Answer:
Accept it.(Risk).
Explanation:
This is commonly known also as risk retention which is been encountered in business or investments. Many businesses use risk management techniques to identify, assess and prioritize risks for the purpose of minimizing, monitoring, and controlling said risks.
Most businesses and risk management personnel will find that they have greater and more numerous risks than they can manage, mitigate, or avoid given the resources they are allocated. As such, businesses must find a balance between the potential costs of an issue resulting from a known risk and the expense involved in avoiding or otherwise dealing with it. Types of risks include uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural causes and disasters, and overly aggressive competition.
The Nandina Corporation was formed and began operations on July 1, 2018, and incurred the following expenses during the year: State fees for incorporation $800 Legal and accounting fees incident to organization 1,500 Legal fees for the issuance of stock 600 Temporary directors’ fees 1,000 If the corporation chooses not to expense but rather amortizes organizational costs over 180 months, what is the amount of its amortization expense for 2018?
Answer:
$110.00
Explanation:
Nandina Corporation
The amount of amortization expenses for 2018
State fees for incorporation $800
Legal and accounting fees incident to organization 1,500
Temporary directors’ fees 1,000
Total $3,300
Hence:
$3,300/180 months x 6 months
= $110.00
Therefore the amount of its amortization expense for 2018 will be $110.00
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
A well-known financial writer argues that he can earn 148 percent per year buying wine by the case. Specifically, he assumes that he will consume one $12 bottle of fine Bordeaux per week for the next 12 weeks. He can either pay $12 per week or buy a case of 12 bottles today. If he buys the case, he receives a 9 percent discount and, by doing so, earns the 148 percent. Assume he buys the wine and consumes the first bottle today. Calculate the EAR.
Answer:
EAR = 148%
Explanation:
calculating the EAR ( applying the formula for present value of annuity )
cost of case = 12 * 12 * ( 1 - 0.09 ) = 131.04
Pv = 131.04
cost per case = $12
no of weeks = 12 weeks
rate of the wine per ( IRR ) = IRR(57;56;55;;;;1)= 1.76319
rate of the wine per week = 1.76319%
therefore EAR = ( 1 + 0.0176319) ^52 - 1 = 148.15% ≈ 148%
In January 2020, Sunland Company, a newly formed company, issued 10300 shares of its $8 par common stock for $13 per share. On July 1, 2020, Sunland Company reacquired 1030 shares of its outstanding stock for $10 per share. The acquisition of these treasury shares decreased total stockholders' equity. increased total stockholders' equity. did not change total stockholders' equity. decreased the number of issued shares.
Answer:
The correct option is the acquisition of these treasury shares decreased total stockholders' equity.
Explanation:
Initially the total stockholders' equity is $133,900 ($13*10,300) which comprised of $82,400 common stock ($8*10,300) $51,500 paid in capital in capital in excess of par value.
By repurchasing 1,030 treasury stock at $10,the total stockholders' equity decrease by $10,300,which leaves a balance of $123,600 ($133,900-$10,300).
In other words,the first option is the correct choice of answer
Teel Printing uses two measures of activity, press runs, and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $7,850 per month plus $402 per press run plus $952 per book set-up. The company expected its activity in July to be 206 press runs and 113 book set-ups, but the actual activity was 203 press runs and 112 book set-ups. The actual cost for wages and salaries in July was $196,180.
The spending variance for wages and salaries in July would be closest to
Answer:
Spending variance $100 unfavorable
Explanation:
The spending variance is the difference between the standard cost allowed for the actual activity and the actual cost of the activity
$
Standard cost allowed for the actual activity
=7,850 + (402×203) + (952×112)= 196,080
Actual cost 196,180
Spending variance 100 unfavorable
Use of the marginal cost of capital
a. None of these options are correct.
b. recognizes that the return from the last dollar of funds generated should be greater than or equal to the cost of the last dollar of funds raised.
c. acknowledges that when retained earnings are used up as a source of equity, the cost of capital rises as new common stock is sold to support more growth and recognizes that the return from the last dollar of funds generated should be greater than or equal to the cost of the last dollar of funds raised.
d. acknowledges that when retained earnings are used up as a source of equity, the cost of capital rises as new common stock is sold to support more growth.
Answer:
The correct answer is the option B: recognizes that the return from the last dollar of funds generated should be greater than or equal to the cost of the last dollar of funds raised.
