Answer:
Statement 2 is true and 1 is false ( C )
Explanation:
From the statements given above we can deduce that statement 2 is true while statement 1 is false and this is because there isn't one pure Nash Equilibrium in a pure strategy game that will solve the game as portrayed in statement 1, instead there will be two(2) pure Nash equilibrium.
Carts Corporation
is trying to determine how long it takes for one product to pass through the production process. The following information was gathered regarding how many days the product spent in various production activities:
Activity Number of Days
Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Assembly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Handling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Painting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Packaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
a. Which of the above activities are value-added?
b. What is Carts' total cycle time?
c. Determine Carts' manufacturing efficiency ratio.
d. If Carts implements a total quality management program and a just-in-time inventory system, which of the above activities could be eliminated? What would be the change in Carts' manufacturing efficiency ratio?
Answer:
Following are the solution to the given points:
Explanation:
For point a:
[tex]\text{Value added activities = Assembly and Paintings}[/tex]
For point b:
[tex]Activity \ \ \ \ \ \ \ \ \ \ \ \ \ Number \ of \ days \\\\[/tex]
[tex]Inspection \ \ \ \ \ \ \ \ \ \ \ \ \ 4 \\\\ Storage\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3\\\\ Assembly\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 5\\\\ Handling \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2\\\\ Painting \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3\\\\ Packaging \ \ \ \ \ \ \ \ \ \ \ \ \ 1\\\\ Total \ cycle\ time \ \ \ \ \ 18\ days[/tex]
For point c:
[tex]\text{Efficiency ratio of production} = \frac{\text{time added value}}{\text{total cycle time}} \\\\[/tex]
[tex]\text{VAT = 5 days assembled + 3 days in paint = 8 days in painting}[/tex]
[tex]= \frac{8}{18} \\\\ = 44.44\%[/tex]
For point d:
In inspection, TQM will cut back 4 days
JIT reduces storage time by 3 days.
Reduction total = 7 days
Retrofiled The total time of the cycle[tex]= 18 \ days - 7 \ days = 11\ days[/tex]
Revised efficiency of production [tex]=\frac{8 \ days}{ 11\ days} =72.73\%[/tex]
The value added activities are assembly and paintings, the total chart's time is 18 days, the manufacturing ratio is 44.44% and the revised value of efficiency is 72.73%.
For point A:
What are value added activities?Value Added Activities are those activities that modify the product from raw material into finished goods that the customer is willing to pay for.
Hence, the value added activities are assembly and paintings.
For point B:
The chart of the total cycle time is given in the image below:
For option C:
[tex]\text{Production Efficiency Ratio}=\dfrac{\text{Time Value Added}}{\text{Sum of Time Cycle}}\\\\\text{Value Added Time(VAT)}= \text{Assembled 5 Days}+\text{Days in Paint}\\\\=8\text{Days}\\\\=\dfrac{8}{18}= 44.44\%.[/tex]
For option D:
Time Quantity Management = 4 days,
Just-in-time Inventory Shortage Time= 3 days,
Reduction Total = 7 days,
[tex]\text{Total Time of cycle}=\text{18 days - 7 days}\\\\=11\text{days}[/tex]
[tex]\text{Revised Efficiency Production}=\frac{\text{8 days}}{\text{11 days}}\\\\\\=72.73\%.[/tex]
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A company is considering the purchase of new equipment for $480,000. The projected after-tax net income is $80,000 per year after deducting $160,000 of annual depreciation expense. The equipment has a useful life of 3 years and no salvage value. What is the payback period for the new equipment?
a. 2 years.
b. 3 years.
c. 4 years.
d. 5 years.
e. 6 years.
Answer:
a. 2 years.
Explanation:
Annual cash flow = After-tax net income + Depreciation
Annual cash flow = $80,000 + $160,000
Annual cash flow = $240,000
Payback Period = Cost of Project / Annual cash Flow
Payback Period = $480,000 / $240,000
Payback Period = 2 years
So, the payback period for the new equipment is 2 years.
