You and your friends want to buy a condo at the beach to time share. Each of you has single peaked preferences with a most preferred value that you are willing to spend. These values are: Mabel, $10,000; Gertrude, $20,000; Myron, $30,000; Wilber, $40,000; and you, $50,000. The condo costs $150,000. Explain how to implement a uniform rule mechanism to allocate costs and shares.

Answers

Answer 1

Answer:

Individual                   Cost                                Shares to be enjoyed

Mabel                      $10,000                            10000 / 150000 =  6.67%

Gertrude                 $20000                            20000 / 150000 = 13.3%

Myron                      $30000                            30000 / 150000 = 20%

Wilber                      $40000                            40000 / 150000 = 26.6%

You                          $50000                            50000 / 150000 = 33.3%

Explanation:

peaked preferences

Most preferred value to spend :

Mabel = $10,000

Gertrude = $20,000

Myron = $30,000

Wilber = $40,000

you = $50,000

cost of Condo = $150,000

Implementing a Uniform rule mechanism to allocate costs and shares

The uniform rule ; ∑ j∈I Uj (p) = Ω.

where Ω = fixed amount of resource

hence the summation of all allotment should = Ω ( $150,000 )

Number of friends = 5

cost of condo  = $150,000

If divide equally each person will have to pay ; $150,000 / 5 = $30,000

Total money to be spent by friends = 10,000 + 20,000 + 30,000 + 40,000 + 50,000  = $150,000

Individual                   Cost                                shares to be enjoyed

Mabel                      $10,000                            10000 / 150000 =  6.67∑%

Gertrude                 $20000                            20000 / 150000 = 13.3%

Myron                      $30000                            30000 / 150000 = 20%

Wilber                      $40000                            40000 / 150000 = 26.6%

You                          $50000                            50000 / 150000 = 33.3%

∑shares ≈ 100% ( 150,000 )


Related Questions

What is a subreport?

Answers

A subreport is a report item that displays another report inside the body of a main report. Conceptually, a subreport in a report is similar to a frame in a Web page. It is used to embed a report within a report. Any report can be used as a subreport.

Aliya and Samuel, managers from different departments at Finger Lakes Financial, are discussing the troubling behavior of an employee. Aliya says that it is the responsibility of high-level managers to take steps to prevent legal wrongdoing by punishing offenders. However, Samuel believes that every individual should take personal responsibility for his or her own behavior and that everyone needs to understand how to do the right thing. Samuel prefers a(n) ________ ethics program.

Answers

Answer:

Ethics Program

Samuel prefers a(n) ________ ethics program.

personal (individual) ethics program.

Explanation:

But such a personal ethics program cannot work in an organization.  An organization is made up of persons from different backgrounds and orientations with differing work and personal ethics.  An organizational ethics program cannot succeed by being dependent on personal scruples, as being suggested by Samuel.  Every organization requires a company-wide ethics program that is equally applicable to all persons in the organization.  The tone of such ethics program should be set at the top of the organization's hierarchy.

Assume that a state government currently provides no child-care subsidies to working single parents, but it now wants to adopt a plan that will encourage labor force participation among single parents. Suppose that child-care costs are hourly, and suppose the government adopts a child-care subsidy that pays $3 per hour for each hour the parent works, up to 8 hours per day. Draw a current budget constraint (net of child-care costs) for an assumed single mother and then draw in the new constraint. Discuss the likely effects on labor force participation and hours of work.

Answers

Answer:

The line on the graph will be parallel to the pre-subsidy line and the new constraint will then be equal to the points connecting the two lines.

Explanation:

The subsidy by government to single parents is $3 per hour for up to 8 hours. The total of subsidy will be $16 for each day. The labor force who were not receiving the subsidy before had steep indifference curve but now few workers will find utility maximization with flatter indifference curve so the workers will join the subsidy program.