Explanation:
To begin with, the concept of ''marginal cost of capital'' refers to the composite rate of return that is required by the shareholders and the debt-holders in order to establish a new investment in the actual company. Moreover, this type of cost relates to the weighted average cost of the last dollar of new capital raised by the company and is has the necessity of being greater than or at least equal to the cost of the last dollar of funds raised due to the fact that only in that way the investors will consider to invest again in a new project for the company.
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
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 37,000 customers, but actually served 27,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $5.50q
Wages and salaries: $35,200 + $1.70q
Supplies: $1.10q
Insurance: $12,400
Miscellaneous expenses: $8,400 + $0.50q
The company reported the following actual results for February:
Revenue $ 159,800
Wages and salaries $ 70,000
Supplies $ 16,400
Insurance $ 12,400
Miscellaneous expense $ 27,700
Required:
Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Answer and Explanation:
The preparation of company's flexible budget performance report for February is shown below:-
Arrasmith Corporation
Flexible budget performance report
For the month ended February
Planing Activity Flexible Revenue and Actual
budget variance budget spending result
variance
Customer
served 37,000 - 27,000 27,000
Revenue $203,500 $55,000 U $148,500 $11,300 F $159,800
(37,000 × $5.50q) (27,000 × $5.50q)
Expenses
Wages and
salaries $98,100 $17,000 F $81,100 $11,100 F $70,000
(37,000 × 1.70) + 35,200) (27,000 × 1.70) + 35,200
Supplies $40,700 $11,000 F $29,700 $13,300 F $70,000
(37,000 × 1.10) (27,000 × 1.10)
Insurance $12,400 $0 $12,400 0 $12,400
Miscellaneous
expenses $26,900 $5,000 F $21,900 $5,800 U $27,700
(37,000 × 0.50) + 8,400 (27,000 × 0.50) + 8,400
Total
expenses $178,100 $33,000 F $141,500 $18,600 F $126,500
Net operating
income $25,400 $22,000 U $3,400 $29,900 F $33,300
Therefore to reach net operating income we simply deduct the total expenses from Revenue.
Answer and Explanation:
As per the data given in the question,
ArraSmith Corporation
Flexible budget performance report
Planning Activity Flexible Revenue & spending Actual
budget Variance budget Variance Results
Customer served 37,000 27,000 27,000
Revenue $203,500 $55,000 U $148,500 $11,300 F $159,800
Expenses:
Wages and Salaries $98,100 $17,000 F $81,100 $11,100 F $70,000
Supplies $40,700 $11,000 F $29,700 $13,300 F $16,400
Insurance $12,400 0 $12,400 0 $12,400
Miscellaneous expense $26,900 $5,000 F $21,900 $5,800 U $27,700
Total expense $178,100 $33,000 F $145,100 $18,600 F $126,500
Net Operating Income $25,400 $22,000 U $3,400 $29,900 F $33,300
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
All of the following statements regarding leases are true except _______.
Multiple Choice:
A) For a finance lease, the lessee records the leased item as its own asset.
B) For a finance lease, the lessee amortizes the right-of-use asset acquired under the lease.
C) Finance leases create a liability on the balance sheet.
D) Finance leases do not transfer ownership of the asset under the lease, but operating leases often do.
E) For a short-term lease of a few days or weeks, the lessee records payments as rental expense.
Answer:
I think its D
Explanation:
Hpe this helps.
All of the following statements regarding leases are true except finance leases do not transfer ownership of the asset under the lease, but operating leases often do. Thus, option (d) is correct.
What is finance?
Finance includes borrowing money to go through tough times, saving money, and investing money. Finance is the provision of funds for credit against anything. Personal, public, and business finance are the three different categories.
Capital leases and finance leases are both common terms for the same thing. The duration of long-term leases is usually anticipated. When the operating lease expires, the leasing firm will return the asset.
Therefore, option (d) is correct.
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Whiplash Ltd. makes a single product and only one type of direct material is used to make this product. Whiplash uses a standard costing system and has provided the following data concerning the production of output in July: Actual number of units of output produced 7,800 units Materials quantity variance $2,609 Favorable (F) Materials spending variance $3,744 Favorable (F) Standard amount of materials used per unit of output 5.0 grams per unit Actual total materials purchased/used 37,830 grams Actual price per gram purchased/used $2.20 per gram Assume there were no beginning or ending inventories of direct materials. The standard price per gram for Whiplash, Ltd. is closest to:
Answer:
$2 per gram.
