A sole proprietor owned an office building with a cost of $300,000 and accumulated depreciation of $40,000, using modified accelerated cost recovery system (MACRS) straight-line depreciation. In the current year, she sold the building for $320,000. What is the unrecaptured Section 1250 gain from this sale, if any

Answers

Answer 1

Answer:

The Correct Answer:

$40,000

Explanation:

IRC Section 1250 requires that excess depreciation (actual depreciation in excess of straight-line depreciation) be recaptured as ordinary income. Since the property has sold for more than the adjusted basis ($300,000 − $40,000 = $260,000 adjusted basis), the initial gains are recaptured based on the original purchase price of $300,000.

This makes the first $40,000 of the profit subject to the unrecaptured Section 1250 gain while the remaining $20,000 is considered regular long-term capital gains.


Related Questions

A manufacturing company's costs can be classified broadly as __________, __________, and __________. The costs to manufacture a product are classified as __________ __________, __________ __________, and __________ __________.

Answers

Answer:

1. A manufacturing company's costs can be classified broadly as direct materials, direct labor, and factory overhead cost.

2. The costs to manufacture a product are classified as Period cost, Administrative Expense, and Selling expenses.

Explanation:

A manufacturing company encounters so many costs in the cause of the manufacturing of the products which they are into. Some of these cost are periodic in nature (one off payment or interval cost ) while others are directly related to the product being manufactured.

Webb, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $5.00 Indirect materials 2.50 Maintenance .50 Utilities .30 Fixed overhead costs per month are: Supervision $1,200 Insurance 400 Property taxes 600 Depreciation 1,800 The company believes it will normally operate in a range of 4,000 to 8,000 machine hours per month. During the month of August, 2019, the company incurs the following manufacturing overhead costs: Indirect labor $28,000 Indirect materials 16,200 Maintenance 2,800 Utilities 1,900 Supervision 1,440 Insurance 400 Property taxes 600 Depreciation 1,860 Prepare a flexible budget report, assuming that the company used 6,000 machine hours during August.

Answers

Answer:

Variable overhead costs per machine hour:

Indirect labor $5.00 Indirect materials $2.50 Maintenance $0.50 Utilities $0.30Total $8.30

Fixed overhead costs:

Supervision $1,200 Insurance $400 Property taxes $600 Depreciation $1,800 Total $4,000

                                        Flexible              Actual             Spending

                                        budget               expenses        variances

Variable costs:

Indirect labor         $30,000             $28,000          $2,000 FIndirect materials  $15,000              $16,200           $1,200 UMaintenance         $3,000                $2,800            $200 FUtilities                   $1,800                $1,900              $100 UTotal                       $49,800             $48,900          $900 F

Fixed costs:

Supervision           $1,200                 $1,440              $240 UInsurance              $400                   $400                 $0Property taxes      $600                   $600                 $0Depreciation         $1,800                 $1,860              $60 UTotal                      $4,000                $4,300              $300 U

Total costs                     $53,800              $52,300           $600 F

In determining whether a company's financial condition is improving or deteriorating over time, horizontal analysis of financial statement data would be more useful than vertical analysis.a. True
b. False

Answers

Answer:

a. True.

Explanation:

In determining whether a company's financial condition is improving or deteriorating over time, horizontal analysis of financial statement data would be more useful than vertical analysis.

In Financial accounting, Horizontal analysis can be defined as an analysis and evaluation of a financial statement which illustrates or gives information about changes in the amount of corresponding financial statement items, benchmarks or financial ratio over a specific period of time. It is one of the most important technique that is used to measure how a business is doing financially. Hence, it is also referred to as the trend analysis.

Under the horizontal analysis of financial statement, we use the financial statements of two or more periods; earliest and latter periods.

Generally, the earliest is chosen as the base period while all other items on the statement for a latter period will be compared with the items on the statement of the base period.

Do your shopping behavior and purchase criteria differ between purchases made for yourself and purchases made as gifts? How?

