Answer:
$7000
Explanation:
The following steps would be taken to determine the answer
1. Calculate depreciation expense given the initial information
2. Determine the book value
3. calculate the depreciation expense using the new information and the book value
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($50,000 - $10,000) / 8= $5,000
Book value = $50,000 - $5,000 = $45,000
(45,000 - 10,000) / 5 = $7000
The company should record $8,750 as the depreciation expense for the second year.
Data and Calculations:
Cost of equipment on January 1 = $50,000
Estimated useful life = 8 years
Estimated salvage value = $10,000
Depreciable amount = $40,000 ($50,000 - $10,000)
Annual depreciation expense based on Straight-line method = $5,000 ($40,000/8)
Net book value = $45,000 ($50,000 - $5,000)
Re-estimated total useful life = 5 years
Remaining useful life after the first year = 4 years (5 - 1)
Estimated salvage value = $10,000
Depreciable amount = $35,000 ($45,000 - $10,000)
Annual depreciation expense based on Straight-line method = $8,750 ($35,000/4)
Thus, the depreciation expense for the second year is $8,750.
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Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $17,025. Clayborn's May bank statement shows $15,800 on deposit in the bank. Determine the adjusted cash balance using the following information:
Answer:
Adjusted bank balance $16,400.
Adjusted Cash balance $16,400.
Explanation:
Preparation of a bank reconciliation.
Bank Statement Balance ($15,800)
Add deposits in transit" ($5,200)
Deduct "outstanding checks" ($4,600)
Adjusted bank balance $16,400
Cash Account ($17,025)
Deduct charges/fees ($25)
Deduct NSF checks ($600)
Adjusted cash balance $16,400
The skills, knowledge, and experience of an individual or group and its value to an organization refers to _____.
Answer:
Human capital
refers to the economic value of the combined knowledge, experience, skills, and capabilities of employees
Knowledge Check 01 Cost-volume-profit analysis is used to predict how changes in _____ levels affect profit. multiple choice fixed and variable production and sales costs and sales sales and production
Answer:
High
Explanation:
because the change of volume profit is always increase.
O 3), AP The following transactions are for Alonzo Company. Journalize sales transactions. 1. On December 3, Alonzo Company sold $500,000 of merchandise to Arte Co., on account, terms 1/10, n/30. The cost of the merchandise sold was $330,000. 2. On December 8, Arte Co. was granted an allowance of $25,000 for merchandise purchased on December 3. 3. On December 13, Alonzo Company received the balance due from Arte Co. Instructions a. Prepare the journal entries to record these transactions on the books of Alonzo Company. Alonzo uses a perpetual inventory system. b. Assume that Alonzo Company received the balance due from Arte Co. on January 2 of the following
Answer: See explanation
Explanation:
a. Prepare the journal entries to record these transactions on the books of Alonzo Company. Alonzo uses a perpetual inventory system.
Dec 3
Dr Account receivable $500,000
Cr Sales $500,000
Dr Cost of goods sold $330,000
Cr Merchandise inventory $330,000
Dec 8
Dr Sales return and allowance $25000
Cr Account receivable $25000
Dec 13
Dr Cash $470250
Dr Sales discount $4750
Cr Account receivable $475000
b. Assume that Alonzo Company received the balance due from Arte Co. on January 2 of the following
Jan 2
Dr Cash $475000
Cr Account receivable $475000
Assuming all other factors remain constant, if fixed costs increase, then the break-even point will:
Answer:
Results are below.
Explanation:
To calculate the break-even point, the following formula is required:
Break-even point in units= fixed costs/ contribution margin per unit
Contribution margin per unit= selling price - unitary variable cost
If the fixed costs increase and the unitary contribution margin remains constant, the company would have to sell a larger amount of units to cover the fixed costs.