Explanation:
We are given the following parameters in the question above; the production of output in July: Actual number of units of output produced = 7,800 units, the Materials quantity variance = $2,609, the favorable (F) Materials spending variance = $3,744, the Favorable (F) Standard amount of materials used per unit of output = 5.0 grams per unit , the Actual total materials purchased/used = 37,830 grams and the Actual price per gram purchased/used = $2.20 per gram.
(37,830 × standard price) - (37,830 × 2.2 ) =$3,744.
Thus, (37,830 × standard price) = 79482.
Approximately, standard price = $2 per gram
Answer:
The standard price per gram for Whiplash, Ltd. is closest to $2.23 per gram
Explanation:
In order to calculate the The standard price per gram for Whiplash, Ltd we would have to use the following formula:
Material quantity variance=(standard quantity-Actual quantity)×standard price
$2,609=(5 grams×7,800-37,830)×standard price
$2,609=(39,000-37,830)×standard price
$2,609=1,170 grams×standard price
standard price=$2,609/1,170 grams
standard price=$2.23 per gram
The standard price per gram for Whiplash, Ltd. is closest to $2.23 per gram
Gratuities: A customer has a large sailing yacht on a vessel that your company will be discharging. The customer is present and is watching the off-loading operation. The five stevedores you manage pull off a very tricky maneuver, safely transferring the yacht to the trailer. The customer is elated, and reaches into his pocket, pulling out a big wad of $50 bills. What do you do?
Answer:
The answer is "Shifting".
Explanation:
Some information, that is choices is missing in the question so that the correct option can be identified as follows:
We assume, that the company is doing, as per the given scenario, it set out from the Query, the Market of Packers, and adjusting operation involving shifts to one position of industrial vehicles.
The Edwards Construction Supply Company is adopting a just-in-time inventory system. Jim Edwards, the president, has decided that restocking only when the inventory falls below a specific level will save the company thousands of dollars. Many of Edwards’ employees have been with the company for 30 years or more, and change like this might be unsettling for them. Edwards knows that his employees will be more comfortable with the system if their supervisors understand it fully. What purpose will this meeting serve?
Answer: To Provide a Smooth Transition
Explanation:
As the text mentions, many of Edwards’ employees who have been with the company for 30 years or more, might find change unsettling. However, they trust their supervisors enough to be comfortable if the Supervisors understand the new system.
For this reason, this meeting is very important as it is a chance to get the supervisors on board. Here the Edwards Company can explain in detail the new system so that the Supervisors can understand it thoroughly so that the employees might be able to follow them. Any questions or concerns can be dealt with which would make the transition smoother for the company and it's employees.
Guarder Consulting enters into a contract with Smith Co. to restructure some of Smith's processes with a goal of cost savings. The contract states that Guarder will earn a fixed fee of $35,000 and earn an additional $10,000 bonus if Smith achieves $100,000 of cost savings. Guarder estimates a 55% chance that Smith will achieve $100,000 of cost savings. Assuming that Guarder determines the transaction price as the expected value of consideration, what transaction price will Guarder estimate for this contract
Answer:
The transaction price that Guarder will estimate for this contract is $40,500
Explanation:
In order to calculate what transaction price will Guarder estimate for this contract Assuming that Guarder determines the transaction price as the expected value of consideration, we would have to calculate the expected value of expected consideration as follows:
expected value of expected consideration=Fixed Fee + Additional Income
expected value of expected consideration=$35,000+($10,000*55%)
expected value of expected consideration=$35,000+$5,500
expected value of expected consideration=$40,500
The transaction price that Guarder will estimate for this contract is $40,500
Company A sells paper coffee cups to all Caribou Coffee locations in the US. Company B sells dinner plates to Applebee’s. Company A charges $1 for a pack of 100 cups and Company B charges $3 for 1 dinner plate. Tell us exactly what information you would need to determine whether Company A or Company B has higher annual revenue and explain how you would calculate these two figures.
Answer:
Company A and Company B
Determination of annual revenue:
a) The information needed to determine which company has higher annual revenue include:
i) The annual quantities of packs of paper coffee cups sold to the Caribou Coffee locations in the US for a number of years.
ii) The annual quantities of dinner plates sold to Applebee's for the same years as above.
b) The annual revenues can be calculated by multiplying the price for a pack of 100 cups by the annual quantity sold.