Answers

Explanation:

Yes, as purchasing behavior and purchasing criteria tend to vary according to the reason for the purchase.

The consumer purchase decision process begins by identifying a need, searching for available information about the purchase need found, evaluating the options available for purchase and finally buying decision. And this process varies according to the type of purchase, if it is for yourself, you can consider different benefits and options, when a purchase is made to be a gift, you can have different criteria in relation to the price you want to pay, the preferences and needs of the person who will receive the gift, etc.

Which means that sellers must create different strategies for each purchase situation, in order to positively influence the purchase process for a gift, if that is the case.

The manager of a savings and loan branch wants to estimate the average amount held in passbook savings accounts by the branch bank depositors. A random sample of 25 depositors is selected, and the results indicate a sample average of $4,750 and a sample standard deviation of $1,200. Given the 95% confidence interval estimates calculated above, if an individual had $4,000 ina passbook savings account, is this considered unusual?
a. Yes
b. Maybe
c. Do not know
d. No

Answers

Answer:

Correct answer:

d. No

Explanation:

This is because, from the random sample that was done, it shows that the average money held by customers falls within $3550 - $5950 which averages $4750 (Factoring in the standard deviation of $1200). Therefore, it is not considered unusual if an individual had $4000 since it falls within the range of amount held by most depositors and customers of the said bank.

​Norwood, Inc. signs a ​, ​%, sixmonth note dated November​ 1, 2018. The interest expense recorded for this note in 2018 will be​ ________. (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

Answers

Answer:

Norwood Company

Norwood Company signs a​ $11,000, 8.5%,​ six-month note dated November​ 1, 2018. The interest expense recorded for this note in 2018 will be​ ___$156_____. (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

Explanation:

a) Data and Calculations:

Note Payable = $11,000

Interest rate = 8.5%

Interest expense for a year = 8.5% of $11,000 = $935

Interest expense for 2 months (from November to December) = $935/12 * 2 = $156

b) Interest expense represents the annual expense that must be incurred for the use of resources which the Norwood, Inc. obtained through the signing of the six month note.  Interest on notes are computed based on an annual basis unless otherwise stated.  The 8.5% is per annum.  So, when the interest and principal are being repaid in six month's time, Norwood, Inc. should have accrued interest for six months, which will amount to $467.

________is/are designed specifically to help bring customers eyeball-to-eyeball with the product, often at the point of sale or close to it.

Answers

Answer: Exhibitive Media

Explanation:

This type of media aims to strike a bond between the potential buyer and the product by engaging them eyeball-to-eyeball, often at the point of sale or close to it. The purpose of Exhibitive media is therefore to showcase the product to the prospective buyer.

Examples include;

Product Packaging - here the package is designed in such a way that it grabs the viewer's attention and makes them interested in tying to find out more about the product. It will also explain the benefits associated with the product briefly. Trade Shows and exhibits - Here sales people talk to prospective customers and demonstrate to them the workings of the product. The prospective customer can then ask questions to know more about the products, and etc.

The following information pertains to Hopson Co.'s pension plan: Actuarial estimate of projected benefit obligation at 1/1/13 $72,000 Assumed discount rate 10% Service costs for 2013 $28,000 Pension benefits paid during 2013 $15,000 If no change in actuarial estimates occurred during 2013, Hopson's projected benefit obligation at December 31, 2013 was

Answers

Answer:

$92,200

Explanation:

Calculation for Hopson's projected benefit obligation at December 31, 2015

Using this formula

Projected benefit obligation=Actuarial estimate of projected benefit obligation + Service costs +(Actuarial estimate of projected benefit obligation × Discount rate)- Pension benefit

Let plug in the formula

Projected benefit obligation= $72,000 + $28,000 + ($72,000 × .10) -$15,000

Projected benefit obligation=$72,000 + $28,000 + $7,200-$15,000

Projected benefit obligation= $107,200-$15,000

Projected benefit obligation=$92,200

Therefore Hopson's projected benefit obligation at December 31, 2015 will be $92,200

Countess Corp. is expected to pay an annual dividend of $4.63 on its common stock in one year. The current stock price is $74.11 per share. The company announced that it will increase its dividend by 3.75 percent annually. What is the company's cost of equity?

