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:
Royal Dutch Shell(RDS) acquires ethanol fuel from Brazilian Cosan energy company. The Ethanol costs 500 million Brazilian Real(BRL) to grow the corn and convert it to ethanol. RDS doesn't have BRL, so they must use the futures market to acquire the currency. If 1 BRL/USD futures contract is for 100,000 reals What is the optimal number of BRL/USD futures contracts for Shell to take to receive the entire amount of Real at delivery.
Answer:
The answer is 5000 future contracts
Explanation:
Solution
Given that:
Royal Dutch buys ethanol fuel from Brazilian energy company
Nowm,
The Required coverage = 500,000,000
The BRL/USD futures contract size = 100,000
Number of contracts required = 500,000,000/100,000
So,
= 500,000,000/100,000 = 5000
Therefore, the optimal number of BRL/USD futures contracts for Shell to take to receive the entire amount of Real at delivery is 5000
Never Forget Bakery purchased a lot in Oil City six years ago at a cost of $278,000. Today, that lot has a market value of $320,000. At the time of the purchase, the company spent $6,000 to level the lot and another $8,000 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1.03 million. What amount should be used as the initial cash flow for this project?
Answer:
The amount that should be used as the initial cash flow for this project is $1,350,000
Explanation:
The amount to be used as the initial cash flow for the project comprises of estimated building cost of $1.03 million and the market worth of the lot now.
The cost six years ago of $278,000,the cost of leveling as well as the cost of installing the storm drains were long ago time and are not relevant now.
In a nutshell the cost of the new project is $1,350,000($1,030,000+$320,0000)
What accounting assumption, principle, or constraint would Target Corporation use in each of the situations below? (a) Target was involved in litigation over the last year. This litigation is disclosed in the financial statements. select an option (b) Target allocates the cost of its depreciable assets over the life it expects to receive revenue from these assets. select an option (c) Target records the purchase of a new Dell PC at its cash equivalent price. select an option
Answer:
a. ASC 450 (previously recognized as SFAS 5) includes the declaration of a risk in proceedings and there is at minimum a "fair probability" that a loss has been sustained, and the report must provide an estimation of the probable damage or extent of damage or a declaration that this very calculation is not practicable.
b. Three specific criteria dictate however much depreciation they can subtract: (1) the real estate value, (2) the property rehabilitation time and (3) the form of depreciation utilized. You can't actually subtract as an benefit the lease or interest contributions, or the cost of furniture, decorations and appliances. The depreciation will only be deducted on the specific property used during leasing purposes.
c. For overclockers as well as operation in the federation the Computer is still the obvious winner. If you want to change hardware to maintain the cutting edge of your program, then a Laptop is the way forward. Further software must be installed for the PC like a large and ever-growing free software computer collection. Even so, thanks to an embedded tool named "Boot camp," you can install a Windows ® operating system on a Mac along with PC applications
Assume that you are a retail customer. Use the information below to answer the following question. Bid Ask Borrowing Lending S0($/€) $1.42 = €1.00 $1.45 = €1.00 i$ 4.25% APR 4% APR F360($/€) $1.48 = €1.00 $1.50 = €1.00 i€ 3.10% APR 3% APR If you borrowed $1,000,000 for one year, how much money would you owe at maturity? A. $1,450,352 B. $1,042,500 C. € 1,024,500 D. $1,525,400
Answer:
$1,042,500.
Explanation:
From the question above, we are given the following parameters; under the bid, we have $1.42 = €1.00 and $1.48 = €1.00; the borrowing and lending are $ 4.25% and 4% APR respectively for S0($/€).
Also, for F360($/€), the bid and ask values are: $1.48 = €1.00 and $1.50 = €1.00 respectively; the borrowing and lending values are 3.10% APR and 3% APR.