For example:
Fixed costs0= 120,000
Fixed costs 1= 140,000
Unitary contribution margin= 40
Break-even point in units= 120,000/40= 3,000
Break-even point in units= 140,000/40= 3,500
A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a prime location near Washington, D.C. They estimate it will cost $50 per prisoner to process the paperwork at this new location. The county is paid a $75 commission for each new prisoner they process. If the holding area at this new location has design and effective capacities of 10,000 and 7,500 prisoners processed annually, respectively, and 5,000 prisoners will be processed per year, what will be the utilization of the holding area
Answer:C. $50,000
Total revenue would be $300,000. Total cost would be $250,000 (fixed = $50,000; variable = $200,000).
Explanation:
As the barriers to the free flow of goods, services, and capital fell during the 1970s, one motivation for foreign direct investment by non-U.S. firms was the desire to
Answer:
move production activities to more desirable locations.
Explanation:
If there is the barrier with regard to the flow of goods and services that can be moved in freely also the capital decline at the time of 1970s so the motivation made for foreign direct investment should be that they shifted to the production activities in order to have desirable locations
So as per the given situation, the above statement should be considered
Tamekia reports that the market leader in the TZX mitt category has 60 percent of all sales in the market and spends $240,000 a year, or 60 percent of all advertising expenditures, to support the brand. Under the share of market/share of voice system, Great Catch should be prepared to spend at least ________ if it hopes to achieve a market share of 30 percent.
Answer: $120000
Explanation:
Share of voice refers to the measure of the exposure that a particular business gets when it's being compared to other competitors. The share of market is the percentage of a market that a company earns.
From the information given, since 60% of the market sales equate to $240000 spent a year, then in order to achieve a market share of 30%, ½ of $240000 will be spent which is $120000. Therefore, Great Catch should be prepared to spend at least $120000 if it hopes to achieve a market share of 30 percent.
Margot has fallen in love with a three-bedroom, 2,500-square-foot property in her friend’s neighborhood. It’s listed for $400,000. However, just down the street, another three-bedroom, 2,400-square-foot home very similar to the one Margot loves was just listed for $350,000. Margot and her agent immediately make an offer on the second property. Which economic principle is at work here?
Answer:
subsititution
Explanation:
Since in the situation it is mentioned that margot has fallen with 3 set bedroom i.e. 2500 square foot and its amount is $400,000. Now there is another three set bedroom of 2,400 square foot and its amount is $350,000 so here two options are given and according to the price he opted for the second property
So out of two choices he should opt for one that means it is a subsititution economic principle
BMW has announced changes to its 3-series models for the upcoming year. The changes include reduced weight, improved aerodynamics, and enhanced driving dynamics. In addition, consumers will have the option of purchasing the vehicle with or without all-wheel drive. How would you classify BMW's 3-series vehicles
Answer:
Improvements or revisions of existing products
Explanation:
The creation of new series or models of a product might see companies go all out to make wholesale changes which will be like a complete overhaul of the precious or current model or companies may opt for a mild changes in the existing product such as allowing for more variant, upscaling on the current model which will be termed as a sort of upgrade or improvement on the existing product. Based on the changes reported about the upcoming BMW 3 series, we can see from the changes made that there are no design or whole sale changes in the series, just an improvement in functionalities and more variant option of the existing model.
The Fed can manipulate the reserve ratio in order to influence the ability of commercial banks to do what
Answer:
loan out money
Explanation:
Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. The lower the ratio, the higher the increase in money supply
If the required reserve ratio is 10% and $100 is deposited, reserves would be $10 and $90 would be lent out
The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance. a. True b. False
Answer:
FALSE
Explanation:
A person is considered unemployed if he / she does not have a job and has searched for a job within the last 4 weeks
Unemployment rate = (number of unemployed / labour force) x 100
To collect data on unemployment, The Bureau of Labor Statistics conducts a survey every month known as the Current Population Survey (CPS).
types of unemployment
structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.
The geologist lost his hob permanently due to increase in wages (polices)
Frictional unemployment: the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.
Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom
_______ unacceptable behavior may provide quick results but may lead to undesirable long-term side effects, such as employee dissatisfaction and increased turnover.