On May 13, 2020, Otto, Parker and Quentin bought a parcel of land as tenants in common. The deed provided that Otto owned 1/2 the property and Parker and Quentin each owned 1/4 each. If Quentin dies, the property will be divided as follows:
a. Otto 1/2. Parker 1/2
b. Otto 5/8, Parker 3/8
c. Otto 1/3, Parker 1/3, Quentin's heirs 1/3
d. Otto 1/2. Parker 1/4, Quentin's heirs 1/4
Answer:D. Otto 1/2. Parker 1/4, Quentin's heirs 1/4
Explanation:
Based on the information given in the question, if Quentin dies, the property will be divided as Otto 1/2. Parker 1/4, Quentin's heirs 1/4.
When a tenant in common dies, it should be noted that their share of a property will be passed to their legal heir and thesame percentage of ownership will be shared by the co-owners. Hence the correct option is D
Choose the term that best matches the description given.
Goals that include some details are called
specific goals
realistic goals
planning goals
Current Attempt in Progress
Wildhorse Company uses a periodic inventory system. For April, when the company sold 570 units, the following information is
available.
Units
Unit Cost
$28
April 1 inventory
April 15 purchase
April 23 purchase
250
350
400
1,000
34
36
Total Cost
$7,000
11,900
14,400
$33,300
Compute the April 30 inventory and the April cost of goods sold using the LIFO method.
Ending inventory
$
Cost of goods sold
$
e Textbook and Media
re to search
o
SI
* 5 0
Answer:
units
Explanation:
Units Unit Cost Total Cost
April 1 inventory 250 $28 $ 7,000
April 15 purchase 350 34 11,900
April 23 purchase 400 36 14,400
1,000 $33,300
On January 1, 2019, Woodstock, Inc. purchased a machine costing $40,600. Woodstock also paid $1,300 for transportation and installation. The expected useful life of the machine is 6 years and the residual value is $5,300. If Woodstock uses the straight-line depreciation method, which of the following statements is incorrect?
a. The annual depreciation expense is $6.100.
b. The December 31, 2019 book value is $35,800
c. The December 31, 2020 book value is $24,400
d. The December 31, 2021 accumulated depreciation balance is $18,300
Answer:
Book value (2020)= $29,700
Explanation:
Giving the following information:
Total purchase price= 40,600 +´1,300= $41,900
Useful life= 6 years
Residual value= $5,300
To determine which option is incorrect, we are going to calculate the annual depreciation, book value, and accumulated depreciation:
Annual depreciation= (Total purchase price - salvage value)/estimated life (years)
Annual depreciation= (41,900 - 5,300) / 6
Annual depreciation= $6,100
Accumulated depreciation (2021)= 6,100*3= $18,300
Book value (2019)= 41,900 - 6,100= $35,800
Book value (2020)= 35,800 - 6,100= $29,700
You are evaluatig an equity investment in a public company called Corona Corp (ticker: COR). You expect the company will pay a $2.00 dividend per share at the end of next year and that dividends will grow at a constant rate of 5% annually in the future. You require a 13% return on investments in equity. Based on these assumptions, what is the fair value of a share of COR stock today?
Answer:
$25
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
2/ 0.13 - 0.08 = $25
guns has decided to organixe
Answer:
why wont people stop thinking about guns and help your community out let god get into your hangs its not about guns its about communication helping love this outside world is to enjoy the whole world
Baker Inc. acquired equipment from the manufacturer on 10/1/11 and gave a noninterest-bearing note in exchange. Baker is obligated to pay $918,000 on 4/1/12 to satisfy the obligation in full. If Baker accrued interest of $9,000 on the note in its 2011 year-end financial statements, what is its imputed annual interest rate?
A. 2%
B. 5%
C. 6%
D. 4%
Answer:
D. 4%
Explanation:
Calculation to determine what is its imputed annual interest rate
Imputed annual interest rate=(2 x $9,000)/$918,000
Imputed annual interest rate=$18,000/$918,000
Imputed annual interest rate=2% for 6 months, (Approximately) or 4% annually
Therefore its imputed annual interest rate is 4% annually
A non-governmental not-for-profit university in California charges its students tuition of $10,000,000. However, financial aid grants total $2,200,000. In addition, the school receives a $1,000,000 grant restricted for faculty salaries. Of this amount, $300,000 is spent appropriately this year. On the statement of activities, the school reports three categories: (1) revenues and support, (2) net assets released from restrictions, and (3) expenses. Which of the following is not true?
