The derived demand for an input will rise when it is highly productive in reducing the costs to produce a product and producing a highly valued commodity. Hence option B. and D. are correct.
What is derived demand?The derived demand is the demand for an input by the business industry resulting from the demand for the output it produces.
When the demand for a product or service rises, so does the demand for the inputs needed to manufacture that product or provide that service.
The demand for highly valued commodities is influenced by various factors such as consumer preferences, marketing, and advertising.
The cost of production is also important in the determination of the derived demand for inputs. The highly productive input is preferred because it reduces the cost of production.
The use of highly productive inputs increases the efficiency of production and thus the supply of the highly valued commodity is maintained at a high level. Therefore, when it is highly productive in producing a highly valued commodity, the derived demand for an input will rise.
Therefore, option B. and D. are correct.
Learn more about derived demand here:
brainly.com/question/4358080
#SPJ11
Problem 4-5 Income statement presentation: Restructuring costs: Discontinued operations; Accounting error
The preliminary 2018 income statement of Alexian Systems, Inc. is presented below ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2018 ( sin millions, except earnings per share) Revenues and gains: Net sales $ 432 Interest 10 Other income 133
Total revenues and gains 575
Expenses: Cost of goods sold 277
Selling and administrative 158
Income taxes 42
Total expenses 477
Net Income 98
Earnings per share 3.50
Additional Information: 1. Selling and administrative expenses include $33 million in restructuring costs. 2. Included in other income is $120 million in income from a discontinued operation. This consists of $90 million in operating income and a $30 million gain on disposal. The remaining S13 million is from the gain on sale of investments 3. Cost of goods sold was increased by $10 million to correct an error in the calculation of 2017's ending inventory. The amount is material Required: Prepare a revised income statement for 2018 reflecting the additional facts. Use a multiple-step format Assume that an income tax rate of 30% applies to all income statement items, and that 28 million shares of common stock were outstanding throughout the year (Enter your answers in millions except earnings per share. Round EPS answers to 2 decimal places.)
ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2018 (in millions, except earnings per share)
Revenues and Gains:
Net sales $432
Interest 10
Other income 33
Total revenues and gains 475
Expenses:
Cost of goods sold 287
Selling and administrative 191
Income taxes 57
Total expenses 535
Net Loss (60)
Loss per share (2.14)
You can read more about Income taxes at https://brainly.com/question/30157668
#SPJ11
Which of the following statements is correct?
A. A decrease in the accounts receivable balance means that credit sales exceeded cash collections from customers.
B. The accounts receivable balance increases when cash collected from customers exceeds credit sales.
C. A decrease in accounts receivable is deducted from net income when determining cash flow from operating activities.
D. An increase in accounts receivable is deducted from net income when determining cash flow from operating activities.
What is the significance of accounts receivable?
Accounts receivable is a monetary amount that a business is entitled to receive after providing goods or services on credit. It is the outstanding amount of invoices or goods that a company has delivered or completed for its customers. It is a significant component of a company's working capital management since it signifies the revenue generated by the company's business activities.
How are accounts receivable related to the cash flow of a company?
Accounts receivable have an impact on a company's cash flow because they are used to calculate the cash flows from operating activities. Because the revenues and expenses recorded on a company's income statement are accrual-based rather than cash-based, adjustments must be made to translate them to cash-based figures when calculating cash flow.
When a company collects more cash from its customers than the number of credit sales it makes, accounts receivable will decrease. In contrast, an increase in accounts receivable will occur when a company collects less cash than the number of credit sales it makes.
Therefore, an increase in accounts receivable is deducted from net income when determining cash flow from operating activities, while a decrease is added. Option D is the correct statement.
Learn more about Accounting at https://brainly.com/question/26690519
#SPJ11
A company reported that its bonds with a par value of $50000 and a carrying value of $66.500 are retired for $71,400 cash, resulting In a loss of $4,900. The amount to be reported under cash flows from financing activities is: a. $(71,400). b. $(16,500). c. $(66,500). d. $16,500. e. $(4,900).
The correct answer is (a) $(71,400).
When a company retires bonds, cash flows from financing activities will be affected. Bonds with a par value of $50,000 and a carrying value of $66,500 were retired for $71,400 cash, resulting in a loss of $4,900.
The company will report cash flows from financing activities of $(71,400). This is calculated by subtracting the carrying value of the bonds ($66,500) from the amount received for the retirement of the bonds ($71,400). The loss of $4,900 is not reported in the statement of cash flows.
The other answer choices are incorrect because:
- (b) $(16,500) is incorrect because it is the difference between the par value of the bonds ($50,000) and the cash received for the retirement of the bonds ($71,400).
- (c) $(66,500) is incorrect because this is the carrying value of the bonds, which was not reported in the statement of cash flows.
- (d) $16,500 is incorrect because it is the difference between the cash received for the retirement of the bonds ($71,400) and the par value of the bonds ($50,000).
- (e) $(4,900) is incorrect because this is the amount of the loss that was not reported in the statement of cash flows.
For more questions on bonds
https://brainly.com/question/8879117
#SPJ11
celia works as an articling student with a large law firm. her wage increased from $30 per hour to $40 per hour. she can work up to 50 hours each week. the table below shows her utility from different levels of leisure and income. if celia continues to work 50 hours per week after her raise, the raise will increase her utility by:
Celia works as an articling student with a large law firm. Her wage increased from $30 per hour to $40 per hour.