Therefore, the Borrowing rate is ($) 4.25% in $ . Thus, $1,000,000 for one year, one we owe
$1,000,000 × (1 + 0.0425) = $1,042,500 at maturity.
niversal Studios sold the Mamma Mia! DVD around the world. Universal charged $21.40 in Canada and $32 in Japanlong dashmore than the $20 it charged in the United States. Assume Universal's marginal cost of production (m) is $1.20. Determine what the elasticities of demand must be in Canada and in Japan if Universal is profit maximizingLOADING.... The elasticity of demand in Canada must be epsilon Subscript Upper Cequals nothing. (Enter a numeric response using a real
Answer:
Explanation:
Lerner Index = -1 / Elasticity of demand = (P - MC) / P
(1) Canada:
- 1 / Ec = (21.4 - 1.20) / 21.4
- 1 / Ec = 20.2 / 21.4
- 1 / Ec = 0.9344
Ec = -1 / 0.9344
Ec = - 1.059
(2) Japan:
Lerner Index = -1 / Elasticity of demand = (P - MC) / P
- 1 / Ej = (32 - 1.2) / 32
- 1 / Ej = 30.8 / 32
- 1 / Ej = 0.9625
Ej = -1 / 0.9625
Ej = - 1.039
Ellie (a single taxpayer) is the owner of ABC, LLC. The LLC (a sole proprietorship) reports QBI of $900,000 and is not a specified services business. ABC paid total W-2 wages of $300,000, and the total unadjusted basis of property held by ABC is $30,000. Ellie's taxable income before the QBI deduction is $740,000 (this is also her modified taxable income). What is Ellie's QBI deduction for 2019
Answer:
QBI deduction for 2019 is $148,000
Explanation:
Description Amount
Taxable income before QBI deduction
exceed $207,500 threshold.
Capital investment limit is considered
QBI deduction is lesser of:
1) 20% of qualified business income $180,000
($900,00 × 20%)
or Greater of
2) 50% 0f W-2 wages $150,000
($300,000 × 50%)
or
25% 0f W-2 wages + 2.5% of unadjustment
basis pf qualified property
($300,000 × 25%) + ($300,000 × 2.5%) $75,750
3)Not more than 20% of modified taxable income
($740,000 × 20%) $148,000
Therefore, QBI deduction for 2019 is $148,000
Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period: Service Depts. Production Depts. Payroll Maintenance Cutting Assembly Direct costs $ 20,400 $ 25,500 $ 76,500 $ 105,400 No. of personnel 15 15 45 Sq. ft. of space 10,000 15,000 The total cost of operating the Maintenance Department for the current period is:
Answer:
The total cost of operating the Maintenance Department for the current period is $29,580
Explanation:
In order to calculate The total cost of operating the Maintenance Department for the current period we would have to calculate first the Overhead allocated to Maintenance from Payroll department as follows:
Overhead allocated=Payroll overhead×(Maintenance payroll personnel/Total personnel)
Overhead allocated=$ 20,400×(15/15+15+45)
Overhead allocated=$4,080
Therefore, to calculate the The total cost of operating the Maintenance Department for the current period we would have to use the following formula:
Total cost of operating Maintenance Department=Overhead allocated+Direct overhead incurred
Total cost of operating Maintenance Department=$4,080+$25,500
Total cost of operating Maintenance Department=$29,580
The total cost of operating the Maintenance Department for the current period is $29,580
Barbara's Bakery purchased three new 7-year assets during the current year. She chose NOT to use Section 179 immediate expensing or take bonus depreciation. The furnishings were purchased for $15,000 in April, the equipment for $6,000 in July, and the appliances for $40,000 in November. What amount of depreciation expense is allowable in the current year
Answer:
Depreciation in Current year is $14,939
Explanation:
Answer:
I think it is 4748. If it asks second year, it will be 16072.
Explanation:
Furnishings...in April, second quarter:
15,000x17.85%=2677.5
Equipment...in July, third quarter:
6,000x10.71%=642.6
Appliances...in November, fourth quarter
40,000x3.57%=1428
Total: 2677.5+642.6+1428=4748
Exercise 24-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments: A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation.