Explanation:
Revenue is a function of price and quantity sold. The price is unit selling price and the quantity depends on the period for which revenue is being computed.
Revenue is the earnings from the sale of goods and services. The excess of revenue over cost of sales gives the gross profit, from which expenses would be deducted to arrive at net income after adding other incomes from non-operational activities.
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.
Vital Industries manufactured 1,200 units of its product Huge in the month of April. It incurred a total cost of $120,000 during the month. Out of this $120,000, $45,000 was the cost of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process. Ryan had no opening or closing inventory. What will be the total cost per unit of the product, assuming conversion costs contained $10,000 of indirect labor
Answer:
$100
Explanation:
In the question, we are given the following:
Total cost = $120,000
Units produced = 1,200 units
Therefore, we have:
Total cost per unit = $120,000 / 1,200 = $100
n the Month of March, Chester Corporation received orders of 180 units at a price of $15.00 for their product Cid. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 120 units in March and the balance of 60 units in April. They received payment for 60 units in March, 60 units in April, and 60 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands)
Answer:
Explanation:
Under accrual basis, revenue will recognize only after order delivered. so in march they didn't deliver any order. so income statement will report 0. in April they delivered 180 units. they can recognize a revenue of $15*180 = $2,700 in their April income statement.
So, answer will be. 0, $2,700
Apple Inc. designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPod) and mobile phones (iPhone) along with related accessories and services, including online distribution of third-party music, videos, and applications. The following information was taken from a recent annual report of Apple: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $ 6,956 $ 4,863 Machinery, equipment, and internal-use software 37,038 29,639 Other fixed assets 5,263 4,513 Accumulated depreciation and amortization (26,786) (18,391)
a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value (in millions) $ Preceding year book value (in millions) $ A comparison of the book values of the current and preceding years indicates that they increased . A comparison of the total cost and accumulated depreciation reveals that Apple purchased $ million of additional fixed assets, which was offset by the additional depreciation expense of $ million taken during the current year.
b. Would you normally expect Apple's book value of fixed assets to increase or decrease during the year?
Answer:
Explanation:
current year($) preceeding year($)
Land and building 6956 4863
Machinery ,equipment 37038 29639
internal-use software
Other fixed asset 5263 4513
Total asset 49257 39015
less:Accumulated depreciation -26786 -18391
and amortization
Book value 22471 20624
Additional fixed asset purchased : 49257 - 39015 = 10242 million
Depreciation : 26786 - 18391 = 8395
b) It is generally expected that apple fixed asset will increase as it requires latest fixed asset and technology for its manufacturing process.
ABC Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. It uses weighted-average costing. "What is the direct materials cost per equivalent unit during June?"
Answer:
The completed question is
ABC Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses weighted−average costing.
Data for the Assembly Department for June 2017 are:
Work in process, beginning inventory
380 units
Direct materials (100% complete)
Conversion costs (50% complete)
Units started during June
950 units
Work in process, ending inventory:
160 units
Direct materials (100% complete)
Conversion costs (75% complete)
Costs for June 2017:
Work in process, beginning inventory:
Direct materials
$91,500
Conversion costs
$136,000
Direct materials costs added during June
$601,000
Conversion costs added during June
Explanation:
Ending work in process= $87,380
Working
Reconciliation of Units
A Beginning WIP 380
B Introduced 970
C=A+B TOTAL 1,350
D Transferred out 1,180
E=C-D Ending WIP 170
.
Statement of Equivalent Units(Weighted average)
Material Conversion cost
Units Complete % Equivalent units Complete % Equivalent units
Transferred out 1,180 100% 1,180 100% 1,180
Ending WIP 170 100% 170 70% 119
Total 1,350 Total 1,350 Total 1,299
.
Cost per Equivalent Units (Weighted average)
COST Material Conversion cost TOTAL
Beginning WIP Inventory Cost $ 93,000 $ 137,000 $ 230,000
Cost incurred during period $ 600,500 $ 400,500 $ 1,001,000
Total Cost to be accounted for $ 693,500 $ 537,500 $ 1,231,000
Total Equivalent Units 1,350 1,299
Cost per Equivalent Units $ 513.70 $ 413.78 $ 927.48
.
