Answer:
Feb 05
Dr Retained earnings $46,080
Cr Common stock dividend distributable $25,600
Cr Paid-in capital in excess of par value, Common stock $20,480
Journal entries Feb 28
Dr Common stock dividend
distributable$25,600
Cr Common stock, $20 par value $25,600
Explanation:
TVX Company
Journal entries
Feb 05
Dr Retained earnings $46,080
Cr Common stock dividend distributable $25,600
Cr Paid-in capital in excess of par value, Common stock $20,480
Journal entries Feb 28
Dr Common stock dividend
distributable$25,600
Cr Common stock, $20 par value $25,600
Feb. 5
Shares to be issued: 64,000 shares × 2% = 1,280 shares
Retained earnings: (1,280 shares × $36) = $46,080
Common stock dividend distributable: 1,280 shares × $20 per share = $25,600
The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 YTM 4.98 % 5.54 % 5.78 % 5.91 % 6.03 % What is the price per $ 100 face value of a two-year, zero-coupon, risk-free bond?
Answer:
The Current Value of Zero-Coupon Bond $89.78
Explanation:
Face Value = $100
Yield to Maturity = 5.54%
Maturity Years = 2 Years
The Current Value of Zero-Coupon Bond = Present Value of Face Value
= $100 x [PVIF 5.54%, 2 Years]
= $100 / (1 + r)ⁿ
= $100 / (1 + 0.0554)²
= $100 / 1.11387
= $89.78
Gross domestic product requires a. borrowing, which requires sufficiently high interest rates to prevent free riders. b. investment, which requires borrowing, which requires sufficiently low interest rates to prevent free riders. c. investment, which requires borrowing, which requires a functioning loanable funds market. d. inflation equal to the nominal rate of interest, which means lending equals borrowing. e. borrowing, which requires the real rate of interest to be equal to inflation, which requires a functioning loanable funds market.
Answer: C. investment, which requires borrowing, which requires a functioning loanable funds market.
Explanation:
GDP is primarily used to gauge the health of a country's economy. It is the monetary value of all the finished goods and services produced within a country's borders in a specific time period and includes anything produced by the country's citizens and foreigners within its borders.
The Gross Domestic Product measures the value of economic activity within a country. Strictly defined, GDP is the sum of the market values, or prices, of all final goods and services produced in an economy during a period of time. ... GDP is a number that expresses the worth of the output of a country in local currency.
In April 2017, PetSmart agreed to make the largest e-commerce acquisition in history to date, putting a deal in place to snatch up fast-growing pet food and product site Chewy. com for $3.35 billion. The acquisition premium for this particular deal can be calculated as the amount by which the price PetSmart offered for Chewy.com exceeded the _______.A. amount paid as a down payment for Chewy.com that was to be held in escrow until closing.B. difference between the amount that was offered for Chewy.com and the amount that was held in escrow to complete the deal.C. preacquisition market value of Chewy.com.D. fair market value of similar companies in the same geographic locale as Chewy.com.E. comparable value of similar companies to Chewy.com within the same market.
Answer: C. preacquisition market value of Chewy.com.
Explanation:
The Acquisition Premium that a company that is acquiring another pays is generally the Amount that that was paid minus the amount that the company being acquired was worth before it was purchased.
For Instance, assuming Chewy.com was valued at $3.25 billion before the Acquisition by PetSmart then the Acquisition Premium is,
= $3.35 billion - $3.25 billion
= $100 million.
In the balance sheet, this premium will more often than not be recorded as Goodwill which is defined as an Intangible Asset that is generated when a company buys another company for more than it is worth. That incremental value is the Goodwill.
Final answer:
The acquisition premium for PetSmart's acquisition of Chewy.com can be calculated by comparing the purchase price offered to Chewy.com's preacquisition market value, which is the company's value before the acquisition bid. The correct option is (C).
Explanation:
The acquisition premium for the deal where PetSmart agreed to acquire Chewy.com can be calculated as the amount by which the price PetSmart offered for Chewy.com exceeded the preacquisition market value of Chewy.com.
The preacquisition market value refers to the valuation of a company before any acquisition-related premiums are added. This is significant because it provides a baseline for the original worth of the company prior to any speculation or negotiation that may drive up its price during a takeover bid.
Acquisition premiums are thus the extra amount that buyers are willing to pay over and above this original preacquisition value to gain control of the company.
"Competition in quality and service may be just as effective as price competition in giving buyers more for their money." Do you agree? Explain why monopolistically competitive firms frequently prefer non-price competition to price competition.
Answer:
Yes, I agree that Competition in quality and service may be just as effective as price competition in giving buyers more for their money.
Explanation:
Price competition is one of many ways that a product or service can compete in the marketplace with consumers choosing affordability over quality. Consumers make purchases mostly on the basis of which is cheaper.
Competitive pricing is used more by businesses selling similar products, since services can vary from business to business, while the attributes of a product remain similar.
monopolistically competitive firms such as hotels frequently prefer non-price competition because they do not want consumers to choose affordability over quality which is usually more expensive.
Competition in quality and service can be as effective as price competition in giving buyers more for their money. Monopolistically competitive firms prefer non-price competition to differentiate their products and attract customers.
Explanation:Non-price competition is a strategy in which businesses compete by factors other than price, such as quality, innovation, branding, or customer service. Instead of lowering prices, they seek to differentiate their products or services to attract and retain customers.
Yes, I agree that competition in quality and service can be just as effective as price competition in providing value to buyers. In monopolistically competitive industries, firms often prefer to compete through non-price competition because they can differentiate their products and services. This allows them to attract customers based on factors other than price, such as product features, customer service, and brand reputation.
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On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 95,000 shares authorized, issued, and outstanding $ 950,000 Paid-in capital in excess of par value, common stock 331,000 Retained earnings 1,048,000 Total stockholders’ equity $ 2,329,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 7,300 shares of its own common stock at $48 per share on October 11. Sold 1,575 treasury shares on November 1 for $54 cash per share. Sold all remaining treasury shares on November 25 for $43 cash per share.
