Answer:
Positive Externality
Explanation:
Externalities are extra side effects to third un-involved party, without any monetary transaction for the same
Positive Externality is the positive side effect to third un-involved party, without any monetary transaction for the same. Negative Externality is negative side effect to third un-involved party, without any monetary transaction for the same.
The Local bride shop has only paid for the road signage facelift. Despite, all the seven other shops sharing strip mall with it also use the sign. This act of local bride shop will have more visibility & other benefits for all the other 7 businesses linked to it, who have not although paid for it. So, the other 7 businesses have a positive extra effect due to local bride shops' act. Hence it is a positive externality for all of them.
Damon Corporation issued $400,000 of 6% bonds on May 1, 2020 using straight-line interest. The bonds were dated January 1, 2020, and mature January 1, 2023, with interest payable July 1 and January 1. The bonds were issued at face value plus accrued interest.
Prepare Damon's journal entries for (a) the May 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry.
Answer:
May 1
Dr Cash408,000
Cr Bonds Payable 400,000
Cr Interest Expense 8,000
July 1
Dr Interest Expense 12,000
Cr Cash 12,000
Dec 31
Dr Interest Expense 12,000
Cr Interest Payable12,000
Explanation:
May 1,
Dr Cash408,000
Cr Bonds Payable 400,000
Cr Interest Expense 8,000(Accrued Interest = 400,000 x 6% x 4/12)
July 1
Dr Interest Expense 12,000
Cr Cash 12,000(Bond interest expense = 400,000 x 6% x 6/12)
Dec 31
Dr Interest Expense 12,000
Cr Interest Payable12,000
Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $54,000 to $66,000. If he adds one more tractor, monthly revenue will increase from $54,000 to $62,000. Each additional worker costs $4,000 per month, while an additional tractor would also cost $4,000 per month.
. a. What is the marginal revenue product of labor? The marginal revenue product of capital?
b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/PL)? . What is the ratio of the marginal product of capital to the price of capital (MRPK/PK)?
. c. Is the firm using the least-costly combination of inputs?
d. Does adding an additional worker or adding an additional tractor yield a larger increase in total revenue for each dollar spent?
Answer:
A.$12,000
B.$8000
C.MRPL/PL = 3
MRPK/PK =2
D) Since each of the above calculated ratios are more than one, therefore adding additional worker or tractor will increase the total revenue for each of the dollar spent.
Explanation:
(a) The Marginal Revenue Product of Labor (MRPL) can said to be the additional revenue generated when an additional worker is employed.
$66,000 - $54,000 = $12,000
Thus, MRPL is 12,000
b) Marginal revenue product of capital is
( 62000 - 54000)= $8000
c) MRPL/PL = 12000/ 4000= 3
MRPK/PK = 8000/4000=2
Therefore Since these two ratios are not equal it means the firm is not using the least cost combination of inputs.
d) Since each of the above calculated ratios are more than one, therefore adding additional worker or tractor will increase the total revenue for each of the dollar spent.
A registered securities agent solicits a customer to buy mutual fund shares. The customer buys 200 shares, sending a check made out to the fund's custodian bank to the agent. The agent does not record the trade on the books of the broker-dealer.
Under the Uniform Securities Act, this action is:
Answer: prohibited private securities transaction
Explanation: The action performed by the registered securities agent by soliciting a customer to buy mutual funds and not recording the trade in the books after the customer buys under the Uniform Securities Act is a prohibited private securities transaction. This is essentially because private securities transactions are a prohibited business practice under the Act as a result, every trade effected by an agent must be recorded on the books of the broker-dealer and which in turn must be supervised by the broker-dealer.
Suppose that preferences over private consumption C and public goods G are such that these two goods are perfect substitutes, that is, the marginal rate of substitution of public goods for private goods is a constant b > 0. Determine the optimal quantity of public goods that the government should provide, and interpret your results. Make sure you show all of the relevant cases. What happens when b changes, or when q changes?
Repeat part (a), except with perfect complements preferences, that is, for the case where the representative consumer always wishes to consume private consumption goods and public goods in fixed proportions, or C = aG, with a > 0.
Answer:
Please see explanation below.
Explanation:
Public goods are goods consumed collectively, they are provided for all members of a community,
no one can be excluded from their consumption. The consumption by one person does not decrease the consumption possibilities for others. Public goods are available for everybody without paying, and these goods cannot be rationed: they are either provided for the whole community, or for no one. Examples of public goods include the public lighting system, public roads, radio broadcasts, national defence, lighthouses, town pavements, etc.