A. In the unrestricted net assets, the revenues and support should total $1.14 million.
B. Unrestricted net assets shows the $160,000 as a direct reduction to the tuition revenue balance.
C. Unrestricted net assets should recognize expenses of $24,000.
D. Unrestricted net assets should show an increase of $24,000 for net assets reclassified.
Answer:
b. In the unrestricted net assets, the revenues and support should total $10,000,000.
Explanation:
Based on the information given the statements that is NOT true will be "IN THE UNRESTRICTED NET ASSETS, THE REVENUES AND SUPPORT SHOULD TOTAL $10,000,000 reason been that in a non-governmental not-for-profit school the the financial grant that was provided by the school will reduce the tuition revenue which therefore means that the FINANCIAL SUPPORT OR GRANTS REVENUES AND SUPPORT should total only the amount of $7,800,000 calculated as ($10,000,000-$2,200,000).
Money is neutral in:___________
A. the short run, since it cannot alter the real aggregate output or price level in the short run.
B. both the short and long run, since it cannot alter price levels or aggregate output in the long and short run.
C. the long run, since it only affects the price level, but not aggregate output or interest rates.
D. the short run, since it cannot alter the price levels or interest rate in the short run.
Answer:
C
Explanation:
Money neutrality is a theory which submits that money supply only affect nominal variable and not real variables.
Nominal variables include price, wages and exchange rate
real variables include employment and real GDP
Money is only neutral in the long run and not in the short run because of money illusion. Money illusion causes economic agents to respond to money supply changes.
Money is neutral only in the long run
The master budget of Tenenbaum Ltd. shows that the planned activity level for next year is expected to be 30,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:
Indirect labor................................................. $720,000
Machine supplies..........................................180,000
Indirect materials..........................................210,000
Depreciation on factory building..................150,000
Total manufacturing overhead.....................$1,260,000
A flexible budget for a level of activity of 40,000 machine hours would show total manufacturing overhead costs of:________
Answer:
$1,630,000
Explanation:
The computation of the flexible budget for a level of activity of 40,000 machine hours would show total manufacturing overhead costs is shown below:-
Variable overhead for 30,000 machine hours
= $1,260,000 - $150,000 = $1,110,000
Variable overhead for 40,000 machine hours
= ($1,110,000 / 30,000) × 40,000 = $1,480,000 (a)
Fixed overhead = Depreciation = $150,000 (b)
Total manufacturing Overhead (a + b)
= $14,80,000 + $150,000
= $1,630,000
Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation $17,167 Indirect labor 42,545 Factory electricity 4,852 Indirect materials 10,076 Selling expenses 23,885 Administrative expenses 13,435 Total costs $111,960 Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case:
Budgeted Volume (Cases) Processing Hours Per Case Tortilla chips 2,700 0.10 Potato chips 1,500 0.15 Pretzels 3,900 0.12 Total 8,100 If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate. per processing hour
b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted accounting principles. Total Factory Overhead Per-Case Factory Overhead Tortilla chips Potato chips Pretzels Total $
Answer:
Scrumptious Snacks Inc.
a. Single plantwide factory overhead rate = $77.51 per hour
b. Total Factory Per-Case Factory
Overhead Overhead
Tortilla chips $20,928 $7.75
Potato chips 17,440 11.63
Pretzels 36,275 9.30
Total $74,643
Explanation:
a) Data and Calculations:
Budgeted costs:
Factory depreciation $17,167
Indirect labor 42,545
Factory electricity 4,852
Indirect materials 10,076
Total factory overhead = $74,640
Selling expenses 23,885
Administrative expenses 13,435
Total costs $111,960
Production budget and processing hours per case:
Budgeted Volume Processing Total
(Cases) Hours Per Case Hours
Tortilla chips 2,700 0.10 270
Potato chips 1,500 0.15 225
Pretzels 3,900 0.12 468
Total 8,100 963
a. Single plantwide factory overhead rate = $77.51 ($74,640/963)
b. Overhead allocated to each product:
Total Total Budgeted Per Case
Hours Overhead Cases Overhead
Tortilla chips 270 * $77.51 = $20,928 2,700 $7.75
Potato chips 225 * $77.51 = 17,440 1,500 $11.63
Pretzels 468 * $77.51 = 36,275 3,900 $9.30
Total 963 = $74,643 8,100
During 2016, its first year of operations, Baginski Steel Corporation reported a net operating loss of $375,000 for financial reporting and tax purposes. The enacted tax rate is 40%.