Answer:
Date Description DR CR
$ $
Oct 11 Treasury Stock 350,400
Cash 350,400
Being the purchse of teasury stock
Nov 1 Cash 85,050
Paid in Capital from Treasury stock 9,450
Treasury stock 75,600
Being the cash realized on the sales of Treasury
stock above cost
Nov 25 Cash 246,175
Paid in capital from Treasury stock 9,450
Retained earnings 19,175
Treasury Stock 274,800
Being the sales of Treasury stock below the cost
Explanation:
Sherman Systems' stock transactions including purchasing and selling of treasury shares, involve recording the cash flow and changes in the equity accounts such as Treasury Stock and Paid-in Capital from Treasury Stock.
Explanation:Understanding Stock Transactions and Shareholder Equity
The student is seeking to understand how to record journal entries for stock transactions involving treasury shares for Sherman Systems. Treasury shares are the company's own shares that it has reacquired. The transactions include purchasing treasury shares and then selling them at two different prices.
Purchase of Treasury Shares: On October 11, Sherman Systems purchased 7,300 of its own shares at $48 per share. The journal entry will be a debit to Treasury Stock (an equity account) and a credit to Cash, both for the total purchase amount of $350,400 (7,300 shares * $48 per share).
Sale of Treasury Shares: On November 1, 1,575 treasury shares were sold for $54 per share, resulting in a credit to Treasury Stock for the cost of the shares and a debit to Cash for the proceeds received, which is $85,050 (1,575 shares * $54 per share). Additionally, the difference between the proceeds and the cost of the treasury shares is credited to Paid-in Capital from Treasury Stock, assuming the shares were sold at a higher price than the repurchased cost.
On November 25, the remaining treasury shares were sold for $43 per share. Again, a similar journal entry is made with a focus on the cash received and the changes to the Treasury Stock account, along with any excess proceeds or loss being reflected in a separate equity account as appropriate.
The types of decision making a consumer uses for a product does not necessarily remain constant. Why ?
Answer:
The decision making of a consumer goods does not change because the amount of a good consumer wants at a particular point in time is determined by some factors
Explanation:
The decision of a consumer does not remain constant, this is because, the quantity of a good consumer demand at a particular point in time is determined by several factor
Now, in the place where i am working in an MNC as a contract role. While my working period my consumption of goods increased as i was earning my own money and i did not have think more than once before purchasing any particular kind of goods
Now after that time ends, i have to collect money from my parents and now my thoughts and behavior towards consuming changed greatly.
Answer:
Well in most of the cases the decision making power and quality of the consumer remains constant but again, there are some cases where the the consumer changes the type of his/her decision making and go for another product.
One of the main reasons for this to happen is that, the consumer has or had a negative experience with the same product he.she has been using for a long time, this does not happen very often but when ever it does the consumer switches itself to other alternatives of that product.
Apart from that, there is a possibility that the product that the consumer really wants is sold out and now the consumer has to go with the alternative in order to satisfy his/her needs.
Hope this Helps.
Good luck.
The Rialto Theatre purchased a new projector costing $82,000 on January 1, 2018. Because of changing technologies, the projector is estimated to last four years after which it will be obsolete and have a salvage value of $4,000 as a collectors’ item. Compute the depreciation expense for 2018 using: a. The straight-line method b. Double-declining-balance method c Now assume that the asset is sold at the end of the second year (December 31, 2019) for $30,000, while the Double Declining Balance method is used.
Answer:
a. 19,500
b. $20,500
c. Gain of $9,500
Explanation:
a.
Straight Line depreciation is a method of depreciation in which the cost of the asset net of residual value is divided over useful life.
Depreciation rate = ( Cost - Salvage Value ) / useful life = ($82,000 - $4,000) / 4 = $19,500
Depreciation charged in 2018 = $19,500
Depreciation charged in 2019 = $19,500
Accumulate depreciation as on December 31, 2019 = $39,000
b.
In Double Declining method Accelerated depreciation is charged. The depreciation charged in this method is double of the charged in straight-line depreciation method.
Depreciation rate = 2 x (1/useful life) x100 = 2 x (1/4 years) x100 = 50%
50% will be charged to Book value of the projector.
Depreciation charged in 2018 = $82,000 x 50% = $41,000
Depreciation charged in 2019 = ( $82,000 - $41,000 ) x 50% = $20,500
Accumulate depreciation as on December 31, 2019 = $41,000 + $20,500 = $61,500
Book value as on December 31, 2019 = $20,500
c.
Sale proceeds = $30,000
Gain on sale = $30,000 - $20,500 = $9,500
There is a gain of $9,500 based on Double declining method
It recorded as follow
Dr. Cash $30,000
Dr.Accumulated Depreciation $61,500
Cr. Gain on sale $9,500
Cr. Projector $82,000
Depreciation expense for the projector in 2018 using the straight-line method is $19,500. Using the double-declining-balance method, the expense for 2018 is $41,000. If the projector is sold for $30,000 at the end of the second year, the depreciation for 2019 would be $20,500.
To calculate the depreciation expense for 2018 for the Rialto Theatre's new projector using the straight-line method, we follow this formula:
Annual Depreciation Expense = (Cost of the Asset - Salvage Value) / Useful Life
The cost of the asset is $82,000, the salvage value at the end of its useful life is $4,000, and its useful life is estimated at 4 years.
So, the calculation will be ($82,000 - $4,000) / 4 = $19,500 per year.
Therefore, the straight-line depreciation for 2018 is $19,500.
For the double-declining-balance method, the depreciation rate is double that of the straight-line rate, which would be 50% per year for an asset with a useful life of 4 years. However, this method applies the rate to the book value of the asset at the beginning of each year.
So for 2018, the calculation would be $82,000 x 50% = $41,000.