Assume that the entry closing total revenues of $284,900 and total expenses of $212,600 has been made for the year ending December 31. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $330,000 and Teresa Schafer, Drawing has a balance of $27,600.
A. Journalize the entry required to close the Teresa Schafer, Drawing account.
B. Determine the amount of Teresa Schafer, Capital at the end of period.

Answers

Answer and Explanation:

a. The journal entry to record the closing of drawing account is given below:

Teresa Schafer, Capital  $27,600

   Teresa Schafer, Drawing $27,600

(Being closing of drawing account is recorded)

b. The ending capital is

= Credit balance of capital - drawings

= $330,000 - $27,600

= $302,400

As long as a firm's net income is positive, then the firm can use the positive net income to pay dividends to its shareholders.
True
False

Answers

The answer according to the passage is true

The accountant for Eva's Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are correct. Identify the errors in the accountant's adjusting entries, assuming that none of the accounts were affected by more than one adjusting entry.
Eva's Laundry
Trial Balances
May 31, 2018
Unadjusted Adjusted
Debit Balances Credit Balances Debit Balances Credit Balances
Cash . 7,500 7,500
Accounts Receivable . 18,250 23,250
Laundry Supplies 3,750 6,750
Prepaid Insurance* 5,200 1,600
Laundry Equipment . . 190,000 177,000
Accumulated Depreciation—Laundry
48,000 48,000
Accounts Payable 9,600 9,600
Wages Payable 1,000
Capital Stock . . 35,000 35,000
Retained Earnings 75,300 75,300
Dividends 28,775
Laundry Revenue 182,100 182,100
Wages Expense 49,200 49,200
Rent Expense . . 25,575 25,575
Utilities Expense . 18,500 18,500
Depreciation Expense 13,000
Laundry Supplies Expense 3,000
Insurance Expense 600
Miscellaneous Expense .3,250 3,250
350,000 350,000 358,000 351,000

Answers

Answer:

See the errors identified below.

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

The explanation of the answer is now given as follows:

The following errors can be identified in the accountant's adjusting entries:

1.The accountant debited the account receivable for $5,000 (i.e. $23,250 - $18,250 = $5,000) without crediting laundry revenue.

Therefore, we should have:

Correct amount of laundry revenue = Laundry revenue in trial balance + (Adjusted account receivable - Unadjusted account receivable) = $182,100 + ($23,250 - $18,250) = $187100

2. The accountant debited laundry suppliers expense instead of crediting laundry suppliers for $3,000.

3. The the accountant credited Prepaid insurance for $3,600 (i.e. $5,200 - $1,600 = $3,600). However, the insurance expense was debited for $600.

4. Instead of crediting accumulated depreciation, the laundry equipment for depreciation expense was erroneously credited by the accountant for $13,000.

5. A debit of $1,000 to wages expense was not made by the accountant.

Additional Note:

After correcting the errors identified above, the correct adjusted trial balance will look as the one in the attached photo.

Cynthia, a sole proprietor, was engaged in a service business and reported her income on the cash basis. On February 1, 2013, she incorporates her business as Dove Corporation and transfers the assets of the business to the corporation in return for all of the stock in addition to the corporation’s assumption of her proprietorship’s liabilities. All of the receivables and the unpaid trade payables are transferred to the newly formed corporation. The balance sheet of the corporation immediately after its formation is as follows:
Dove Corporation
Balance Sheet
February 1, 2013
Assets
Basis to Dove Fair Market Value
Cash $ 80,000 $ 80,000
Accounts receivable 0 240,000
Equipment (cost $180,000; 120,000 320,000
depreciation previously claimed $60,000)
Building (straight-line depreciation) 160,000 400,000
Land 40,000 160,000
Total $400,000 $1,200,000
Liabilities and Stockholder’s Equity
Liabilities:
Accounts payable—trade $ 120,000
Notes payable—bank 360,000
Stockholder’s equity:
Common stock 720,000
Total $1,200,000
Discuss the tax consequences of the incorporation of the business to Cynthia and to Dove Corporation.