Private goods, on the other hand, are goods consumed individually, and if a unit has been consumed by
someone, then no one else can also consume the same unit. Private goods are scarcely available, and consuming a unit will decrease the amount available for further consumption. Therefore consumers compete for private goods, i.e. private goods are rival in consumption. Consumers can consume them if they pay the price, non-payers are excluded from consumption.
In the first scenario, given that both the private good and public good are perfect substitutes, the optimum quantity produced by the government is at the point where marginal social cost is equal to the marginal social benefit. This optimum output is lower than that of the private firm because the price of public good is higher than price of private good (since marginal social cost > marginal private cost).
If b increases, that means consumers are willing to give up more units of public goods for one unit of the private good. Therefore, the quantity produced by the government will reduce.
For the second part of the question: C = aG, where a > 0.
This implies that equal or more units of the private good is consumed with a particular units of public good. The optimum output still remain at the point where marginal social cost is equal to marginal social benefit but this output level is lower than if the two goods were to be perfect substitutes.
Which one of the following statements is CORRECT? A Since companies can deduct dividends paid but not interest paid, our tax system favors the use of equity financing over debt financing, and this causes companies’ debt ratios to be lower than they would be if interest and dividends were both deductible. B Interest paid to an individual is counted as income for federal tax purposes and taxed at the individual’s regular tax rate, which in 2008 could go up to 35%, but dividends received were taxed at a maximum rate of 15%. C The maximum federal tax rate on corporate income in 2008 was 50%. D The maximum federal tax rate on personal income in 2008 was 50%.
Answer: B. Interest paid to an individual is counted as income for federal tax purposes and taxed at the individual’s regular tax rate, which in 2008 could go up to 35%, but dividends received were taxed at a maximum rate of 15%.
Explanation:
Interest received by individuals is considered gross income and as such is eligible for taxation.
The tax rate is dependant on the income of the Individual's income which in 2005 was up to 35% but is now up to 39.6%.
Dividends received however are taxed up to 15%.
Final answer:
Statement B is correct about tax rates on interest and dividends. Dual taxation is a financial disadvantage for corporations. Tax efficiency and market distortions are key considerations in the income tax system.
Explanation:
Statement B is correct. Interest paid to an individual is counted as income for federal tax purposes and taxed at the individual’s regular tax rate, which in 2008 could go up to 35%, but dividends received were taxed at a maximum rate of 15%. This discrepancy in tax rates between interest and dividends creates different tax implications for individuals.
Dual taxation is a significant financial disadvantage faced by corporations where profits are taxed twice: once at the corporate level and again when dividends are distributed to shareholders, causing complexity in corporate tax regulations.
Tax efficiency and market distortions, as mentioned in the text, highlight the complexities and debates surrounding the impact of tax preferences and incentives in the federal income tax system on individual behaviors and economic activities.
Consider the following three items: CQ, EI, and AP = PP + S – T. How might you to achieve improved outcomes for groups that have a specific set of objectives but the limited time and resources. Focus on how these concepts can help you make a difference across the entire group. Highlight how you can improve positive influences, and especially preempt or limit negative sentiments.
Answer:
How to achieve improved outcomes for groups that have specific set of objectives focusing on how the concepts can be used to make a difference across the group
making each member of the group understand each other emotionally and their ways of performing tasksmaking each member of the group understand their importance in the entire production process making the group members aware about the importance of optimum utilization of resources and avoid wasting resources while workingmaking the group understand the possibility of achieving good performance by eliminating work threatsmaking the group understand the organization's structure therefore it makes the group culturally intelligentHow you can improve positive influences and especially preempt or limit negative sentiments
increasing the dependency culture among each other so they learn to work with each other in harmony.creating friendly relationships between employees and also between employees and employermaking the employees understand and practice proper organizational culture so that they can work judiciously following the organizational structureExplanation:
Note :
CQ = cultural intelligence
EI = emotional intelligence
AP = actual productivity
PP = potential productivity
S = synergy
T = performance threats
How to achieve improved outcomes for groups that have specific set of objectives focusing on how the concepts can be used to make a difference across the group
making each member of the group understand each other emotionally and their ways of performing tasksmaking each member of the group understand their importance in the entire production process making the group members aware about the importance of optimum utilization of resources and avoid wasting resources while workingmaking the group understand the possibility of achieving good performance by eliminating work threatsmaking the group understand the organization's structure therefore it makes the group culturally intelligentHow you can improve positive influences and especially preempt or limit negative sentiments
increasing the dependency culture among each other so they learn to work with each other in harmony.creating friendly relationships between employees and also between employees and employermaking the employees understand and practice proper organizational culture so that they can work judiciously following the organizational structureThe Ralston Company manufactures a special line of graphic tubing items. The company estimates it will sell 85,000 units of this item in 2016. The beginning finished goods inventory contains 30,000 units. The target for each year's ending inventory is 20,000 units. Each unit requires six feet of plastic tubing. The tubing inventory currently includes 85,000 feet of the required tubing. Materials on hand are targeted to equal 3 months' production. Any shortage in materials will be made up by the immediate purchase of materials. Sales take place evenly throughout the year. What is the production budget (in units) for 2016
Answer:
Production budget = 75,000 units
Explanation:
The production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories.
