In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain. The purchase price allocation included the following items: $5 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. Burger Mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. What is the total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items

Answers

Answer 1

Answer:

$1,000,000 per year

Explanation:

We can infer from the above information that the intangible assets with indefinite period are checked annually, for impairment hence patent is a limited life intangible.

Therefore;

The amount of amortization of patent at the end of first year

= Patent value ÷ Useful life

= $5 million ÷ 5 years

= $1,000,000 per year

Therefore, the company should amortize $1,000,000 per year.


Related Questions

Long-Term Solvency Ratios Summary data from year-end financial statements of Palm Springs Company for 2017 follow.
Summary Income Statement Data
Sales $11,692,900
Cost of goods sold 5,135,000
Selling expenses 938,000
Administrative expenses 780,000
Interest expense 2,210,000
Income tax expense 905,000 9,968,000
Net income $1,724,900
Summary Balance Sheet Data
Cash $117,000
Total liabilities $900,000
Noncash assets 1,183,000
Stockholders' equity 400,000
Total assets $1,300,000
Total liabilities and equity $1,300,000
Round answers to two decimal places.
a. Compute the ratio of times-interest-earned.
b. Compute the debt-to-equity ratio.

Answers

Answer:

a. Compute the ratio of times-interest-earned.

times-interest-earned = EBIT / interest expense

EBIT = $4,839,900interest expense = $2,210,000

times-interest-earned = $4,839,900 / $2,210,000 = 2.19

b. Compute the debt-to-equity ratio.

debt-to-equity ratio = total liabilities / total stockholders' equity

total liabilities = $900,000total stockholders' equity = $400,000

debt-to-equity ratio = $900,000 / $400,000 = 2.25

Eric left high school to work in a factory where he has been for the last 9 years. He married at 19 and has two children. He is unhappy and cynical. He doesn't like working hard to make purchase decisions so he waits until a product is easy to find before he buys.

A. EA

B. EM

C. I

D. L

E. LM

Answers

Answer: D. L

Explanation:

Eric is a Laggard. A Laggard is one of the 5 Adopter categories when it comes to new products in the market. These categories define people in terms of when they adopt a product as well as why.

Laggards are the last group to adopt a product. They do not like change and as such will only adopt a product when it is forced on them on when they have no choice because the product is so widespread that everyone is using it. Eric prefers to make a purchase only when it is easy to find. That is when the product has become quite widespread which is during the Laggard adoption stage.

Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $85,000 with a $7,000 residual value and a ten-year life. The equipment will replace one employee who has an average wage of $20,210 per year. In addition, the equipment will have operating and energy costs of $4,130 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent. %

Answers

Answer:

17.89%

Explanation:

Calculation Determine the average rate of return on the equipment

Using this formula

Average rate of return =Avarage annual income /Average investment

Where,

Avarage annual income=Annual saving - Annual depreciation- Annual operating costs

Average investment= (Beginning costs + Residual value)÷2

Let plug in the formula

Average rate of return=$20,210 - ($85,000- $7,000)÷10 years-$4,130/($85,000+$7,000)÷2

Average rate of return=$20,210-($78,000÷10)-$4,180/($92,000)÷2

Average rate of return=$20,210-$7,800-$4,180/$46,000

Average rate of return=$8,230/$46,000

Average rate of return=0.1789*100

Average rate of return=17.89%

Therefore the average rate of return on the equipment will be 17.89%

Answer:

18%

Explanation:

This can be calculated as using the formula for calculating the average rate of return as follows:

Average rate of return = Average annual income / Average investment in equipment .................. (1)

To use equation (1), we first calculate the following:

Annual cost saving = $20,210

Annual depreciation = (Equipment cost - Residual value) / Useful number of years = ($85,000 - $7,000) / 10 = $7,800

Annual operating and energy costs = $4,130

Average annual income = Annual cost saving - Annual depreciation - Annual operating and energy costs = $20,210 - $7,800 - $4,130 = $8,280

Average investment in equipment = (Equipment cost + Residual value) / 2 = $46,000

Substituting the values for Average annual income and Average investment in equipment into equation (1), we have:

Average rate of return = $8,280 / $46,000 = 0.18, or 18%

You are the manager of a firm that produces goods X and Y. Your rm receives revenues of $40,000 per year from product X and $90,000 per year from product Y. The price elasticity of demand for product X is |-0.75| and the cross price elasticity of demand between product Y and X is -1.7.

