Answer:
$360
Explanation:
The computation of the depreciation deduction during the first year is shown below:
= Basis of the camera × given percentage × weightage
= $3,000 × 60% × 20%
= $360
Since the 60% is used for business and 40% used for personal
And there is a recovery period of assets of 5 years so half year convention period applies
On January 1, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. Thenote requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The firstpayment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the issuance of the installment note for cash on January 1 would include a:_____
Answer:
Credit to notes payable for $165000
Explanation:
Journal entries for issuance of Note Payable :
Cash Account ..... Debit $165000
7% Note payable Accounts .... Credit $165000
Note:
Note payable is a liability so it is credited as on date of issuance.
i. Discuss the rationale of organizing an industrial strike in resolving employee dispute with the
state, focusing on the detrimental effects strikes has on various stakeholders in an economy.
Answer: The answer is provided below
Explanation:
Strike action, is a work stoppage, that is caused by mass refusal of employees to work and it usually takes place in response to the employee grievances.
Some of the reasons for strike include:
• Low wages: Employees engage in strik as a way to show their grievances to their employers that they're not well paid and want a pay rise.
• Poor communication with the organisation: Another reason for strikes is the lack of trust between employers and the trade unions. In cases whereby workers believe their employers aren't transparent with them, strike can take place.
• Employee debt: When employees are owed certain amount of money and the employer is not doing anything reasonable about paying, the workers may strike.
• Working conditions: Workers can engage in strike in order to seek for improvement in their working conditions. This may be probably because they need better equipments, medical facilities etc.
The detrimental effects that strikes has on various stakeholders in an economy are:
Effects on employers: Strike affects business and it is vital for employers to know their rights and keep up to date with the current labour laws and legislation. Strike leads to loss of revenue for the owner and if the strike continues.for a long time, it can badly affect the business.
Effects on employees: Striking employees who belong to a union are under the obligation to strike when the union wants. They can be at risk of losing their wages and benefits such as sick and holiday pay, medical aid insurance if the strike drags continues for an extended period of time.
Effect on the economy: The impact of strike will be felt by the economy in the immediate and long term future. Strike can harm a country’s investment and reputation internationally. The GDP growth will also be affected and consequences of higher wages in some sectors would lead to higher inflation.
Consider a market where the demand and supply for the good are described by the following equations: begin mathsize 14px style straight Q subscript straight D space equals space 225 space minus space 3 straight P end style and begin mathsize 14px style straight Q subscript straight S space equals space minus space 22.5 space plus space 1.5 straight P end style.
If the government implements a price ceiling of $45, this will result in a
A. surplus of 22.5 units.
B. a surplus of 45 units.
C. a shortage of 45 units.
D. a shortage of 22.5 units.
Answer:
The correct option is (c)a shortage of 45 units.
Explanation:
Solution
Given that:
Qd=225-3P
Qs=-22.5+1.5P
Then,
Set Qd=Qs for equilibrium
225-3P=-22.5+1.5P
4.5P=247.50
P=$55
Now
The government forces a ceiling of $45, it is binding as it is lesser than the equilibrium price.
Thus,
Let calculate the demanded quantity and supplied quantity at a price of $45
Now,
Qd=225-3*45=90
Qs=-22.5+1.5*45=45
Shortage=Qd-Qs=90-45=45 units .
Therefore, there is a shortage of 45 units.
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $6Direct labor $9Variable manufacturing overhead $3Variable selling and administrative $4Fixed costs per year: Fixed manufacturing overhead$300,000Fixed selling and administrative$190,000 During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company’s product is $50 per unit. Required:1. Assume that the company uses absorption costing:a. Compute the unit product cost.b. Prepare an income statement for the year.2. Assume that the company uses variable costing:a. Compute the unit product cost.b. Prepare an income statement for the year.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Variable costs per unit:
Direct materials $6
Direct labor $9
Variable manufacturing overhead $3
Variable selling and administrative $4
Fixed costs per year:
Fixed manufacturing overhead$300,000
Fixed selling and administrative $190,000
During the year, the company produced 25,000 units and sold 20,000 units.
The selling price of the company’s product is $50 per unit.
The difference between the absorption costing and variable costing methods is that the first one includes the fixed manufacturing overhead to the product cost.