Production = Sales volume + closing inventory - opening inventory
Production budget for 2016
=85,000 + 20,000 - 30,000
= 75,000 units
Cullumber Corporation earns $840000 and pays cash dividends of $300000 during 2021. Dexter Corporation owns 4200 of the 10000 outstanding shares of Cullumber. What amount should Dexter show in the investment account at December 31, 2021 if the beginning of the year balance in the account was $1080000?
Answer: $1,306,800
Explanation:
In answering this question, we look at how much of that income, Cullumber still had on hand and then take the proportion that belongs to Dexter.
Cullumber Corporation earns $840,000 and pays cash dividends of $300,000 during 2021.
That means that after paying the dividends they are left with,
= 840,000 - 300,000
= $540,000
Now, Dexter owns 4200 out of 10,000 shares. That means they own,
= 4,200/10,000
= 42% of Cullumber Corporation stock.
If they own 42% of the stock, they are entitled to 42% of the income so,
= 42% * 540,000
= $226,800
Now we then add this figure to the opening balance,
= $1,080,000 + $226,800
= $1,306,800
$1,306,800 is the amount Dexter should show in the investment account at December 31, 2021.
Mary Strand’s regular hourly wage rate is $14, and she receives an hourly rate of $21 for work in excess of 40 hours. During a January pay period, Mary works 45 hours. Mary’s federal income tax withholding is $85, and she has no voluntary deductions. Compute Mary Strand’s gross earnings and net pay for the pay period. Assume that the FICA tax rate is 7.65%. (Round answers to 2 decimal places, e.g. 15.25.)
Final answer:
Mary Strand's gross earnings for the pay period are $665, and after accounting for FICA and federal income tax withholdings, her net pay is $529.13.
Explanation:
To compute Mary Strand's gross earnings for a January pay period where she works 45 hours, we need to consider her regular hourly wage and overtime pay. Mary's regular earnings for 40 hours at $14 per hour is $560 (40 hours * $14/hour). Her overtime earnings for the additional 5 hours at $21 per hour is $105 (5 hours * $21/hour). Therefore, her total gross earnings would be $665 ($560 + $105).
The net pay is calculated by subtracting Mary's taxes and other deductions from her gross earnings. First, we calculate the FICA tax, which is 7.65% of her gross earnings: $665 * 7.65% = $50.87 (rounded to two decimal places). Her federal income tax withholding is $85. Therefore, her total deductions are $135.87 ($85 + $50.87). Subtracting this from her gross earnings gives us her net pay: $665 - $135.87 = $529.13.
So, Mary Strand's gross earnings for the pay period are $665, and her net pay is $529.13 (rounded to two decimal places).
An incomplete cost of goods manufactured schedule is presented below. Complete the cost of goods manufactured schedule for Hobbit Company. HOBBIT COMPANY Cost of Goods Manufactured Schedule Work in process (1/1) $216,680 Direct materials Raw materials inventory (1/1) $ Add: Raw materials purchases 159,060 Total raw materials available for use Less: Raw materials inventory (12/31) 29,230 Direct materials used $183,850 Direct labor Manufacturing overhead Indirect labor 26,160 Factory depreciation 40,720 Factory utilities 73,100 Total overhead 139,980 Total manufacturing costs Total cost of work in process Less: Work in process (12/31) 84,720 Cost of goods manufactured $546,610
Answer:
HOBBIT COMPANY
Cost of Goods Manufactured Schedule
Direct materials Raw materials inventory (1/1) $ 54020
Add: Raw materials purchases 159,060
Total raw materials available for use 213080
Less: Raw materials inventory (12/31) 29,230
Direct materials used $183,850
Direct labor $ 90820
Manufacturing overhead 139,980
Indirect labor 26,160
Factory depreciation 40,720
Factory utilities 73,100
Total overhead 139,980
Total manufacturing costs $414650
Work in process (1/1) $216,680
Total cost of work in process $ 631330
Less: Work in process (12/31) 84,720
Cost of goods manufactured $546,610
Explanation:
HOBBIT COMPANY
Cost of Goods Manufactured Schedule
Direct materials Raw materials inventory (1/1) $ 54020
Add: Raw materials purchases 159,060
Total raw materials available for use 213080
Less: Raw materials inventory (12/31) 29,230
Direct materials used $183,850
STEP 1) Using the direct materials used figure we move upwards to calculate the missing figures doing reverse calculations.