Answers

Answer:

r = 0.099974 or 9.9974% rounded off to 10.00%

Explanation:

Using the constant growth model of DDM we calculate the price of a stock today which is expected to pay a dividend which increases at a constant rate through out. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price under this model is,

P0 = D1 / r - g

Where,

r is the required rate of return or cost of equityg is the constant growth rate in dividends

Plugging in the available values in the formula, we calculate r to be,

74.11 = 4.63 / (r - 0.0375)

74.11 * (r - 0.0375) = 4.63

74.11r - 2.779125 = 4.63

74.11r = 4.63 + 2.779125

r = 7.409125 / 74.11

r = 0.099974 or 9.9974% rounded off to 10.00%

Company A was sued by Company B. The management of Company A feels that it is probable that it will have to pay the full amount to Company 8. What is the effect of this contingent event on Company A's accounting equation?
a. Increase liabilities and decrease stockholders' equity.
b. Increase assets and increase stockholders' equity.
c. No effect on the accounting equation.
d. Decrease assets and decrease liabilities.

Answers

Answer: a. Increase liabilities and decrease stockholders' equity.

Explanation:

Contingent Liabilities are obligations that the company may owe if a future event happens such as them being ruled against in a case in court.

Contingent Liabilities are to be recorded in the financial statements only when it is probable that it will happen and that the amount to be paid is reasonably estimable.

Company A's management feels like the loss is probable and that they would have to pay the full amount to company B which means that the loss is both likely and estimable.

Company A should therefore increase their liabilities and debit loss which will come from the Equity thereby reducing it.

Morganton Company makes one product and it provided the following information to help prepare the master budget:The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,500, 16,000, 18,000, and 19,000 units What is the accounts receivable balance at the end of July?

Answers

Answer:

$672,000

Explanation:

The computation of the account receivable balance at the end of July month is shown below:

Particular          June              July          August            September

Unit sales         8,500           16,000      18,000             19,000

Unit selling

price                 $70               $70           $70                 $70

Sales               $595,000     $1,120,000 $1,260,000  $1,330,000

Credit sales collection

40% in this

month sale      $238,000      $448,000  $504,000    $532,000

60% in the

following month                     $357,000   $672,000   $756,000

Total collection  $238,000    $805,000  $1,176,000   $1,288,000

For the account receivable at the end of July we considered the 60% oustanding amount i.e $672,000

on its advertisement, a company claims that it has funds in its possession that are in fact not available for payment of losses or claims. the company is guilty of

Answers

Answer:

Misrepresentation.

Explanation:

In this scenario, on its advertisement, a company claims that it has funds in its possession that are in fact not available for payment of losses or claims. The company is guilty of misrepresentation.

Misrepresentation can be defined as an untrue or misleading statement of fact made by a party to an individual or group of people to deceitfully lure or induce them to go into a contract. A company stating in its advert that it has funds in its possession but in the true sense or actual fact do not have the funds for payment of losses or claims; such a company is engaging in a fraudulent act and is liable to prosecution in any court of competent jurisdiction.

Justin and Lauren are equal partners in the PJenn Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners have the following bases in their partnership interests:

Partner Outside Basis
Justin $22,000
Lauren 22,000

On December 31 of the current year, the partnership makes a pro rata operating distribution of:

Partner Distribution
Justin Cash $25,000
Lauren Cash $18000
Property 9,000 (FMV)
($2,000 to partnership)

Requried:
a. What is the amount and character of Justin's recognized gain or loss?
b. What is Justin's remaining basis in his partnership interest?
c. What is the amount and character of Lauren's recognized gain or loss?
d. What is Lauren's basis in the distributed assets?
e. What is Lauren's remaining basis in her partnership interest?