Answers

Answer:

Cynthia and Dove Corporation

Any profits generated by Dove Corporation will be taxed to the corporation and also taxed to Cynthia as a shareholder whenever Dove distributes the profits as dividends. Taxing Dove and Cynthia creates a double taxation burden for both Dove and Cynthia. Dove Corporation does not get a tax deduction when it distributes dividends to Cynthia.  Furthermore, Cynthia cannot deduct any corporation loss when incurred.  These are unlike when the business was only a sole proprietorship.

Explanation:

a) Data and Calculations:

Dove Corporation

Balance Sheet

February 1, 2013

Assets

                                                    Basis to Dove     Fair Market Value

Cash                                                 $ 80,000              $ 80,000

Accounts receivable                         0                           240,000

Equipment (cost $180,000;              120,000               320,000

depreciation previously claimed $60,000)

Building (straight-line depreciation) 160,000              400,000

Land                                                    40,000               160,000

Total                                               $400,000          $1,200,000

Liabilities and Stockholders' Equity

Liabilities:

Accounts payable—trade            $ 120,000

Notes payable—bank                    360,000

Stockholders' equity:

Common stock                              720,000

Total                                          $1,200,000

29. Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $22,500 cash and inventory with a fair value of $56,000 (inside basis of $28,000) to Randolph in complete liquidation of his interest. RD has no liabilities at the date of the distribution. Randolph's basis in his RD Partnership interest is $53,625. What is the amount and character of Randolph's gain or loss on the distribution

Answers

Answer: $3125 capital loss

Explanation:

Based on the information given in the question, we should note that RD Partnership distributes $22500 cash and inventory with inside basis of $28000.

Since Randolph's basis in his RD Partnership interest is $53,625, the amount and character of Randolph's gain or loss on the distribution will be:

= ($22500 + $28000) - $53625

= $50500 - $53625

= -$3125

Therefore, there's a capital loss of $3125

The basic economic problem is that consumers have too many products and services to choose from.
a. True
b. False

Answers

I would say it would be True, as consumers may get overwhelmed with to many choices

A callable bond:
A. Is generally call protected during the entire term of the bond issue,
B. generally will have a call protection period during the final three years prior to maturity.
C. may be structured to pay bondholders the current value of the bond on the date of call.
D. is prohibited from having a sinking fund also.
E. Is frequently called at a price that is less than par value

Answers

Answer:

C. may be structured to pay bondholders the current value of the bond on the date of call.

Explanation:

A callable bond is also called a redeemable bond. It a debt instrument that the issuer may decide to call or redeem before the maturity date.

This is used by bond issuers to have a cheaper cost of borrowing funds.

For example when interests are low the issuer can buy back his bonds at a lower cost this reducing his debt burden.

So callable bonds are structured to pay bondholders the current value of the bond on the date of call or redemption.

The corporate charter of Maine Yacht Corporation allows the issuance of a maximum of 3,000,000 shares of $1 par value common stock. During its first three years of operation, Maine issued 2,200,000 shares at $15 per share. It later acquired 30,000 of these shares as treasury stock for $25 per share. Based on the above information, answer the following questions:

a. How many shares were authorized?
b. How many shares were issued?
c. How many shares are outstanding?
d. What is the balance of the Common Stock account?

Answers

Answer:

a)3,000,000 shares

b)2,200,000 shares

c)2,170,000 shares

d)$2,200,000

Explanation::

a) Based on the information given 3,000,000 shares were authorized

b) Based on the information given 2,200,000 shares were issued

c) Calculation for many shares are outstanding

Outstanding shares= (2,200,000 issued-30,000 in treasury)

Outstanding shares=2,170,000 shares

d) Calculation for the balance of the Common Stock account

Balance of the Common Stock account = ($1 × 2,200,000 shares

Balance of the Common Stock account=$2,200,000

Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year.Beginning Inventory Ending InventoryRaw material* 41,000 51,000Finished goods 81,000 51,000* Three pounds of raw material are needed to produce each unit of finished product.If Paradise Corporation plans to sell 485,000 units during next year, the number of units it would have to manufacture during the year would be:

Answers

Answer:

Production= 455,000 units

Explanation:

Giving the following information:

Beginning Inventory= 81,000

Ending Inventory= 51,000

Sales= 485,000

To calculate the production required for the period, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 485,000 + 51,000 - 81,000

Production= 455,000 units

Flint Corporation is subject to a corporate income tax only in State X. The starting point in computing X taxable income is Federal taxable income which is $750,000. This amount includes a $50,000 deduction for state income taxes. During the year, Flint received $10,000 interest on Federal obligations. X tax law does not allow a deduction for state income tax payments. ​Flint’s taxable income for X purposes is:_________
a. $800,000.
b. $790,000.
c. $810,000.
d. $750,000.

Answers

Answer:

b. $790,000.

Explanation:

The computation of the taxable income for X purpose is shown below:

Federal Taxable income $750,000  

Add: Deduction for state income taxes non-deductible $50,000  

Less: Interest on federal obligations i.e. deductible $10,000  

Taxable income $790,000  

Hence, option b is correct

Help soon!
A four-year college-level degree is called____.
(1). A bachelor's degree
(2). An associate's degree
(3). A career degree
A two-year college-level degree is called____.
(1). A bachelor's degree
(2). An associate's degree
(3). A career degree
_____ is a program that is usually no longer than one or two years, ending with a certificate, degree, or diploma in a specialized technical field.
(1). A career college
(2). A traditional collage
(3). An apprenticeship
______ is an on-the-job training experience in which the learner works at a job under the direction of an expert.
(1). A career college
(2). A traditional collage
(3). An apprenticeship

Answers

Answer:

A four-year college-level degree is called

       A.) ✔ a bachelor’s degree.

A two-year college-level degree is called

       B.) ✔ an associate degree.

_______is a program that is usually no longer than one or two years, ending with a certificate, degree, or diploma in a specialized technical field.

       B.) ✔ A career college.

_______is an on-the-job training experience in which the learner works at a job under the direction of an expert.

       C.) ✔ An apprenticeship

Explanation:

I hope this helps!!! :))

There are different kinds of program. The answers are below;

A four-year college-level degree is called a bachelor’s degree.

A two-year college-level degree is called an associate degree.

A career college is a program that is usually no longer than one or two years.

An apprenticeship is an on-the-job training experience in which the learner works at a job under the direction of an expert.

 What is an apprenticeship?

An apprenticeship is known to be a set up of

job training and classroom learning together  that tends to help one to a trade credential.

   

Learn more about apprenticeship from

https://brainly.com/question/25689052

Berends corporation makes a product with the following standard costs: standard quantity or hours standard price or rate direct materials 9.2 pounds $3.00 per pound direct labor 0.3 hours $17.00 per hour variable overhead 0.3 hours $3.00 per hour the company reported the following results concerning this product in april. actual output 8,800 units raw materials used in production 78,150 pounds purchases of raw materials 85,900 pounds actual direct labor-hours 2,560 hours actual cost of raw materials purchases $240,520 actual direct labor cost $39,424 actual variable overhead cost $6,912 the company applies variable overhead on the basis of direct labor-hours. the direct materials purchases variance is computed when the materials are purchased.
1. The variable overhead efficiency variance for april is:______.
A. $240 F
B. $216 U
C. $216 F
D. $240 U
2. The materials quantity variance for April is:____.
A. $8,430 U
B. $8,430 F
C. $7,868 U
D. $7,868 F
3. The materials price variance for April is:_______.
A. $17,180 U
B. $16,192 F
C. $16,192 U
D. $17,180 F
4. The labor efficiency variance for April is:_______.
A. $1,232 F
B. $1,360 F
C. $1,360 U
D. $1,232 U
5. The labor rate variance for April is:_______.
A. $4,224 F
B. $4,224 U
C. $4,096 U
D. $4,096 F
The variable overhead rate variance for April is:_______.
A. $792 F
B. $792 U
C. $768 F
D. $768 U