If the asset was sold at the end of the second year (December 31, 2019) for $30,000, we first need to calculate the depreciation for 2019:
Book value at the beginning of 2019 = $82,000 - $41,000 = $41,000
Depreciation for 2019 = $41,000 x 50% = $20,500
Book value at the end of 2019 before sale = $41,000 - $20,500 = $20,500
The sale price of $30,000 is higher than the book value, so the theatre would record a gain on the sale of the asset.
Samantha is an entrepreneur and her company website has the following links: Home, About Us, Careers, Contact Us. She wishes to vary their appearance whenever they are visited or clicked. Samantha wants the color of Home to turn yellow when she moves the pointer over it. Identify the pseudo-class that should be used to perform this function.A. :link
B. :hover
C. :active
D. :visited
Option B
:hover the pseudo-class that should be used to perform this function.
Explanation:A CSS pseudo-class is a keyword attached to a selector that designates a specific state of the chosen element(s). The :hover pseudo-class is applied to style an element when the user’s pointer is over it. It mustn’t be limited to links, although that is the usual fair use case.
a:hover must appear after a:link and a:visited in the CSS definition to be powerful. It should resemble third in order (subsequent the :visited pseudo-class). Pseudo-class names are not case-sensitive. The syntax is
a:hover {
color: blue;
}
Final answer:
The pseudo-class :hover should be used to change the color of a link when the mouse pointer is over it, such as making the 'Home' link turn yellow on hover.
Explanation:
The correct pseudo-class to use for changing the appearance of a website link when the pointer is over it is :hover. The :hover pseudo-class applies a change in style when a user hovers their mouse over a certain element, without clicking it. So, if Samantha wants the color of the 'Home' link to turn yellow when someone moves the pointer over it, the CSS code would look something like this:
a:hover {
color: yellow;
}
This CSS code signifies that any anchor link (denoted by 'a') will turn yellow when the mouse is over it. The other pseudo-classes like :link is for unvisited links, :visited is for visited links, and :active is used when the link is being clicked.
Summit Systems will pay a dividend of $ 1.48 one year from now. If you expect Summit's dividend to grow by 6.4 % per year, what is its price per share if its equity cost of capital is 10.2 %?
Answer:
$36.84
Explanation:
The computation of the price per share is shown below:
Price per share = (Dividend) ÷ (Equity cost of capital - growth rate)
where,
Dividend one year from now is $1.48
Equity cost of capital = 10.2%
And, the growth rate is 6.4%
So, the price per share is
= ($1.48) ÷ (10.2% - 6.4%)
= ($1.48) ÷ (3.8%)
= $36.84
This year Jack intends to file a married-joint return. Jack received $180,000 of salary, and paid $6,450 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $5,750 and $34,500 of alimony to his ex-wife, Diane, who divorced him in 2012. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Final answer:
Jack's taxable income for this year is $201,600, calculated by subtracting his deductions from his adjusted gross income.
Explanation:
To calculate Jack's taxable income, we need to subtract his deductions from his adjusted gross income. Let's break it down:
Jack's adjusted gross income is the sum of his salary, interest on loans used for tuition costs, moving expenses, and alimony. So, AGI = $180,000 + $6,450 + $5,750 + $34,500 = $226,700.
Next, we calculate Jack's deductions. The standard deduction for a married couple filing jointly in 2022 is $25,100.
Finally, we subtract the deductions from the AGI to get the taxable income. Taxable income = AGI - deductions = $226,700 - $25,100 = $201,600.
Therefore, Jack's taxable income for this year is $201,600. Please note that this is a simplified calculation, and Jack should consult a tax professional for accurate advice based on his specific situation.
Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 6,100 units, but its actual level of activity was 6,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per month Variable element per unit Revenue - $ 33.60 Direct labor $ 0 $ 5.60 Direct materials 0 13.20 Manufacturing overhead 31,000 1.10 Selling and administrative expenses 24,900 0.30 Total expenses $ 55,900 $ 20.20 Actual results for May: Revenue $ 204,100 Direct labor $ 33,360 Direct materials $ 81,200 Manufacturing overhead $ 40,500 Selling and administrative expenses $ 30,410 The direct labor in the planning budget for May would be closest to:
Answer:
The correct answer is $33,880.
Explanation:
According to the scenario, the given data are as follows:
Direct labor = $5.60 per unit
Actual level of Activity = 6,050
So, we can calculate the direct labor in planning budget by using following formula:
Direct labor in planning budget = Actual level of Activity × Direct labor
By putting the value, we get
Direct labor in planning budget = 6,050 × $5.60
= $33,880
Hence, The direct labor in the planning budget for May would be closest to $33,880.
The highest and lowest levels of activity for the Felton Company were 58,000 direct labor hours and 42,000 direct labor hours, respectively. Maintenance costs were $336,000 at the 58,000-hour level and $304,000 at the 42,000-hour level.
a. Compute the maintenance cost formula.
b. What cost might we expect at an operating level of 52,000 direct labor hours?
Answer:
A. $32,000
B. $324,000
Explanation:
See attached file
Answer:
a. Compute the maintenance cost formula
Maintainance cost = $220,000 + $ 2.00 × Number of direct labour hours.
b. cost at an operating level of 52,000 direct labor hours
$324,000
Explanation:
a. Compute the maintenance cost formula
Maintainance Cost is a semi-variable cost. This means it has a fixed cost element and a variable cost element.
Cost separation of Maintainance cost is done by using the high - low method as follows :
Variable cost element = difference in Overhead (High - Low)/ difference in Acitivity (High - Low)
= $336,000 - $304,000 / 58,000 - 42,000
= $ 2.00 per direct labour hour
Fixed cost element = Total Overhead - Variable Cost at given activity level
activity level of 58,000 hrs produce the following results
Fixed cost element = $336,000 - $ 2.00 × 58,000
= $220,000
Maintainance cost = $220,000 + $ 2.00 × Number of direct labour hours.
b. cost at an operating level of 52,000 direct labor hours
Maintainance cost = $220,000 + $ 2.00 × Number of direct labour hours.