Answer and Explanation:
The computation of the payback period is shown below:
1. Payback period = Initial investment ÷ Net cash flow
where,
Initial investment is $520,000
Net cash flow is = incremental after-tax income + depreciation expense
= $150,000 + $85,000
= $235,000
The depreciation expense is
= ($520,000 - $10,000) ÷ (6 years)
= $85,000
Now the payback period is
= $520,000 ÷ $235,000
= 2.21 years
2. Payback period = Initial investment ÷ Net cash flow
where,
Initial investment is $380,000
Net cash flow is = incremental after-tax income + depreciation expense
= $60,000 + $45,000
= $105,000
The depreciation expense is
= ($380,000 - $20,000) ÷ (8 years)
= $45,000
Now the payback period is
= $380,000 ÷ $105,000
= 3.62 years
The Donut Stop acquired equipment for $10,000. The company uses straight-line depreciation and estimates a residual value of $2,000 and a four-year service life. At the end of the second year, the company estimates that the equipment will be useful for four additional years, for a total service life of six years rather than the original four. At the same time, the company also changed the estimated residual value to $1,000 from the original estimate of $2,000. Calculate how much The Donut Stop should record each year for depreciation in years 3 to 6.
Answer:
Cost of Equipment: $10,000
Less Accumulated Depreciation ($10,000 - $2,000 / 4*2): $4,000
= Book Value (End of Year 2): $6,000
Less New Residual Value: $-1,000
= New Depreciated Cost: $5,000
Remaining Service Life: 4
Annual Depreciation in Years 3 to 6 ($5,000 / 4): $1,250
Proper payroll accounting methods are important for a business for all of the following reasons except a.payroll is subject to various federal and state regulations b.good employee morale requires timely and accurate payroll payments c.to help a business with cash flow problems by delayed payments of payroll taxes to federal and state agencies d.payroll and related payroll taxes have a significant effect on the net income of most businesses
Answer:
Option C
Explanation:
In simple words, Payroll Accounting refers to the task of estimating and delivering to workers and other organizations pay , bonuses and allowances. That is usually achieved by various papers, including time sheets, earnings, as well as an accounting register.
Payroll management actually tracks an enterprise's payroll costs through accounting records. Payroll planning covers both cost and liability reports which including FICA Payable Payments, fed and provincial taxes Payable, Life Care Contributions Payable, etc.
Sheffield Corp. issued $7080000 of 11%, ten-year convertible bonds on July 1, 2020 at 96.1 plus accrued interest. The bonds were dated April 1, 2020 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1416000 of these bonds were converted into 600 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. If "interest payable" were credited when the bonds were issued, what should be the amount of the debit to "interest expense" on October 1, 2020
Answer:
The amount of the debit to "interest expense" on October 1, 2020 is $194,700
Explanation:
According to the given data we have the following:
Bond face value=$7,080,000
interest rate=11%
There are 3 months interest recognized from july to september, therefore, to calculate the amount of the debit to "interest expense" on October 1, 2020 we would have to make the following calculation:
amount of the debit to "interest expense" on October 1, 2020=$7,080,000*11%*3 months / 12 months
amount of the debit to "interest expense" on October 1, 2020=$194,700
The amount of the debit to "interest expense" on October 1, 2020 is $194,700
A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 86000 units on hand, the sales department budgeted sales of 370000 units in June, and the company desires to have 160000 units on hand on June 30. The budgeted cost of goods sold for June would be
Answer:
The budgeted cost of goods sold for June would be $ 13,320,000
Explanation:
Budgeted cost per unit = $30
Sales budget = 370,000 units
Less: Beginning inventory = 86,000 units
Add: Ending inventory = 160,000 units
Therefore budgeted cost of goods sold for June = (370,000 - 86,000 + 160,000) × $30
= 444,000 × $30
= $13,320,000
Whitmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.07 direct labor-hours. The direct labor rate is $9.00 per direct labor-hour. The production budget calls for producing 4,200 units in February and 4,700 units in March. Required: Prepare the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round "labor-hours per unit"
Answer:
Results are below.
Explanation:
Giving the following information:
Each unit of output requires 0.07 direct labor-hours. The direct labor rate is $9.00 per direct labor-hour. The production budget calls for producing 4,200 units in February and 4,700 units in March.
Direct labor budget of February:
Direct labor hours= 4,200*0.07= 294
Direct labor cost= 294*9= $2,646
Direct labor budget of March:
Direct labor hours= 4,700*0.07= 329
Direct labor cost= 329*9= $2,961
The following materials standards have been established for a particular product: Standard quantity per unit of output 5.3 pounds Standard price $ 14.10 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased 6,150 pounds Actual cost of materials purchased $ 63,780 Actual materials used in production 5,650 pounds Actual output 790 units The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month?The following materials standards have been established for a particular product: Standard quantity per unit of output 5.3 pounds Standard price $ 14.10 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased 6,150 pounds Actual cost of materials purchased $ 63,780 Actual materials used in production 5,650 pounds Actual output 790 units The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month?