She can work up to 50 hours each week. The table below shows her utility from different levels of leisure and income. If Celia continues to work 50 hours per week after her raise, the raise will increase her utility by $160 per week. How is Celia's utility affected by the increase in her hourly wage? Utility is a measure of satisfaction or happiness derived from the consumption of goods or services. The marginal utility of money refers to the amount of satisfaction gained by receiving a small increase in income or wealth. When Celia's hourly wage increases from $30 to $40, the marginal utility of money increases. Celia's leisure time is inversely proportional to her hourly wage. As her hourly wage increases, she will be more likely to work more hours and have less leisure time. Celia's weekly earnings will increase from $1500 (50 hours x $30 per hour) to $2000 (50 hours x $40 per hour). Assume that Celia is currently working 40 hours per week and has a marginal utility of $40 for each additional hour she works. If Celia continues to work 50 hours per week after her raise, her marginal utility from working is higher than her marginal utility from leisure by $160 per week. This amount of money is calculated as follows:$160 = ($40 per hour x 10 additional hours per week) - ($40 per hour x 40 hours of leisure time) Therefore, the raise will increase Celia's utility by $160 per week.
Learn more about marginal utility here https://brainly.com/question/30841513
#SPJ11
financial statement users need to be aware of changes in inventory levels when using
Financial statements are used to assess the performance and financial stability of a firm. Inventory is an essential part of a business' operations since it represents the raw materials and ongoing activity.
How does the revenue statement alter when inventory changes?To calculate a company's cost of goods sold, an increase in inventory will be deducted from purchases of goods and a decrease in inventory will be added to purchases of goods.
What impact does inventory have on the financial statement of a company?The cost of inventory sold appears as cost of goods sold on the income statement. The balance of retained earnings on the statement of retained earnings is impacted by the cost of goods sold figure since it has an impact on the business's net income.
To know more about Financial visit:-
https://brainly.com/question/29641948
#SPJ1
1. Study Question #1 Ch 8. Evaluate the following statement. True or False: Trade liberalization has assumed two main forms. One involves the reciprocal reduction of trade barriers on a nondiscriminatory basis. as seen in the operation of the World Trade Organization. The other approach involves the establishment by a group of nations of regional trading arrangements among themselves. The European Union and the North American Free Trade Agreement are examples of regional trading arrangements. True O False Grade it Now Save &. Continue Continue without saving
Trade liberalization has assumed two main forms: reciprocal reduction of trade barriers on a nondiscriminatory basis and the establishment of regional trading arrangements. The statement is true.
The reciprocal reduction of trade barriers on a nondiscriminatory basis is one form of trade liberalization, as evidenced by the operations of the World Trade Organization. The other approach involves the establishment of regional trading arrangements between a group of countries, such as the European Union and the North American Free Trade Agreement.
The elimination of barriers to trade and the promotion of global trade are the primary goals of trade liberalization. These initiatives are aimed at lowering the price of goods and services by allowing greater competition among manufacturers and service providers. Trade liberalization aids in the development of a competitive global marketplace, which is critical for economic growth and job creation.
Learn more about "Trade liberalization" ; https://brainly.com/question/20492108
#SPJ11
what are the problems with, and solutions for, monopoly? in most cases, markets are considered more efficent and better off when monopolies are broken up. why is it hard for governments to do this?
Problem with monopoly: One of the primary problems with monopolies is that they lead to higher prices, reduced efficiency, and reduced output.
The goal of the monopoly is to maximize profits, and it does so by reducing the number of products and raising prices. They also discourage innovation since they don't have to compete. Solutions to monopoly: There are a variety of ways to address monopolies.
To begin, the government may break up a monopoly by forcing the company to divide into smaller, more competitive entities. Government can also encourage new businesses to enter the market by removing barriers to entry or providing support to new entrepreneurs. Consumers may also choose to support small businesses and local businesses to reduce their reliance on monopolies.
The government faces a variety of challenges in breaking up monopolies. First, monopolies have the potential to produce significant political power, making them a formidable opponent to the government. They often have the money and influence to lobby politicians and control the narrative.
Second, breaking up a monopoly might have unintended consequences, such as harming the economy or reducing innovation. As a result, policymakers must thoroughly analyze the effects of breaking up a monopoly before making a decision.
Third, many monopolies are multinational corporations that operate in numerous countries, making it difficult for a single government to control them. Finally, the government may not have the necessary resources to enforce the law against a large corporation.
You can read more about monopoly at https://brainly.com/question/7217942
#SPJ11
What is the basic accounting for a non-profit organization?
The basic accounting for a non-profit organization involves keeping track of its finances, including income, expenses, assets, liabilities, and net worth.
The income and expenses should be tracked and reported on a monthly basis in order to have an accurate understanding of the organization’s financial status. Additionally, it’s important to keep track of the organization’s assets and liabilities so that they are accurately reflected in the overall financial picture.
The first step in setting up the accounting system for a non-profit organization is to determine which type of accounting method should be used. Generally, non-profits will use either the cash or accrual basis. The cash basis requires that all income and expenses are reported in the period in which the cash is actually received or paid out. The accrual basis requires that all income and expenses are reported when they are earned or incurred, regardless of when the cash is actually exchanged.