Answers

Answer:

PJenn Partnership

a. The amount and character of Justin's recognized gain or loss:

Justin has a recognized gain of $3,000 ($25,000 - $22,000).  The character of Justin's recognized gain or loss must have substantial economic effect.

b. Justin's remaining basis in his partnership interest = $1,000 ($2,000/2) in the property distribution to the partnership.

c. The amount and character of Lauren's recognized gain or loss:

Lauren has a recognized gain of $3,000 ($25,000 - $22,000).  The character of Justin's recognized gain or loss must have substantial economic effect.

d. Lauren's basis in the distributed assets is $22,000, which is her outside basis.

e.Lauren's remaining basis in her partnership interest = $1,000 ($2,000/2) in the property distribution to the partnership.

Explanation:

a) Data and Calculations:

Partner Outside Basis    Partner Distribution

Justin $22,000              $25,000 cash

Lauren 22,000             $18,000 cash + $7,000 in property

Property $2,000 to Partnership

Justin and Lauren's recognized gain or loss is determined by the amount of the sale minus the partner's interest, which is often referred to as the partner's outside basis.

Justin's and Lauren's remaining basis in the partnership is the amount of the fair market value of property remaining after Lauren's share in the property.

A person who enters into a contract when he or she is intoxicated can void the contract if the terms are obviously favorable to the other party.
a. true
b. false

Answers

Answer:

False.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

A person who enters into a contract when he or she is intoxicated cannot void the contract even if the terms are obviously favorable to the other party.

By law, an individual can void a contract entered into while under the influence of alcohol or intoxicated, only if he or she doesn't understand or comprehend the legal consequences binding on the parties involved in the contract.

Hence, a contract is legally binding and enforceable even if one of the parties was intoxicated at the time of its formation.

Here I Sit Sofas has 5,800 shares of common stock outstanding at a price of $81 per share. There are 630 bonds that mature in 17 years with a coupon rate of 5.5 percent paid semiannually. The bonds have a par value of $1,000 each and sell at 93 percent of par. The company also has 4,700 shares of preferred stock outstanding at a price of $34 per share. What is the capital structure weight of the debt?

Answers

Answer:

0.4820

Explanation:

The computation of the weight of debt is shown below:

= Debt value ÷ Total capital structure

where,

Debt value is

= 630 bonds × $1,000 × 0.93

= $585,900

And, the total capital structure is

= Debt value + common stock + preferred stock

= $585,900 + 5,800 shares × $81 + 4,700 shares × $34

= $1,215,500

So, the weight of debt is

= $585,900 ÷ $1,215,500

= 0.4820

1. Chang Industries has 1,900 defective units of product that have already cost $13.90 each to produce. A salvage company will purchase the defective units as they are for $4.90 each. Chang's production manager reports that the defects can be corrected for $6.10 per unit, enabling them to be sold at their regular market price of $20.80. The incremental income or loss on reworking the units is:_______.
a. $18,620 income.
b. $30,210 income.
c. $27,930 income.
2. Poe Company is considering the purchase of new equipment costing $85,500. The projected net cash flows are $40,500 for the first two years and $35,500 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Periods Present Value of 1 at 10% Present Value of anAnnuity of 1 at 10%
1 0.9091 0.9091
2 0.8264 1.7355
3 0.7513 2.4869
4 0.6830 3.1699
a. $(27,665).
b. $(14,857).
c. $27,665.
d. $35,709.

Answers

Answer:

1. $18620

2. $35709

Explanation:

1.we are required to find incremental loss.

= Defect(market price - price per unit - correction per unit)

Defect product = 900

Market price = 20.8

Price for each defect unit = 4.9

Price for defect correction = 6.1

1900(20.8-4.9-6.1)

= $18600

2. Present value of cash flow =

40500*0.9091 = 36818.55

40500*0.8264 = 33469.2

35500*0.7513 = 26671.15

35500*0.683 = 24246.5

Total = 121209

We subtract cost of new equipment from this value

121209-85500

= $35709

You purchased 100 shares of stock for $5 per share. After holding the stock for 8 years and not recieving any dividends, you sell the stock for $42 per share. What are the holding period and annual return on this investment?
a. 185%, 14.42%
b. 920%, 41.63%
c. 740%, 30.48%
d. 625%, 27.66%

Answers

Answer:

The answer is C.