Direct materials used + Raw materials inventory =Total raw materials available for use
Total raw materials available for use =$183,850 +29,230 =213080
Total raw materials available for use -Raw materials purchases=Direct materials Raw materials inventory
Direct materials Raw materials inventory=213080- 159,060 = 54020
Direct materials used $183,850
Direct labor $ 90820
Manufacturing overhead 139,980
Indirect labor 26,160
Factory depreciation 40,720
Factory utilities 73,100
Total overhead 139,980
Total manufacturing costs $414650
Work in process (1/1) $216,680
Total cost of work in process $ 631330
Less: Work in process (12/31) 84,720
Cost of goods manufactured $546,610
STEP 2) Moving backwards from the Cost of goods manufactured figure we find the Total cost of work in process doing reverse calculations
Cost of goods manufactured $546,610 + Work in process (12/31) 84,720 =Total cost of work in process
Total cost of work in process =$546,610 + 84,720 = $ 631330
STEP 3) Then we find the total manufacturing Cost .
Total cost of work in process Less Work in process (1/1) $216,680 =Total manufacturing costs
Total manufacturing costs =$ 631330-$216,680 = $414650
STEP 4) From the Total manufacturing costs we find the Direct labor using the following
Direct labor =Total manufacturing costs-Manufacturing overhead 139,980-Direct materials used $183,850
Direct labor = $414650-139,980- $183,850 = $ 90820
The completion of the Cost of Goods Manufactured Schedule is as follows:
Cost of Goods Manufactured Schedule
Work in process (1/1) $216,680
Direct materials 183,850
Direct labor 90,920
Manufacturing overhead 139,980
Total manufacturing costs $631,330
Less: Work in process (12/31) 84,720
Cost of goods manufactured $546,610
Data and Calculations:
Raw materials inventory:
Raw materials inventory (1/1) $54,020
Add: Raw materials purchases 159,060
Total raw materials available for use $213,080
Less: Raw materials inventory (12/31) 29,230
Direct materials used $183,850
Total raw materials available for use = $213,080 ($29,230 + $183,850)
Raw materials inventory at January 1 = $54,020 ($213,080 - $159,060)
Manufacturing overhead
Indirect labor 26,160
Factory depreciation 40,720
Factory utilities 73,100
Total overhead 139,980
Total manufacturing costs:
The total cost of work in process $631,330
Less: Work in process (12/31) 84,720
Cost of goods manufactured $546,610
Total cost of work in process = $631,330 ($546,610 + $84,720)
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Cullumber Construction Company earned $400,000 during the year ended June 30, 2017. After paying out $225,794 in dividends, the balance went into retained earnings. If the firm's total retained earnings were $841,936 at the end of fiscal year 2017, what were the retained earnings on its balance sheet on July 1, 2016
Answer:
Opening balance of retained earnings is $667,730
Explanation:
The balance of retained earnings at the the end is the sum of opening balance, profit earned and less dividend payment for the period
Retained earnings at the end = Opening balance + profit - dividend
let y represent the opening balance
841, 936 = y + 400,000 - 225,794
y= 841, 936-400,000 + 225,794
y= $667,730
Opening balance of retained earnings = balance sheet on July 1, 2016 is $667, 730
Consider a US treasury bill that matures in one year compared to a US treasury bond that matures in 10 years. Select one: a. The one year bond has more credit risk. b. Both bonds are risk free. c. The ten year bond has more credit risk. d. The ten year bond has more interest rate risk. e. The one year bond has more interest rate risk.
Answer: b. Both bonds are risk free.
Explanation:
Both the Short term US Treasury bill and the longer term US Treasury bond are backed by the full faith and weight of the Government of United States of America.
The United States has never defaulted on a payment in the modern era. It is for this reason that US bonds are considered the epitome of safe and their rates are usually given as the risk free rate.
T-bills and T-Bonds along with T-Notes and Treasury Inflation-Protected Securities (TIPS) are considered to be the safest instruments in the world.