= $220,000 + $ 2.00 × 52,000
= $324,000
Tom works for a large payroll outsourcing firm. One of his key customer’s contracts is set to expire in one month. Competition has heated up in this industry and Tom’s customer asked him to make a presentation to the top management team about his firm’s services. In his presentation, he thanked the customers for their loyalty, talked about industry trends, highlighted how his firm has been successfully serving firms for decades (unlike the new players in the market), and then asked them to renew their business again by showing them pricing options. Tom didn’t get the contract renewed and wonders if his presentation had anything to do with it. Which of the following actions should Tom do in order to IMPROVE his future presentations?
a. Spend less presentation time thanking the customer for his/her loyalty.
b. Provide arguments that his firm can meet the customer’s specific needs.
c. Assume the customer will renew and present pricing options upfront.
d. Spend more time talking about the competitions’ low quality services.
Answer:
b. Provide arguments that his firm can meet the customer’s specific needs.
Explanation:
According to the statement, Tom talked about the industry trends, how the firm has been successful and presented price options. However, there is an important point that Tom didn't address and that is crucial in these cases: it is to explain why your firm is the best option for the customer in terms of what you can do to fulfill the customer's needs and help them achieve their goals. This because you can find different competitors offering the same services and what would set your company apart is how it can better address the customer's needs. According to that, the answer is that to IMPROVE his future presentations Tom should provide arguments that his firm can meet the customer’s specific needs.
The other options are not right because spending less presentation time thanking the customer for his/her loyalty won't have an impact in the customer's decision. Also, assuming the customer will renew and present pricing options upfront and spending more time talking about the competitions’ low quality services can have a negative impact.
At December 31, 2012, Destin Sports Equipment had 200,000 common shares issued and outstanding. On May 31, 2013, Destin issued a 15% stock dividend. Fully vested, incentive stock options issued in 2011 and exercisable for 40,000 shares (adjusted for the stock dividend) were outstanding at the end of 2013, with an exercise price of $40 per share. The market price of Destin’s common stock averaged $50 per share during 2013. Also outstanding since 2007 were $100,000 of 10% bonds issued at face value and convertible into 30,000 common shares. Destin’s tax rate is 40% and 2013 net income was $550,000.
__ 2. What is Destin’s 2013 basic earnings per share? b. $2.39
__ 3. What is Destin’s 2013 diluted earnings per share? a. $2.07
Answer:
2. Basic Earning per share = 2.39
3. Diluted earnings per share = 2.07
Explanation:
2.
Calculation of Weighted Average No. of Equity Shares Outstanding
Particular Portion Shares Calculations Weighted
of year outstanding Average
during time Impact
interval.
Shares 12 months 200000 12/12*200000 200000
Outstanding
1 Jan-31 Dec
15% Stock 12 months 30000 12/12*30000 30000
Total 230000
Basic Earning per share= Income available to common share
holders/Weighted average no of shares
Net Income 550000
Income available to common share holders 550000
Weighted Average no. of shares 230000
Basic Earning per share = 2.39
3.
Diluted Earning Per Share =Earning for Equity share holders after effects of Dilutive Potential Equity Shares/ Weighted
Average No of O/SEquity after effects of Dilutive Potential Equity Shares
Potential Equity Shares= ESOP-(ESOP*(Exercise Price/ Market Price))
ESOP 40000
Exercise Price 40
Market Price 50
Potential Equity Shares 8000
Time Portion Shares Calculations Weighted
Interval of year outstanding Average
during time Impact
interval
Shares 12 months 200000 12/12*200000 200000
Outstanding
1 Jan-31 Dec
15% Stock 12 months 30000 12/12*30000 30000 Dividend
Potential Equity 8000 8000
Shares (ESOP)
Debentures 30000 30000
Total 268000
Diluted EPS
Earning for Equity Share holders 550000
Incremental EPS 100000*10%*(1-0.4) 6000
Total 556,000
Weighted average no of Equity Shares 268000
DEPS 2.07
Elmer received the following distributions from Virginiana Mutual Fund for the calendar year 2019: Ordinary dividends $250 Capital gain distributions $170 Nontaxable distributions $80 Elsie, Elmer's wife, did not own any of the Virginiana Mutual Fund shares, but she did receive $1,475 in interest on a savings account at the Moss National Bank and $175 in interest on California Municipal Bonds. Elmer and Elsie filed a joint income tax return for 2019. What amount is reportable as taxable interest income? a. $175 b. $0 c. $1,650 d. $1,475 e. None of these choices are correct.
Answer:
d. $1,475
Explanation:
The computation of the taxable interest income is shown below:
Since it is given that the Elmer received the interest on a saving account for $1,475 and the same is considered for taxable interest income because the interest on California Municipal Bonds i.e $175 is not considered as a taxable income
So in this case only $1,475 is relevant and held for taxable interest income
The amount that is reportable as taxable interest income on a joint tax return for Elmer and Elsie for 2019 is $1,475. This is because only the interest collected from Moss National Bank counts towards taxable interests. The interest from California Municipal Bonds is tax free.
Explanation:To calculate the taxable interest income of Elmer and Elsie, we need to identify the amounts provided that fall under taxable interest. The Ordinary dividends of $250 and Capital gain distributions of $170 received from Virginiana Mutual Fund by Elmer are taxable but not considered as 'interest income', but rather as 'dividend income' or 'capital gain'. On the other hand, the interest Elsie received from her savings account at the Moss National Bank of $1,475 is considered as taxable interest income. The interest on California Municipal Bonds, however, are typically exempt from federal as well as state income taxes in the state of issuance - in this case, California - and would not count towards taxable interest income. Therefore, the amount reportable as taxable interest income in Elmer and Elsie's joint income tax return for 2019 would be $1,475.
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Blossom Company purchased equipment for $303,200 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $15,200. Estimated production is 45,000 units and estimated working hours are 20,000. During 2020, Blossom uses the equipment for 530 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Blossom is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.)
