Answer:
Overhead rate for ordering and receiving = $300 per order.
Explanation:
Given Activity costs and activity drivers
Activity Overhead Cost Driver Activity
Ordering & Receiving Order $150,000 500 orders
Machine Setup $324,000 450 setups
Machining $1,587,500 125,000 MH
Assembly Parts $1,260,000 1,000,000 parts
Inspection $330,000 500 inspections
Under activity based costing the rates are based on the nature of activity and the rates are based on number of those activities per driver. As for ordering and receiving there are total of 500 orders and total cost = $150,000 that is cost per order will be computed.
Overhead rate for ordering and receiving = $150,000/500 orders = $300 per order.
The next dividend payment by Savitz, Inc., will be $2.08 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $42 per share, what is the required return?
A producer of ballpoint pens has been purchasing ink from an ink supplier and is considering acquiring the ink supplier. Would the pen company be more or less likely to vertically integrate by buying the ink manufacturer if the government imposes an ink sales tax?
Answer:
More
Explanation:
The producer of ballpoint pens would be more likely to acquire the ink supplier if the government were to impose an ink sales tax. This is because vertical integration would allow the producer to avoid paying the sales tax. Vertical integration refers to an arrangement in which the whole supply chain is owned by a particular company. This means that the company that acquired the supply chain can combine the different entities in order to satisfy all or several of its needs.
A firm that is first to the market with a new product frequently discovers that there are design flaws or problems with the product that were not anticipated. For example, the ballpoint pens made by the Reynolds International Pen Company often leaked. What effect do these problems have on the innovating firm, and how do these unexpected problems open up possibilities for other firms to enter the market?
Answer:
Explanation:they can bring the sales down
Since the firm is the first people to the market, the only thing people could buy from in the market is from the only firm in the market.
If the only firm ion the market has flaws in their products, then people would not buy their product(s), due to the fact that they have problems in their problems. These problems would make the firm not look so good to customers/consumers. Since they're the first, they would be making a "first impression" to it's consumers, and they didn't make a good first impression.
This would allow other firms to enter the market with products that don't have any problems/flaws. If other firms join the market and make products that don't have any problems, then people would choose them over the first firm, due to the fact that the other firms don't have problems with their products. This also allows firms to see what the problem was in the first firm in order to not make the same mistake, specifically by making solutions to those problems in their own products.
I hope this helps!Best regards,MasterInvestorPaid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock
Answer:
b. in excess of the par value from the original sale of common stock
Explanation:
The additional paid-in is the difference between the par value of a share and the value on which they are issued.
For example:
10,000 par value $5 issued at $8.60
[tex]$$issued - par value = additional paid-in[/tex]
8.60 - 5 = 3.60 paid-in per share
10,000 shares * $3.6 = $36,000 total paid-in
Final answer:
Paid-in-capital in excess of par value is the amount received from the original sale of common stock that is above the designated par value of the shares. This additional capital becomes part of the company's equity and is recorded separately from the base par value on the balance sheet.
Explanation:
Paid-in-capital in excess of par represents b. in excess of the par value from the original sale of common stock. This occurs when a company issues stock at a price higher than its par value, which is the nominal or face value designated per share of stock in the corporate charter. The par value is typically a very low amount, like $0.01 per share, and the excess over this amount that's paid by investors becomes 'additional paid-in capital' or 'paid-in capital in excess of par' on the company's balance sheet.
For example, if a company with a par value of $0.01 per share issues 1 million shares at $10 per share, the company receives $10 million in total. However, only $10,000 is recorded as par value (1 million shares x $0.01), and the remaining $9,990,000 is recorded as paid-in capital in excess of par.
Which of the following statements is FALSE? A. Emergency plans ensure that all resources can be obtained through internal sources within the jurisdiction. B. Emergency plans delineate roles and responsibilities. C. Emergency plans clarify how functions and activities are to be coordinated and how they complement one another. D. Emergency plans communicate what should happen, why it is done, and what to expect from it.
Answer: the one that is false is A. Emergency plans ensure that all resources can be obtained through internal sources within the jurisdiction.
A. Emergency plans ensure that all resources can be obtained through internal sources within the jurisdiction. the statements is FALSE.