Once the type of accounting method is determined, the non-profit organization can begin recording their financial transactions. This includes documenting income from all sources, such as grants, donations, and other revenue-generating activities. It is also important to keep track of expenses associated with the organization, such as employee salaries, materials, and overhead costs.
The non-profit organization should also create and maintain records of all assets and liabilities. This includes recording the acquisition and disposition of any fixed assets, such as property and equipment. Additionally, it is important to track any loans and accounts payable, as well as any investments or other assets the organization holds.
Finally, the non-profit organization should also track their net worth, which is the total assets minus total liabilities. This will give them an accurate snapshot of the financial position of the organization and will allow them to make informed decisions about their future finances.
For more question "Non-Profit Organization" :
https://brainly.com/question/25690109
#SPJ11
When consumers buy the most expensive model to mitigate the risk of purchasing a poorly performing product, they are using ________ to minimize their risk.
A) information-seeking behavior
B) brand loyalty
C) narrow categorization
D) the price/quality relationship
E) perceptual blocking
When consumers buy the most expensive model to mitigate the risk of purchasing a poorly performing product, they are using the price/quality relationship to minimize their risk. (D)
The relationship between the price and quality of a product is known as the price/quality relationship. The price/quality relationship examines the effect of price on perceived product quality or the effect of perceived quality on the price a consumer is willing to pay.
Consumers may believe that the higher the price, the greater the quality, and the lower the price, the lower the quality of a product.The concept of the price/quality relationship is used by buyers to assess whether they are getting a good deal.
Consumers may have to pay more for goods that are higher quality, but they may also overpay for goods that are of lower quality if they rely too heavily on price as an indicator of quality.The correct answer is D) the price/quality relationship.
To know more about overpay click on below link:
https://brainly.com/question/16325284#
#SPJ11
the second step in the marketing research approach involves developing the research plan. this includes specifying the blank surrounding the research activity, and identifying the blank needed for marketing decisions. multiple choice question. constraints; data customers; research data; people objectives; people need help? review these concept resources.
The second step in the marketing research approach involves developing the research plan. This includes specifying the constraints surrounding the research activity, and identifying the data needed for marketing decisions.
The constraints can be considered as a problem faced by the researcher in the research process. They may include technical, financial, ethical or time-related constraints. They are the factors which limit the researcher’s ability to conduct a thorough research study within the stipulated time and available resources. Therefore, identifying and specifying the constraints is important in ensuring that the research study is properly executed.The data needed for marketing decisions refer to the information that will be collected during the research process. It could include information about customers, competitors, market trends, and other relevant data that is needed to make effective marketing decisions. It is important to identify the specific data that will be collected as this helps in ensuring that the research study is properly executed and that the data collected is relevant to the research problem being investigated.In conclusion, the second step in the marketing research approach involves developing the research plan. This includes specifying the constraints surrounding the research activity, and identifying the data needed for marketing decisions.
For more questions on marketing research
https://brainly.com/question/29330081
#SPJ11
The secondary market is best defined by which one of the following? Multiple Choice o Market in which subordinated shares are issued and resold. o Market conducted solely by brokers. o Market dominated by dealers. o Market where outstanding shares of stock are resold. o Market where warrants are offered and sold.
Option-D: The secondary market is best defined by the market where outstanding shares of stock are resold.
A secondary market is where securities are sold and traded by people who previously purchased them from an issuing firm or another investor in the primary market. The secondary market is a market where already-issued securities are bought and sold between investors without the involvement of the issuing company, and it includes both exchanges and over-the-counter markets.To understand the difference between a primary market and a secondary market, consider this example:When an organization initially offers securities to the public through a public offering, it is known as the primary market.
The securities then change ownership on the secondary market, which is where investors can buy or sell them with other investors.When an investor purchases securities through the secondary market, the organization that issued the securities is not involved. Secondary markets, unlike primary markets, are essentially where already-issued securities are bought and sold by investors. As a result, secondary markets provide investors with a variety of options for trading securities.Thus the correct answer is Option-D.
For such more questions on secondary market:
brainly.com/question/14612734
#SPJ11
do employees in a large-scale bureaucracy (centralized) tend to have opportunistic behavior? agree or disagree?
The answer to this question is no straightforward because different studies have produced different results, but in general, the answer is that employees in large-scale bureaucracies tend to exhibit opportunistic behavior.
Opportunistic behavior is a term used to describe the tendency of individuals to exploit opportunities for personal gain. It is a phenomenon that occurs in all types of organizations, including large-scale bureaucracies. The reason for this is that large-scale bureaucracies are often characterized by a high degree of centralization, which means that decision-making authority is concentrated at the top.
This concentration of power creates an environment where individuals may be tempted to engage in opportunistic behavior. Opportunistic behavior in large-scale bureaucracy is a topic that has been researched extensively over the years. It is a question that seeks to find out whether employees in a large-scale bureaucracy tend to exhibit opportunistic behavior.
In conclusion, it can be said that employees in large-scale bureaucracies tend to exhibit opportunistic behavior. However, it is important to note that not all employees engage in this type of behavior. Some employees are more committed to the organization and are less likely to engage in opportunistic behavior. Ultimately, it is up to the organization to create a culture that discourages opportunistic behavior and rewards employees for their contributions.