Answer:
Direct material quantity variance= $20,628.3
Explanation:
Giving the following information:
Standard quantity per unit of output 5.3 pounds
Standard price $14.10 per pound
Actual materials used in production 5,650 pounds
Actual output 790 units
To calculate the direct material quantity variance, we need to use the following formula.
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (5.3*790 - 5,650)*14.1
Direct material quantity variance= $20,628.3
Byron Books Inc. recently reported $6 million of net income. Its EBIT was $12.6 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $6 million of net income by (1 - T) = 0.6 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.] Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.
Answer:
he35
Explanation:
h
Which of the following statement(s) is(are) true regarding municipal bonds? I) A municipal bond is a debt obligation issued by state or local governments. II) A municipal bond is a debt obligation issued by the federal government. III) The interest income from a municipal bond is exempt from federal income taxation. IV) The interest income from a municipal bond is exempt from state and local taxation in the issuing state.
Answer:
I, III and IV Only.
Explanation:
A municipal bond is explained to be a debt obligation issued by a nonprofit organization, a private-sector corporation or another public entity using the loan for public projects such as constructing schools, hospitals and highways.
A municipal bond is categorized based on the source of its interest payments and principal repayments. A bond can be structured in different ways offering various benefits, risks and tax treatments. Income generated by a municipal bond may be taxable.
Answer: I) A municipal bond is a debt obligation issued by state or local governments.
III) The interest income from a municipal bond is exempt from federal income taxation.
IV) The interest income from a municipal bond is exempt from state and local taxation in the issuing state.
Explanation:
A municipal bond is usually a debt security issued by a state, or local government to finance its capital expenditures, which usually includes the construction of Roads, Bridges or Institutions( schools ). They can be considered as loans that an investor gives to local governments. This kind of bonds are exempted from federal taxes and most state and local taxes, Which makes them very attractive to interested individuals who are on high income tax brackets.
Suppose Mr. Lane just bought a share of BlueWind Co., a renewable energy startup. BlueWind promises to pay Mr. Lane $18 in dividends for one year and then the firm will shut down. Suppose that the liquidation value of the share is $3, and the rate of time preference is 5%. Then, according to the single-period dividend discount model, the present value of the cash payment received by Mr. Lane in one year would be
Answer:
The present value of the cash payment is $20
Explanation:
The present value of cash payment receivable by Mr Lane in one year's time is the today's equivalent amount of the dividend of $18 as well as the liquidation value of $3.
The present value is the total cash inflows multiplied by the discount factor
discount factor=1/(1+r)^n
where is the rate of time preference of 5%'
n is 1 i.e in one year's time
total cash inflows=$18+$3=$21
discount factor =1/(1+5%)^1=0.95238
present value of cash payment=0.95238*$21=$20
The Red Wolf Society, a nongovernmental not-for-profit organization, receives numerous contributed hours from volunteers during its busy season. Tom, a clerk at the local government utility’s office, volunteered ten hours per week for 8 weeks transferring wolf food from the port to the wolf shelter. His rate of pay at the utility office is $20 per hour, and the prevailing wage rate for laborers is $15 per hour. What amount of contribution revenue should Red Wolf Society record for this service? Multiple Choice $1,200 $400 $1,600 $0
Answer:
$1,600
Explanation:
Revenue is recognized as and when the control of a good or service is transferred to the customer.
Total Hours = 10 hours × 8 weeks
= 80 hours
Use the rate of pay at the utility office to determine the contribution revenue for Red Wolf Society
Revenue = 80 hours × $20 per hour
= $1,600
Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: Budgeted level of activity 9,000 MHs Actual level of activity 9,100 MHs Standard variable manufacturing overhead rate $ 6.20 per MH Budgeted fixed manufacturing overhead cost $ 55,000 Actual total variable manufacturing overhead $ 56,600 Actual total fixed manufacturing overhead $ 59,500 What was the fixed manufacturing overhead budget variance for the month?