Cholla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $27,000 and budgeted production of 30,000 units. Actual results for the month of October reveal that Cholla produced 28,000 units and spent $25,500 on fixed manufacturing overhead costs.Calculate Cholla’s fixed overhead rate and the fixed overhead volume variance. (Round "Fixed Overhead Rate" to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)Fixed Overhead Rate per UnitFixed Overhead Volume Variance
Answer:
Explanation:
Fixed overhead rate = budgeted fixed manufacturing overhead
budgeted production
= 27000
30000
= $ 0.90 per unit
Absorbed Fixed overhead = Actual Output × Fixed overhead rate
= 28000 × 0.90
= 25200
Budgeted Fixed overhead = Budgeted Output × Fixed overhead rate
= 30000 × 0.90
= 27000
Fixed Overhead Volume Variance = Absorbed Fixed overhead - Budgeted Fixed overhead
= | 25200 - 27000 |
= $1800 ( unfavourable )
When examining the Fed's balance sheet, in most periods, the two most important assets are: A. U.S. Treasury securities and Gold. B. Gold and Mortgage minus backed securities. C. Mortgage minus backed securities and Discount loans to banks. D. U.S. Treasury securities and Discount loans to banks.
Answer: D. U.S. Treasury securities and Discount loans to banks.
Explanation: When examining the Fed's balance sheet, in most periods, the two most important assets are U.S. Treasury securities and Discount loans to banks. The Fed's balance sheet balance sheet includes a large number of distinct assets and liabilities containing a great deal of information about the scale and scope of its operations. Of these assets the U.S. Treasury securities and Discount loans to banks are paramount.
U.S Treasury securities are such as bills, notes and bonds issued by the U.S. government viewed as having virtually no credit risk. As such, they are debt obligations of the U.S. government.
Discount loans to banks are direct short term loans provided to banks by the Fed to meet temporary shortages of liquidity caused by internal or external disruptions.
Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow:
Division Osaka Yokohama
Sales $ 10,700,000 $ 37,000,000
Net operating income $ 749,000 $ 3,330,000
Average operating assets $ 2,675,000 $ 18,500,000
For each division, compute the return on investment (ROI) in terms of margin and turnover.
Answer:
Osaka ROI is 28%
Yokohama ROI is 18%
Explanation:
The formula for return on investment =net income/average operating assets*100
For Osaka division:
net income is $749,000
average operating assets is $2,675,000
return on investment=$749,000/$2,675,000*100
=28%
For Yokohama
net income is $3,330,000
average operating assets is $18,500,000
return on investment=$3,330,000/$18,500,000
=18%
Even though Yokohama has a higher net operating income ,the Osaka division recorded a better performance using ROI as a performance metric,which shows profit computation is an absolute figure which does not consider the amount of resources invested in order to earn the profit
Pina Colada Corp. developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value(LCNRV) basis in valuing inventories: Product Cost Market A $125000 $132000 B 88000 84000 C 176000 178000 After Pina Colada Corp. applies the LCNRV rule, the value of the inventory reported on the balance sheet would be
Answer:
$385,000
Explanation:
The computation of value of the inventory reported using the LCNRV rule is shown below:
Product Cost Market Lower value of cost and market
A $125,000 $132,000 $125,000
B $88,000 $84,000 $84,000
C $176,000 $178,000 $176,000
Ending inventory value $385,000
Based on this, the value of the ending inventory is $385,000 by applying the LCNRV rule
Mr. Beautiful, an organization that sells weight trainingsets, has an ordering cost of $45 for the BB-1 set (BB-1 stands for Body Beautiful Number 1). The carrying cost for BB-1 is $20 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 7 times a year. The stockout cost for BB-1 is estimated to be $45
per set. Over the past several years, Mr. Beautiful has observed the following demand during the lead time for BB-1: Demand During Lead Time Probability
Value 1 10 0.1
Value 2 30 0.2
Value 3 50 0.2
Value 4 70 0.2
Value 5 90 0.2
Value 6 110 0.1
The reorder point for BB-1 is 50 sets. What level of safety stock should be maintained forBB-1?
The optimal quantity of safety stock which minimizes expected total cost is nothing ______
Answer:
839.216
Explanation:
For we to calculate the total cost, we use the following
Total Cost = Carrying Cost + Stock out Cost
= 0+ $45 x 4 x [.2(100-80)+.2(120-80)+.1(140-80)] = 1368*
Now
Total Cost = Carrying Cost + stock out Cost
Total cost= [10 x 20]+40 x 4 x [.2990-50-20)+.1(110-50-20)]
Total cost = 200-1115.216+4
Total cost = 839.216
In this exercise we have to use statistical knowledge to find the optimal quantity that best fits the informed stock, thus we have to:
[tex]839.216[/tex]
For we to calculate the total cost, we use then using the formula bellow:
[tex]Total\ Cost = Carrying \ Cost + Stock \ out \ Cost[/tex]
Substituting the values given in the text we have to:
[tex]0+ \$45 * 4 * [2(100-80)+2(120-80)+1(140-80)] = 1368[/tex]
They are using the total cost formula, we have to:
[tex]Total \ Cost = Carrying \ Cost + stock \ out \ Cost[/tex]
Substituting the values given in the text we have to:
[tex]Total = [10 * 20]+40 * 4 * [2990-50-20)+1(110-50-20)]\\Total = 200-1115.216+4\\Total = 839.216[/tex]
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Which citation style did you learn to use in this course?