1) Absorption costing:
Unitary fixed overhead= 300,000/25,000= $12 per unit
Unitary product cost= 6 + 9 + 3 + 12= $30
Income statement:
Sales= 20,000*50= 1,000,000
COGS= (20,000*30)= (600,000)
Gross profit= 400,000
Total selling and administrative= (190,000 + 20,000*4)= (270,000)
Net income= 130,000
2) Variable costing method:
Unitary variable cost= 6 + 9 + 3= $18
Income statement:
Sales= 1,000,000
Variable cost= (20,000*22)= (440,000)
Contribution margin= 560,000
Fixed manufacturing overhead= (300,000)
Fixed selling and administrative= (190,000)
net income= 70,000
Market researchers have determined nine categories of lifestyles for computer users. One of the categories is described as "Mouse Potatoes," who like the Internet for entertainment and can't wait to buy the latest in "techno-entertainment." In terms of the diffusion process, how would "Mouse Potatoes" be classified?
Answer: Innovators.
Explanation:
The Diffusion Process defines how new products are able to spread across a market.
It does this by using the Adoption Process to determine the various groups in the market and how fast the product gets to those groups. There are 5 groups in total.
- Innovators
- Early Adopters
- Early Majority
- Late Majority
- Laggards.
In the above scenario, the Mouse Potatoes would be the Innovators. These are the first buyers of a product and as such their opinions are very important as they then tell others how useful the product is. Mouse Potatoes regularly browse the net looking for the latest in "techno-entertainment", so they can buy or use it first thus making them Innovators.
Managers must chart a company's strategic course by Multiple Choice ensuring excess production capacity and/or inventory. building a bigger dealer network. ensuring that marketing and promotion programs are state-of-the-art. developing a thorough understanding of the company's external and internal environments. competing fiercely for a share in the market.
Answer:
The correct answer is the fourth option: developing a thorough understanding of the company's external and internal environments.
Explanation:
To begin with, in order to understand that a company's strategy must be guided by thorough understanding of its external and internal environments it is necessary to understand that the system proposed is formed by several factors that influence it and therefore that a manager must study carefully those factors and that system in order to guide the company to a successful work and accomplish the goals by using a strategy that compresses all the information about those factors.
Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $9,300 (that had cost $6,873) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $5,000 (that had cost $3,240) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company
Answer:
Dr Apr 08 Cash $8,928
Dr Credit Card Expense $372
Cr Sales $9300
Apr 08 Cost of goods sold $6,873
Merchandise inventory $6,873
Dr Apr 12 Accounts receivable- Continental $4,875
Dr Credit card expense $125
Cr Sales $5,000
Dr Apr 12 Cost of Goods Sold $3,240
Cr Merchandise Inventory $3,240
Explanation:
Levine CompanyJournal entries
Date General Journal Debit Credit
Dr Apr 08 Cash $8,928
Dr Credit Card Expense $372
(4%×9300)
Cr Sales $9300
Apr 08 Cost of goods sold $6,873
Merchandise inventory $6,873
Dr Apr 12 Accounts receivable- Continental $4,875
Dr Credit card expense $125
(2.5%×5000)
Cr Sales $5,000
Dr Apr 12 Cost of Goods Sold $3,240
Cr Merchandise Inventory $3,240
The stock of Cooper Corporation is 70% owned by Carole and 30% owned by Carole's brother, Chris. During 2017, Chris transferred property (basis of $100,000 and FMV of $120,000) as a contribution to the capital of Cooper. During February 2018, Cooper adopted a plan of liquidation and subsequently made a pro rata distribution of the property back to Carole and Chris. At the time of the liquidation, the property had an FMV of $80,000. What amount of loss can be recognized by Cooper on the distribution of property?
Answer:
$0
Explanation:
Since 100% of Cooper Corporation's stock were owned by Carole and Chris (who are siblings), then no one can recognize any loss or gain from the contribution of property (nor the distribution of property). Under section 351, no gain or loss can be recognized for the contribution of property in exchange for stocks in a controlled corporation.
Since the contribution was made through a carryover basis transaction less than 5 years before the liquidation, the distribution is carried out in the same way.
On December 12, 2021, an investment in equity securities costing $77,000 was sold for $94,000. The total of the sale proceeds was credited to the investment in equity securities account. Required: 1. Prepare the journal entry to correct the error, assuming it is discovered before the books are adjusted or closed in 2021. (Ignore income taxes.) 2. Prepare the journal entry to correct the error assuming it is not discovered until early 2022. (Ignore income taxes.)