Statement of cost (Weighted average)
Cost Equivalent Cost/unit Ending WIP Transferred
Units Cost Allocated Units Cost Allocated
Material $ 513.70 170 $ 87,329.63 1,180 $ 606,170.37
Conversion cost $ 413.78 119 $ 49,239.80 1,180 $ 488,260.20
TOTAL $ 1,231,000 TOTAL $ 136,569 TOTAL $ 1,094,431
Final Examination Hide or show questions Calculator Problem 9-23 (b) (LO. 2) Ricardo, who is self-employed, uses his automobile 85% for business and during 2019 drove a total of 32,200 business miles. Information regarding his car expenses is listed below. Business parking $345 Auto insurance 2,800 Auto club dues (includes towing service) 275 Toll road charges (business-related) 205 Oil changes and engine tune-ups 180 Repairs 1,890 Depreciation allowable 3,600 Fines for traffic violations (incurred during business use) 95 Gasoline purchases 4,125 What is Ricardo's deduction in 2019 for the use of his car if he uses:
Answer:
Explanation:
a) actual cost method:-
=deductions × percentage
= 345 + 205 + 85% (2800 + 275 + 180 + 1890 +3600 +4125 )
=550 + 10939.5
=11489.5 = 11490
Note :- fines are not taken.
b) automatic mileage method:-
=total number of business miles × standard rate
=32200×0.58 +345+205
=19226
Warren Buffet opposes stock splits to lower the share price because he believes:________.
a. lower share price will encourage other companies to try to take over the company from existing shareholders.
b. lower stock price encourages short term investing, whereas he is looking for long-term investors.
c. stock splits encourage long-term investing, which is detrimental to his firm's investment policy.
d. lower share price indicates poor growth prospects..
Answer:. b. lower stock price encourages short term investing, whereas he is looking for long-term investors.
Explanation:
Warren Buffet has stated that he does not want to split Berkshire Hathaway's stock because he believes that it would attract short term investors whereas he is looking for long term investors. He believes that a stock being split makes it susceptible to investors who just want to buy it for the meantime, wait for it to appreciate a bit and then sell. He however prefers Companies with a long term potential so he prefers people investing for the long run.
On January 1, Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31, Year 1. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Journalize the entries for the issuance of the note and the four annual note payments. Describe how the annual note payment would be reported in the Year 1 income statement.
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
1) The amortization schedule is presented on the attachment below:
2).
Journal Entry
1 Jan Cash A/c Dr. $147,750
To Notes payable A/c $147,750
(Being the cash received is recorded)
31 Dec Interest expense A/c Dr. $10,342.50
Notes payable A/c $33,277.50
To Cash A/c $43,620
(Being the annual payment of installment including interest is recorded)
31 Dec Interest expense A/c Dr. $8,013.08
Notes payable A/c $33,606.93
To Cash A/c $43,620
(Being the annual payment of installment including interest is recorded)
31 Dec Interest expense A/c Dr. $5,520.59
Notes payable A/c $38,099.41
To Cash A/c $43,620
(Being the annual payment of installment including interest is recorded)
31 Dec Interest expense A/c Dr. $2,853.83
Notes payable A/c $40,766.17
To Cash A/c $43,620
(Being the annual payment of installment including interest and setting off liabilities is recorded)
3).
Bryson Company
Income Statement
Particular Amount ($)
Revenue -
Expenses
Less - Interest expense 10,342.50
Less - Other expenses -
Net Income -
Which of the following would shift the long-run aggregate supply curve right? a. both an increase in the capital stock and an increase in the price level b. an increase in the capital stock, but not an increase in the price level c. an increase in the money supply, but not an increase in the capital stock d. neither an increase in the money supply nor an increase in the capital stock
Answer:
b. an increase in the capital stock, but not an increase in the price level.
Explanation:
In order to understand both short-run economic fluctuations and how the economy movement from short to long run, we need the aggregate supply and aggregate demand model.
An increase in the capital stock, but not an increase in the price level would shift the long-run aggregate supply curve right.
The long-run aggregate supply curve would shift rightward when immigration from foreign countries rises or technology improves.