What is jurisdiction of the court?To have jurisdiction, a court must have authority over the subject matter of the case and. the court must be able to exercise control over the defendant, or the property involved must be located in the area under the court's control.
What are the 4 types of jurisdiction?The 5 Types of Jurisdiction That May Apply to Your Criminal Case
Subject-Matter Jurisdiction.Territorial Jurisdiction.Personal Jurisdiction.General and Limited Jurisdiction.Exclusive / Concurrent Jurisdiction.To learn more about jurisdiction, refer
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Alpha Company uses a process cost system. During 2017, Alpha had no beginning work in process inventory. During 2017, Alpha started 700 units. Alpha had 200 units in work in process at the end of 2017. These units were 50% complete with respect to materials. Use this information to determine the equivalent units for direct materials. (Round & enter final answers to nearest whole number of units)
Answer:
The equivalent units for direct materials is 800 units
Explanation:
The following information is giving in the question which is shown below:
1. Starting units = 700 units
2. Ending Work in progress = 200 units
3.Material = 50% of Ending WIP
= 100 units
By using these information, the equivalent units for direct materials is shown below:
= Starting units + units of Material
= 700 + 100
= 800 units
Thus, the equivalent units for direct materials is 800 units.
What adjustments would need to be made in the Operating Section of the statement of cash flows prepared under the indirect method to account for the changes in the Accounts Payable and Accrued Expenses account balances for Google?
Explanation:
You will have to compare the Accounts payable of the current and previous year, and check the diference.
If the current year Account Payable is higher then the previous year, this means Google didn't pay as much, so it "save" cash for that diference so the diference will be positive.
If the opposite ocours, then Google pay more than previous year, so the diference will be posted as negatinve in the cash flow statment.
Accrued Expenses for this account, when doing the comparrison, if current is higher this means Google didn't pay as much expenses as it should be, so it save cash, the diference will be posted as positive.
If the actual is smaller, then Google pay more and the diference is posted as negtive.
Resuming, compare current with previous for each account,
when current is higher then adjustment is positive (save cash) when previous is higher then adjustment is negative(use cash)Which of the following is true of performance management? Select one: a. It focuses on analyzing employee performance by grouping them into predefined frequencies of performance ratings. b. It is a more specific process when compared to performance appraisal. c. It emphasizes instances of poor performance by employees. d. It is the ultimate goal of all performance-appraisal activities. e. It plays a role as part of the larger performance-appraisal process.
Answer: The following is true of performance management: It focuses on analyzing employee performance by grouping them into predefined frequencies of performance ratings.
Performance management are predefined activities that check whether the short term and long term goals are achieved in an effective and cost-effective manner. It also focus on the performance of an organization, a sector, an worker, or the activity.
Therefore, the correct option is (a.)
Performance management is a broad process within an organization with the aim to better employee performance and competence. It comprises the process of performance appraisal, with the latter's ultimate goal being effective performance management. It plays a critical role in a firm's human resources strategy, central to employee motivation, development, and retention.
Explanation:Performance management is an expansive process within an organization that aims at improving employee performance as well as enhancing their competence levels. It includes the process of performance appraisal but is not limited to it - the ultimate goal of all performance appraisal activities is to achieve effective performance management. Therefore, d. It is the ultimate goal of all performance-appraisal activities is the most accurate statement.
Performance appraisal is typically carried out multiple times a year, often involving a formal face-to-face meeting between the employee and their supervisor. This meeting provides a platform for communication about the employee’s performance, which could be praise for their excellent performance or concerns about aspects of their work needing improvement.
Overall, it is important to note that performance management is a critical aspect of an organization's human resources strategy, crucial to the motivation, development and retention of employees. It is a more comprehensive, ongoing process that consists of various performance appraisal activities, including feedback sessions, trainings, reward systems and progress monitoring.
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Yellow Enterprises reported the following ($ in 000s) as of December 31, 2018. All accounts have normal balances. Deficit (debit balance in retained earnings) $ 3,000 Common stock 2,700 Paid-in capital-treasury stock 1,300 Treasury stock at cost 260 Paid-in capital—excess of par 31,500 During 2019 ($ in 000s), net income was $10,300; 25% of the treasury stock was resold for $540; cash dividends declared were $800; cash dividends paid were $430. What ($ in 000s) was shareholders' equity as of December 31, 2018?