Answer:
1.
Dr. Investment Account $17,000
Cr. Gain on Sale $17,000
2.
Dr. retained Earning $17,000
Cr. Gain on Sale $17,000
Explanation:
1.
If an assets is sold more than the book value, then there is a gain on the sales of asset.
Gain on Sale = Sales Proceeds - Book value of Investment = $94,000 - $77,000 = $17,000
As sales proceeds of $94,000 are credited in the Investment account, which needs to be credited by $77,000 only. The excessive amount of $17,000 should be recorded in the Gain on sale account.
2.
Error is not discovered until 2022 and earning for 2021 was transferred to retained earning. So, adjustment should me made in the retained earnings to eliminate the effect.
On March 15, American Eagle declares a quarterly cash dividend of $0.045 per share payable on April 13 to all stockholders of record on March 30.
Required:
Record American Eagle's declaration and payment of cash dividends for its 226 million shares. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. $5.5 should be entered as 5,500,000).)
Answer and Explanation:
The journal entries are shown below:
On March 15
Dividend Dr $10,170,000 (226 million shares × $0.045 per share)
To Dividend payable $10,170,000
(Being the dividend is declared)
For recording this we debited the dividend as it increased the balance of dividend and credited the dividend payable as it increased the liabilities
On March 30
No journal entry is required for recording of dividend
On April 13
Dividend payable $10,170,000
To cash $10,170,000
For recording this we debited the dividend payable as it decreased the liabilities and credited the cash as it reduced the assets
(Being the dividend payable is recorded)
Carlinville Car Parts, Inc. has been provided by its lenders and owners with $46,000,000 to purchase assets. The most recent income statement showed Earnings Before Interest and Taxes (EBIT, or Operating Income) of $10,500,000, and net income of $3,950,000. Income tax was paid at a 25% average annual rate. What was Return on Invested Capital (ROIC) for the year?
Answer:
17%
Explanation:
The formula to calculate ROIC is:
ROIC= Net operating profit after tax/ Total invested capital
ROIC= EBIT*(1-Tax rate)/Total invested capital
ROIC= 10,500,000*(1-0.25)/46,000,000
ROIC= 7,875,000/46,000,000
ROIC= 0.17 → 17%
According to this, the answer is that the Return on Invested Capital (ROIC) for the year is 17%.
Wayne Industries is building a new prototype riding lawnmower especially for women. The marketing strategy for the product has been developed and presented. The lawnmower is now being tested rigorously. This step will ensure that the product meets all the CPSC product specifications and leaves little chance for any product liability issues. Which step int he new product development process is this?
A) After this stage, no changes can be made in any aspect of the product design, features, or composition.
B) At this stage, the functional features and the intended psychological characteristics are combined.
C) The new product at this stage can be distributed through a full-scale roll-out immediately.
D) The new lawnmower is at the introductory stage of the lifecycle.
E) The new-product idea is at the last stage of the development process.
Answer:
The answer is option E) The new-product idea is at the last stage of the development process.
Explanation:
The are several stages in the development of a new product idea. Beginning with initial idea generation all the way to the final evaluation stage.
The new prototype riding lawnmower especially for women designed by Wayne Industries is at the last stage of the development process.
The last stage of the development process also known as the Evaluation phase is characterized by:
Presenting the marketing strategy developed for the product.ensuring that the product meets all the CPSC product specifications and leaves little chance for any product liability issues.Which of the following is false? Economists who advocate discretionary monetary policy argue that it is more likely to achieve the desired economic results because the monetary authority has the flexibility to shape the best monetary policy to the existing circumstances. Here is an example of zero crowding out: The government spends $100 more and the private sector doesn’t spend any less. Here is an example of complete crowding out: The government spends $100 more and the private sector spends $100 less. Not all economists believe that rule-based monetary policy is preferable to discretionary monetary policy. none of the above
Answer: None of the above
Explanation:
All of the above are correct.
For option A, Economists who advocate discretionary monetary policy do indeed believe that the monetary authority using this policy is more flexible to shape the best monetary policy to the existing circumstances.
Option B is also correct because Crowding out occurs when the government increases investment by borrowing which leaves less money for the private sector to borrow so they spend less. The government spent money here yet the private sector did not spend less so it is Zero Crowing out.