Required:
How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?

Answers

Answer:

price elasticity of demand = % change in quantity / % change in price

-0.75 = % change in quantity / 2%

-1.5 = % change in quantity

lets assume that 1,000 units of X were sold at $40 each, total revenue = $40,000

new total revenue = 985 x $40.80 = $40,188

revenue generated by good X will increase by 0.47%, from $40,000 to $40,188

price elasticity of demand = % change in quantity of Y / % change in price of X

-1.7 = % change quantity of Y / 2%

-3.4% = % change quantity of Y

lets assume that 1,000 units of Y were sold at $90 each, total revenue = $90,000

new total revenue = 966 x $91.80 = $88,678.80

revenue generated by good Y will decrease by -1.47%, from $90,000 to $88,678.80

In terms of communicative competency, effective leaders attempt to force their own ideas into group discussions.
a. True
b. False

Answers

Answer:

False

Explanation:

Assume that your parents wanted to have a 170,000 saved for college by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 6.5% per year on their investmenets.Required:a. How much would they have to save each year to reach their goal?b. If they think you will take five years instead of four to graduate to graduate and decide to have $140,000 saved just in case, how much more would they have to save each year to reach their new goal?

Answers

Answer:

a. They will have to save $5,245.28 each year to reach their goal of $170,000.

b. They will have to save $925.63 less to reach their new goal of $140,000.

Note: The answer to part b is based on the information in the question. Therefore, the correct answer is "they will have to save $925.63 less" not  "save more" as suggested in the question. Kindly confirm this from your teacher.

Explanation:

a. How much would they have to save each year to reach their goal?

Since the saving started on your first birthday to have $170,000 saved, it implies the saving will be on your every birthday for 18 years. Therefore, the relevant formula to use to determine this is the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV = M * {[(1 + r)^n - 1] / r} ................................. (1)

Where,

FV = Future value of the amount after your 18th birthday = $170,000

M = Yearly saving to have $170,000 = ?

r = interest rate = 6.5%, 0.065

n = number of years this savings will be made = 18

Substituting the values into equation (1) and solve for M, we have:

$170,000 = M * {[(1 + 0.065)^18 - 1] / 0.065}

$170,000 = M * 32.4100673759666

M = $170,000 / 32.4100673759666

M = $5,245.28

Therefore, they will have to save $5,245.28 each year to reach their goal of $170,000.

b. If they think you will take five years instead of four to graduate to graduate and decide to have $140,000 saved just in case, how much more would they have to save each year to reach their new goal?

First, we have to calculate how much they will save each year, by also using the Future Value (FV) for calculating an Ordinary Annuity as follows:

FVn = Mn * {[(1 + r)^n - 1] / r} ................................. (1)

Where,

FV1 = New future value of the amount after your 18th birthday = $140,000

M1 = New yearly saving to have $140,000 = ?

r = interest rate = 6.5%, 0.065

n = number of years this savings will be made = 18

Substituting the values into equation (1) and solve for M1, we have:

$140,000 = M1 * {[(1 + 0.065)^18 - 1] / 0.065}

$140,000 = M1 * 32.4100673759666

M1 = $140,000 / 32.4100673759666

M1 = $4,319.65

Therefore, they will have to save $4,319.65 each year to reach their goal of $140,000.

To obtain difference in yearly savings, we have:

Difference in yealy saving = M - M1 = $5,245.28 - $4,319.65 = $925.63

Since $5,245.28 each year to reach their goal of $170,000 is greater than $4,319.65 each year to reach their goal of $140,000, it therefore implies that they will have to save $925.63 less to reach their new goal of $140,000.

Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises.
TIGER ENTERPRISES
Income Statement
For the Year Ended December 31, 2021
($ in thousands)
Sales revenue $ 9,000
Operating expenses:
Cost of goods sold $ 3,800
Depreciation expense 280
Insurance expense 300
General and administrative expense 2,200
Total operating expenses 6,580
Income before income taxes 2,420
Income tax expense (968)
Net income $ 1,452
Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020
Assets:
Cash $ 380 $ 240
Accounts receivable 770 870
Inventory 700 640
Prepaid insurance 90 40
Equipment 2,500 2,000
Less: Accumulated depreciation (920) (640)
Total assets $ 3,520 $ 3,150
Liabilities and Shareholders' Equity:
Accounts payable $ 320 $ 400
Accrued liabilities (for general & administrative expense) 320 440
Income taxes payable 220 190
Notes payable (due 12/31/2022) 1,040 800
Common stock 980 840
Retained earnings 640 480
Total liabilities and shareholders' equity $ 3,520 $ 3,150
Required:
Prepare Tiger’s statement of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You will have to calculate dividend payments).

Answers

Answer and Explanation:

The Preparation of Tiger’s statement of cash flows, using the indirect method is shown below:-

                                      TIGER ENTERPRISES

                                         Income Statement

                         For the Year Ended December 31, 2021

Particulars                                                                 Amount

Cash flow from operating activities

Net income                                                               $1,452

Non cash adjustment effects

Depreciation expenses                $280

Changes in operating assets and liabilities

Decrease in accounts receivable $100

Increase in inventory                     ($60)

Increase in prepaid insurance      ($50)

Decrease in accounts payable     ($80)

Decrease in accrued liabilities     ($120)

Increase in income tax payable   $30                     $100

Net cash flow from operating activities                  $1,552

Cash flow from investing activities

Equipment purchased                 ($500)

Net cash flow investing activities                           ($500)

Cash flow from financing activities

Issuance of notes payable        $240

Issuance of common stock       $140

Payment of dividends                ($1,292)

Net cash flow from financing activities                ($912)

Net increase in cash                                              $140

Jan 1 Cash                                                               $240

Dec 32 Cash                                                           $380

Working note:-

Retained earning Opening balance          $480

Add: Net income                                        $1,452

Less: Retained earning closing balance   $640

Paid dividend                                               $1,292

rancis Inc.'s stock has a required rate of return of 10.25%, and it sells for $87.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1

Answers

Answer:

$3.72

Explanation:

Francis incorporation stock has a required rate of return of 10.25%

The stock is sold at $87.50 per share

The growth rate is 6% per year

Therefore, the expected dividend can be calculated as follows

= Po(rs-g)

= $87.50(10.25%-6%)

= $87.50×4.25

= $3.72

Hence the expected year end dividend is $3.72

Which of the following policies often contains clauses that permit a social networking operator to collect and store data on users or even share it with third parties?
1) Terms of Trade policy
2) Terms of Use policy
3) Terms of Endearment policy
4) Terms of Retention policy

Answers

Answer: 2) Terms of Use policy

Explanation:

Terms of service are a contract or agreement between the user of a website or in this case a social networking operator and the social networking operator itself. This agreement is meant to govern the terms of the relationship between the 2 parties in terms of what will be expected of both, i.e, their rights and responsibilities.

On the side of the social networking operator, one of the rights usually listed is one stating that the operator can collect and store data on users or even share it with third parties and so it is important to read the terms of use policy as best you can when you can.

Garfield Company has the following information for the current​ year: Beginning fixed manufacturing overhead in inventory $230,000 Fixed manufacturing overhead in production 850,000 Ending fixed manufacturing overhead in inventory 50,000 Beginning variable manufacturing overhead in inventory $40,000 Variable manufacturing overhead in production 140,000 Ending variable manufacturing overhead in inventory 30,000 What is the difference between operating incomes under absorption costing and variable​ costing?

Answers

Answer:

the difference between operating incomes under absorption costing and variable​ costing is $180,000 .

Explanation:

The difference between the two Operating Incomes lies in the amount of Fixed Overheads that has been deferred in Inventory.

