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $33,000. Given this information, the correct gross profit would be:
Answer:
$109,500
Explanation:
Calculation to determine the correct gross profit would be:
Sales $ 423,000
Less: Corrected Cost of goods sold:($313,500)
(280,500 + $33,000)
Gross Profit $109,500
Therefore the correct gross profit would be:$109,500
Hughes Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 12 percent and the company just paid a $2.35 dividend, what is the current share price? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Answer: $53.94
Explanation:
Current share price is the present value of the dividends for the next 3 years and the terminal value in year 3.
Terminal value = D₄ / ( required return - growth rate)
= (2.35 * 1.22³ * 1.05) / (12 % - 5%)
= $64
D₁ = 2.35 * 1.22 = $2.867
D₂ = 2.867 * 1.22 = $3.49774
D₃ = 3.49774 * 1.22 = $4.2672428
Share price = (2.867 / (1 + 12%)) + (3.49774 / 1.12²) + (4.2672428 / 1.12³) + (64/1.12³)
= $53.94
Pension data for David Emerson Enterprises include the following:_______.
($ in millions)
Discount rate, 12%
Projected benefit obligation, January 1 $ 350
Projected benefit obligation, December 31 485
Accumulated benefit obligation, January 1 320
Accumulated benefit obligation, December 31 435
Cash contributions to pension fund, December 31 170
Benefit payments to retirees, December 31 58
Required:
Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
Service cost million
Answer:
$151 million
Explanation:
Calculation to determine the service cost component of pension expense for the year ended December 31.
Projected benefit obligation, December 31 $485 million
Add Benefit payments to retirees, December 31 $58 million
Less Interest cost ($42 million)
(350*12%)
Less Projected benefit obligation, January 1 ($350 million)
Service cost $151 million
Therefore the service cost component of pension expense for the year ended December 31 will be $151 million
On September 12, Vander Company sold merchandise in the amount of $3,950 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $2,725. Vander uses the periodic inventory system and the gross method of accounting for sales. On September 14, Jepson returns some of the merchandise. The selling price of the merchandise is $340 and the cost of the merchandise returned is $240. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 is:
Answer:
Date Account Debit Credit
September 18 Cash $3,537.80
Sales discount $ 72.20
Accounts Receivable $3,610
Explanation:
Net merchandise sold = 3,950 - 340
= $3,610
Sales discount is 2% if paid in 10 days which Jepson did.
= 2% * 3,610
= $72.20
Cash = Net sales - discount
= 3,610 - 72.20
= $3,537.80
During May, Salinger Company accumulated 740 hours of direct labor costs on Job 200 and 900 hours on Job 305. The total direct labor was incurred at a rate of $20 per direct labor hour for Job 200 and $23 per direct labor hour for Job 305.Journalize the entry to record the flow of labor costs into production during May. If an amount box does not require an entry, leave it blank.
Answer:
May
Dr Work in Process $35,500
Cr Wages Payable $35,500
Explanation:
Preparation of the Journal entry to record the flow of labor costs into production during May
Based on the information given the Journal entry to record the flow of labor costs into production during May will be :
May
Dr Work in Process $35,500
Cr Wages Payable $35,500
Calculated as:
Labor costs = (740*20)+(900*23)
Labor costs=14,800+20,700
Labor costs=$35,500
Ann lives in Princeton, New Jersey, and commutes by train each day to her job in New York City (20 round trips per month). When the price of a round trip goes up from $10 to $20, she responds by consuming exactly the same number of trips as before, while spending $200 per month less on restaurant meals. Does the fact that her quantity of train travel is completely unresponsive to the price increase imply that Ann is not a rational consumer
Answer:
Yes
Explanation:
Company A and Company B are a duopoly, an oligopoly of only two firms. Neither company advertises its product and both firms earn $10 million in profits. Company A is considering increases to its advertising budget which would raise its profits to $12 million. Below is the payoff matrix for both companies and their decision as to whether to advertise or not.
Company A' Profits
Don't Adevertise Advertise
Don't Advertise A: $10 million A: $12 million
B: $10 million B: $6 million
Company B's Profits A: $6 million A: $8 million
B: $12 million B: $8 million
If Company A increases its advertising budget, Company B should:____.
A. Shut down.
B. Continue to not advertise.
C. Increase its advertising budget.
D. Increase the price it charges to increase profits.
Answer: C. Increase its advertising budget.
Explanation:
If Company A advertises and Company B does not, Company B profits are $6 million compared to $12 million for Company A. If both company advertise, they both have a profit of $8 million.