Option C by option B's explanation holds true because the entire amount the Government increased by was denied the private sector.
Option D is also true as not all Economists prefer rule-based monetary policy to discretionary monetary policy.
They are all true.
If the marginal propensity to consume decreases, then the marginal propensity to save will decrease by the same percentage. the spending multiplier will decrease. the money multiplier will decrease. the rate of savings will decrease. the spending multiplier will increase.
Answer:
1.If the marginal propensity to consume decreases, then
a)the marginal propensity to save will decrease by the same percentage.
b)the spending multiplier will decrease.
c)the money multiplier will decrease.
d)the rate of savings will decrease.
e)the spending multiplier will increase.
2.Which of the following might cause stagflation in an open-market economy operating at equilibrium in the intermediate range of the aggregate supply curve?
a)Over the course of time, companies begin to provide educational opportunities for their employees.
b)The price of oil decreases as new reserves are found in the Alaskan wilderness.
c)The government sets a price ceiling for gasoline below market equilibrium.
d)An earthquake causes a serious rupture in the Alaskan oil pipeline that will take 6 months to repair.
e)Consumers fear a recession so they cut back on spending causing massive layoffs in major cities across the United States.
3.According to Classical economists,
a)the economy is stable in the long run causing unemployment to increase during time of recession.
b)the economy is stable in the long run and macroeconomic equilibrium can occur at less than full employment.
c)the economy is stable in the long run and self correcting to full employment.
d)the economy is unstable in the long run causing unemployment to increase during time of recession.
e)the economy is unstable in the long run and self correcting to full employment.
4.Which of the following will cause a decrease in SRAS?
a)An increase in labor productivity
b)An decrease in employee wages
c)An increase in government regulations on businesses
d)An increase in consumer spending
e)A decrease in investment spending
5.When inflation has reached a peak, economists would say that the economy has reached the
a)trough of the business cycle.
b)expansion of the business cycle.
c)peak of the business cycle.
d)contraction of the business cycle.
e)bottom of the business cycle.
6.In the circular flow diagram, tourists spend money in
a)the product market that provides goods and services to firms.
b)the product market that provides profit for firms.
c)the product market that provides revenue for firms.
d)the factor market that provides profit for firms.
e)financial markets that provides profit for firms.
7.Which of the following statements about the official rate of unemployment in the United States is most accurate?
a)The official unemployment rate includes only structurally and frictionally unemployed persons.
b)The official unemployment rate is greater than the natural rate of unemployment.
c)The official unemployment rate does not include discouraged workers.
d)The official unemployment rate includes all unemployed persons except teenagers who would be counted as seasonally unemployed.
e)The official unemployment rate includes all people in the labor force who do not have jobs.
8.If the Federal Reserve purchases securities, then
a)consumer spending will increase and AD will shift right.
b)consumer spending will decrease and AD will shift left.
c)government spending will increase and AD will shift right.
d)investment spending will increase and AD will shift right.
e)investment spending will decrease and AD will shift left.
9.If, while maintaining a balanced budget, Congress decreases spending and taxes by $100 each, then
a)aggregate demand will shift right.
b)aggregate demand will shift left.
c)aggregate demand will remain the same.
d)aggregate supply will shift right.
e)aggregate supply will shift left
10)If Congress wanted to lower inflation and unemployment at the same time, it would most likely
a)increase the international value of the dollar.
b)increase spending on public works projects across the United States.
c)decrease personal income taxes.
d)pay subsidies to businesses that increase economic investment and provide increased training and education to their workers.
e)decrease welfare payments to the working poor.
Explanation:
You should meet with your academic adviser at least once a __________.
Group of answer choices
Answer:
Once a Semester
Explanation:
Advisors can help you decide if you want to minor in something, and what the requirements are. They can ensure you're odds of graduating in four years is on track, or give you special permissions to take certain classes.