Answer:
The shareholders equity as of 31 December, 2018 is $32,240
Explanation:
Here for calculating the shareholders equity we will first have to find the total paid in capital of the Yellow enterprises and after that we will subtract the deficit balance that is remained in the retained earnings account, by doing this we will get the total paid in capital and retained earnings. Now we just have to subtract the treasury stock from the total paid in capital and retained earnings to get the remaining balance , which would be the shareholders equity of the Yellow enterprises.
so first step would be taking out total paid in capital =
common stock
+
paid in capital(excess of par)
+
paid in capital treasury stock
= 2700 + 31,500 + 1300
Total paid in capital = $35,500
Next step is to subtract deficit balance in retained earnings from this to get the total paid in capital and retained earnings =
total paid in capital - deficit balance in retained earnings
Total paid in capital and retained earnings = $35,500 - $3000
= $32,500
Now the last step for taking out shareholders equity we will subtract the treasury stock from the total paid in capital and retained earnings,
Shareholders equity = total paid in capital and retained earnings
-
treasury stock at cost
= $32,500 - $260
= $32,240
Shareholders' equity for Yellow Enterprises as of December 31, 2018, was calculated to be $32,240 (in 000s), after combining all equity components and subtracting the deficit.
Explanation:To calculate the shareholders' equity of Yellow Enterprises as of December 31, 2018, we need to sum up all the shareholders' equity components except the Deficit, because it is a deduction in the equity.
Shareholders' equity components are:
Calculating these:
Shareholders' Equity = Common stock + Paid-in capital-treasury stock + Paid-in capital—excess of par - Treasury stock at cost
Shareholders' Equity = $2,700 + $1,300 + $31,500 - $260
Shareholders' Equity = $35,240
To this, we must subtract the deficit (debit balance in retained earnings):
Shareholders' Equity = $35,240 - $3,000
Shareholders' Equity = $32,240
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Sweet Charity Company produces boxes of candy products by the gross (candy canes and lollipops). During September, sales in units were projected to be 20,000 and production was projected to be 14,000 units. Direct labor rate is $8.50 per hour, and each unit takes 0.75 hours of direct labor to make. What is the total cost of direct labor for September?
The total direct labor cost for Sweet Charity Company in September is calculated to be $89,250, based on projected production of 14,000 units, each requiring 0.75 hours of labor at $8.50 per hour.
Explanation:The total cost of direct labor for September for the Sweet Charity Company can be calculated by multiplying the number of units produced by the time it takes to make each unit and then by the direct labor rate. According to the given information, the production was projected to be 14,000 units, with each unit taking 0.75 hours of direct labor. The direct labor rate is $8.50 per hour.
To find the total direct labor hours required for production, we multiply the number of units (14,000) by the hours per unit (0.75 hours):
14,000 units × 0.75 hours/unit = 10,500 hoursNext, to calculate the total cost of direct labor, we multiply the total labor hours by the direct labor hourly rate:
10,500 hours × $8.50/hour = $89,250Therefore, the total labor cost for Sweet Charity Company in September is $89,250.
Plastics, Inc. and Joe's Canoe Shack both operate businesses located on the river. Plastics, Inc. dumps pollution into the river, which results in fewer canoe rentals for Joe. The marginal cost of cleaning up the pollution is $12,000 for Plastics, Inc. Joe estimates a reduction in pollution will lead to a marginal benefit of $20,000.
1. If Joe owns the rights to the river, which of the following is the most likely outcome? a. Plastics will pay Joe $15000 to pollute. b. Joe will pay Plastics $15000 not to pollute. c. Joe will enforce his property rights and not allow Plastics to pollute. d. Plastics will use its property rights to continue polluting.
2. If Plastics, Inc. owns the rights to the river, which of the following is the most likely outcome? a. Plastics will pay Joe $15000 to pollute. b. Joe will pay Plastics $15000 not to pollute. c. Joe will enforce his property rights and not allow Plastics to pollute. d. Plastics will use its property rights to continue polluting.