A.
American Psychological Association style
B.
Chicago Manual style
C.
Modern Language Association style
D.
Library Association style
Please select the best answer from the choices provided
A
B
C
D
The citation style I learned to use in this course is APA (American Psychological Association) style.
Explanation:The citation style that I learned to use in this course is American Psychological Association style (APA). APA style is often used in education, psychology, and science fields. It emphasizes author names and dates of publication in in-text citations and provides guidelines for creating a list of references at the end of a document. The citation style I learned to use in this course is APA (American Psychological Association) style.
1-a. Assume that Andretti Company has sufficient capacity to produce 120,150 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 35% above the present 89,000 units each year if it were willing to increase the fixed selling expenses by $140,000. What is the financial advantage (disadvantage) of investing an additional $140,000 in fixed selling expenses?
Answer:
The answer is given below;
Explanation:
The opportunity gain of investing in fixed selling expenses could be quantified by comparing with interest rates prevailing in the market.
if the net margin earned on producing extra quantity is greater than the return earned on placing funds in bank account,then it is financially viable to invest in fixed selling expenses and vice versa.
Consider each of the items below. Please the proper letter in the blank space provided to indicate the nature of the account or accounts to be debited when recording each transaction using the preferred accounting treatment. Prepayments should be recorded in balance sheet accounts. Disregard income tax consideration unless instructed otherwise. a. asset(s) only b. accumulated depreciation only c. expense only d. asset(s) and expense e. some other account or combination of accounts ____________A motor in one of North Company's trucks was overhauled at a cost of $000. It is expected that this will extend the life of the truck for two years. ____________Machinery which cost $130.000 was repaired at a cost of $4.500 for damage sustained during its installation. _____________Orlando Company recently purchased land and two buildings for a total cost of $35,000, and entered the purchase on the books.The $1, 200 cost of razing the smaller building, which has an appraisal value of $8, 200, is recorded. ___________Janzen Company traded its old machine with a net book value of $3,000 plus cash of $7,000 for new one which had a fair value of $9,000.____________ Jim Para and May Lawson, maintenance repair workers, spent five days in unloading and setting up a new $8,000 precision machine in the plant. The wages earned is this five-day period, $490, are. _______On June 1, the Minot Hotel installed a sprinkler system throughout the building at a cost of $13,000. As a result the insurance rate was decreased by 40%.__________An improvement, which extended the life but not the usefulness of the asset, cost $8,000. The antic of the administration building was finished at a cost of $3,000 to provide an additional office.__________ In March, the Lyon The stare bought projection equipment on the installable basis. The contract price was $23,000 payable $5.610 down and $2.250 a months. The cash price for this equipment was $22, 530. ________Lambert Company recorded the first year's interest on 6% insert on 0% $100,000 ten-year bonds sold a year ago at 94. The bonds were sold to finance the construction of a hydroelectric plant. Six months after the sale of the bonds the construction of the hydroelectric plant was completed and operations were beam.
Answer: Please refer to Explanation
Explanation:
ACCUMULATED DEPRECIATION ONLY .A motor in one of North Company's trucks was overhauled at a cost of $000. It is expected that this will extend the life of the truck for two years.
ASSETS ONLY.Machinery which cost $130.000 was repaired at a cost of $4.500 for damage sustained during its installation.
ASSETS ONLY. Orlando Company recently purchased land and two buildings for a total cost of $35,000, and entered the purchase on the books.The $1, 200 cost of razing the smaller building, which has an appraisal value of $8, 200, is recorded.
SOME OTHER ACCOUNT OR COMBINATION OF ACCOUNTS. Janzen Company traded its old machine with a net book value of $3,000 plus cash of $7,000 for new one which had a fair value of $9,000.
ASSETS ONLY. Jim Para and May Lawson, maintenance repair workers, spent five days in unloading and setting up a new $8,000 precision machine in the plant. The wages earned is this five-day period, $490, are.