Goshford Company produces a single product and has capacity to produce 105,000 units per month. Costs to produce its current sales of 84,000 units follow. The regular selling price of the product is $126 per unit. Management is approached by a new customer who wants to purchase 21,000 units of the product for $77.40 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is not in the company’s regular selling territory, so there will be a $7.60 per unit shipping expense in addition to the regular variable selling and administrative expenses. Per Unit Costs at 84,000 Units Direct materials $ 12.50 $ 1,050,000 Direct labor 15.00 1,260,000 Variable manufacturing overhead 14.00 1,176,000 Fixed manufacturing overhead 17.50 1,470,000 Variable selling and administrative expenses 14.00 1,176,000 Fixed selling and administrative expenses 13.00 1,092,000 Totals $ 86.00 $ 7,224,000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $77.40 per unit.
Answer:
Net income= $4,836,200
Explanation:
Giving the following information:
Offer:
21,000 units for $77.4
An increase in variable cost= $7.6 per unit
Direct materials $ 12.50 $ 1,050,000
Direct labor 15.00 1,260,000
Variable manufacturing overhead 14.00 1,176,000
Fixed manufacturing overhead 17.50 1,470,000
Variable selling and administrative expenses 14.00 1,176,000
Fixed selling and administrative expenses 13.00 1,092,000
Totals $ 86.00 $ 7,224,000
First, we need to calculate the effect on the income of accepting the offer:
Effect on income= 21,000*77.4 - 21,000*(12.5 + 15 + 14 + 14 + 7.6)
Effect on income= 1,625,400 - 1,325,100
Effect on income= 300,300
Net income= 84,000*140 + 300,300 - 7,224,000
Net income= $4,836,200
Galla Inc. needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 6420 units. Additional information is as follows: Variable product cost per unit $ 23 Variable administrative cost per unit 25 Total fixed overhead 46,500 Total fixed administrative 30,540 Using the total cost method what price should Galla charge?
Answer:
The price Galla should charge is $75
Explanation:
Solution
Now
The total cost = variable product cost + variable administrative cost + fixed overhead + fixed administrative
= ($23 * 6,420) + ($25 * 6,420) + $46,500 + $30,540
= $147,660 + $160,500 + $46,500 + $30,540
= $385,200
Thus,
The total cost per unit = Total cost / units
= $385,200 / 6,420 units
= $60
Hence
The selling price should charge = Cost per unit * 1.25
= $60 * 1.25
= $75
Samco signed a 5-year note payable on January 1, 2018, of $ 475 comma 000. The note requires annual principal payments each December 31 of $ 95 comma 000 plus interest at 9%. The entry to record the annual payment on December 31, 2021, includes A. a debit to Interest Expense for $ 17 comma 100. B. a debit to Interest Expense for $ 42 comma 750. C. a credit to Cash of $ 137 comma 750. D. a credit to Notes Payable for $ 95 comma 000.
Answer:
Option A, a debit to Interest Expense for $ 17 comma 100 is correct
Explanation:
The principal amount on 1st January 2021 needs to be established since that would be the amount left after 2018,2019,2020 principals have been repaid
Principal at 1st January 2021=$475,000-($95,000*3)=$190000
Interest on principal in 2021=$190000 *9%=$17100
Total repayment in 2021=principal plus interest=$95,000+$17,100=$ 112,100.00
The $95,000 would be a debit to notes payable not credit hence option is wrong.
Only option A,a debit of $17,100 to interest expense is correct
Scenario 28-1 Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment. Refer to Scenario 28-1. What is the unemployment rate?