So, calculation of the difference will be as follows :

Beginning fixed manufacturing overhead in inventory              $230,000

Less Ending fixed manufacturing overhead in inventory           ($50,000)

Difference  between  absorption costing and variable​ costing $180,000

Bronn tells Jaime, "I really like your armor." Jaime responds, "I will sell it to you for $800." Bronn states, "Sure, and throw in your sword too." Jaime then writes out the contract, detailing only that he will sell Bronn his armor and the sword. He also lists the delivery date for next Wednesday. The next week on the day of performance, Jaime fails to deliver the armor and sword. Bronn sues him for breach of contract, but Jaime claims the contract is not enforceable because it was missing the price. When Bronn filed his lawsuit, which of the following needed to be included in the written contract for enforceability?
a. signature of both parties
b. price subject
c. matter
d. delivery
e. performance

Answers

Answer:

B. price subject

Explanation:

For this contract to be enforceable, it must include price, matter and delivery date. These aspects are all best essential and should be included in the contract. From the question when Jaime wrote the contract he failed to detail the price they agreed upon. Even though the rest were included. Therefore this contract cannot be enforced since it is missing this important aspect. Option b is the answer to the question

Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it produces filing cabinets in two departments: Fabrication and Assembly. Assume the following information for the Assembly Department:Steel per filing cabinet ............................................. 55 poundsDirect labor per filing cabinet ...................................... 20 minutesSupervisor salaries ................................................ $180,000 per monthDepreciation ...................................................... $28,000 per monthDirect labor rate................................................... $21 per hourSteel cost ......................................................... $0.40 per poundRequired:Prepare a flexible budget for 12,000, 15,000, and 18,000 filing cabinets for the month of August 2014.

Answers

Answer:

Total Flexible Budgets  for 12,000, 15,000, and 18,000 units  is $ 556,000         $ 643,000 and  $830,000  

Explanation:

Steelcase Inc.

Assembly Department:

Steel per filing cabinet ............................................. 55 pounds

Direct labor per filing cabinet ...................................... 20 minutes

Supervisor salaries ................................................ $180,000 per month

Depreciation ...................................................... $28,000 per month

Direct labor rate................................................... $21 per hour

Steel cost ......................................................... $0.40 per pound

Steelcase Inc.

Flexible budget

For the month of August 2014.

Units:                                  12000            15000            18000

Steel for filing cabinet     660,000          825000         990,000 pounds

Steel cost                         $264,000         330,000        $ 396,000

Direct labor Hrs               4,000              5,000               6,000

Direct labor Cost             $84,000       $105,000             $ 126,000

Supervisor salaries      $180,000           $180,000         $180,000

Depreciation                 $28,000             $28,000           $28,000            

 Total                              $ 556,000         $ 643,000          $830,000  

First we find the Steel for filing cabinets in pounds . Then we multiply with the rate to find the steel cost.

Similarly we find the direct labor hours and then the direct labor cost.

We assume that the supervisor salaries and depreciation are fixed.

Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 55,000 units of RX5 follows. Direct materials $ 5.00 Direct labor 9.00 Overhead 10.00 Total costs per unit 24.00 Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 55,000 units of RX5 for $20.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5.

Answers

Answer:

If the company makes the component, $165,000 will be saved.

Explanation:

Giving the following information:

Units production= 55,000 units

Production costs:

Direct materials $5

Direct labor $9

Avoidable Overhead= 3

Direct materials and direct labor are 100% variable.

An outside supplier has offered to supply the 55,000 units of RX5 for $20.00 per unit.

We need to determine the total cost of making in-house and buying.

We will take into account only the variable cost (avoidable cost).

Make in-house:

Total cost= 55,000*(5 + 9 + 3)= $935,000

Buy:

Total cost= 55,000*20= $1,100,000

If the company makes the component, $165,000 will be saved.