ASSETS ONLY. On June 1, the Minot Hotel installed a sprinkler system throughout the building at a cost of $13,000. As a result the insurance rate was decreased by 40%.
ACCUMULATED DEPRECIATION ONLY .An improvement, which extended the life but not the usefulness of the asset, cost $8,000.
ASSET ONLY. The antic of the administration building was finished at a cost of $3,000 to provide an additional office.
SOME OTHER ACCOUNT OR COMBINATION OF ACCOUNTS. In March, the Lyon The stare bought projection equipment on the installable basis. The contract price was $23,000 payable $5.610 down and $2.250 a months. The cash price for this equipment was $22, 530.
ASSET(s) AND EXPENSE. Lambert Company recorded the first year's interest on 6% insert on 0% $100,000 ten-year bonds sold a year ago at 94. The bonds were sold to finance the construction of a hydroelectric plant. Six months after the sale of the bonds the construction of the hydroelectric plant was completed and operations were beam.
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Suppose that an American opens and operates a candy factory in Finland. This is an example of a. foreign portfolio investment. We can expect it to increase Finnish GNP more than Finnish GDP. b. foreign portfolio investment. We can expect it to increase Finnish GDP more than Finnish GNP. c. foreign direct investment. We can expect it to increase Finnish GDP more than Finnish GNP. d. foreign direct investment. We can expect it to increase Finnish GNP more than Finnish GDP.
Answer: c. foreign direct investment. We can expect it to increase Finnish GDP more than Finnish GNP.
Explanation:
By directly opening a company in Finland, the American company has engaged in Foreign Direct Investment because it has actual control as it operates the candy factory.
Now, as you may or may not know, Gross Domestic Product (GDP) is the total amount of goods Produced IN a country in a given period which is usually a year.
Gross National Product on the other hand, is the GDP + ( Net income from foreign Investment). That means when calculating GNP, you take do this,
GNP = GDP + Income from foreign Investment - income from foreign Investment within the country.
Essentially it removes foreign owned production from the GDP and adds the country's own foreign investments in other countries.
What this means is that, the GDP will be strengthened by the the opening of the company in Finland by the Americans because it will contribute to GDP. But GNP will not be so lucky because when counting GNP, the income from the Candy company will be subtracted because it is foreign owned.
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Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic.
Activity Expected Costs Expected Activity
Handling materials $625,000 100,000 parts
Inspecting product 900,000 1,500 batches
Processing purchase orders 105,000 700 orders
Paying suppliers 175,000 500 invoices
Insuring the factory 300,000 40,000 square feet
Designing packaging 75,000 2 models
Required:
a. Compute a single plantwide overhead rate for the year, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours.
b. In January of this year, the Deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate.
Answer:
a $17.44 per direct labor hour
b. Assignment of Overheads
Deluxe model =$43,600
Basic model = $104,640
Explanation:
Plant wide overhead rate is the allocation rate used for allocating overheads (indirect costs) to jobs or products calculated for the whole entity.
Plant wide overhead rate = Budgeted Overheads / Budgeted Activity.
Calculation of Budgeted Overheads :
Handling materials 625,000
Inspecting product 900,000
Processing purchase orders 105,000
Paying suppliers 175,000
Insuring the factory 300,000
Designing packaging 75,000
Total Cost 2,180,000
Plant wide overhead rate = Budgeted Overheads / Budgeted Activity.
= $2,180,000/125,000
= $17.44 per direct labor hour
Assignment of Overheads
Deluxe model required 2,500 direct labor hours
Deluxe model = 2,500 × $17.44
= $43,600
Basic model required 6,000 direct labor hours
Basic model = 6,000 × $17.44
= $104,640
Austin Fisher contributed land, inventory, and $34,000 cash to a partnership. The land had a book value of $70,000 and a market value of $127,000. The inventory had a book value of $62,000 and a market value of $57,700. The partnership also assumed a $50,000 note payable owed by Fisher that was used originally to purchase the land. Provide the journal entry for Fisher.
Answer:
The journal entry will be as follows;
Explanation:
Cash Dr.$34,000
Land Dr.$127,000
Inventory Dr.$57,700
Note Payable Cr.$50,000
Capital-Fisher Cr.$168,700
With contribution of assets net off of note payable by partnership,the fisher capital will be recorded in partnership.
If a firm has a $1,500,000 debt limit before AT kd will change and if taxes are 40% and total equity in the capital structure is 40% and the rest is debt, calculate the debt breakpoint in the MCC schedule.