Answer:
10.7%
Explanation:
Solution:
Recall that:
The Reports from Bureau of labor statistics is shown as follows:
Employed people = 25 million
Unemployed people = 3 million
Discouraged workers = 1 million
Workers or Homemakers or retirees, or students = 1 million
The next step from this scenario is to find out the unemployment rate
Now,
The rate of unemployed = (unemployed x 100 ) / labor force
= 300/28
=10.7%
Your aunt is about to retire, and she wants to sell some of her stock and buy an annuity that will provide her with income of $53,000 per year for 30 years, beginning a year from today. The going rate on such annuities is 7.25%. How much would it cost her to buy such an annuity today
Answer:
Present Value= $641,494.12
Explanation:
Giving the following information:
Cash flow= $53,000 per year
Number of years= 30 years
Interest rate= 7.25%
First, we need to calculate the final value of the annuity:
FV= {A*[(1+i)^n-1]}/i
A= annual flow
FV= {53,000*[(1.0725^30)-1]} / 0.0725
FV= $5,237,351.32
Now, we can determine the present value:
PV= FV/(1+i)^n
PV= 5,237,351.32/ (1.0725^30)
PV= $641,494.12
Now consider the case in which the manufacturer offers a marginal unit quantity discount for the plywood. The first 20,000 square feet of any order are sold at $1 per square foot, the next 20,000 square feet are sold at $0.98 per square foot, and any quantity larger than 40,000 square feet is sold for $0.96 per square foot. What is the optimal lot size for Prefab given this pricing structure? How much cycle inven
Answer:
Explanation:
We can use the following method to solve the given problem
We are given following
Annual demand,
D = 20000*12
D = 240,000 sqft
Fixed order cost, is given as
S = $ 400
Considering the unit cost, is given as
C = $ 1
Holding cost, H = 1*20% = $ 0.2
EOQ = sqrt(2DS/H)
= √(2*240000*400/0.2)
= 30,984 sq ft
This is higher than 20,000 and less than 40,000 sq ft. For this reason, the applicable price for this quantity is $ 0.98
For C = $ 0.98, holding cost, H = 0.98*20% = $ 0.196
Revised EOQ = sqrt(2*240000*400/0.196) = 31,298 sq ft
Total annual cost of EOQ policy = D*C + H*Q/2 + S*D/Q
= 240000*0.98 + 0.196*31298/2 + 400*240000/31298
= $ 241,334.5
Now consider the next level of price, C = $ 0.96
Holding cost, H = 0.96*20% = $ 0.192
EOQ = sqrt(2*240000*400/0.192)
= 31633 sqft
This amount is will not be feasible for this price, because it requires a minimum order of 40000 sqft.
Therefore, Q = 40,000
Total annual cost = 240000*0.96 + 0.192*40000/2 + 400*240000/40000
Total annual cost = $ 236,640
Total annual cost is lowest for order quantity of 40,000 sq ft.
1) Optimal lot size = 40,000 sq ft.
2) the annual cost of this policy
= $ 236,640
3) the cycle inventory of plywood at Prefab = Q/2 = 40000/2
At prefeb= 20,000 sq ft
4) let's assume the manufacturer sells all plywood at $ 0.96, then
Holding cost, H = 0.96*20%
H= $ 0.192
EOQ = sqrt(2*240000*400/0.192)
EOQ = 31633 sqft
Total annual cost = 240000*0.96 + 0.192*31633/2 + 400*240000/31633
Total annual cost = $ 236,471.6
Difference in total annual cost = 236640 - 236471.6 = $ 168.4
Bob, Kara, and Mark are partners in the BKM Partnership. Bob is a 40% partner and has a June 30 tax yearminus−end. Kara owns a 40% interest in the partnership and has a September 30 tax yearminus−end, and Mark owns the remaining 20% interest and has an October 31 tax yearminus−end. The partnership does not have a natural business year. What is the required tax yearminus−end for the partnership (if no Sec. 444 election is made)? A. September 30 B. October 31 C. December 31 D. June 30
Answer:
D. June 30
Explanation:
Since no Sec. 444 election is made, the required tax yearmius-end for the partnership will be the tax yearminus−end of a partner with at least 40% interest.
Since Bob is a 40% partner and has a June 30 tax yearminus−end, therefore, the required tax yearminus−end for the partnership is June 30.
• Why has the stock market declined so much?
We need a passage or something. not just the question
To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 12% discount. During May, employees purchased 10,000 shares at a time when the market price of the shares on the New York Stock Exchange was $12 per share. KL will record compensation expense associated with the May purchases of:
Answer:
Dr Cash 105,600
Dr Compensation Expense 14,400
Cr Common Stock 10,000
Cr Paid-In Capital – Excess of Par 110,000
Explanation:
KL Corp Journal entry
Dr Cash 105,600
Dr Compensation Expense 14,400 (10,000*12*12%)
Cr Common Stock 10,000 (10,000*1)
Cr Paid-In Capital – Excess of Par 110,000
(10,000*(12-1))
c. Assume that neither country experiences population growth or technological progress and that 6 percent of capital depreciates each year. Assume further that country A saves 15 percent of output each year and country B saves 23 percent of output each year. Using your answer from part b and the steady-state condition that investment equals depreciation, find the steady-state level of capital per worker (k∗) , income per worker (y∗) , and consumption per worker (c∗) for each country.
Answer:
Check Explanation.