Which of the following goals of a performance evaluation system is accomplished when the company's actual results are compared to industry standards?
A) Benchmarking
B) Motivating unit managers
C) Promoting goal congruence
D) Providing feedback

Answers

Answer:

A) Benchmarking

Explanation:

Benchmarking refers to a process in which the performance of the company could be measured with respect to the product, services, processes as compared with the industry performance

Here in the given situation, when an actual result is compared with the industry standards than we called as a benchmarking and the same is to be used for the evaluation of the performance system

Employers cite dressing inappropriately as one of the biggest mistakes job applicants make in interviews. True or False

Answers

Answer:

True

Explanation:

If you dress inappropriately, that is not showing a good first impression. Most, if not all jobs want to have employees that can dress well, cooperate, and work well with others.

The standard quantity allowed for the units produced was 4000 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $350 favorable. Each unit uses 1 pound of materials. How many units were actually produced

Answers

Answer:

Unites actually produced = 4,000 units

Explanation:

Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.  

It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price  

Material quantity variance in unit =  Materials quantity variance  in value /standard price

Material quantity variance in unit = 350/2.50 =140  pounds

Actual quantity used (in pounds)  = standard quantity allowed - Material quantity variance

                              = 4000  - 140 = 3,860 pounds

Actual units produced = Standard quantity allowed/ standard quantity  per unit

                                      = 4,000/1 = 4000 units

Unites actually produced = 4,000 units

Improvements in labor​ productivity: A. affect the level of​ wages, but do not affect the rate of economic growth. B. affect the level of​ profit, but do not affect the rate of economic growth. C. contribute to economic growth. D. hinder economic​ growth, because they cause unemployment.

Answers

Answer:

C. contribute to economic growth

Explanation:

Economic growth is an increase in the the production of  goods and services produced in an economy.

Improvements in labor​ productivity increases the output of labour and as a result contributes to economic growth.

The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Even before making the calculations, she assumes the aftertax cost of debt is at least 3 percent less than that for preferred stock.

Debt can be issued at a yield of 11.0 percent, and the corporate tax rate is 20 percent. Preferred stock will be priced at $60 and pay a dividend of $6.40. The flotation cost on the preferred stock is $6.

a. Compute the aftertax cost of debt. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
b. Compute the aftertax cost of preferred stock. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
c. Based on the facts given above, is the treasurer correct?

Answers

Answer:

a. Compute the after tax cost of debt.

after tax cost of debt = 11% x (1 - tax rate) = 11% x 0.8 = 8.8%

b. Compute the after tax cost of preferred stock.

after tax cost of preferred stock = cost of preferred stock (no taxes are deducted for paying preferred dividends since they are paid in capital)

cost of preferred stocks = $6.40 / ($60 - $6) = $6.40 / $54 = 11.85%

c. Based on the facts given above, is the treasurer correct?

the difference = 11.85% - 8.8% = 3.05%, so the treasurer was right

2. What is your class or form?
A. 1st Year (Form 1)
B. 2nd Year (Form 2)
C. 3rd Year (Form 3)​

Answers

Answer:

2 nd year ( FORM 2)

Explanation:

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Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of 8,588. The FICA tax for social security is 6.2% of the first $118,500 of employee earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,424.97. Her net pay for the month is: (Round your intermediate calculations to two decimal places.)
a) $7,038.50
b) $5,141.03
c) $6,072.04
d) $6,566.00
e) $6,506.04

Answers

Answer: e) $6,506.04

Explanation:

Employees do not pay FUTA or SUTA. Employers pay those.

Ms. Grant's net pay for the month therefore is;

= Gross earnings - FICA Social Security - FICA Medicare - Federal Income tax withheld

= 8,588 - (6.2% * 8,588) - ( 1.45% * 8,588) - 1,424.97

= 8,588 - ‭532.46 - ‭124.53 - 1,424.97

= $6,506.04‬

Manufacturing produces​ self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as​ follows:


Inventory at the start of the year was 975 planters. The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires four pounds of polypropylene (a type of plastic). The company wants to have 30% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.20 per pound.

Number of planters to be sold
January 3900
February 3200
March 3700
April 4400
May 4900

Required:
Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter.