Answer:
1.- If Joe owns the rights to the river will enforce his property rights and not allow Plastics to pollute and clean the pollution. Plastic is breaking his rights on the river
In this scenario Joe has benefit for 20,000
and Plastic losses for 12,000
2.- If Plastic own the rights to the river Joe will pay Plastics $15,000 to not pollute. This will make Plastic earn money for cleaning the river and Joe gain 5,000 incremental benefit
Explanation:
(A) Joe has legal claims, so It will used before any economic options
(B) Joe doesn't have legal claims, but It notices that a good offer make both parties win.
Plastic will receive 15,000 dollars to clean the river, which has cost of 12,000 realizing a net gain of 3,000
While Joe estimated a marginal benefit of 5,000 after paying to Plastic to clean the river, (20,000 benefit - 15,000 cost)
Notice: the option for escenario (B) is also stands on (A) but because Joe has the legal rights on the river, it will try to make Plastic paid the pollution on the river and take the benefit completely for his own.
The most likely outcomes are that Joe will enforce his property rights against pollution if he owns the river, and Plastics, Inc. will continue polluting if they hold the rights. The exact financial settlements depend on negotiations based on marginal costs and benefits.
Explanation:When considering property rights and environmental externalities, such as pollution, economic outcomes depend on who holds the rights. In the case where Joe owns the rights to the river, the most likely outcome is that he would enforce his rights and not allow Plastics, Inc. to pollute (c), since the marginal benefit to him from a cleaner river is greater than the marginal cost of cleaning up to Plastics, Inc.
In contrast, if Plastics, Inc. owns the rights to the river, they will likely use their property rights to continue polluting (d). However, there exists the possibility for negotiation where Joe could offer to pay Plastics, Inc. less than his marginal benefit of $20,000 to reduce pollution, ideally at a point where it exceeds Plastics' marginal cost of $12,000. This could result in a mutually beneficial agreement where pollution is reduced for a payment somewhere between these two values.
Weber Company purchases $50,000 of raw materials on account, and it incurs $60,000 of factory labor costs. Supporting records show that (a) the Assembly Department used $24,000 of raw materials and $35,000 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs. Journalize the assignment of overhead to the Assembly and Finishing Departments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
WIP assembly 56,000 debit
WIP Finishing 40,000 debit
Factory Overhead 96,000 credit
Explanation:
Assembly
DM 24000
DL 35000
FO 35,000 x 160% = 56,000
Finishing
26000
25000
FO 25,000 x 160% = 40,000
The manufacturing overhead of Weber Company, which is based on 160% of labor costs, is calculated for the Assembly Department and the Finishing Department. It results in $56,000 of overhead for the Assembly Department and $40,000 of overhead for the Finishing Department based on their respective labor costs.
Explanation:Weber Company is using two types of resources in its manufacturing process, which are raw materials and factory labor. These resources are allocated between the Assembly Department (AD) and the Finishing Department (FD). To calculate the manufacturing overhead which is based on 160% of labor costs, it is required to multiply the labor cost in each department by 1.6.
For the AD, the overhead will be $35,000 x 1.6 = $56,000.For the FD, the labor cost will be the total labor cost minus the AD's labor cost (i.e., $60,000-$35,000) which equals $25,000, so the overhead will be $25,000 x 1.6 = $40,000.In conclusion, the overhead for the AD is $56,000 and for the FD is $40,000.
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Elston Company compiled the following financial information as of December 31, 2017: Service revenue $700,000 Common stock 180,000 Equipment 240,000 Operating expenses 750,000 Cash 210,000 Dividends 60,000 Supplies 30,000 Accounts payable 120,000 Accounts receivable 90,000 Retained earnings, 1/1/17 450,000
Elston's retained earnings on December 31, 2017 are:
Answer:
Elston's retained earnings on December 31, 2017 are: 340,000
Explanation:
We are asked for ending Retained Earnings that is Calculate as follows:
[tex]$$Beginning Retained Earnings$$$+/- Net Income or Net Loss$$$- Dividends$$$Equals Ending Retained Earning[/tex]
So our first step would be to know net income:
[tex]$$Net Income = Revenue - Expenses[/tex]
Revenue = 700,000 Expenses = 750,000
Net Loss = 50,000
Now, along with the other givens. We are able to calculate the Ending Retained Earnings
Dividends = 60,000
Beginning Retained Earnings = 450,000
[tex]450,000 - 50,000 - 60,000 = 340,000[/tex]
The ending RE is 340,000
Final answer:
Elston Company's retained earnings as of December 31, 2017, are calculated by subtracting the net loss and dividends from the beginning retained earnings, which totals $340,000.