Answer:
Answer A = $9,000
Answer B = $6,400
Answer C = $7,632
Answer D = $54,000
Answer E = $71,063
Explanation:
[ find attachments for complete solutions]
Note: Complete question is attached to the attachment section
Final answer:
Depreciation expense for Blossom Company's equipment is calculated under the straight-line, units of production, and hours of use methods. For the year 2020, the expenses are $9,000, $6,400, and $7,632, respectively.
Explanation:
To calculate the depreciation expense for Blossom Company's equipment under different methods, we take into account the cost of the equipment, its estimated useful life, salvage value, estimated production in units, and estimated working hours. The equipment was purchased for $303,200 on October 1, 2020, with a useful life of 8 years, a salvage value of $15,200, estimated production of 45,000 units, and estimated working hours of 20,000.
Straight-Line Method
Using the straight-line method, the annual depreciation expense is calculated as follows:
(($303,200 - $15,200) / 8 years) = $36,000 per full year. Since the equipment was used for 3 months in 2020, the depreciation expense for that year would be 1/4 of the annual amount, which is $9,000.
Units of Production Method
To calculate depreciation using the units of production method, we need the rate per unit, which is:
(($303,200 - $15,200) / 45,000 units) = $6.40 per unit (rounded to two decimal places). For 1,000 units produced in 2020, the depreciation expense is 1,000 units× $6.40 per unit = $6,400.
Hours of Use Method
Under the hours of use method, the rate per hour is:
(($303,200 - $15,200) / 20,000 hours) = $14.40 per hour (rounded to two decimal places). For 530 hours of use in 2020, the depreciation expense is 530 hours ×$14.40 per hour = $7,632.
Any event that increases the supply of British pounds to be exchanged for U.S. dollars should result in a(n) ____ in the value of the British pound with respect to ____, other things being equal. a. decrease; nondollar currencies b. increase; U.S. dollar c. decrease; U.S. dollar d. increase; nondollar currencies
Answer:
Option (C) is correct.
Explanation:
If there is an increase in the supply of British pounds then as a result the demand for British pounds decreases as there are enough supply of British pounds available in the market. So, if any investor wants to exchange US dollars for British pounds then they need to pay more for each dollar obtained as the supply of the British pounds is large.
This will reduce the value of British pounds with respect to the value of United States dollar.
Sales mix is: Multiple Choice important to sales managers but not to accountants. easier to analyze on absorption costing income statements. a measure of the relative percentage of a company's variable costs to its fixed costs. a measure of the relative percentage in which a company's products are sold.
Answer:
The correct answer is letter "D": a measure of the relative percentage in which a company's products are sold.
Explanation:
The sales mix refers to the percentage that represents the sales of a product compared to the total sales of all products the firm offers. The sales mix allows managers to find out what products are underperforming so their production is dropped or adjusted, according to what provides more benefits to the institution. The sales mix analysis is carried out to determine what products are more profitable for the corporation.
All other things being equal, a company that sells multiple products should attempt to structure its sales mix so the greatest portion of the mix is composed of those products with the highest _______.
Answer: contribution margin
Explanation:
The contribution margin is the incremental money that is generated for each product or unit sold after the variable portion of the costs of the firm's has been deducted. The contribution margin is calculated as the subtraction of the variable cost per unit from the selling price per unit.
The contribution margin shows how the contribution of a particular product to the profit of the company. It shows the profit potential of a product that is offered by a company and also shows the number of sales that can help to cover the fixed cost of the company. The remaining revenue gotten after the fixed cost has been covered is the profit generated.
Contribution margin= Sales revenue - Variable cost
(A) Prepare an individual income tax return.George Large (SSN 000-11-1111) and his wife Marge Large (SSN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and want you to prepare their 2017 income tax return based on the information below: George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbursement from Toyboat of $5,000 to cover his employee business expenses. George must make an adequate accounting to his employer and return any excess reimbursement, none of the reimbursement was related to the meals and entertainment. Additionally, Toyboat provides George with medical insurance worth $7,200 per year. George drove his car a total of 24,000 miles during the year, and he placed the car in service on June 1, 2015. His log indicates that 18,000 miles were for sales calls to customers at the customers' offices and the remainder was personal mileage. George uses the standard mileage rate method. George is a college basketball fan. He purchased two season tickets for a total of $4,000. He takes a customer to every game, and they discuss some business before, during, and after the games. George also takes clients to business lunches. His log indicates that he spent $1,500 on these business meals. George also took a five-day trip to the Toyboat headquarters in Musty, Ohio. He was so well-prepared that he finished his business in three days, so he spent the other two days sightseeing. He had the following expenses during each of the five days of his trip: Airfare $200 Lodging $85/day Meals $50/day Taxicabs $20/day Marge Large is self-employed. She repairs rubber toy boats in the basement of their home. The total square footage of the Larges' home, including the basement, is 3,000 square feet. The portion of the basement used in Marge's business is 750 square feet. The business code is 811490. She had the following income and expenses: Income from rubber toy boat repairs $15,000 Cost of supplies 5,000 Contract labor 3,500 Telephone (business) 500 The Larges use the simplified method to figure their deduction for Marge's business use of their home. The Larges incurred the following total other expenses: Real estate taxes 2,500 Mortgage interest 4,500 Cash charitable contributions 3,500 Prepare Form 1040, Schedules A, C, and SE for Form 1040, and Form 2106 for the 2017 year. (Assume no depreciation for this problem and that no estimated taxes were paid by the Larges.)(B) In addition to the preparation of the individual income tax return for this topic, write a 300-500-word paper in which you address the following ethical issues associated with tax preparation:1. Discuss the legal and ethical aspects of accurately reporting income on tax returns using Circular 230 as published by the Department of Treasury (located in Topic Materials). Discuss one item in Section B on Duties and Restrictions and the consequences to tax preparers if they fail to adhere to the guidelines as provided by the Department of Treasury.2. Compare and contrast the concepts of "tax avoidance" and "tax evasion".3. (Optional) You are welcome to add a discussion about how ethics in taxation can correlate to the Christian worldview. In other words, what guidance from a Biblical perspective could be applied to the preparation of tax returns for clients?Prepare this assignment according to the APA guidelinesApply basic legal, tax, and ethical concepts to issues in financial reporting.