Answers

Answer:

              Production budget for the first quarter of 202x

Particulars               January     February     March         Total

Expected sales        3,900        3,200          3,700          10,800

Required ending      800           925             1,100           2,825

inventory

Less beginning        975            800             925            2,700

inventory

Required number    3,725          3,325          3,875         10,925

of units to be produced

The production budget for the first quarter includes the months of January, February and March. It doesn't include any materials, since they are included in the materials purchase budget.

g Sheffield Corp. purchased a truck at the beginning of 2017 for $109200. The truck is estimated to have a salvage value of $3800 and a useful life of 131750 miles. It was driven 23000 miles in 2017 and 31000 miles in 2018. What is the depreciation expense for 2018

Answers

Answer:

$24,800

Explanation:

Calculation for the depreciation expense for 2018 for Sheffield Corp.

Using this formula

Depreciation expense = (Purchased at the beginning-Salvage value/Useful life)* Driven miles

Let plug in the formula

Depreciation expense=($109,200-$3,800/131,750)*31,000

Depreciation expense=($105,400/131,750)*31,000

Depreciation expense=0.80*31,000

Depreciation expense=$24,800

Therefore the depreciation expense for 2018 will be $24,800

It is important negotiators consider the shadow negotiation carefully before meeting with the other party so they:________

a. understand where the boundaries of the current negotiations are and should be.
b. are clear in their own minds about the scope of the negotiations.
c. understand how they would ideally like to work with the other party.
d. determine what ground the negotiation is going to cover and how the negotiators are going to work together.
e. understand that all the above are important to the shadow negotiations.

Answers

Answer:

b. are clear in their own minds about the scope of the negotiations.

Explanation:

Shadow negotiations refer to the unspoken assumptions that determine how those involved in a deal with each other, whose opinions get heard, whose interests hold sway. Therefore, this is important so the negotiators are clear in their own minds about the scope of the negotiations. Meaning that they go into the negotiation knowing who has more bargaining power and how far they can actually take the negotiation.

On January​ 2, 2019, Konrad Corporation acquired equipment for . The estimated life of the equipment is 5 years or hours. The estimated residual value is . If Konrad Corporation uses the units of production method of​ depreciation, what will be the debit to Depreciation Expense for the year ended December​ 31, 2020, assuming that during this​ period, the asset was used ​hours?

Answers

The question is incomplete. The complete question is,

On January 2, 2019, Konrad Corporation acquired equipment for $500,000. The estimated life of the equipment is 5 years or 18,000 hours. The estimated residual value is $14,000. If Konrad Corporation uses the units of production method of depreciation, what will be the debit to Depreciation Expense for the year ended December 31, 2020, assuming that during this period, the asset was used 6,000 hours?

A. $166,667

B. $97,200

C. $162,000

D. $171,333

Answer:

The depreciation expense for the year is $162000. Thus, option C is the correct answer

Explanation:

The depreciation expense is the systematic allocation of the cost of the asset over its estimated useful life. The depreciation can be calculated using various methods. Under the units of production method, the depreciation expense for the period is calculated using the following formula,

Depreciation expense = [(Cost - Residual value) / Total estimated production units] * Units produced in a particular period

Depreciation expense = [(500000 - 14000) / 18000] * 6000

Depreciation expense = $162000

Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attempt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a commission of 25% of the selling price on any merchandise sold. During the year, Mogul ships inventory with a cost of $81,000 to Ski Outfit and pays shipping costs of $8,700. By the end of the year, $61,000 of the merchandise has been sold to customers for a total of $86,000. Mogul allocates $6,500 of the shipping costs to inventory sold and the other $2,200 to inventory not sold. Mogul also paid advertising costs during the year of $10,500. What amount of inventory will Mogul report at year end

Answers

Answer:

$22,200

Explanation:

With regards to the above information Mogul company,

Cost of goods

= $81,000 + $8,700

= $89,700

= $61,000 + $6,500

= $67,500

Inventory = Cost of goods - Cost of goods sold

= $89,700 - $67,500

= $22,200

It therefore means that the amount of inventory Magu company will report at the year end is $22,200

Which of the following approaches should the Fed use if it experiences large lags and mistakes in monetary policy?
a. Discretionary policy
b. An eclectic approach
c. Fixed rules
d. Fiscal policy

Answers

Answer:

C. Fixed rules.

Explanation:

This is simply a policy that is seen to be a monetary or in some cases fiscal; they are said to be automated in most of its cases and are based on the criteria that are predetermined.