Explanation:
The subject of the question is to calculate the retained earnings of the Elston Company as of December 31, 2017. To determine the retained earnings, we need to consider the company's net income or loss and dividends. We begin with the retained earnings at the start of the year (Retained earnings, 1/1/17) and then adjust for the net income (or loss) and the dividends paid during the year.
The formula to calculate the ending retained earnings is:
Retained earnings, end of year = Retained earnings, beginning of year + Net Income (or Loss) - DividendsIn Elston's case:
Retained earnings, beginning of year (1/1/17): $450,000Net Income: Service revenue ($700,000) - Operating expenses ($750,000) = -$50,000 (net loss)Dividends: $60,000So the retained earnings at the end of 2017 would be:
$450,000 (beginning retained earnings) - $50,000 (net loss) - $60,000 (dividends) = $340,000 (retained earnings, end of year).MNO Corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:Total estimated direct labor-hours 50,000Total estimated fixed manufacturing overhead cost $ 285,000Estimated variable manufacturing overhead per direct labor-hour $ 3.80Recently, Job P123 was completed with the following characteristics:Total actual direct labor-hours 20Direct materials $ 710Direct labor cost $ 500The total job cost for Job P123 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
Total cost for Job P123 = $1,400
Explanation:
For Job P123 we have following information
Total labor hours = 20
Direct Materials = $710
Direct Labor cost = $500
Manufacturing Overhead cost = 20 hours X $3.8 per labor hour = $76
Fixed Manufacturing Overhead Cost Allocated to this job =
($285,000 / 50,000 ) X 20 hours = $114
The total cost for Job P123 = $710 + $500 + $76 + $114 = $1,400
Note: Fixed Manufacturing cost is allocated based on number of actual direct labor hours, as the entire activity of the organisation is not provided.
The total cost for Job P123 = $1,400
Suppose that global warming might raise sea levels such that much of Bangladesh would be flooded soon after the year 2050. The government of Bangladesh is considering two options for addressing this issue. Option 1 is to pay $8 billion today (year 2016) to reduce emissions. Option 2 is to build up levies in 34 years (year 2050) which is estimated to cost $25 billion at that time. Should government act now or later if the discount rate is 3%?
What is the present value of reducing emissions in year 2016? (Express your answer as an integer.)
What is the present value of building up levies in 34 years? (Include two digits after the decimal point.)
Should government act now or later, under these assumptions, and based on economic grounds?
To make this decision, the government of Bangladesh needs to make a cost-benefit analysis between the two options.
The present value shows the cost of reducing emissions in the year 2016: $ 8bi
The value of the future rate should be calculated by financial mathematics, by the compound interest formula for the future value. Let's find out how much the present value in 2016 $ 8bi will be worth in 2050.
Future value = Present Value (1 + i) ^ n
Where: i = interest rate = 3% per annum
n = number of periods = 34
Future Value = 8,000,000,000 (1 +0.03) ^ 34
Future value = 21,855,242,364
Therefore, comparing both costs for the year 2050
2016: $ 21bi
2050: $ 25bi
The government should invest now because it will cost US $ 4 billion.
Astro Co. sold 20,600 units of its only product and incurred a $55,028 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018’s activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $156,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales $ 784,860 Variable costs 627,888 Contribution margin 156,972 Fixed costs 212,000 Net loss $ (55,028 ) Prepare a forecasted contribution margin income statement for 2018 that shows the expected results with the machine installed. Assume that the unit selling price and the number of units sold will not change, and no income taxes will be due.
Answer:
Explanation:
Contribution : Contribution tells the availability of funds. It is computed by taking a difference of sales and variable cost.
The equation to compute net income is shown below:
Sales - Variable cost = Contribution ;
Contribution - Fixed expense = Net income
For computing the foretasted contribution for 2018, the following information is need to be considered which is shown below.