Learn more about Opportunistic behavior here:
brainly.com/question/17283721
#SPJ11
eBay has been fined $63.2 million in damages for allowing fake and unauthorized goods to be sold through the online retailer. A Paris commercial judge ruled that eBay had not done enough to ensure goods sold on its web site around the world were not _____.
eBay has been fined $63.2 million in damages for allowing fake and unauthorized goods to be sold through the online retailer. A Paris commercial judge ruled that eBay had not done enough to ensure goods sold on its web site around the world were not counterfeits.
This is the sum that LVMH, which owns well-known brands such as Louis Vuitton and Dior, has been awarded by the court. The decision was based on eBay's alleged failure to take adequate steps to prevent counterfeit and unauthorized items from being sold through its website.
eBay has not done enough to ensure goods sold on its web site around the world were not counterfeits. A commercial court in Paris has ruled that eBay was to blame for the sale of fake LVMH goods on its website in the French market, and therefore liable for the company's losses.
The court found that eBay had not taken sufficient steps to prevent the sale of counterfeit items, and that it had also harmed LVMH by promoting the sale of fake goods. eBay has stated that it intends to appeal the decision, which it believes is "wrong on the facts and the law".
Therefore, eBay has been fined $63.2 million in damages for allowing fake and unauthorized goods to be sold through the online retailer.
Learn more about counterfeits https://brainly.com/question/29310611
#SPJ11
if the cost of an item of inventory is $49 and the current replacement cost is $68, the amount included in inventory accoirding to the lower of thr cost or market is
The amount included in inventory according to the lower of cost or market is $49.
This is because the replacement cost of $68 is higher than the cost of the item at $49.
Under the lower of cost or market method, a company must compare the current cost of an item in inventory to its current market value. If the cost of the item is lower than its current market value, the company must record the inventory at the lower cost.
This is done to ensure that the company's financial statements are not overstated. In this case, the current market value of $68 is higher than the cost of $49, so the lower of cost or market method requires that the inventory be recorded at $49.
To know more about financial statements click on below link:
https://brainly.com/question/24211503#
#SPJ11
Compared with consumer markets, business markets generally have fewer and larger buyers, a closer customer supplier relationship, and more geographically concentrated customers.
Business markets differ from consumer markets in various ways. Some of the main differences include the number and size of the customers, the relationship between the buyer and supplier, and the geographical concentration of customers.
About Business MarketsBusiness markets refer to the buying and selling of goods and services between businesses. It is also known as industrial marketing or B2B marketing. Business markets differ from consumer markets in various ways. Business markets usually have fewer but larger buyers than consumer markets.
Business-to-business transactions are typically conducted between two organizations that have an established relationship, as opposed to a large number of individual customers.
About Consumers MarketsConsumer markets refer to the buying and selling of goods and services to individual consumers for personal use. This type of market is also known as B2C or retail market. The main feature of consumer markets is the large number of individual customers that make up the market.
Consumers can be located anywhere, and their buying decisions are usually based on factors such as price, quality, and convenience. They usually buy in small quantities and are not as concentrated geographically as business markets.
Learn more about business market at https://brainly.com/question/25343498
#SPJ11
On December 28, I. M. Greasy, Catering completed $600 of catering services. As of December 31, the customer had not been billed nor had the transaction been recorded. Demonstrate the required adjusting entry by choosing the correct statement below.
a. Credit Acciunts receivable for $600.
b. Credit Catering revenue for $600.
c. Debit Unearned revenue for $600.
d. Debit Accounts receivable for $600.
The correct statement to demonstrate the required adjusting entry is d. Debit Accounts receivable for $600. This adjusting entry is necessary to ensure that all of the completed transactions are recorded and reflected in the financial statements of I. M. Greasy, Catering as of December 31.
An adjusting entry is an entry made to accounts at the end of an accounting period to record any unrecognized transactions and events of the period. In this case, the transaction of $600 of catering services completed on December 28 needs to be recorded to show the correct revenue and accounts receivable amounts as of December 31.
The adjusting entry consists of a debit to Accounts Receivable for $600. This is because Accounts Receivable represents the amount of money owed to the company by customers for goods and services, and Catering Revenue represents the revenue from catering services provided.
Learn more about adjusting entry at:
https://brainly.com/question/13035559
#SPJ11
the tool that lists ages, names, education, capabilities, training, specialized skills, and other relevant information about an organization's employees is called a blank
The tool that lists ages, names, education, capabilities, training, specialized skills, and other relevant information about an organization's employees is called a Human Resource Information System (HRIS).
HRIS (Human Resource Information System) is an online solution that keeps track of all personnel files and related information. It is a type of Human Resource Management (HRM) software. The HRIS system provides access to critical information, including employee demographics, job titles, payroll, benefits, and other HR-related data.
Human Resource Information Systems (HRIS) offer an integrated framework for managing all human resources-related data, processes, and services. These systems collect, process, and store employee data and automate many time-consuming HR processes. HRIS is an essential tool for HR professionals, as it streamlines HR processes, improves data accuracy and completeness, and enables the creation of custom reports that can help decision-making processes.
Learn more about HRIS (Human Resource Information System) here: https://brainly.com/question/26945565
#SPJ11
Chapter 20 Implementing Risk Management within Middle Eastern Oil
Answer all questions.
1. Identify and discuss at least three of the challenges the newly formed risk management team faced.
2. Select one of the divisions (IT, Legal, Project Management or Environmental) and explain how that department can interact with and support the risk management team to help manage risks identified with that department.