When the price level rises, the wealth effect and the interest-rate effect provide incentives for consumers to spend less. The price level of goods and services in an economy influences the exchange rate, imports and exports
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
The following is cash flow data for Rocket Transport: Cash dividend $ 98,000 Purchase of bus $ 18,000 Interest paid on debt $ 25,000 Sales of old equipment $ 45,000 Repurchase of stock $ 127,000 Cash payments to suppliers $ 125,000 Cash collections from customers $ 480,000 a. Find the net cash provided by or used in investing activities. (Input the amount as positive value.) b. Find the net cash provided by or used in financing activities. (Input the amount as positive value.)
Answer:
a. Net cash flows from investing activities $27,000
b. Net cash flows from investing activities ($225,000)
Explanation:
Rocket Transport
Statement of cash flows (extract)
Purchase of vehicle ($18,000)
Proceeds from disposal of equipment $45,000
Net cash flows from investing activities $27,000
Dividend paid ($98,000)
Repurchase of stock ($127,000)
Net cash flows from investing activities ($225,000)
Note that interest paid, cash payments to suppliers and cash collections from customers affect the net cash flows from operating activities.
Answer:
Net Cash flow from Investing activities $27,000
Net Cash flow from Financing activities ($250,000)
Explanation:
a.
All the cash flows related to the fixed asset is called cash flows from the investing activities. Cash inflows from the sale fixed asset and cash outflows from the purchase of fixed assets are included in it.
Purchase of bus ($18,000)
Sales of old equipment $45,000
Net Cash flow from Investing activities $27,000
b.
Cash flow from financing activities is the cash inflows and outflows related to the fund of the business.
Cash dividend ($98,000)
Repurchase of stock ($127,000)
Interest paid on debt ($25,000)
Net Cash flow from Financing activities ($250,000)
Early in 2021, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2021 at a cost of $36 million. Of this amount, $24 million was spent before technological feasibility was established. Excalibur expects a useful life of five years for the new product with total revenues of $60 million. During 2022, revenue of $18 million was recognized. Required: 1. Prepare a journal entry to record the 2021 development costs. 2. Calculate the required amortization for 2022. 3. Determine the amount to report for the computer software costs in the December 31, 2022, balance sheet.
Answer:
Dr research and development expense $24,000,000
Dr computer software costs $12,000,000
Cr Cash $36,000,000
Amortization is $3,600,000
Balance sheet balance in 2022 is $8,400,000
Explanation:
The cash of $36 million spent would be credited to cash account as an outflow of cash while $24 million would be debited to research and development expense account with the balance of $12 debited to computer software costs as asset
amortization for 2022=cost of software*revenue in 2022/total estimated revenue=$12,000,000*$18,000,000/$60,000,000=$3,600,00
Amount of computer software at 31 December 2022=$12,000,000-$3,600,000=$ 8,400,000
According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. $ b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.
Answer:
a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
$9,800b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.
Dr FICA Social Security expense 6,600Dr FICA Medicare expense 1,650Dr Federal unemployment tax expense 200Dr State unemployment tax expense 1,350 Cr FICA Social Security payable 6,600 Cr FICA Medicare payable 1,650 Cr Federal unemployment tax payable 200 Cr State unemployment tax payable 1,350Explanation:
payroll taxes should be:
social security $110,000 x 6% = $6,600
Medicare $110,000 x 1.5% = $1,650
federal unemployment $25,000 x 0.8% = $200
state unemployment $25,000 x 5.4% = $1,350
total = $9,800
Both employees and employers must pay equal amounts of FICA taxes (social security and medicare), but only employees pay unemployment taxes.
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
Mills Corporation's balance sheet included the following information: Accounts Receivable $ 580,000 Less: Allowance for Doubtful Accounts 73,000 Accounts Receivable, Net of Allowance $ 507,000 If the Allowance account had a credit balance of $31,500 immediately before the year-end adjustment for bad debts and no accounts were written-off or allowed for during the year, what was the amount of Bad Debt Expense recognized during the year
Answer:
The amount of Bad Debt Expense recognized during the year is $41,500.
Explanation:
Bad debt expense is an estimate of the accounts receivable that is deemed uncollectible. At times, it is determined by percentage of credit method or aging method.
If the allowance account had an opening balance of $31,500 before adjustment and there was no rite-off during the period, with a closing balance of $73,000, the bad debt expense is simply the difference between the closing balance and the opening balance, that is , $73,000 - $31,500 = $41,500.