It is therefore important that when A advertises, B should advertise as well. This is why B should increase its advertising budget when A does because it will lead to them having a better income than they would should A advertise more.
Assume that a company cannot determine the market value of equipment acquired by reference to a similar purchase for cash. Explain how the company determines the cost of equipment purchased by exchanging it for each of the following 3 items: Bonds having an established market price. Bonds that do not have an established market price. Common stock not having an established market price. Similar equipment having a determinable market value.
Solution :
Let us suppose that a company cannot predict the market value of an equipment that acquired by the reference to the similar purchase for the cash. Thus the company finds cost of purchased of the equipment by exchanging :
-- the market price of the bonds when they have an established price in the market.
-- the market price of the bonds when the common stocks does not have a established market price.
-- market price of the equipment when the similar kind of an equipment have a determinable value in the market.
A pharmaceutical company in Belgium decides to expand into additional markets. It conducts research and decides to focus on marketing and delivering its products to Hungary and the Czech Republic. In order to be successful, the company recognizes it must translate its marketing, product instructions, and packaging into the local languages. In addition, the company decides to partner with local advertising companies to make sure its marketing and advertising is customized to fit the preferences of the local markets. The pharmaceutical company has chosen to use which type of marketing strategy to expand globally?
a. centralization strat
b. localization strat
c. standardization strat
Answer:
C) standardization strategy
Explanation:
standardization strategy can be regarded as one whereby a business owner or firm give same treatment to the whole world as if it's just one market that have just small meaningful variation It's base on an assumption that needs of people can be met with a product.
Adams Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super Supreme Sales price $ 95 $ 124 Variable cost per unit (58 ) (74 ) Contribution margin per unit $ 37 $ 50 Adams expects to incur annual fixed costs of $227,880. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required Determine the total number of products (units of Super and Supreme combined) Adams must sell to break even. How many units each of Super and Supreme must Adams sell to break even
Answer:
Expected contribution as per sales mix = $37*0.60 + $50*0.40
= $22.20 + $20
= $42.20 per unit
Total number of products in total at break even point = Total fixed cost / Contribution per unit
= $227,880 / $42.20 per unit
= 5,400 units
How many units each of Super and Supreme must Adams sell to break even?
According to sales mix:
Super = 5,400 * 60% = 3,240 units
Supreme = 5,400 * 40% = 2,160 units.
Which of the following choices represents two consumers?
A grass and grasshopper
B.rabbit and dog
C. mushroom and frog
D.turtle and flower
I need help ASAP
Answer:
Option B
Hope it helps..
The choice that represents two types of customers is B.rabbit and dog.
What kind of customers are rabbits and dogs?Rabbits are a type of customer that will not pay very much for the goods they buy. They prefer cheap things.
Dogs on the other hand, are easier to negotiate with to make profits because they usually accept a price as it is.
Find out more on types of customers at https://brainly.com/question/24803497.
#SPJ6
Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30, 2021, Paul sold 40,000 shares of common stock for cash. Paul also had 6,000 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Paul also had 420, 8%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2021 was $270,000 with a 40% tax rate. Common shareholders received $1.20 per share dividends after preferred dividends were paid in 2021.
Required: Compute basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)
Answer:
Basic EPS = [$270,000 - (6% * $100 * 6,000)] / [100,000 + 40,000 * 3/12]
Basic EPS = [$270,000 - $36,000] / 35,000
Basic EPS = $234,000 / 35,000
Basic EPS = 6.685714285714286
Basic EPS = 6.69
Diluted EPS = [$270,000 + ($420,00*8%*60%)] / [100000 + 40,000 * 3/12 + (420*30) + (6,000*3)]
Diluted EPS = [$270,000 + $2,016] / [35,000 + 12600 + 18,000]
Diluted EPS = $272,016 / 65,600
Diluted EPS = 4.146585365853659
Diluted EPS = $4.15
these are the choices fill in the blanks.
asset backed security.
bank run
credit default swap.
capital
bond.
credit
common stock.
credit crunch
mortgage-backed securities.
debt
mutual fund.
default
option.
equity
futures contract.
foreclosure
subprime mortgage.
leverage
central bank.
liquidity
commercial bank.
liquidity risk
hedge fund.
moral hazard
investment bank.
mortgage
fannie mae/ freddie mac.
nationalization
federal deposit insurance corporation.
regulation
federal reserve system.
return
private equity fund
risk
securitization