3. What were some of the challenges of the data gathering process used for the Corporate Risk Exercise used in 2010/2011?
4. Using the case study information (Exhibits 20.9, 20.10, 20.11, and 20.12), provide a list of at least 10 potential corporate risks that might have been identified by the project team. In your opinion, identify the three most important risks that should be addressed and explain your reasons for selecting each risk
1. The newly formed risk management team faced several challenges.
2. Each division, such as IT, legal, project management, and environmental, can support the risk management team in different ways.
3. The data gathering process for the Corporate Risk Exercise in 2010/2011 posed several challenges.
4. Potential corporate risks that might have been identified by the project team include financial risks such as potential currency devaluation, interest rate changes, or foreign exchange losses.
1. Firstly, they had to create a comprehensive risk management framework that encompassed all divisions of the organization, such as IT, legal, project management, and environmental.
Secondly, they needed to devise a suitable data gathering process to accurately and comprehensively measure the corporate risks present in the organization. Thirdly, they had to create an effective communication strategy to ensure that all staff and stakeholders were aware of the risk management process and the risks associated with it.
2. For example, the IT division can develop a software system to track risk management activities and store data related to risks identified.
The legal division can provide advice on the legal implications of risks identified, while the project management division can help with the implementation of risk mitigation strategies. The environmental division can provide advice on environmental risks and identify potential environmental impacts of corporate activities.
3. Firstly, it was difficult to accurately measure the current risk exposure of the organization due to the lack of existing data or information.
Secondly, the process was time-consuming and labor-intensive, as it involved gathering data from multiple divisions and stakeholders. Thirdly, the process was complicated by the difficulty of collecting accurate data from a variety of sources.
4. operational risks such as supply chain disruptions or labor issues; regulatory risks such as the potential for new or amended regulations; compliance risks such as failing to meet regulatory standards;
political risks such as changing political climates in countries where the organization operates; technology risks such as cyber threats or data breaches; and environmental risks such as air and water pollution or climate change.
In my opinion, the three most important risks that should be addressed are financial risks, technology risks, and regulatory risks. Financial risks should be addressed because they can have a significant impact on the organization’s bottom line.
Technology risks should be addressed because they can lead to significant data breaches and the theft of sensitive information. Regulatory risks should be addressed because they can lead to significant fines or sanctions if the organization fails to meet regulatory standards.
To know more about risk management click on below link:
https://brainly.com/question/28438530#
#SPJ11
The single most important idea the company hopes to convey to its target audience about a product is the O promotional mix marketing mix O core message call to action O media mix
The single maximum critical concept the employer hopes to bring to its target audience approximately a product is the core message
In media, the target audience refers back to the man or woman or institution for whom a message is created. a few messages, like personal email or thank-you notes, goal just one person. In truth, you could frequently decide the target market of mainstream media by means of inspecting their commercial content material.an excellent promotional mix lets in you to are seeking out leads through the maximum appropriate channels, enabling involved clients to speak along with your enterprise. The promotional mix is an crucial tool in nurturing relationships with income leads and an current target market base.
To recognize more approximately promotional mix click on here
brainly.com/question/24180792
#SPJ4
During the current year, Ethan performs personal services as follows: 800 hours in his information technology consulting practice, 625 hours in a real estate development business, and 510 hours in a condominium leasing operation. He expects that losses will be realized from the two real estate ventures and that his consulting practice will show a profit. Ethan files a joint return with his spouse whose salary is $125,000. The income and losses from the following ventures are considered active and not subject to the passive activity loss limitations:
A. Only the information technology consulting practice.
B. Only the information technology consulting practice and the real C. estate development business.
D. Only the information technology consulting practice and the condominium leasing operation.
E. All three of the ventures are considered active and not subject to the passive activity loss limitations.
Among the ventures: information technology consulting, real estate development, and condominium leasing, the correct answer is: All three of the ventures are considered active and not subject to the passive activity loss limitations. (option E)
To determine which ventures are considered active and not subject to the passive activity loss limitations, we need to apply the material participation test to each venture.
The material participation test requires an individual to meet one of the following criteria:
Participate in the activity for more than 500 hours during the year.Participate in the activity for more than 100 hours during the year and more than any other individual.Materially participate in the activity for more than 100 hours during the year and meet certain other conditions based on the facts and circumstances.Based on the information provided, we can calculate Ethan's participation in each venture as follows:
Information technology consulting practice: 800 hoursReal estate development business: 625 hoursCondominium leasing operation: 510 hoursEthan meets the material participation test for all three ventures because he participates in each venture for more than 500 hours during the year. Therefore, all three ventures are considered active and not subject to the passive activity loss limitations.
The answer is E.
Learn more about activity loss here:
https://brainly.com/question/29765008
#SPJ11
Seymore Corp. has the following number of shares of stock outstanding: Cumulative preferred stock, 8%, $100 par Common stock, $12 par 2,000 shares 20,000 shares Seymore will distribute $80,000 to the two classes of stockholders this year. Not counting the current year, the preferred stoc dividends are one year in arrears. Indicate whether each of the following statements is true or false. a) Preferred stockholders will receive $16,000 of cash dividends in the current year. b) After all required preferred dividends are paid, preferred and common stockholders will share the remaining dividend. c) Common stockholders will receive $48,000 of cash dividend in the current year. d) The amount of common dividends per share that stockholders will receive in the current year is $6.40. e) The amount of dividends in arrears is zero after the $80,000 of dividends have been paid.