Answer:
Explanation:
prepare from 1040 to disclose Income and respective Tax
FORM 1040
Amount ($)
Salary Received 80,000
Business Income- Wn1) 2,789
Total Income 82,789
Less - Itemized wise Deduction-Wn2 21,405
Total Income 61,384
Standard deduction 11,900
Total Taxable Income 49,484
tax
From 0-$17400 10% 1,740
From $17400-$70700 15% 4,813
Total Tax Liability 6,553
Schedule A
wn2
Real Estate Tax 2,500
Interest on Mortgage 4,500
Gifts to Charity 3,500
Unreimbursed Job Expeses(FORM 2106) 10,905
Total Itemized wise Deduction 21,405
wn1
Income from rubbery toy boat 15,000
Less cost
Cost of suppies 5000
Business phone call 3500
Cost of suppies 500
Total 9000
Total Business Income 6,000
Less- FORM 8829 Expeses 3211
Business Income- 2,789
FORM 2106
Car expenses 9990
Travelling Expense 665
Meal Expenses 5500
Total 10655 5500
Less Reimbursement 5000
Total 10655 500
Expenses Allowed 10655 250
Total 10905
FORM 8829
25% is used for Business
Income from buisness 6000
Mortgage Interest' -1125
Reat estate tax -625
Utility Bills -500
Depreciation -961
Total Business Income 2789
Calculate depreciation
Lesser of fair market value or adjusted cost 1,70,000
Less - value of Land -20,000
Total 1,50,000
Basis of building 37,500
rate of depreciation 2.56%
960
n investor is considering a $10,000 investment in a start-up company. She estimates that she has probability 0.39 of a $23,000 loss, probability 0.24 of a $8700 profit, probability 0.12 of a $31,000 profit, and probability 0.25 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Part: 0 / 20 of 2 Parts Complete
Answer:
The expected profit is -$13,162.
I would not recomend the investor to make this investment.
Explanation:
The expected profit can be calculated multypling the probabilities of every outcome and the profit of each outcome, and substracting the total invevstment.
The outcomes are:
1) probability 0.39 of a $23,000 loss,
2) probability 0.24 of a $8700 profit,
3) probability 0.12 of a $31,000 profit, and
4) probability 0.25 of breaking even
NOTE: It is assumed that the outcomes does not include the initial investment.
Then, the expected profit of this investment is:
[tex]E(P)=[0.39*(-23,000)+0.24*8,700+0.12*31,000+0.25*0]-10,000\\\\E(P)=[-8,970+2,088+3,720+0]-10,000\\\\E(P)=-3,162-10,000\\\\E(P)=-13,162[/tex]
Answer:
company b
Explanation:
Based on your analysis of the "IBISWorld Industry Report OD6038: Online Tutoring Services in the US", the websites of the competitors listed in the IBISWorld report, and other research, what factors would you suggest your client consider CREATING as they develop their online tutoring solution? Select one answer. Offer small group online tutoring sessions at a lower price than individual tutoring. Create online whiteboard capabilities for students and tutors to solve problems visually. Guarantee satisfaction for students by allowing them a free make-up session if they are unsatisfied with a tutor.
Answer:
Guarantee satisfaction for students by allowing them a free make-up session if they are unsatisfied with a tutor.
Explanation:
Online tutoring is gaining significance in the technological world. Tutors can teach students from distant places and help them with their home works. The best way to create online tutoring is through websites. The new entree in the online tutoring should offer their customers free trial basis classes or introduce a free makeup class if a student is unsatisfied with a tutor. This will create a sense among students that if a tutor is unable to teach them properly they will be able to select another tutor for free and their money is not wasted.
Based on the information provided, the most likely factor your client should consider creating as they develop their online tutoring solution is: b. Create online whiteboard capabilities for students and tutors to solve problems visually.
Here's why:
Competitor analysis: While offering small group sessions (a) might be a good feature, it's not necessarily unique or a "creation." Many competitors already do this. Similarly, satisfaction guarantees (c) are becoming more common. Focusing on a unique and valuable feature like an interactive whiteboard sets you apart.
Visual learning: Many students learn best through visual representations. An online whiteboard allows for real-time collaboration on diagrams, equations, graphs, and other visual aids, making complex topics more engaging and understandable.
Differentiation factor: This feature isn't mentioned in the competitor websites or IBISWorld report, so it would be a unique selling proposition for your client's solution.
Technological feasibility: Implementing a whiteboard feature is technically achievable with existing online learning platforms and tools.
Therefore, while all three options have merit, creating online whiteboard capabilities offers the best potential for differentiation and value creation in your client's online tutoring solution.
Complete Question:
Based on your analysis of the "IBISWorld Industry Report OD6038: Online Tutoring Services in the US", the websites of the competitors listed in the IBISWorld report, and other research, what factors would you suggest your client consider CREATING as they develop their online tutoring solution?
Select one answer.
a. Offer small group online tutoring sessions at a lower price than individual tutoring.
b. Create online whiteboard capabilities for students and tutors to solve problems visually.
c. Guarantee satisfaction for students by allowing them a free make-up session if they are unsatisfied with a tutor.
The bank statement contained two bank memoranda:1. A credit of $2,242.00 for the collection for Bogalusa Company of an electronic funds transfer.2 A debit for the printing of additional company checks $85.00.At November 30, the cash balance per books was $11,073.80 and the cash balance per bank statement was $17,712.50. The bank did not make any errors, but Bogalusa Company made two errors.
Answer:
Cash 2,157 debit
bank service expense 85 debit
account receivables 2,242 credit
Explanation:
To record the bank memorand:
The collection in behalf of the firm will increase cash
The new print the checks will be considered either miscellaneuos expense or bank service expense either way, will decrease cash.