Explanation:

The formula for holding period is:

(Future value/present value) - 1

Future value = $42 per share

Present Value = $5 per share

(42/5) - 1

=8.4 - 1

7.4

Expressed as a percentage:

740%

B. Annual return on investment

(1+AHP)^(1/n) - 1

Where AHP is the annual holding period

n is the number of years

[(1+7.4)^(1/8)] - 1

[8.4^ 0.125] - 1

1.3048 - 1

0.3048

Expressed as a percentage

30.48%

Long Market Value: $48,000 Short Market Value: $18,000 Debit: $25,000 Credit: $25,000 SMA: $3,000 Interest charges on the account are based on a balance of:____.A. 0.B. $3,000.C. $25,000.D. $50,000.

Answers

Answer:

C. $25,000

Explanation:

The interest charges on the account(margin) are based on the debit balance in the account. Also, credits that came as a result of short sales are usually not matched off against debits in the account, hence interest charges is based on the $25,000 debit balance.

A monopoly's cost function is
C = 1.5q^2 + 40 Q
and its the demand for its product is
p = 320-0.5Q
where Q is output, p is price, and C is the total cost of production. Determine the profit-maximizing price and output for a monopoly. The profit maximizing output level is units. (Enter a numeric response using an integer)

Answers

Answer:

70 units

Explanation:

The computation of profit maximizing output level is shown below:-

Monopolist perform Marginal Revenue which equivalent to the Marginal Cost as

MR = Marginal Revenue and MC = Marginal Cost

[tex]MR = \frac{\partial TR}{\partial Q} = \frac{\partial PQ}{\partial Q} = \frac{\partial (320-0.5Q)Q}{\partial Q}[/tex]

[tex]MR = \frac{\partial (320Q -0.5Q^2)}{\partial Q}[/tex]

MR = 320 - Q

Now we will find the MC which is

[tex]MC = \frac{\partial TC}{\partial Q} =\frac{\partial (1.5Q^2 + 40Q)}{\partial Q} = 3Q + 40[/tex]

now we will put the value of which is into MR = MC

320 - Q = 3Q + 40  

280 = 4Q

70 = Q

So, the profit maximizing output level is 70 units.

Four companies were sued by customers for injuries sustained from faulty products. All four companies settled out of court for $400,000. For which of the following companies is this event the LEAST material?a. A company with assets totaling $36 billion.b. A company with assets totaling $40 billion.c. A company with assets totaling $15 billion. d. A company with assets totaling $50 billion.

Answers

Answer:

d. A company with assets totaling $50 billion.

Explanation:

In order to calculate the material impact of the lawsuit on each company, we must divide the settlement by total assets. In this case, we do not need to do the math, we simply have to select which company has the most assets. The more assets a company has, the lesser the material impact of any unfavorable settlement.

Radison Enterprises sells a product for $102 per unit. The variable cost is $58 per unit, while fixed costs are $758,912. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $107 per unit.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Radison Enterprises sells a product for $102 per unit.

The variable cost is $58 per unit, while fixed costs are $758,912.

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 758,912 / (102 - 58)

Break-even point in units= 17,248 units

Now, the selling price is $107:

Break-even point in units= 758,912 / (107 - 58)

Break-even point in units= 15,488 units

Calculate the marginal cost of the 70th toy car produced. Round your answer to the nearest hundredth.

Answers

Answer:

$1.43

Explanation:

A lot of information is missing, but i found a similar question. Hope it can help.