Answers

Answer:

1. Variable Overhead Efficiency

= Standard rate * (Actual hours - Standard hours)

= 3 * ( 8,800 * 0.3 - 2,560)

= 3 * 80

= $240 Favorable

2. Materials Quantity Variance:

= Standard price * (Standard quantity - Actual quantity)

= 3 * (8,800 * 9.2 - 78,150)

= 3 * 2,810

= $8,430 favorable

3. Materials price variance:

= Standard cost of purchased materials -Actual cost of purchased materials

= (3 * 85,900) - 240,520

= $17,180 Favorable

4. Labor efficiency variance

= Standard labor rate * ( Actual hours worked - Standard labor hours)

= 17 * ( 2,560 - 8,800 * 0.3)

= 17 * 80

= $1,360 Favorable

5. Labor rate variance:

= (Standard rate * actual hours worked) - Actual labor cost

= 17 * 2,560 - 39,424

= $4,096 favorable

6. Variable Overhead rate variance:

= (Overhead rate * Actual hours) - Overhead cost

= (3 * 2,560) - 6,912

= $768 Favorable

The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $327,600. The conversion cost for the period in the Bottling Department is $528,000. The total equivalent units for direct materials and conversion are 25,200 and 8,800 liters, respectively. Determine the direct materials and conversion cost per equivalent unit. Round your answers to the nearest cent. $fill in the blank 1 per equivalent unit of materials $fill in the blank 2 per equivalent unit of conversion costs

Answers

Answer:

$13 per Equivalent Unit of Materials,

$60 per Equivalent Unit of Conversion Costs

Explanation:

Calculation to Determine the direct materials and conversion cost per equivalent unit

Direct materials equivalent units=($327,600/25,200 liters )

Direct materials equivalent units=$13

Conversion Costs equivalent units

=($528,000/8,800 liters)

Conversion Costs equivalent units= $60

When Valley Co. acquired 80% of the common stock of Coleman Corp., Coleman owned land with a book value of $75,000 and a fair value of $125,000. What is the amount of excess land allocation attributed to the noncontrolling interest at the acquisition date

Answers

Answer:

$10,000

Explanation:

The amount of excess land allocation attributed to the non controlling interest at the acquisition date is computed below;

Non controlling interest of acquisition date

= (Book value of land - Fair value of land) × 20%

Given that;

Book value of land = $125,000

Fair value of land = $75,000

Then,

Non controlling interest of acquisition date

= ($125,000 - $75,000) × 20%

= $50,000 × 20%

= $10,000

A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $768,000 of its accounts receivable as collateral for the loan. The contract provided that Miami would advance 85% of the gross amount of the receivables. Sterling Inc. continues to collect payments for the receivables and the cash from customers is then remitted to the finance company. The cash remitted is first applied to the finance charges, with the remainder applied to principal.

During the first month, customers owing $524,800 paid cash, less sales returns and allowances of $20,480, originally recorded as a refund liability. The finance charge at the end of the first month was $4,480. During the second month, the remaining receivables were collected in full, except for $5,120 off as uncollectible. Final settlement was effected with the finance company, including payment of an additional finance charge of $1,920.

Required:
a. Record the entry for Sterling to record the secured borrowing.
b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month.
c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.

Answers

Answer:

See all the entries below.

Explanation:

a. Record the entry for Sterling to record the secured borrowing.

The entries will look as follows:

Account Name                                    Debit ($)           Credit ($)    

Cash (768,000 * 85%)                       652,800

  Note Payable                                                              652,800

(To record the secured borrowing.)                                                    

b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month.

The entries will look as follows:

Account Name                                    Debit ($)           Credit ($)      

Cash                                                   504,320

Refund Liability                                    20,480

  Accounts Receivable                                                 524,800

(To record collection on receivables for first month.)                        

Interest Expense                                     4,480

Note Payable                                      499,840

  Cash                                                                             504,320

(To record payment to Miami for the first month.)                              

c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.