Answer:
Punishing
Explanation:
Punishing is the non-acceptable behavior that might give the fast results but at the same time it would result in the non-desriable side effects for the long term like dissatisfaction of the employee, turnover increment
So as per the given situation, it is the situation of the punishment
hence, the same should be relevant
At which criteria level is the most important to observe a significant change in order to conclude that a training program is effective
Answer:
Level 3 evaluation
Explanation:
In simple words, Level 3 assesses the extent to which individuals' attitudes improve as a consequence of the education - in other words, if the program's information and abilities are used on the job. The learner's conduct is measured both before and after the activity at Stage 3.
Thus, from the above we can conclude that the correct answer is level 3 evaluation.
If the number of consumers in the market for good A decreases, what will happen to the equilibrium price and quantity of good A?
a. The equilibrium price and quantity will both decrease.
b. The equilibrium price and quantity will both increase.
c. The equilibrium price will increase and equilibrium quantity will decrease.
d. The equilibrium price will decrease and equilibrium quantity will increase.
Answer:
A, The equilibrium price and quantity will both decrease.
Explanation:
The less consumers the lower the equilibrium price and quantity goes.
What correlation do most economists expect with a rising or high gross domestic product, high labor productivity, and low inflation
Answer:
a healthy economy
Explanation:
In the case when there is an increase or there is high gross domestic product , the labor productivity is also higher and at the same time the inflation is less so this means the more and more people are employed and they can spend less money to buy more products so this represent that the economy is healthy
One of the limitations for an entrepreneur of setting up a new business as a franchise is:
Answer:
The first and most significant disadvantage of a franchise is the fact that the franchisee has no control of the business or how it is run (or very limited control). The rules of the business are already established and part of the franchise agreement.
In the ________________ economies, history, culture, and past actions determine the answers to the three economic questions. Group of answer choices
Answer:
Traditional.
Explanation:
Traditional economy is an economic system in which traditions and customs determine the practice of using limited resources. It is the oldest economic system of the world. In a traditional economy, land and capital are in common ownership, and the main economic problems of society - what, how and for whom to produce - are solved mainly on the basis of traditional tribal or semi-feudal hierarchical relations between people. This type of economy has survived in underdeveloped and industrially developing countries, in which socioeconomic stagnation is pronounced, society seeks to maintain the status quo.
Greg's team was given the task of updating the company's invoice and billing system. They completed the project ahead of schedule and came in way under budget. As a result, everyone on the team received a bonus. This is an example of a(n) ______ reward.
5. The demand for professional education is increasing these days. Put your views to support the
statement.
Answer:
Professional education helps to rectify the errors in business
Explanation:
For a negative externality, the __________________________ than the costs imposed on society as a whole. private costs of an action are less social costs of an action are less private benefits of an action are more social benefits of an action are more
Answer:
private costs of an action are less
Explanation:
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. A good has negative externality when private costs of an action are less the costs imposed on society as a whole.
An example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced.
Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low
Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality.
Suppose that demand is unitary elastic at all points. When price is increased from a point on this demand curve, then total revenue will_____________.
Answer: not change
Explanation:
When a good's demand is said to be unitary elastic, it means that an increase in price causes a proportional decrease in quantity demanded which means that neither effect would have dominance over the other.
When this happens, total revenue will not change because the increase (decrease) in price will be cancelled out by the decrease (increase) in quantity demanded.
Accounts receivable, equipment, the building itself, and the land on which the building stands are examples of:
Answer: Assets
Explanation:
Assets are something that a business owns that is able to bring in money or is a store of value.
All the above mentioned items are considered assets as they fit this description.
Accounts receivable is a current asset which means it has a duration of a period or less.
Equipment, building and land are all fixed assets as they have a duration of more than one period.
June enters into a contract with Steeley Company to purchase a washer and dryer. She doesn’t understand the financing terms but signs the agreement anyway because she needs the appliances. The financing terms violate state laws on interest rate limits and she is unable to make all of her payments when they are due. Steeley sues when June breaches the contract. The court would:
Answer: be exercising judicial restraint if it requires June to pay as she promised, even if the agreement was unfair and unwise.