Labor    Q     Fixed          Variable   Total      Marginal       Average  

                     costs          costs         cost       cost              total cost

0            0       50              0               50           0                     0

1            10       50             30              80           8                     8

2           24      50             60              110          2.5                 4.58

3           49      50             90              140         1.20                2.86

4           70      50            120              170         1.43                2.43

5           82      50            150             200        2.50               2.44

marginal cost is calculated by dividing the incremental cost ($30) by the incremental output (21) = $30 / 21 = $1.4286 ≈ $1.43

Assume that the CEO of a company gave you the project charter specifying your authority, among others to work on an initiative providing health services to the community in a certain neighborhood. Before the company embarked on the project, the team analyzed the health sector development program of the country and read through laws the country enacted regarding the health sector. It also did a market survey to solicit information as to who does what. From the analysis, it learned that several companies where engaged in the provision of solar energy. As it did not want to be engaged in providing the same service that others were offering, it started developing solar powered mobile clinic. With an initial outlay of birr 5 Million, the project would last for 7 years. Since the whole work was too huge to consider all at once, the project manager and the team decomposed the project into manageable compartments and then to activities. It also developed schedule, set standards, and anticipated possible bottlenecks along the way. From the analysis it made, it found out that there would be a 20% chance that medical supplies would be delivered late costing the company ETB 350,000. There would also be a 40% chance that the company would save ETB 175,000 in time as it would build the component using already existing templates instead of starting from scratch. Finally, the team would like to make sure that the work would satisfy all of the requirements so that it would get the acceptance of the clients. 1. Characterize a project based on the above narration and distinguish the project manager from an operations manager? 2. What is the Expected Monetary Value for the two possibilities? What would you suggest as a solution to respond to risks? 3. Mention and elaborate the input the company used to develop products using templates already existing instead of starting from the scratch. 4. What are the areas of expertise indicated in the story? 5. If you were to produce documents thereby convince stakeholders to buy in the project idea, what would you do for a successful initiation? 6. Discuss the processes, process groups and knowledge areas narrated in the story.

Answers

Answer:

Characterize a project based on the above narration and distinguish the project manager from an operations manager?

Explanation:

Harry and Sally formed the Evergreen partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership.
Basis Fair Market Value Harry:
Cash $30,000 $30,000
Land $100,000 $120,000
Totals $130,000 $150,000
Sally:
Equipment used in business $200,000 $150,000
Totals $200,000 $150,000
a. How much gain or loss will Harry recognize on the contribution?
b. How much gain or loss will Sally recognize on the contribution?
c. Should Sally consider selling the property to the partnership rather than contributing it?
A. Yes
B. No

Answers

Answer:

a) $0

Generally, partners recognize gain on property contributed to a partnership only when the cash they are deemed to receive from debt relief exceeds their basis in the partnership prior to the deemed distribution. Harry did not have any debt relief.

b) $0.

Partners may never recognize loss when property is contributed to a partnership even when they are relieved of debt.

c) Sally should consider selling the property to the partnership rather than contributing it. By selling the property, she could recognize the $50,000 built-in loss on the equipment.

Unlike direct materials, the sum of all the direct labor variances is always equal to the flexible budget variance.
A. True
B. False

Answers

Answer:

A. True

Explanation:

Unlike direct materials, the sum of all the direct labor variances is always equal to the flexible budget variance. Also, a negative direct labor efficiency variance is considered favorable one. And for a direct labor, if the efficiency and rate variances are both negative, then the flexible budget variance will be unfavorable. Therefore, the statement of the question is true.

Simon Corporation manufactures hydraulic valves. The product life of a valve is 4 years. Target average profit margin for Simon 20.00% The company does not expect the manufacturing cost to vary over the next 4 years. Estimated sales volume and the unit selling price of the valve for the next 4 years is given below: Year Sales volume (units) Unit selling price Year 1 40,000 $80.00 Year 2 50,000 $75.00 Year 3 35,000 $50.00 Year 4 25,000 $45.00 What is the allowable unit cost of a hydraulic valve using the target costing model

Answers

Answer:

Allowable unit cost of a hydraulic valve using the target costing model = 52.4

Explanation:

Given that:

Simon Corporation manufactures hydraulic valves. The product life of a valve is 4 years.