Answer:
$2,500,000
Explanation:
Break Point = Level of debt / Weight of debt
(100%-40%)
=60%
Hence:
= 1,500,000 / 60%
= $2,500,000
Therefore the debt breakpoint in the MCC schedule will be $2,500,000
Joni wants to know how much a pedicure cost back in 1954, when her grandmother was her age. The Consumer Price Index (CPI) in 1954 was 26.7 and is 245.9 this year. A pedicure costs $ 45 today. Round your answer to the nearest penny.
Using the Consumer Price Index (CPI) to adjust for inflation, the cost of a pedicure in 1954 can be calculated as $4.89 when rounded to the nearest penny.
Explanation:To determine the cost of a pedicure in 1954 using the Consumer Price Index (CPI), we need to use the CPI for 1954 and the current year as well as the cost of a pedicure today. The formula to adjust a price from an earlier year based on CPI is:
Price in Past Year = (Price in Current Year) * (CPI in Past Year / CPI in Current Year)
Using the information provided:
CPI in 1954: 26.7CPI in the current year: 245.9Cost of a pedicure today: $45So, the cost of a pedicure in 1954 would be:
$45 * (26.7 / 245.9) = $4.89
We round this to the nearest penny to get $4.89 as the historical cost of a pedicure in 1954.
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In your opinion, what type of business risk poses the greatest threat to a company's overall success?
Answer:
The type of business risk that poses the greatest threat to a company's overall success is Competitive Risk.
Explanation:
Business risk threatens a company's ability to meet its target or achieve its financial goals. They could be caused by what you have control of such as operations and what you cannot control such as natural disaster and unfavorable government policy.
However, the greatest threat to a company's overall success is competitive risk.
Competitive risk is the chance that competitive forces will prevent you from achieving your overall business goal. It is often associated with the risk of declining business revenue or margins due to the actions of a competitor.
In the current year, Mitchell Manufacturing expected Job No. 13 to cost $600,000 of overhead, $650,000 of materials, and $400,000 of labor. Mitchell applied overhead based on direct labor cost. Actual production required an overhead cost of $420,000, $750,000 of materials used, and $300,000 of labor. All of the goods were completed. What amount was transferred from Work in Process to Finished Goods?
Answer:
Multiple choices:
$1,670,000.
$1,500,000.
$1,650,000.
$1,470,000.
The correct option is $1,500,000
Explanation:
The overhead is applied on the basis of direct labor cost as follows:
overhead allocation rate=$600,000/$400,000=1.5 times
Materials used $750,000
Labor cost $300,000
prime cost $1,050,000
overhead(direct labor cost*1.5)=300,000*1.5 $450,000
The amount of transferred finished goods from WIP $1,500,000
The correct option is B,$1,500,000
The option of $1,470,000 was computed by adding up all actual costs incurred without reference to the overhead allocation of 1.5
It could be said that, at least from a marketing perspective, it is harder to convey the advantages of adopting a plastic free lifestyle, than it is to sell the idea of having a microwave oven. This sentiment indicates that the benefit strength of many nonprofit offerings is quite ______.
Answer:
Weak or Indirect.
Explanation:
This intells that marketing a plastic product could be hard and of low advantages. Dealing with the fact that its degradation does not come off easily like wood and paper.
The existence of substitute product offers customers different choices and allows them options within the industry and beyond it to products that may fulfill a similar need. In more generic products, there are often more than one ways to address a particular need.
Adjusted WACC. Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his company's WACC. Currently, Lewis has the following financing pattern: Equity: 35% and cost of 14.00% Preferred stock: 15% and cost of 11.00% Debt: 50% and cost of 10.0% before taxes What is the adjusted WACC for Lewis if the tax rate is a. 40%? b. 30%? c. 20%? d. 10%? e. 0%? a. What is the adjusted WACC for Lewis if the tax rate is 40%? nothing% (Round to two decimal place
Answer:
The workings of Adjusted WACC under each of Tax scenario are attached
Explanation:
Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:
Pretax financial income $800,000
Estimated litigation expense 2,000,000
Installment sales (1,600,000)
Taxable income $1,200,000
The estimated litigation expense of $2,000,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $800,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $800,000 current and $800,000 noncurrent. The income tax rate is 30% for all years. The deferred tax asset to be recognized is
A) $240,000
B) $360,000
C) $400,000
D) $800,000
Answer:
A) $240,000
Explanation:
Deferred tax asset is an asset recognized when taxable income and hence tax paid in current period is higher than the tax amount worked out based on accrual basis or where loss carryforward is available. It's classification as current or noncurrent highly depends on the classification of the asset or liability that gave rise to it.
$800,000×30% = $800,000× 0.3 = $240,000
The deferred tax asset to be recognized is $240,000