Net cash variation: 2,242 - 85 = 2,157
For the Company errors another entry will be made looking for errors between our numebrs and the bank.
4- You are purchasing a 20-year, semi-annual bond with a current market price of $973.64. If the yield to maturity is 8.68 percent and the face value is $1,000, what must the coupon payment be on the bond?
Answer:
Annual coupon payment = $84
Coupon payment in percentage = 8.4%
Explanation:
Coupon payment amount is calculated using the PMT function in excel as follows:
=PMT(8.68%/2,20*2,-973.64,1000)
=42
Annual coupon payment =42*2 = $84
Coupon payment in percentage = 84/1000 = 8.4%
The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Sales $ 5 comma 100 comma 000 Operating income $ 510 comma 000 Total assets $ 3 comma 000 comma 000 Current liabilities $ 270 comma 000 Management's target rate of return is 23% and the weighted average cost of capital is 13%. What is the Top Hat Division's capital turnover?
Answer:
1.5
Explanation:
The computation of the capital turnover is shown below:
Capital turnover = Sales ÷ Total assets
where,
Sales is $5,100,000
And, the total assets is $3,000,000
So, the capital turnover is
= $5,100,000 ÷ $3,000,000
= 1.5
By dividing the sales from the total assets we can get the capital turnover and the same is shown above
The Medicine Chest Company keeps a small petty cash fund to handle small cash transactions. Because no one wants to volunteer to be the custodian, the business manager has decided that all employees should have access to the petty cash.
Answer and explanation:
Petty cash funds refer to a small number of money companies have, typically in each department, so the department can have immediate resources for the purchase of items with minimal costs such as office supplies. A ticket is usually registered for every expense to keep control of the expenditures until the petty cash fund runs out where the total expense is recorded in the accounting books of the firm.
In the case give, the fact that no representative of the department wants to be in charge of the petty cash fund reflects a weakness since there must be only one person controlling the outflows of the cash instead of having every employee reporting a ticket for each expense which could lead to the misuse of those funds.
Graham Potato Company has projected sales of $6,000 in September, $10,000 in October, $16,000 in November, and $12,000 in December. Of the company’s sales, 20 percent are paid for by cash and 80 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Sales:
September= $6,000
October= $10,000
November= $16,000
December= $12,000
Of the company’s sales, 20 percent are paid for by cash, and 80 percent are sold on credit.
Cash collection November:
Sales in cash= (16,000*0.2)= 3,200
Sales on account October= (10,000*0.8)*0.4= 3,200
Sales on account September= (6,000*0.8)*0.6= 2,880
Total cash collection= $9,280
Cash collection December:
Sales in cash= (12,000*0.2)= 2,400
Sales on account October= (10,000*0.8)*0.6= 4,800
Sales on account November= (16,000*0.8)*0.4= 5,120
Total cash collection= $12,320
The total collections for the Graham Potato Company in November are $6400 and in December are $10400, considering both the cash sales and the collections from receivables.
Explanation:To determine the collections for November and December, we should find out the cash collections and the collections from the receivables each month.
The Graham Potato Company gets 20 percent of its sales in cash, so in November, it collects 0.2 * $16,000 = $3200 in cash. In December, it collects 0.2 * $12,000 = $2400 in cash.
Next, we need to calculate the collections from the receivables. The company sells 80 percent of its sales on credit, and it collects 40 percent of that amount in the month after the sale and the remaining 60 percent two months after. So, the collections from October's sales (0.8 * $10,000) in November would be 0.4 * 0.8 * $10,000 = $3200. In December, it would collect the remaining 60% from October's sales and 40% from November's sales which will be: 0.6 * 0.8 * $10,000 + 0.4 * 0.8 * $16,000 = $8000.
Therefore, total collections for November is $3200 (cash) + $3200 (receivables) = $6400 and for December is $2400 (cash) + $8000 (receivables) = $10400.
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Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki’s records show the following for the month of January. Sales totaled 260 units. Date Units Unit Cost Total Cost Beginning Inventory January 1 100 $ 75 $ 7,500 Purchase January 15 360 95 34,200 Purchase January 24 240 115 27,600 Required: Calculate the number and cost of goods available for sale. Calculate the number of units in ending inventory. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
The number of goods available for sale is 700 units, and the cost of goods available for sale is $69,300. The units in ending inventory are 440 units. The cost of ending inventory and cost of goods sold (COGS) can be determined using the FIFO, LIFO, and weighted average cost methods.
Explanation:Firstly, to find the number of goods available for sale, we add the beginning inventory and the purchases made throughout January. Hence, 100 (Beginning inventory) + 360 (First purchase) + 240 (Second purchase) = 700 units. The cost of goods available for sale is the sum of the total costs, which is $7,500 (from beginning inventory) + $34,200 (from first purchase) + $27,600 (from the second purchase) = $69,300.
Units in ending inventory can be calculated by subtracting the units sold from the number of goods available for sale, which gives 700 (Goods available for sale) - 260 (Units sold) = 440 units.
Now let's calculate ending inventory and cost of goods sold (COGS) using the FIFO, LIFO, and Weighted Average cost methods:
FIFO (First-In-First-Out): Under this method, the cost of the oldest inventory (first-in) is charged to cost of goods sold (COGS) first. And, the remaining inventory (ending inventory) is valued at the cost of the newest purchases (last-in). LIFO (Last-In-First-Out): As opposed LIFO method charges the most recent purchases (last-in) to COGS first. Ending inventory is valued at the cost of the oldest inventory units (first-in).Weighted Average cost method: This method takes a simple average of all units available during the period and uses that average cost to determine ending inventory and COGS. To get the weighted average cost per unit, you divide the cost of goods available for sale by the number of units available for sale, which would give: $69,300/700 units = $99 per unit.Learn more about Inventory Costing Methods here:https://brainly.com/question/17097250
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The number and cost of goods available for sale for Oahu Kiki are 700 units and $69,300 respectively. Using FIFO, LIFO, and weighted average methods, different values for the ending inventory and cost of goods sold can be calculated. The number of units in ending inventory is 440 units.