Explanation:
Judicial restraint simply means a situation whereby judges aren't allowed to inject their own preferences into rulings and legal proceedings. It simply means that judges should limit exercising their own power during legal proceedings.
In this case, since June doesn't understand the contract but still signed, the court would be exercising judicial restraint if it requires June to pay as she promised, even if the agreement was unfair and unwise. It's advisable for the court not to interfere in the matter and follow the normal proceedings.
A mortgage with low initial payments that increase over time without ever leveling off is a graduated payment mortgage. growing-equity mortgage. second mortgage. shared-appreciation mortgage. equity line of credit
Answer:
growing-equity mortgage
Explanation:
When a person obtains a growing equity mortgage, they have to pay a higher monthly payment every month. These increases must be included in the mortgage contract and they are beneficial if the borrower's income is expected to increase in the future. The interest rate remains the same, it doesn't change.
According to the assumptions of the quantity theory of money, if the money supply increases 5 percent, then a. the price level would be unchanged and real GDP would rise by 5 percent. b. the price level would rise by 5 percent and real GDP would be unchanged. c. both the price level and real GDP would rise by 5 percent. d. both the price level and real GDP would be unchanged.
Answer:
C
Explanation:
Quantity theory of money : money supply x velocity = price x output
money supply x velocity = nominal GDP
It is assumed that velocity is constant. So, if money supply increases, both the price level and real GDP would rise by 5 percent
Mother and Daughter Enterprises is a relatively new firm that appears to be on the road to great success. The company paid its first annual dividend yesterday in the amount of $.28 a share. The company plans to double each annual dividend payment for the next three years. After that time, it is planning on paying a constant $1.50 per share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 11.5%
Answer:
$12.43
Explanation:
Price of the stock can be determined by calculating the present value of the stock
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 0.28 x 2
Cash flow in year 2 = 0.56 x 2
Cash flow in year 3 = 1.12 + 1.50 0.115
I = 11.5
PV = 12.43
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
In a perfectly competitive market, all of the following statements are true except: A. Marginal revenue is the same as price. B. Marginal revenue is equal to price times quantity. C. The marginal revenue curve is the same as the demand curve facing sellers. D. Marginal revenue is the change in total revenue associated with producing one more unit of output.
Answer: Marginal revenue is equal to price times quantity
Explanation:
A perfectly competitive market is a market where there's a large number of both the producers and the consumers have full and symmetric information.
In a perfectly competitive market, the marginal revenue is the same as price and the marginal revenue curve is the same as the demand curve facing sellers.
It should be noted that the statement that the marginal revenue is equal to price times quantity is incorrect. The total revenue is equal to price times quantity.
A group of six investors wants to open a new bank. In their application to the Comptroller of the Currency, they discuss that the community they want to do business in has a median income of $55,000, that there are approximately 75,000 homes in the community and that there is approximately $5.6 million in sales generated in the community on any given day. Which decision factor for seeking a new charter are the investors discussing
Answer: The level of economic activity in the community
Explanation:
The decision factor for seeking a new charter that the investors discussing is the level of economic activity in the community. Economic activity refers to the activity regarding the provision, purchase and sale of goods or services in an economy.
Since the investors discuss that the community has a median income of $55,000, has 75,000 homes and that there is approximately $5.6 million in sales generated in the community on any given day, then they're discussing about the level of economic activity in the community.
To avoid financial worry, keep the cost of housing (including mortgage, interest, insurance, and property taxes ) below_______of pre tax income.
A. 05%
B. 28%
C. 50%
D. 15%
All the housing costs which include (mortgage, interest, insurance, and property taxes) should be below 28 percent of pre-tax income to avoid financial stress.
What is the 28% rule?
The 28 percent rule states that your house payment, including property taxes and insurance, should not exceed that percentage of your monthly gross income.
This is also known as a decent general guideline for mortgage payments or a safe mortgage-to-income ratio.
Therefore, Option B. 28% is the correct answer.
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