1. As for variable cost, 50% should be recognized i.e 627,888 × 50% = $313,944
2. The fixed cost is increased by $156,000. So the revised fixed cost = 212,000 + $156,000 = $368,000
3. Other things remain same.
The calculation attachment is given below:
In 2017, Aaron transferred property worth $75,000 and services worth $25,000 to the BJ Corporation. In exchange, he received stock in BJ valued at $100,000. Immediately after the exchange, Aaron owned 80% of the only class of outstanding stock. Which of the following is true with regard to Aaron’s treatment of this transaction in 2017? A.Ordinary income of $25,000. B. Short-term capital gain of $25,000. C. Short-term capital gain of $100,000. D. No income until the stock is sold.
Answer:
A.Ordinary income of $25,000
Shares BJ 100,000
Property 75,000
Services fees 25,000
Explanation:
We adquire the company by performing this services, we can recognize them.
You must recognize ordinary income of $25,000 for services rendered to the corporation.
BJ will consider the 25,000 as compensation paid.
Final answer:
Aaron must recognize ordinary income of $25,000 for the services he provided to the BJ Corporation in exchange for stock, as services exchanged for stock are taxed as ordinary income.
Explanation:
The student asks for the correct taxation treatment for Aaron who transferred property and services for stock in BJ Corporation. The options given are ordinary income, short-term capital gain, and no income until the stock is sold.
Under the tax law, when services are exchanged for stock, the value of those services is treated as ordinary income to the person performing the services. Since Aaron provided services worth $25,000, this is the amount that would be recognized as ordinary income. The transfer of property for stock, where no liabilities are assumed by the corporation and where the transferor has control of the corporation immediately after the exchange, is generally not considered a taxable event. Therefore, Aaron would not recognize a capital gain on the transfer of the property until the stock received in exchange is sold.
Following these guidelines, the correct answer is that Aaron must recognize ordinary income of $25,000 for the services provided in exchange for the stock in 2017. This is because the transfer of property in exchange for stock generally does not trigger immediate taxation if certain conditions regarding control and liabilities are met, which seem to be the case here as Aaron owned 80% of the stock immediately after the exchange.
When you graduate from college, your mother plans to give you a gift of $70,000 to start you on your way. However, to determine what you learned in business school, your mother presents you with four options on how to receive the gift. Which of the four options presented by your mother will yield the greatest present value to you? A. A lump sum of $70,000 after grad school (2 years) assuming a 7% discount rate. B. A lump sum of $70,000 after grad school (2 years) assuming a 2% discount rate. C. A lump sum of $70,000 today. D $35,000 per year for the next 2 years using a 2% discount rate.
Answer:
C. A lump sum of $70,000 today.
Explanation:
C.- Because the if the cash is received today then you will don't have to discounted at all.
The other option puts the 70,00 in the future, so the present value will always be lower than 70,000 today under normal condition.
Final answer:
The mother's gift option that yields the greatest present value is Option C, the immediate lump sum of $70,000, since it does not need to be discounted and retains its full value.
Explanation:
To determine which option presented by the mother yields the greatest present value, we need to account for the time value of money. The present value (PV) is the current value of future sums of money at a specific discount rate. The discount rate is a percentage that represents the time value of money and the risk of the investment.
Option A is to receive $70,000 after 2 years at a 7% discount rate. The present value is calculated: PV = $70,000 / (1 + 0.07)^2 = $61,320.56.
Option B is also to receive $70,000 after 2 years, but at a 2% discount rate. The present value is calculated: PV = $70,000 / (1 + 0.02)^2 = $67,645.92.
Option C, which is $70,000 today, has no need for discounting as it's already in present terms, so PV = $70,000.
Option D is $35,000 per year for the next 2 years using a 2% discount rate. The present value is calculated as the sum of the PV of two payments: PV = $35,000 / (1 + 0.02) + $35,000 / (1 + 0.02)^2 = $34,313.73 + $33,641.89 = $67,955.62.
Comparing these options, we can see that Option C, which is the immediate lump sum of $70,000, has the highest present value and is therefore the best choice financially.
Equipment was acquired on January 1, 2015, at a cost of $90,000. The equipment was originally estimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2018, using the straight-line method. On January 1, 2019, the estimated salvage value was revised to $6,000 and the useful life was revised to a total of 8 years. Determine the depreciation expense for 2019.