Target average profit margin for Simon 20.00%

The company does not expect the manufacturing cost to vary over the next 4 years

Estimated sales volume and the unit selling price of the valve for the next 4 years is given below:

Year                  Sales volume (units)                   Unit selling price

Year 1                       40,000                                 $80.00

Year 2                      50,000                                 $75.00

Year 3                     35,000                                   $50.00

Year 4                      25,000                                  $45.00

The objective is to determine the allowable unit cost of a hydraulic valve using the target costing model.

The Cost for each unit selling price can be calculated as:

= unit selling price - (Target average profit margin × unit selling price)

For Year 1

=  $80.00- (0.2 × $80.00)

= $80.00 - $16.00

= $64.00

For Year 2

= $75.00 - ( 0.2 × $75.00)

= $75.00 - ( $15.00)

= $60.00

Year 3

= $50.00 - (0.2× $50.00)

= $50.00 - $10.00

= $40.00

Year 4

= $45.00 - (0.2 × $45.00)

=$45.00 - $9.00

= $36.00

Year       Sales volume    Unit                Cost          Cost per Unit

                (units)             selling price  

Year 1       40,000          $80.00          $64.00       $2560000

Year 2      50,000          $75.00          $60.00       $3000000

Year 3      35,000          $50.00          $40.00        $1400000

Year 4       25,000          $45.00         $36.00        $900000

Total:        150000                                                    $7860000

Allowable unit cost = Total cost/Total number of unit cost

Allowable unit cost = $7860000/150000

Allowable unit cost = 52.4

________ and currency risks are to key country success factors as land costs and ________ are to key region success factors. Labor costs; exchange rates Exchange rates; environmental impact Location of markets; climate Land costs; air and rail systems Cultural issues; zoning restrictions

Answers

Answer:

A.Labor​ cost; proximity to customers

Explanation:

The key country success factors would be responsible for the country success i.e. labor cost and for the factors related to region success is the customer proximity i.e to become important for business success

Therefore the correct answer is labor cost and the customer proximity

Hence all the other options are incorrect

Ignatius Corporation had 7 million shares of common stock outstanding during the current calendar year. It issued ten thousand $1,000, convertible bonds on January 1. Each bond is convertible into 50 shares of common stock. The bonds were issued at face amount and pay interest semiannually at an annual rate of 10%. On June 30, Ignatius issued 100,000 shares of $100 par 6% cumulative preferred stock. Dividends are declared and paid quarterly. Ignatius has an effective tax rate of 25%. Ignatius would report the following EPS data (rounded) on its net income of $20 million: Basic EPS Diluted EPS a. $ 2.77 $ 2.67 b. $ 2.81 $ 2.73 c. $ 2.85 $ 2.67 d. $ 2.81 $ 2.68

Answers

Answer:

Ignatius Corporation

Basic and Diluted EPS are:

c. $ 2.85 $ 2.67

Explanation:

Data and Calculations:

Common stock outstanding = 7 million shares

Issued 10,000, $1,000 convertible bonds = $10,000,000

Convertible bonds = 10,000 bonds = 500,000 shares (10,000 x 50)

Interest payment = semiannual at 10% per annum

6%, 100,000 Cumulative preferred stock at $100 par = $10,000,000

Preferred dividend = $600,000

Net Income of $20 million

Basic EPS = $20,000,000/7,000,000 = $2.857 per share

Diluted EPS = $20,000,000/7,500,000 = $2.67 per share

To obtain the diluted EPS, the outstanding common stock is increased by the number of potential convertible bonds.

In response to the financial​ crisis, the Fed and the U.S. Treasury took all of the following policy actions except​ _______.

a. lowering tax rates on commercial bank profits
b. The Troubled Asset Relief Program

Answers

Answer: lowering tax rates on commercial bank profits

Explanation:

The financial crisis which is also widely called the global meltdown was caused as a result of the financial indutry deregulation.

The goal of TARP was to strengthen the banks, and improve market stability. Lowering tax rates on commercial bank profits wasn't part of the action used by the government.