The entries will look as follows:

Account Name                                    Debit ($)            Credit ($)    

Cash                                                    238,080

Allowance for Doubtful Debt                  5,120

  Accounts Receivable (w.1)                                          243,200

(To record collection on receivables for second month Interest.)    

Expense                                                   1,920

Note Payable                                       151,040

  Cash (w.2)                                                                      152,960

(To record final payment to Miami.)                                                      

Workings:

w.1: Accounts Receivable = Amount of accounts receivable as collateral – Cash received from customer = $768,000 - $524,800 = $243,200

w.2: Cash = Loan - First payment for principal = $652,800 - $499,840 = $152,960

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $320,000 for November, $300,000 for December, and $290,000 for January. Collections are expected to be 55% in the month of sale and 45% in the month following the sale. The cost of goods sold is 70% of sales. The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $23,800. Monthly depreciation is $14,800. Ignore taxes. Balance Sheet October 31 Assets Cash $ 21,400 Accounts receivable 71,400 Merchandise inventory 156,800 Property, plant and equipment, net of $573,400 accumulated depreciation 1,095,400 Total assets $ 1,345,000 Liabilities and Stockholders' Equity Accounts payable $ 255,400 Common stock 821,400 Retained earnings 268,200 Total liabilities and stockholders' equity $ 1,345,000 The difference between cash receipts and cash disbursements for December would be:

Answers

Answer:

Bramble Corporation

The difference between cash receipts and cash disbursements for December would be:

=  $71,000

Explanation:

a) Data and Calculations:

Balance Sheet October 31

Assets Cash                            $ 21,400

Accounts receivable                  71,400

Merchandise inventory           156,800

Property, plant and equipment,

net of $573,400 accumulated

depreciation                        1,095,400

Total assets                      $ 1,345,000

Liabilities and Stockholders' Equity

Accounts payable              $ 255,400

Common stock                      821,400

Retained earnings                268,200

Total liabilities and

stockholders' equity      $ 1,345,000

                                     November       December      January

Budgeted sales            $320,000        $300,000   $290,000

Cash Collections:

55% month of sale         176,000            165,000      159,500

45% following month       71,400             144,000      135,000

Total collections          $247,400         $309,000   $294,500

Cost of goods sold     $224,000         $210,000    $203,000

=  (70% of Sales for the month)

Ending Inventory            147,000            142,100

Goods available           $371,000        $352,000

Beginning Inventory      156,800            147,000       142,100

Purchases                    $214,200        $205,000

Cash disbursements:

Payment to suppliers   255,400           214,200      205,000

Other monthly exp.        23,800             23,800

Total disbursements $279,200         $238,000

Comparison of Cash receipts with Cash disbursements:

                                   November       December

Cash receipts             $247,400         $309,000

Cash disbursements $279,200         $238,000

Difference                    ($31,800)           $71,000

describe how posts on social media can portray poor ethics to an employer. (answer in a complete sentence)

Answers

Answer:

Posts on social media can portray poor ethics to an employer, because if you post something that goes against what they work for or towards it can get in the way of what they believe!

Explanation:

Hope this helps! :)

A truck was acquired on July 1, 2018, at a cost of $311,850. The truck had a six-year useful life and an estimated salvage value of $34,650. The straight-line method of depreciation was used. On January 1, 2021, the truck was overhauled at a cost of $28,875, which extended the useful life of the truck for an additional two years beyond that originally estimated (salvage value is still estimated at $34,650). In computing depreciation for annual adjustment purposes, expense is calculated for each month the asset is owned.