Explanation:
Note that the production function of bother country = Y=F(K,L) = K L c : k^1/2 L^1/2.
Thus Y/L = b; b = k^1/2 L^1/2/ L.
b = k^1/2.
From the question we are given that L = 6% = 0.06.
Country A saves 15% = 15/100 = 0.15 and country B saves 23% = 23/100 = 0.23.
For country A,
(a). the steady state;
∆k = 0 = y - dk.
0 = 0.15 × k^1/2 - 0.06k.
K^1/2 = 2.5, k* = 6.25
(b). y = K^1/2 = (6.25)^1/2.
y* = 2.5
(c). C = 2.5 - (0.15 × 2.5) = 2.5 - 0.375.
C* = 2.125.
Then, for COUNTRY B.
(a). ∆k = 0 = y - dk.
0 = 0.25 × k^1/2 - 0.06k.
K^1/2 = 4.167, k* = 17.36
(b). y = K^1/2 = (17.36)^1/2.
y* = 4.167.
(c). C = 4.167 - (0.25 × 4.167) = 2.5 - 0.375.
C* = 3.127.
C* = 2.125.
Assume the following: WIP, beginning 2 comma 500 units (100% complete as to direct materials, 50% complete as to conversion costs) Started 10 comma 500 units during the period Total spoilage is 700 with normal spoilage is calculated to be 550 units Completed and transferred out during the period 6 comma 000 units WIP, ending 6 comma 300 units (100% complete as to direct materials, 60% complete as to conversion costs) Spoiled units 700 and inspection happens when the process is 20% complete All materials are added at the start of the process Under the weighted average method, would would be the equivalent units of work done for the period? A. 9 comma 920 B. 10 comma 190 C. 6 comma 000 D. 6 comma 300
Answer:
B. 10 comma 190
Or none of the given
Explanation:
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Transferred 6000 100 100 6000 6000
+Ending WIP 6300 100 60 6300 3780
+Normal Spoilage 550 100 60 550 330
+Abnormal
Spoilage 150 100 60 150 90
Total 13000 10200
As we see the total weighted Equivalent units for materials are 13000
and for conversion are 10200 . So the correct choice would be 10190 that is choice B which the nearest answer of the choices given to the answer calculated .
Under weighted method the Transferred out units are added to the ending work in process and the normal and abnormal spoilage is also added to find the equivalent units of production.
The other answer would be none of the given choices if exact figures are to be matched.
The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Montana Current assets $ 59,000 $ 78,000 Current liabilities 40,000 43,000 Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills? c. Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return-on-assets ratio.
Answer:
a) Current ratio for Kansas company is 1.475
Current ratio for Montana company is 1.814
b) Since the current ratio for the Montana company is more than that of the Kansas company which shows better liquidity, the Montana company has the greater likelihood of being able to pay its bills.
c) Kansas company would produce the higher return-on-assets ratio.
Explanation:
Current Assets Current liabilities
Kansas Company $ 59,000 $ 40,000
Montana Company $ 78,000 $ 43,000
a) To calculate the current ratio of A company
Current ratio = [tex]\frac{Current Assets}{Current Liabilities}[/tex]
Therefore current ratio for Kansas company = $ 59,000 ÷ $ 40,000 = 1.475
Current ratio for Montana company = $ 78,000 ÷ $ 43,000 = 1.814
Oriole Tire Co. just paid an annual dividend of $1.70 on its common shares. If Oriole is expected to increase its annual dividend by 3.10 percent per year into the foreseeable future and the current price of Oriole’s common shares is $19.65, what is the cost of common stock for Oriole? (Round intermediate calculations to 4 decimal places, e.g. 0.1555 and final answer to 2 decimal places, e.g. 15.25%.)
Answer:
Cost of common stock is 12.02%
Explanation:
The cost of common stock can be computed from share price formula given below:
share price=do*(1+g)/r-g
do is the dividend just paid which is $1.70
g is the expected dividend growth per year which is 3.10%
r is the cost of common stock which is unknown
share price is $19.65
by changing the subject of the formula:
r=do*(1+g)/share price+g
r=1.70*(1+3.10%)/19.65+3.10%
r=1.7527/19.65+3.10%
r=0.0892+3.10%=12.02%
The company's cost of capital which is also the cost of common stock is 12.02%
Cawley Company makes three models of tasers. Information on the three products is given below.Tingler Shocker Stunner Sales $296,000 $504,000 $200,000 Variable expenses 145,000 190,000 135,000 Contribution margin 151,000 314,000 65,000 Fixed expenses 114,840 225,160 92,000 Net income $36,160 $88,840 $(27,000) Fixed expenses consist of $290,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $79,000 (Shocker), and $34,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out.James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company’s net income.