From the above statement about preferred stocks, the correct answers are a, b, and e. While c, and d are inappropriate statements.
a) Preferred stockholders will receive $16,000 of cash dividends in the current year. True. The preferred stockholders will receive $16,000 of cash dividends in the current year, as there are 8% cumulative preferred stock with $100 par value, and 2000 shares outstanding, which totals to $16,000.
b) After all required preferred dividends are paid, preferred and common stockholders will share the remaining dividend. True. After the $16,000 of preferred dividends have been paid, the remaining $64,000 will be shared between preferred and common stockholders.
c) Common stockholders will receive $48,000 of cash dividend in the current year. False. Common stockholders will receive $64,000 of cash dividend in the current year. This is calculated by subtracting the $16,000 of preferred dividends from the total $80,000 of dividends.
d) The amount of common dividends per share that stockholders will receive in the current year is $6.40. False. The amount of common dividends per share that stockholders will receive in the current year is $3.20. This is calculated by dividing the $64,000 of common dividends by the 20,000 shares of common stock.
e) The amount of dividends in arrears is zero after the $80,000 of dividends have been paid. True. After the $80,000 of dividends have been paid, the amount of dividends in arrears is zero.
Learn more about preferred stocks: brainly.com/question/18068539
#SPJ11
Which of the following is not a "product cost" under absorption costing?
A. Direct materials
B. Direct labor
C. Variable manufacturing overhead
D. Fixed manufacturing overhead
E. None of these
The cost of products that are produced by a company is referred to as product costs. These expenses are incurred directly or indirectly, and are accounted for in the company's inventory account. The following is not a product cost under absorption costing: C. Variable manufacturing overhead.
The most basic approach to costing is absorption costing, which assigns all direct and indirect costs to the cost of the commodity. This method is preferred for external reporting because it provides a more accurate estimation of the cost of producing a product than other methods, making it simpler to compare costs among different products.
In conclusion, the absorption costing approach assigns all direct and indirect costs to the cost of a commodity, including direct materials, direct labor, and fixed and variable overhead. It is, however, important to note that not all indirect expenses, such as variable manufacturing overhead, are included in the cost of the commodity. The following is not a product cost under absorption costing: C. Variable manufacturing overhead.
For more about product cost:
https://brainly.com/question/16677716
#SPJ11
ricardo's theory encourages___ because it suggests that trade is a positive-sum game where all participating countries realize economic gains.
Ricardo's theory encourages free trade because it indicates that trade is a positive-sum game where all countries participating realize economic gains.
The theory of comparative advantage was introduced by David Ricardo, a British economist, in the early 19th century.
The theory indicates that it is beneficial for two countries to trade even if one has an absolute advantage in the production of both goods because the opportunity cost of producing one good is lower in one country than in the other.
Ricardo's theory advocates for the elimination of tariffs and other trade barriers, such as quotas and subsidies, as a means of promoting economic growth and development.
The theory suggests that trade will lead to the expansion of global markets, the creation of new jobs, the generation of higher incomes, and the improvement of living standards.
In addition, Ricardo's theory proposes that nations should specialize in the production of goods that they can produce more efficiently and trade with other nations that have a comparative advantage in the production of other goods.
This encourages countries to concentrate on producing those products that they are best suited for, which will result in the production of high-quality goods at a lower cost.
This would not only benefit the countries involved in the trade but also lead to increased global economic efficiency and progress. As a result, Ricardo's theory supports free trade as a means of promoting global economic growth and development.
To know more about Ricardo's theory refer here :
https://brainly.com/question/4905017
#SPJ11
one category of risk that is considered in an enterprise risk management program is the risk associated with an organization's property, liability, and personnel-related loss exposures. this risk is called
One risk category considered in an enterprise risk management program is the risk associated with an organization's property, liability, and personnel-related loss exposures. This risk is called hazard risk.
What is hazard risk?A risk is something that could cause harm. When something has the potential, even theoretically, to harm someone's health, life, property, or any other valuable interest, it might be considered a danger.
A hazard is a perilous event, thing, behavior, or circumstance. It could result in a loss of life, harm to one's physical or mental health, damage to property, loss of livelihoods and services, disturbance of the social and economic system, or environmental harm.