Answers

Answer:

Details                                                                   Amount($)

Cost                                                                        $311,850

Less: Salvage value                                              ($34,650)

Depreciation base July 1, 2018                             $277,200

Less: Depreciation to date ($277,200/6)*2.5 ($115,500)

Depreciation base Jan 1, 2021 (unadjusted)        $161,700

Overhaul                                                                 $28,875

Depreciation base Jan 1, 2021 (adjusted)             $190,575

Date              Particulars                                         Debit($)   Credit($)

2021, Jan 1   Depreciation accumulated A/c Dr  $34,650

                             To cash A/c                                                  $34,650

2021, Dec 31 Expense for depreciation A/c Dr      $19,922

                      ($109,575/5.5)

                             To Depreciation accumulated A/c             $19,922

Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $58,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 3 percent of your annual salary in an account that will earn 11 percent per year. Your salary will increase at 6 percent per year throughout your career.
Required: How much money will you have on the date of your retirement 40 years from today?

Answers

Answer:

The amount you will have on the date of your retirement 40 years from today is $1,904,087.20.

Explanation:

This can be determined using the formula for calculating the future value of growing annuity as follows:

FV = M * (((1 + r)^n - (1 + g)^n) / (r - g)) ...................................... (1)

Where

FV = Future value or the amount on the date of retirement = ?

M = First annual deposit = Annual salary * Deposit percentage = $58,000 * 3% = $1,740

r = annual interest rate = 11%, or 0.11

g = salary growth rate = 6%, or 0.06

n = number of years = 40 years

Substituting all the values into equation (1), we have:

FV = $1,740 * (((1 + 0.11)^40 - (1 + 0.06)^40) / (0.11 - 0.06))

FV = $1,740 * 1,094.30298736951

FV = $1,904,087.20

Therefore, the amount you will have on the date of your retirement 40 years from today is $1,904,087.20.

The following information relates to Schmidt Sausage Co.'s defined benefit pension plan during the current reporting year: ($ in millions) Plan assets beginning of the year $ 400 Expected return on plan assets 40 Actual return on plan assets 32 Cash contributions 60 Amortization of net loss 8 Retiree benefits 9 Required: Determine the amount of pension plan assets at fair value on December 31.

Answers

Answer:

400 dollars is expected on the year and return the asssests as 40 actual return is actually 32 but then u add a little and get 60 so then you lose 8 dollars because your mom wanted u to buy something for her then retiree from your job and get 9 dollars of benefit that you need the amount of a pension plens assest a fair in december 33

Explanation:

Suppose management estimated the market valuation of some obsolete inventory at $99,000; this inventory was recorded at $120,000, which resulted in recognizing a loss of $21,000. The auditors obtained the following information: The inventory in question could be sold for an amount between $78,000 and $92,000. The costs of advertising and shipping could range from $5,000 to $7,000.
Required:
a. Would you propose an audit adjustment to the management estimate?
A. Yes
B. No
b. Prepare the appropriate accounting entry. (In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
General Journal Debit Credit

Answers

Answer:

a. Yes.  I would propose an audit adjustment to the management estimate.

b. Appropriate Journal Entry:

Debit Cost of goods sold (Inventory Write-down) $28,000

Credit Inventory $28,000

To adjust the inventory to the net realizable value.

Explanation:

a) Data and Calculations:

Management estimated market value of inventory = $99,000

Record cost of inventory = $120,000

Recognized loss = $21,000

Auditor's estimate of inventory net realizable value = $71,000 ($78,000 - $7,000)

Required adjustment of inventory value = $28,000 ($99,000 - $71,000)

An investment project has annual cash inflows of $4,300, $4,000, $5,200, and $4,400, for the next four years, respectively. The discount rate is 13 percent. a. What is the discounted payback period for these cash flows if the initial cost is $5,800? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $7,900? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period for these cash flows if the initial cost is $10,900? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer:

1.64 years

2.27 years

3.13 years

Explanation:

Discounted payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative discounted cash flows