Required:
1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests future taxable income sufficient to benefit from future deductible amounts from the net operating loss carryforward.
2. Show the lower portion of the 2016 income statement that reports the income tax benefit of the net operating loss.
Answer:
1. Debit Deferred Tax Liability for $150,000; and Credit Income Tax Benefit -Operating Loss for $150,000.
2. See part 2 below for how it is shown.
Explanation:
1. Prepare the journal entry to recognize the income tax benefit of the net operating loss.
Income tax benefit = Net operating loss * Tax rate = $375,000 * 40% = $150,000
The journal entry will look as follows:
Particulars Debit ($) Credit ($)
Deferred Tax Liability 150,000
Income Tax Benefit - Operating Loss 150,000
(To record the income tax benefit)
2. Show the lower portion of the 2016 income statement that reports the income tax benefit of the net operating loss.
This can be shown as follows:
Baginski Steel Corporation
Income Statement
For the Year Ended 2016
Details $
Net operating loss (375,000)
Income tax benefit 150,000
Net loss (225,000)
The following are Hibiscus Company's cost of making and selling an item:
Description Amount per unit
Direct materials $9
Direct labor $4
Variable manufacturing overhead $2
Fixed manufacturing overhead $5
Variable selling and administrative $2
Fixed selling and administrative $8
A one-time only special order has been received for 600 units. The company has capacity to accept the oder and it would not affect regular sales. The sales price for the special order is 26 per unit. Total fixed costs would not be affected by this order. The variable selling and administrative costs would have to be incurred for this special order. The order would require an additional $3 per unit for specialized materials and a new machine that costs $2,000. What is the financial advantage or disadvantage of accepting the special order?
Answer:
$2,800 financial advantage
Explanation:
We consider incremental costs and revenues in our analysis for the effects of accepting the special order.
Analysis of effects of accepting the special order :
Sales - Incremental (600 units x $26) $15,600
Less Incremental Costs :
Direct materials ($9 x 600 units) ($5,400)
Direct labor ($4 x 600 units) ($2,400)
Variable manufacturing overhead ($2 x 600 units) ($1,200)
Specialized materials ($3 x 600 units) ($1,800)
Machine Cost ($2,000)
Financial Advantage / (Disadvantage) $2,800
therefore,
the financial advantage of accepting the special order is $2,800
Scott is a young affluent professional who values quality global goods and i and global populations that was discussed in the Core Reading, to which market segment does Scott likely belong?
A. Global citizens
B. Global dreamers
C. Antiglobals
D. Global agnostics
Answer: B. Global dreamers
Explanation:
Global dreamers are those who care about the quality of the goods that they buy such that they will especially turn to quality global goods much like Scott here.
People that fall into this group do not really care about the social responsibility of the company producing to the country they are producing in so long as they get their quality goods. This is the case with Scott so Scott is a global dreamer.
Discuss, what international business is, why and how it differs from domestic business, why it is important, and its historical development?
Answer:
An international business can be understood as the expansion of business beyond your country. Organizations look for economic opportunities in other countries, to achieve competitive and profitable advantages, to increase their value and their market strength.
This is a strategy that includes greater responsibilities than managing a national business, due to the fact that an international business includes adapting to a different culture, legislation and preferences, which means greater challenges and greater capacity for the organization to adapt its values, products and services the culture and local rules, in order to be well accepted and well positioned in the international market.
International business was only possible due to new technologies, which allowed individuals to move and communicate more quickly, which enabled this international expansion in a more dynamic way and management in real time, regardless of geographic distance.
Currently we live in the era of globalization, where there is a great economic interaction between the countries of the world, in an ultra-competitive environment where each organization seeks the best way to generate value and economic results.
Sabrina, Kris, and Kelly are the only three residents of the small town of Charleston. They are considering whether to hire a police officer to patrol the town. Sabrina values the police officer at $610 per week, Kris values the police officer at $230 per week, and Kelly values the police officer at $150 per week. The competitive wage for a police officer is $900 per week.
a. If the protection provided by the police officer to one resident does not diminish the protection provided to the other residents, then the police officer is ____________
1. a commons
2. an excludable
3. a rival
4. a nonrival
5. a nonexcludable good.
b. Suppose Sabrina proposes a tax whereby all three residents split the cost of the police officer equally.