Answer:
$4,500 U
Explanation:
Teall Corporation
Budget variance = Actual fixed overhead cost − Budgeted fixed overhead cost
Actual total fixed manufacturing overhead $ 59,500
Less Budgeted fixed manufacturing overhead cost $ 55,000
Fixed manufacturing overhead budget variance for the month $4,500 U
Therefore the fixed manufacturing overhead budget variance for the month is $4,500 U
Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales $ 600,000 Variable expenses $ 241,000 Fixed manufacturing expenses $ 232,000 Fixed selling and administrative expenses $ 180,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $192,500 of the fixed manufacturing expenses and $107,500 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued. Required: a. According to the company's accounting system, what is the net operating income earned by product D14E
Answer:
$127,000
Explanation:
Suire Corporation Net operating income
Sales $ 600,000
Variable Costs $ 241,000
Contribution Margin $ 359,000
Fixed Expenses $232,000
Net Operating Income $127,000
A domestic manufacturer of watches purchases quartz crystals from a Swiss firm. The crystals are shipped in lots of . The acceptance sampling procedure uses randomly selected crystals. a. Construct operating characteristic curves for acceptance criteria of , , and (to 4 decimals). b. If is and , what are the producer's and consumer's risks for each sampling plan in part (a) (to 4 decimals)? c At Producer's Risk At Consumer's Risk
Answer:
The curve and calculation are attached below
Job 397 was recently completed. The following data have been recorded on its job cost sheet. Direct materials $59,400 Direct labor-hours 1,254 DLHs Direct labor wage rate $11 per DLH Number of units completed 3,300 units The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $37 per direct labor-hour. Required: What's the unit product cost that would appear on the job cost sheet for this job
Answer:
$36.24
Explanation:
The computation of unit product cost is shown below:-
Unit product cost = Direct material + Direct labor + Manufacturing overhead) ÷ Unit completed
= ($59,400 + (1254 × $11) + (1254 × $37)) ÷ 3,300
= ($59,400 + $13,794 + $46,398) ÷ 3,300
= $119,592 ÷ 3,300
= $36.24
Therefore for computing the units product cost we simply applied the above formula.
Sheffield Co. is building a new hockey arena at a cost of $2,630,000. It received a downpayment of $520,000 from local businesses to support the project, and now needs to borrow $2,110,000 to complete the project. It therefore decides to issue $2,110,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 11%. Sheffield paid $50,000 in bond issue costs related to the bond sale.
Required:
(a) Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2019.
(b) Prepare a bond amortization schedule up to and including January 1, 2023, using the effective-interest method.
Answer:
Explanation:
a.
Prepare the journal entry to record the issuance of the bonds on January 1, 2019.
Accounting homework question answer, step 1, image 1
Accounting homework question answer, step 1, image 2
Step 2
b.
Prepare a bond amortization schedule up to and including January 1, 2023, using the effective-interest method.
The file attached below has the calculations
As marketing tools, how do blogs benefit companies? A. Demographic information about customers can be easily discovered. B. Blogs can offer a fresh, original, personal, and cheap way to enter into consumer conversations. C. Blogs are online selling platforms for people located in hard-to-reach places. D. Blogs provide companies with a platform to help portray wider merchandise. E. Blogs help reach a wider audience compared to other online direct marketing tools.
Answer:
The correct answer to the following question will be Option B.
Explanation:
A blog seems to be a new website where items are frequently published being presented in reverse order, can give a new, initial, personal as well as inexpensive chance of engaging in conducting this survey.The benefit of utilizing a company blog though is that the content provides faith to your clients or clients to support you as well as your organization as such a professional in your specialized subject or area.The other choices have no relation to the given circumstance. So choice B seems to be the perfect solution to that.
Which of the following statements is correct with respect to inventories? The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. It is generally good business management to sell the most recently acquired goods first "Under FIFO, the ending inventory is based on the latest units purchased." FIFO seldom coincides with the actual physical flow of inventory.
Answer:
Under FIFO, the ending inventory is based on the latest units purchased.
Explanation:
First in, first out inventory (FIFO) method values cost of goods sold using the purchase price of the "oldest" units in inventory. This means that the cost of the first units sold will be used to determine COGS.