Present value of cash flow in year 1 = 4300 / 1.13 = 3805.31

Amount recovered in year 1  = -5800 + 3805.31 = -1994.69

Present value of cash flow in year 2 = 4000 / (1.13^2) = 3132.59

Amount recovered in year 2 =-1994.69 + 3132.59 = 1137.90

Payback period = 1 + 1994.69/3132.59 = 1.64 years

B

Present value of cash flow in year 1 = 4300 / 1.13 = 3805.31

Amount recovered in year 1  = -7900 + 3805.31 = -4094.69

Present value of cash flow in year 2 = 4000 / (1.13^2) = 3132.59

Amount recovered in year 2  = -4094.69 + 3132.59 = -962.10

Present value of cash flow in year 3 = 5200 / (1.13^3) = 3603.86

Amount recovered in year 3  = -962.10 + 3603.86 = 2641.76

Payback period = 2 years + -962.10 / 3603.86 = 2.27 years

C

Present value of cash flow in year 1 = 4300 / 1.13 = 3805.31

Amount recovered in year 1  = -10900 + 3805.31 = -7094.69

Present value of cash flow in year 2 = 4000 / (1.13^2) = 3132.59

Amount recovered in year 2  = -7094.69 + 3132.59 = -3962.10

Present value of cash flow in year 3 = 5200 / (1.13^3) = 3603.86

Amount recovered in year 3  = -3962.10 + 3603.86 = -358.24

Present value in year 4 =  4400 / (1.13^4) = 2698.60

Amount recovered in year 4  = -358.24 + 2698.60 = 2340.36

Payback period = 3 years + 358.24 + 2698.60 = 3.13 years

g Units: Beginning Inventory: 85,000 units, 70% complete as to materials and 20% complete as to conversion. Units started and completed: 260,000. Units completed and transferred out: 345,000. Ending Inventory: 32,500 units, 40% complete as to materials and 15% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the equivalent units of materials. Group of answer choices 227,500 349,875 298,500 332,875 358,000

Answers

Answer: 358,000 units

Explanation:

Assuming this is the weighted average method.

Equivalent units = Units completed and transferred out + Ending inventory Equivalent units.

Ending inventory Equivalent units = Ending inventory * %complete for materials

= 32,500 * 40%

= 13,000 units

Equivalent units = 345,000 + 13,000

= 358,000 units


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Unit 1 Quiz
6
This holiday season, the hottest gift was a doll named Sparkle Princess within a few hours all of the stores sold out their stack of this
People who had been fortunate enough to buy a doll began to sell their dolls on the internet. Thousands of people logged on to try to
be a
the few dolls that were being sold on the Internet. What MOST likely happened with the internet sales?
CA The price went down because the supply was low and the demand was high
B. The price went up because the supply was low and the demand was high
CC The price went down because the supply was high and the demand was low
D. The price went up because the supply was high and the demand was low
Reser

Answers

Answer:

The price went up because the supply was low and the demand was high.

I believe

Explanation:

Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 8% with semiannual payments of $40, and a par value of $1,000. The price of each bond in the issue is $1,196.00. The bond issue is callable in 5 years at a call price of $1,080. What is the bond's current yield

Answers

Answer:

6.69%

Explanation:

Price of Ace products bond issue = $1,196

Annual coupon payment = $80

Current yield = Annual coupon payment / Bond price

Current yield = $80/$1,196

Current yield = 0.0668896

Current yield = 6.69%

ased on the segment income statement below, Chips, Inc. is considering eliminating its Barbecue Division line. Revenue from Barbecue Division sales $ 528,000 Salaries for Barbecue Division workers (128,000 ) Direct material (342,000 ) Sunk costs (equipment depreciation) (82,000 ) Allocated company-wide facility-sustaining costs (64,000 ) Net loss $ (88,000 ) If the Division is eliminated, what is the total amount of avoidable cost?

Answers

Answer:

the  total amount of avoidable cost is $470,000

Explanation:

The computation of the total amount of avoidable cost is shown below:

= Salaries for Barbecue Division workers + direct materials

= $128,000 + $342,000

= $470,000

Hence, the  total amount of avoidable cost is $470,000

We simply added the above two items

what is difference between T-Account and a ledger Account?(hint... what dose T-Account not have?)

Answers

A T account is a graphical representation of a ledger account. A ledger account is a set financial account.


(A ledger can also be interpreted as a collection of t accs)
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