1. Will the majority of them support this tax?
2. No, they will not support the tax.
3. Yes, they will support the tax.
4. Is this outcome socially efficient?
5. This outcome is not socially efficent.
6. This outcome is socially efficient.
Answer:
a. 4. a nonrival
b. 1. a. No, they will not support the tax.
2. b. This outcome is socially efficient.
Explanation:
When the services provided by a good to one person does not diminish the good's ability to provide those same services for another, the good is said to be non-rival in nature.
If an equal tax is proposed, not everyone would be in support of it because some would be paying more than they value the policeman. An equal tax would be:
= 900 salary / 3 = $300
This is more than the value that both Kris($230) and Kelly ($150) value the police officer at.
This outcome however, is socially efficient because when costs are split evenly, a socially optimal and efficient outcome often results.
Suppose that in your first year of college you spend $21,800.00 more than you earn. In your second year, your expenses increase a bit, leading you to spend $22,200.00 more than you earn. This gap goes to $22,480.00 in your third year of college, then falls a bit to $22,480.00 in your fourth and final year.
1. What is your deficit in your third year of college?
2. How much debt do you have that year?
Answer:
$483,000.987
you are RICHHHHHHHHHH
Explanation:
a.) Suppose that South Pangean debt is $100 million and the interest rate it pays on that debt is 4 percent. That means its interest payments must be $ million.
b.) If South Pangean expenditures are $30 million without interest payments, that means its expenditures with interest payments are $ million.
Answer:
a
$4 million
b.
expenditures with interest payments
Explanation:
a.
The interest payment is the value of debt taken multiplied by the interest rate on the debt.
In other words, the interest payment is computed using the below formula:
annual interest payment=value of debt*interest rate
value of debt=$100 million
interest rate=4%
annual interest payment=$100 million*4%
annual interest payment=$4 million
b.
The expenditures with interest payments are is the expenditures without interest payments plus interest payments determined as $4million above
expenditures with interest payments=expenditures without interest payments+interest payments
expenditures without interest payments=$30 million
interest payments=$4 million
expenditures with interest payments=$30million+$4million
expenditures with interest payments=$34million
The interest amount for the $ 100 million at 4% interest rate has been $4 million. The expenditure of South Pangean with interest has been $34 million.
(a) Interest has been the amount paid to the sum principal amount based on the interest rate.
Annual interest can be calculated as:
Interest = Interest rate [tex]\times[/tex] Principal sum
Interest = 4% [tex]\times[/tex] $100 Million
Interest = [tex]\rm \dfrac{4}{100}[/tex] [tex]\times[/tex] $100 Million
Interest = $ 4 Million.
(b) The expenditures with interest have been the sum of expenditure and the interest amount.
Expenditure with interest = Expenditure + Interest
Expenditure with interest = $ 30 + $ 4 million
Expenditure with interest = $ 34 million.
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It takes three units of B and four units of C to make one unit of A. The gross requirements of item A are 200 units for week 4 and 0 for other weeks. At the beginning of week 1, the following information is available:
Item ID Inventory on hand available Lead Time (week) А 100 B 150 1 week for assembling A using Ban 1 week for making B 1 week for purchasing C C С 320
And there are no scheduled receipts of any parts in the future. Which of the following is correct about the timing of item B's gross requirements?
a. Item B will have gross requirements in week 1.
b. Item B will have gross requirements in week 2.
c. Item B will have gross requirements only in week 3.
d. Item B will have gross requirements only in week 4
e. Neither of the above.
Answer:
d. Item B will have gross requirements only in week 4.
Explanation:
Item B is used with Item C to produce Item A. The demand for Item A is only in week 4. There is requirement for 200 units in week 4 which are to be produced. The units of item B will be required when there is demand for item A. Item B will have gross requirements in week 4 only.
Which of the following allows an individual to gain from unexpected inflation?
A project manager is trying to convince management to use more formal project management procedures and has decided to start improving the company's project management by obtaining a project charter for each of his projects. Which of the following best describes how a project charter would help the project manager?
a. It describes the details of what needs to be done
b. It lists the names of all team members
c. It gives the project manager authority
d. It describes the project's history
Answer: C. It gives the project manager authority.