Learn more about hazard risk here:
brainly.com/question/19589897
#SPJ11
G and L organize the GL partnership. Each contributes $50 for his partnership interest. The partnership purchases an apartment building for $1,000, making a $100 down payment and paying the remainder of the price with a mortgage loan. The principal of the mortgage loan is payable in a single payment after 12 years. The gross income and deductions of the partnership for each of the first few years are expected to be as follows:Rent: $240Cash operating expenses $150Interest expense 90Depreciation expense 50($290)Loss ($50)The partnership agreement allocates all depreciation to L. All other gross income and deductions are allocated to the partners equally.The partnership agreement provides that all income, gains, losses and deductions will be reflected in the partners’ capital accounts (which will be maintained in accordance with Reg. Sec. 1.704-1(b)(2)(iv)); and each partner will be entitled on liquidation (of either the partnership or the partner’s interest) to distribution of an amount equal to his positive capital account balance.Assume that the partnership operates for two years, and then sells the building at the beginning of year 3 for, alternatively, $1,100 or $800. How will the partnership’s income, gain, loss and deduction (including depreciation deductions) be allocated between G and L, and will the allocations be respected for federal income tax purposes, in the following alternative variations?(a) The partnership is a general partnership, the mortgage lender has full recourse against the partnership and the partners, and any partner having a deficit in his capital account when either the partnership or his interest is liquidated must then make an additional capital contribution equal to that deficit.(b) The partnership is a limited partnership with G as the general partner and L as the limited partner; the mortgage loan is recourse; and the partnership agreement says nothing about capital account deficit restoration on liquidation of a partner’s interest.(c) Same as (b), except L is obligated to restore any deficit in his capital account to the extent that it does not exceed $50, and there is a "QIO" provision [within the meaning of Reg Sec. 1.704-1(b)(2)(ii)(d)] in the partnership agreement.(i) Would the year 2 allocations have economic effect or alternate economic effect if: (1) as of the end of year 2 of operations, the partnership plans in year 3 to borrow $60 on a recourse basis and distribute the cash proceeds of the loan equally to G and L, and (2) the partnership reasonably expects to earn $60 net income in year 3?(ii) What if, in year 3, the partnership borrows $60 and distributes $30 to each of G and L as planned, but unexpectedly earns only $40 (net income)?
In a general partnership, both partners are jointly and severally liable for the partnership's debts, including the mortgage loan. Therefore, each partner's share of the income, gain, loss, and deduction would be allocated equally.
If the building is sold for $1,100, the partnership would realize a gain of $200. The income, gain, loss, and deduction would be allocated equally to G and L, with L receiving the entire depreciation deduction. Therefore, G's capital account would increase by $50 (his share of the loss), and L's capital account would increase by $150 ($50 depreciation plus his share of the loss). If the building is sold for $800, the partnership would realize a loss of $200. Again, the income, gain, loss, and deduction would be allocated equally to G and L, with L receiving the entire depreciation deduction. G's capital account would decrease by $50 (his share of the loss), and L's capital account would decrease by $150 ($50 depreciation plus his share of the loss).
These allocations should be respected for federal income tax purposes because they comply with the partnership agreement and the tax code.
(b) In a limited partnership, the limited partner's liability is limited to his or her investment in the partnership. Therefore, only the general partner (G) would be personally liable for the partnership's debts. The income, gain, loss, and deduction would still be allocated equally between G and L, with L receiving the entire depreciation deduction. However, since the partnership agreement says nothing about capital account deficit restoration on liquidation of a partner's interest, L would not be required to restore any capital account deficits.
The allocations should still be respected for federal income tax purposes because they comply with the partnership agreement and the tax code.
(c) In this scenario, L is obligated to restore any deficit in his capital account up to $50. The partnership agreement also includes a qualified income offset provision (QIO), which allows L to reduce his share of partnership losses to the extent necessary to avoid restoring his capital account deficit.
If the building is sold for $1,100, the partnership would realize a gain of $200. The income, gain, loss, and deduction would be allocated equally to G and L, with L receiving the entire depreciation deduction. Since L is obligated to restore capital account deficits up to $50, his capital account would increase by $100 ($50 depreciation plus his share of the gain), and G's capital account would increase by $50 (his share of the gain). If the building is sold for $800, the partnership would realize a loss of $200. The income, gain, loss, and deduction would be allocated equally to G and L, with L receiving the entire depreciation deduction. L's capital account would decrease by $50 (his share of the loss), and G's capital account would decrease by $100 ($50 depreciation plus his share of the loss). If L's capital account deficit exceeds $50, he can offset the excess with his share of partnership income in future years.
These allocations should also be respected for federal income tax purposes because they comply with the partnership agreement and the tax code.
For more questions on partnership
https://brainly.com/question/15913927
#SPJ11
The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:Retained earnings balance at the beginning of the year $ 131,500Cash dividends declared for the year 51,500Proceeds from the sale of equipment 86,500Gain on the sale of equipment 8,100Cash dividends payable at the beginning of the year 23,500Cash dividends payable at the end of the year 26,600Net income for the year 97,500What is the ending balance for retained earnings?Multiple Choicea. $207,500.b. $177,500.c. $287,000.d. $185,000.e. $259,000.
The ending balance for retained earnings is $207,500. Therefore, option A is correct.
A statement of cash flows is a financial report that reveals how changes in balance sheet accounts and income impact cash and cash equivalents. The statement of cash flows is broken down into three sections:
Operating activities: This section provides a summary of a company's cash inflows and outflows from day-to-day business activities. These typically include accounts receivable, accounts payable, depreciation, inventory, and taxes.Investing activities: This section records any cash outlays for capital expenditures, such as the acquisition of new equipment or real estate. Changes in investments, such as buying or selling securities, are also included.Financing activities: This section records any cash outlays for capital expenditures, such as the acquisition of new equipment or real estate. Changes in investments, such as buying or selling securities, are also included.In the given problem, the accountant for Crusoe Company is preparing the statement of cash flows for the just-ended fiscal year. The information provided in the statement of cash flows is as follows:
Retained earnings balance at the beginning of the year: $ 131,500Cash dividends declared for the year: $ 51,500Proceeds from the sale of equipment: $ 86,500Gain on the sale of equipment: $ 8,100Cash dividends payable at the beginning of the year: $ 23,500Cash dividends payable at the end of the year: $ 26,600Net income for the year: $ 97,500Therefore, when the net income for the year is $97,500 the ending balance for retained earnings will be $207,500 i.e., option A.