Explanation:Calculating Inventory and Cost of Goods SoldTo calculate the number and cost of goods available for sale, we add the beginning inventory to the purchases made during the month. Oahu Kiki's beginning inventory is 100 units at $75 each, totaling to $7,500. On January 15, they purchased 360 units at $95 each, totaling $34,200, and on January 24, they purchased 240 units at $115 each, totaling $27,600.
The goods available for sale is the sum of these amounts:
Goods available for sale = Beginning Inventory + Purchases = $7,500 + $34,200 + $27,600 = $69,300.
The total units available for sale are:
Total units = 100 + 360 + 240 = 700 units.
To find the ending inventory and cost of goods sold (COGS), we calculate as per FIFO, LIFO, and weighted average cost methods:
Since sales totaled 260 units, the ending inventory would be:
Ending inventory units = Total units - Sold units = 700 units - 260 units = 440 units.
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Create a Crow's Foot ERD for each of the following descriptions. (Note: The word many merely means "more than one" in the database modeling environment.)A. Each of the MegaCo Corporation's divisions is composed of many departments. Each department has many employees assigned to it, but each employee works for only one department. Each department is managed by one employee, and each of those managers can manage only one department at a time.B. During some period of time, a customer can rent many videotapes from the BigVid store. Each of the BigVid's videotapes can be rented to many customers during that period of time.C. An airliner can be assigned to fly many flights, but each flight is flown by only one airliner.D. The KwikTite Corporation operates many factories. Each factory is located in a region. Each region can be "home" to many of KwikTite's factories. Each factory employs many employees, but each of those employees is employed by only one factory.E. An employee may have earned many degrees, and each degree may have been earned by many employees.
Crow's Foot Entity Relationship Diagrams (ERDs) represent relationships between entities in a database. For each scenario, an ERD has been constructed: MegaCo with Division, Department and Employee entities; BigVid with Customer and Videotape entities; an airline scenario with Airliner and Flight entities; KwikTite with Factory, Region, and Employee entities; and a degree scenario with Employee and Degree entities.
Explanation:Creating Crow's Foot Entity Relationship Diagrams (ERDs) involves representing the relationships between entities in a database. Below are examples for each scenario presented:
A. For MegaCo Corporation, we'd have a 'Division' entity, 'Department' entity and 'Employee' entity. A Division is made up of many Departments, denoted by the crow's foot on the end towards the Department entity. Each Department has many Employees, but each Employee belongs to one Department, illustrated by the straight line towards the Employee. Also, each Department is managed by one Employee, and a Manager manages one Department at a time.
B. For BigVid, we have a 'Customer' entity and a 'Videotape' entity. A Customer can rent many Videotapes, represented by a crow's foot Videotape. Each Videotape can be rented by many Customers, shown by the crow's foot on the Videotape to the Customer line.
C. For the airliner scenario, we have 'Airliner' and 'Flight' entities. An Airliner can be assigned many Flights, but each Flight is flown by one Airliner.
D. For KwikTite, we have the entities 'Factory', 'Region', and 'Employee'. A Factory is in one Region, but a Region can have many Factories. A Factory employs many Employees, yet an Employee works for only one Factory.
E. For the degree scenario, there's an 'Employee' entity and a 'Degree' entity. An Employee can earn many Degrees and a Degree can be earned by many Employees.
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Good corporate citizens Multiple Choice go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all. identify up-and-coming managers who have a future in local- or state-level politics. provide work-from-home options to working mothers residing in distant locations. create a democratic workplace whereby the voices of lower-level employees are heard through representation on the board of directors. develop and market products that are solely environmentally friendly.
Complete question:
Good corporate citizens
A. go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all.
B. are active participants in the political process.
C. identify up-and-coming managers who have a future in local- or state-level politics.
D. create a democratic workplace whereby the voices of lower-level employees are heard through representation on the board of directors.
E. All of these.
Answer:
Good corporate citizens : go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all.
Explanation:
Economic obligations are focused on the assumption that strong and legitimate standards are met; that they are completely consistent with all local, regional, federal and foreign regulations; and that they are a decent, law-abiding business citizen who does not merely comply with the moral requirements of society.
Corporate responsibility or sustainability, businesses are two out the of three respondents required corporations to move outside their conventional is sometimes used to express the notion that fulfilling society's standards is part of a business that creates a difference, a business that does amazing things around the world.
Final answer:
Good corporate citizenship involves companies going beyond just meeting ethical standards to actively foster social and environmental benefits, balancing various stakeholder interests. It encompasses employee well-being, social responsibility, and sustainable environmental practices.
Explanation:
The question centers on the concept of good corporate citizenship, which involves companies going beyond the minimum requirements of ethical strategies and business behavior to foster social benefit and balance the interests of all stakeholders. Genuine corporate citizenship touches on various areas such as ethical business practices, social responsibility, employee well-being, and environmental stewardship. In the context of today's multifaceted business landscape, this is a critical part of business ethics that examines the moral implications of corporate decisions and actions.
Modern corporations must navigate the challenges of addressing social, economic, and environmental issues within their strategies. This can include implementing policies that support work-family balance, as evidenced by companies like IBM and Lucent Technologies, and engaging in practices that advocate for environmental sustainability, as done by corporations like Amazon and Samsung. The moral obligations of corporations might also include ensuring ethicality in emerging technologies, as embodied by the IEEE-CS's Software Engineering Code of Ethics for software engineers.
Involving all stakeholders, from employees to the broader community, in the corporate decision-making process and fulfilling corporate responsibility are fundamental to becoming exceptional corporate citizens. Corporations have a responsibility not just to their shareholders but also to their customers, employees, and the society at large, including fostering sustainable practices and acting as stewards of the environment.