On the other hand, last in, first out (LIFO) method uses the price of the most recently purchased units to determine the cost of goods sold.
g On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Chin receiving cash of $9,594,415. a. Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. 1. 2. 3. b. Determine the amount of the bond interest expense for the first year. $ c. Why was the company able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000? The market rate of interest is the contract rate of interest. Therefore, inventors wi
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
Total Years = 5, semiannually = 5 × 2 = 10
Rate = 7% yearly, semiannually rate = 7 ÷ 2 = 3.5%
Journal Entries
On Jan 1
Cash A/c Dr. $9,594,415
Discount on bonds payable A/c Dr. $405,585
To Bonds payable A/c $10,000,000
(Being the issuance of bond payable is recorded)
Discount value of issued bonds = $10,000,000 - $9,594,415 = $405,585
2).
On Jun
Interest expenses A/c Dr. $390,559
Discount on bonds payable A/c($405,585 ÷10) Dr.40,559
To Cash A/c($10,000,0000 × 3.5%) $350,000
(Being the payment of first semiannual interest is recorded)
3).
On Dec 31
Interest expenses A/c Dr. $390,559
Discount on bonds payable A/c($405,585*10/100) Dr.$40,559
To Cash A/c($10,000,000*3.5/100) $350,000
(Being the payment of second semiannual interest is recorded)
b). Bond Interest Expense Amount for First Year
= Interest Expenses + Amortized Discount
= $700,000 + $81,117
= $781,117
Interest expenses = $350,000 + $350,000 = $700,000
Amortized Discount = $40,559 + $40,559 = $81,117
c).The Company issued the bonds at $9,594,415 for the face amount of $10,000,000 because bonds issued at discount for $405,585 as the coupon rate is less than the market interest.
Peggy sells pistachios and almonds at the farmer’s market. She currently prices pistachios at $7 per bag and almonds at $4 per bag. She observes that every hour, 4 people each buy one bag of pistachios and 2 people each buy one bag of almonds. Having surveyed them, she learns that 2 of the pistachio buyers would be willing to pay $2 for the bag of almonds while the other two would only be willing to pay $1. Both almond buyers would be willing pay $5 for the bag of pistachios. Suppose Peggy decides to sell a bundle containing one bag of pistachios and one bag of almonds in addition to selling them separately. What price should she charge for the bundle in order to maximize revenue?
Answer:
The price she should charge for the bundle in order to maximize profit is 9
Explanation:
Solution
The total pistachios sold = 7 * 2 =14
The total almonds sold is = 4*1 = 4
So,
The total of both pistachios and almonds = 14 + 4 + 18
Thus,
we solve for getting average of the two which is:
Getting the average of the two in the bundle = 18/2
=9
Therefore p =9
Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of $80,000 has an estimated residual value of $4,000 and an estimated useful life of 20 years. a. Determine the amount of annual depreciation by the straight-line method. $ b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar.
Answer:
a. Annual depreciation = $3,800
b. First year depreciation is $8,000' while second year depreciation is $7,200.
Explanation:
a. Determine the amount of annual depreciation by the straight-line method.
Depreciable amount = $80,000 - $4,000 = $76,000
Annual depreciation = $76,000 / 20 = $3,800
b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar.
Straight line depreciation rate = 1 / 20 = 0.05, or 5%
Double declining depreciation rate = 5% * 2 = 10%
First year depreciation = $80,000 * 10% = $8,000
Second year depreciation = ($80,000 - $8,000) * 10% = $7,200
(Ignore income taxes in this problem.) James just received an $8,000 inheritance check from the estate of his deceased uncle. James wants to set aside enough money to pay for a trip in five years. If the trip is expected to cost $5,000 and the rate of return is 12 percent per year, how much of the $8,000 must James deposit now to have the $5,000 in five years
Answer:
$2837.13
Explanation:
The account value is multiplied by 1 +12% = 1.12 each year, so at the end of 5 years, it will have been multiplied by 1.12^5. For some investment P, we want ...
5000 = P×1.12^5
5000/1.12^5 = P ≈ $2837.13
James must deposit about $2837.13 now to have the required amount in 5 years.