(a) Compute current net income for Cawley Company. Net income $ ______
(b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $290,000 common costs to the two remaining product lines based on their relative sales.)
Tingler Net Income $ _______
Shocker Net Income $ _______
Total Net Income $ _______
(c) Should Cawley eliminate the Stunner product line?
Why or why not?
Net income would _____ from $ ______to $ ________.
Answer:
Cawley Company
a) Current Net Income
Tingler Shocker Stunner Total
Sales $296,000 $504,000 $200,000 $1,000,000
Variable Costs 145,000 190,000 135,000 470,000
Contribution 151,000 314,000 65,000 530,000
Fixed Expenses 114,840 225,160 92,000 432,000
Net Income 36,160 88,840 (27,000) 98,000
b) Net Income by product line with Stunner discontinued:
Tingler Shocker Total
Sales $296,000 $504,000 $800,000
Variable Costs 145,000 190,000 335,000
Contribution 151,000 314,000 465,000
Fixed Expenses 136,300 261,700 398,000
Net Income 14,700 52,300 67,000
c1) Cawley should not eliminate the Stunner product line.
c2) Net income would decrease from $98,000 to $67,000 if the Stunner product line is eliminated.
Explanation:
a) The decision to be made is whether to eliminate a product line or not. In making such decisions, the relevant costs to be considered are avoidable costs. Allocated fixed costs are unavoidable and should not be taken into account.
b) Stunner makes a Net Income of $31,000 without the allocated common fixed expenses. This shows that the allocated common fixed expenses is actually causing Stunner to record Net Loss. And when Stunner is eliminated the company is not better off.
c) Allocation of Fixed Expenses based on Sales:
Tingler = 296/800 * $290,000 = $107,300 Plus direct cost of $29,000 = $136,300
Shocker = 504/800 * $290,000 = $182,700 Plus direct of of $79,000 = $261,700
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 6.90 pounds $ 2.60 per pound $ 17.94 Direct labor 0.30 hours $ 7.00 per hour $ 2.10 During the most recent month, the following activity was recorded: 19,250.00 pounds of material were purchased at a cost of $2.40 per pound. All of the material purchased was used to produce 2,500 units of Zoom. 450 hours of direct labor time were recorded at a total labor cost of $4,500. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month.
Answer:
1. Material Variances
Material Price Variance = $3,850 F
Material Quantity Variance = $5,200 U
2. Labor Variances
Labor Rate Variance = $1,350 U
Labor Efficiency Variance = $2,100 F
Explanation:
Calculation is as follows:
1. Material Variances
Material Price Variance = (Standard Price - Actual Price) x Actual units
Material Price Variance = ($2.60 - $2.4) x 19,250 pounds
Material Price Variance = $3,850 (favorable)
As the actual rate is less than standard rate the variance is favorable.
Standard Quantity = 2,500 x 6.9 = 17,250 pounds
Material Quantity Variance = (Standard Quantity - Actual Quantity) x Standard Rate
Material Quantity Variance = (17,250 - 19,250) x $2.60
Material Quantity Variance = $5,200 (Unfavorable)
As the actual raw material quantity used is higher than standard raw material quantity the variance is unfavorable.
2. Labor Variances
Actual Labor Rate = 4,500/450 = $10/hour
Labor Rate Variance = (Standard Rate - Actual Rate) x Actual Hours
Labor Rate Variance = ($7 - $10) x 450
Labor Rate Variance = $1,350 (Unfavorable)
As actual rate is higher than standard rate thus the variance is unfavorable.
Standard Hours = 2,500 x 0.3 = 750
Labor Efficiency Variance = (Standard Hours - Actual Hours) x Standard Rate
Labor Efficiency Variance = (750 - 450) x $7
Labor Efficiency Variance = $2,100 (Favorable)
As the Standard Hours is more than Actual Hours the variance is favorable.
Answer:
Check the explanation
Explanation:
Kindly check the attached image below to see the step by step explanation to the question above.