Explanation:
A project charter is referred to as a formal document that describes what a project will be about. It shows the project objectives, how it will be done, the stakeholders etc
The project charter is used to formally outline a project and authorize it in an organization. It covers the scope of the project, budget, risks involved etc.
Therefore, the correct option is C
home trade helps in proper utilization of local resources how
1. Higher trade volumes
2. Greater opportunities to capitalize on comparative advantages
3. More efficient use of raw materials
4. Stronger economic growth
On July 1, Lopez Company paid $1,500 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. Zim Company has a Supplies account balance of $5,600 at the beginning of the year. During the year, it purchased $2,300 of supplies. As of December 31, a physical count of supplies shows $950 of supplies available.
Required:
Prepare the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2017.
Answer:
Dr Supplies expense $6,950
Cr Supplies $6,950
Explanation:
Preparation of the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2017.
Dr Supplies expense $6,950
Cr Supplies $6,950
($5,600+$2,300-$950)
(To record the balance of the Supplies account and the Supplies Expense account)
Beginning Supplies account balance $5,600
Add purchased $2,300
Less physical count of supplies $950
=$6,950
accounting is the language of business
You are considering an investment that costs $152,000 and has projected cash flows of $71,800, $86,900, and -$11,200 for years 1 to 3, respectively. If the required rate of return is 15.5 percent, should you accept the investment based solely on the internal rate of return rule? Why or why not?
a. Yes; The IRR exceeds the required return.
b. No; The IRR exceeds the required return.
c. You cannot apply the IRR rule in this case.
d. Yes; The IRR is less than the required return.
Answer:
c
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
The IRR would give conflicting answers in this case because a stream of positive cash flows is followed by negative cash flow
IRR can only be used when a negative cash flow is followed by positive cash flows
In this question there are two negative cash flows in year 0 and year 3
Dennis sells short 100 shares of ARC stock at $152 per share on January 15, 2020. He buys 200 shares of ARC stock on April 1, 2020, at $190 per share. On May 2, 2020, he closes the short sale by delivering 100 of the shares purchased on April 1
a. What are the amount and nature of Dennis’s loss upon closing the short sale?
b. When does the holding period for the remaining 100 shares begin?
c. If Dennis sells (at $27 per share) the remaining 100 shares on January 20, 2017, what will be the nature of his gain or loss?
Answer: See explanation
Explanation:
a. What are the amount and nature of Dennis’s loss upon closing the short sale?
Sales consideration = $100 × $152 = $15200
Less: Closing Value of Short sales = 100 × $190 = $19000
Short term capital loss = $3800
b. When does the holding period for the remaining 100 shares begin?
The holding period for the remaining 100 shares begin on May 2, 2020, which was when the short sale was closed.
c. If Dennis sells (at $27 per share) the remaining 100 shares on January 20, 2017, what will be the nature of his gain or loss?
Sales consideration = 100 × $27 = $2700
Less: Base value = $19000
Short term capital loss = $16300
THESE ARE TRUE OR FALSE!! PLEASE HELP ASAP!!
1. A letter of application is just a general business letter.
- 2. Getting a position interview is the main purpose of a letter of application.
3. It is important that a letter of application be businesslike and courteous.
– 4. It is not necessary to include a personal data sheet if you have a well-written and complete
letter of application.
5. It is a good idea to restrict yourself to just one good source of job leads.
6. Completing the position application form is not very important in the job-search process.
7. Some employers use ability tests to find out how well job applicants can do certain job
tasks.
8. Being dressed very informally for a position interview lets the employer know that you are
"cool" and will get along well with everybody.
9. A positive attitude toward work has many benefits.
10. When you leave a job, you should exit as soon as possible.
Assume that Speedo International received $400,000 cash by signing a long-term promissory note. They are required to make cash interest payments on April 30 and October 31 at an annual rate of 6%. Assuming a 12/31 year end.
Required:
What journal entries would be required at December 31?
Answer:
Dr Interest expense $4,000
Cr Interest payable $4,000
Explanation:
Based on the information given the appropiate
journal entries thatwould be required at December 31 will be to DEBIT INTEREST EXPENSE with the amount of$4,000 and CREDIT INTEREST PAYABLE with the amount of $4,000
December 31
Dr Interest expense $4,000
Cr Interest payable $4,000
(6%*$400,000*2/12)