What is the expected return if a firm has a payout ratio of 0.4, a return on equity of 25%, and a dividend yield of 15%

Answers

Answer:

The expected return on stock is 30%

Explanation:

Growth rate = Return on Equity * Retention ratio

Growth rate = Return on Equity * (1- Payout ratio)

Growth rate = 25% * (1 - 0.40)

Growth rate = 0.25 * 0.60

Growth rate =  0.15

Growth rate =  15%

Hence, Expected return = Dividend return + Growth rate

Expected return = 15% + 15%

Expected return = 30%

Therefore, the expected return on stock is 30%

Other Questions
Corporations became a popular way to set up businesses because they:A.raise capital B.limit the risk for individual inventorsC.allow investors to share in the profits D.all of the choices are correct A cat stalks an unsuspecting mouse. The movement of the cat is shown in the following graph of the horizontal position, x, against time, t. What is the average speed of the cat between t = 2s and t = 6s? find y of a paralagram Please help me answer this question. -15 - g/3 = -5.What is g? According to Sancho, how full is the glass for Bolsa? half empty half full If our HMap implementation is used (load factor of 75% and an initial capacity of 1,000), how many times is the enlarge method called if the number of unique entries put into the map is:_______ a. 100b. 750c. 2,000 d. 10,000 e. 100,000 Ten years ago you put $150000.00 into an interest earning account. Today it's worth $275000. What is the effective annual interest earned on the account Which of the following is true about the Fed? A. it cannot directly affect the economy but it can influence institutions that can affect the economy B. it has no real power since in the long run, money is neutral C. it has more power to affect the economy than any other institution D. it has a lot of power to affect the inflation rate, but not the unemployment rate The estimated product of 20.7 and 9.18, after rounding both factors to the nearest whole number, is . The exact product of 20.7 and 9.18 has decimal places. Suppose that you begin with 10 grams of magic crystals, and your crystals grow at acontinuous rate of 25% every day (that's why they're magic). How many grams ofcrystals will you have after one week (7 days)?!ANSWER IS BRAINLEIST Multiply. 6x15xy20 Please answer as quickly as possible 03. O preo a ser pago por uma corrida de txi inclui uma parcela fixa, denominada bandeirada, e uma parcela que depende da distncia percorrida. Se a bandeirada custa R$ 3,20 e cada quilmetro rodado custa R$ 1,50, qual o valor de v a pagar em uma corrida de n quilmetro? * 1 ponto a) v = 1,50 + 3,20n b) v = 3,20.N c) v = 3,20.N - 1,50 d) v = 3,20 + 1,50n e) v = 1,50n A scientist is conducting research about all the plants and wildlife in the Mojave Desert as well as the deserts resources, such as water and soil. The scientist is studyinga community.a population.a species.an ecosystem. The Federal Communications Commission (FCC) has each of these powers except _____. A. censoring programs before they are broadcast B. refusing to renew a broadcast stations license C. banning obscene language D. regulating radio broadcasts g A certain elevator cab has a total run of 195 m and a maximum speed is 306 m/min, and it accelerates from rest and then back to rest at 1.19 m/s2. (a) How far does the cab move while accelerating to full speed from rest Triangle L J K is shown. Angle J L K is a right angle. The length of the hypotenuse is 15 inches and the length of the side adjacent to the right angle is 10 inches. The angle between the 2 sides is x. Which equation can be used to find the measure of angle LJK? sin(x) = Ten-fifteenths sin(x) = Fifteen-tenths cos(x) = Ten-fifteenths cos(x) = Fifteen-tenths how would you define critical thinking What is difference between internal and external trade A cloth manufacturing firm is deciding whether or not to invest in new machinery. The machinery costs $45,000 and is expected to increase cash flows in the first year by $25,000 and in the second year by $30,000. The firms current fixed costs are $9,000 and current marginal cost are $15. The firm currently charges $18 per unit.Required:If the interest rate is 5% then. what is the present value of the cash flows? Cmo funcionara la sociedad sin la existencia de los medios de comunicacin y el acceso a estos?