Learn more about "Fiscal year"; https://brainly.com/question/13648651
#SPJ11
After graduating from college in 2010, Art Major\'s starting salary is $45757.00. Suppose Art Major has a cost of living adjustment (COLA) clause, i.e. an escalator clause in his labor contract so that he will be able to maintain this same level of purchasing power in real terms in 2011 and 2012. Using the information in the table below, how much will Art Major be earning in 2011 and 2012 if his salary keeps up with inflation? Round your answers to the nearest dollar.
Year 2010 101.57
Year 2011 104.90
Year 2012 108.04
What is Art's Salary in 2011? 2012?
After graduating from college in 2010, Art Major's starting salary is $45757.00. The salary of Art Major in 2011 will be $47492 and in 2012 it will be $48814.
Year 2010 101.57. Year 2011 104.90. Year 2012 108.04.
What is Art's Salary in 2011? 2012?
Given that Art Major has a cost of living adjustment (COLA) clause, his salary can maintain the same level of purchasing power in real terms in 2011 and 2012 if his salary keeps up with inflation. Now, the CPI rate can be calculated for each of these years. Therefore,CPI of 2010 = 101.57CPI of 2011 = 104.90CPI of 2012 = 108.04Since the salary of Art Major will be adjusted for inflation every year, the formula for calculating Art's salary will be as follows:S = S0 × (CPI of target year ÷ CPI of base year)where S = Salary of Art Major, S0 = Starting Salary, CPI of base year = CPI of 2010 and CPI of target year = CPI of 2011 or 2012.To calculate the salary of Art Major for the year 2011, the following calculation will be used:S2011 = 45757 × (104.90 ÷ 101.57) ≈ $47492To calculate the salary of Art Major for the year 2012, the following calculation will be used:S2012 = 45757 × (108.04 ÷ 101.57) ≈ $48814.
For more questions on Salaries
https://brainly.com/question/9369495
#SPJ11
dan received a letter from the irs that gave him the choice of (1) requesting a conference with an appeals officer or (2) agreeing to a proposed tax adjustment. dan received the:
Dan received a letter from the IRS that gave him the choice of agreeing to a proposed tax adjustment. The correct option is (2)
Conference: A conference is a meeting of individuals to discuss a specific subject or topic that is usually held for educational, commercial, or scientific purposes.
Appeals: An appeal is a request made by a person or organization to a higher authority or court for a previous legal decision to be overturned or modified.
Tax adjustment: A tax adjustment is a tax provision that lowers or raises a person's taxable income. Tax adjustments are made to taxable income for various reasons, including deductible contributions, losses, or expenses, and they help to decrease or increase a person's tax liability.
For more information regarding tax adjustment, you can check the below link
https://brainly.com/question/30461254
#SPJ11
mr. hepp, a self-employed consultant, failed to include a $38,200 income item on a 2021 form 1040, which was filed on march 9, 2022. the gross income reported on the return was $102,380. what is the latest date that the irs can assess any additional 2021 tax?
The latest date that the IRS can assess any additional 2021 tax due to the omission of the $38,200 income item would be April 15, 2023.
What is income?Income is an economic concept that refers to money or other forms of compensation earned by individuals or entities. Income can come in the form of wages, salaries, profits, pensions, rent, interest, royalties, dividends, or other forms of payment. Income is typically measured over a certain period of time, such as a month, year, or five-year period. Income is a key component of economic growth and indicates the amount of money individuals and businesses have available to save or invest. Income can be used to measure the financial progress of individuals and groups of people, such as households, businesses, or nonprofit organizations.
That is the deadline for the IRS to assess additional tax for the 2021 tax year. Generally, the IRS has three years from the date a return is filed or the due date of the return, whichever is later, to assess additional tax due to an omitted item. Since Mr. Hepp's return was filed on March 9, 2022, the three-year period would expire on April 15, 2023.
To learn more about income
https://brainly.com/question/28390284
#SPJ1
Ford promises to deliver 100,000 new cars to Hertz by June 1 for its rental fleet. Ford only delivers 98,300 of the cars by June 1 and promises the rest soon. Ford has
engaged in substantial performance; hertz may not reject all the cars
In this context, Ford has delivered 98,300 new cars to Hertz, which is almost 98 per cent of the vehicles they guaranteed to deliver. As a result, they have engaged in substantial performance, which means that Hertz is not allowed to refuse all the cars as a breach of contract.
What is Substantial performance?
Substantial performance refers to a circumstance in which a party has effectively completed a contract's terms but may have done so with minor or inconsequential deviations. It is a legal doctrine that recognizes a party's right to partial payment for services rendered, even if they were not completed in accordance with the contract's specific requirements.
Gross domestic product (GDP) is the monetary value of all finished goods and services produced within a country's borders in a given period. It is a wide indicator of a country's economic health and is used to estimate the size and growth of an economy. GDP is typically calculated on an annual basis, but it can also be calculated on a quarterly or monthly basis, among other intervals.
learn more about Substantial performance here:
https://brainly.com/question/27323268
#SPJ11