In most cases, these policies are seen to be binding and also categorically constrain officials' policy choices based on certain predetermined criteria to direct them toward serving the public interest.

Many cases by policymakers made this policy to be put in place because most of them generally cannot bind their own future choices, also fixed policy rules usually have to be enforced by some kind of higher authority in order to be binding etc.

Almost certainly you have seen vending machines being serviced on your campus and elsewhere. On a predetermined schedule the vending company checks each machine and fills it with various products. This is an example of which category of inventory model?

Answers

Answer:

Fixed Time Period Model

Explanation:

a fixed time period model ensures that level of inventory is checked regularly for all items. therefore from the question, if the vending company checks each machine and fills it with various product the inventory method is Fixed Time Period Model.

Tax Services prepares tax returns for senior citizens. The standard in terms of​ (direct labor) time spent on each return is hours. The direct labor standard wage rate at the firm is per hour. Last​ month, direct labor hours were used to prepare tax returns. Total wages were .

Answers

Answer:

Tax Services

Total wages were:

= hourly wage rate * total hours spent on returns for the month

For example, if the hourly wage rate is $50 and the total hours spent on the returns equal 560 hours, the total wages will be equal to $28,000 ($50 x 560).

Explanation:

The Tax Services' total wages will be equal to the hourly wage rate multiplied by the total hours spent on returns during the month.  The total hours spent on the returns for the month is obtained by adding up the hours spent on all the returns.  The total wages depend on the hours worked and the standard wage rate that has been established in the firm.

Cantor Corporation acquired a manufacturing facility on four acres of land for a lump-sum price of $9,000,000. The building included used but functional equipment. According to independent appraisals, the fair values were $4,500,000, $3,000,000, and $2,500,000 for the building, land, and equipment, respectively. The initial values of the building, land, and equipment would be:

Answers

Answer:

Initial value of building = $4,050,000

Initial value of land = $2,700,000

Initial value of equipment = $2,250,000

Explanation:

The fair value of an asset refers to a unbiased estimate of the likely market price of the asset.

The initial value of a fixed asset refers to the amount of money that spent to acquire or create the asset.

The initial value of each asset from a group of asset can be calculated using the following formula:

Initial value of an asset = Lump-sum price * (FVA / TFV) ............ (1)

Where, from the questio;

Lump-sum price = $9,000,000

FVA = Fair value of a particular asset. From the question, we have:

Building fair value = $4,500,000

Land fair value = $3,000,000

Land fair value  = $2,500,000

TFV =Total fair value = Building fair value + Land fair value + Land fair value = $4,500,000 + $3,000,000 + $2,500,000 = $10,000,000

Substituting the values into equation (1), we can determine the initial value of each asset as follows:

Initial value of building = $9,000,000 * ($4,500,000 / $10,000,000) = $9,000,000 * 0.45 = $4,050,000

Initial value of land = $9,000,000 * ($3,000,000 / $10,000,000) = $9,000,000 * 0.30 = $2,700,000

Initial value of equipment = $9,000,000 * ($2,500,000 / $10,000,000) = $9,000,000 * 0.25 = $2,250,000

Exercise 10-1 Recording bond issuance and interest LO P1 On January 1, 2017, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months

Answers

Answer:

Semi-annual interest payment=$153,000

Explanation:

The interest payment on the bond is an expense which would be incurred twice a year because the terms and conditions of the bond contract is that interest be paid semi-annually, that is every six month.

This implies that we would need to work out the interest rate applicable for every six month. This is doe as follows:

Semi-annual interest rate = Annual interest rate / 2

Annual interest rate = 9%

Semi-annual interest rate = 9%/2= 4.5%

Semi-annual interest payment = Interest rate ×  Nominal value of Bond

Semi-annual interest payment = 4.5% ×  $3,400,000=$153,000

Semi-annual interest payment= $153,000

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