Answer:
The depreciation expense for the year 2019 is $6250
Explanation:
Firstly the straight line depreciation method is one of the most commonly used depreciation method by the companies where the depreciation expenses for a full accounting period is calculated by subtracting the total cost of the asset by the salvage value of the asset over its useful estimated life.
FORMULA FOR STRAIGHT LINE DEPRECIATION METHOD =
\frac{COST OF THE ASSET - SALVAGE VALUE}{USEFUL LIFE YEAR}
In this question the first step to do is to calculate the depreciation expenses for the asset from year 2015 to 2018, where cost of asset = $90,000
salvage value = $5,000
useful life year = 10
Calculating the depreciation expense for 1 year =
\frac{\$90,000 - \$5,000}{10} = \$8500
But we have to calculate the value for 4 years between 2015 - 2018
so, $8500 x 4 = $34,000
Now in 2019 the salvage value is revised and it is equal to $6,000, and useful life is 8 years.
So here we will subtract the $34,000 from total cost of the asset $90,000, and take out depreciation expenses for the year 2019 as,
Firstly the cost of the asset for the year 2019 would be $90,000 - $34,000,
which is equal to $56,000 and now putting this value in the formula,
\frac{\$56,000 - \$6,000}{8} = \$6250
Therefore the depreciation expense for the year 2019 is $6250
An elderly client who has a documented history of dementia is intermittently alert and can currently tell you her name. Who should sign the client's informed consent for an invasive diagnostic procedure?
Answer:
The person who should sign client's informed consent for an invasive diagnostic procedure should be either relative( can be husband/wife/child) or a friend who has an durable power of attorney for healthcare of the client.
Explanation:
Dementia can be said as a group of condition where a person is suffering by impairment of at least two brain functions ,like memory loss and un able to make decisions on there own behalf. If a person is suffering from this condition , then someone else who has the authority to make decisions for that persons well being will sign the consent for the invasive diagnostic procedure.
At 12 weeks‘ gestation, a client who is Rh negative expels the total products of conception. What is the nursing action after it has been determined that she has not been previously sensitized?
Answer:
In most cases, your blood will not mix with your babies until delivery.
It takes a while to make antibodies that can affect the baby, so during the first pregnancy the baby should not be affected. If you are Rh-negative and are not sensitized. Your doctor may have the blood test repeated between 24 and 28 weeks of pregnancy. If the test still shows that you still have not been sensitized, you probably will not need another antibody test until delivery.
Explanation:
The nursing action that needs to be taken once it is decided that the client has not been formerly sensitized through red blood cells that are Rh-positive would be:
- Administering Rho(D) immune globulin within 72 hours.
The regime of offering "Rho(D) Immune Globulin" in the period of 72 hours would be the most appropriate nursing action post determination of the fact that the client has not been priorly crippled to Rh-positive blood cells. This will assist in preventing the kind from any future threats that might arise due to this negative evacuation of Rh-negative blood cells. Now, the immune globulin would neutralize any of the probable side effects and make the gestation entirely safe and secure.Learn more about "Gestation" here:
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Our company originally issued 1,000 shares of $1 par value common stock for $9 per share. We repurchased 200 shares of the stock as treasury stock for $10 per share. On September 5, we sold 100 shares of treasury stock for $12 per share. What account(s) and amount(s) would we credit when we record the journal entry for the September 5 transaction? (a) cash, $2,000 (b) treasury stock, $2,000 (c) treasury stock, $18,000 (d) cash, $18,000.
Answer:
D.cahs $18,000
Explanation:
cash $18,000
$2,000, account(s) and amount(s) would we credit when we record the journal entry for the September 5 transaction. So, the journal entry is Cash $2,000…dr.
Treasury Stock $2,000…. Cr.
In this instance, we sold 100 shares of treasury stock at a price of $12 each, resulting in total profits of $1,200 ($12 x 100 shares). The initial cost of the repurchased treasury stock was $10 per share, making the whole price $2,000 ($10 x 200 shares).
We would credit the cash account with the $2,000 received in order to record the sale. The treasury stock account is likewise credited, but only for $2,000 because that is how much the stock originally cost.
When selling treasury stock, the difference between the cash received and the stock's cost will be recorded as a gain or loss.
Journal entry is:
Cash $2,000Treasury Stock $2,000Learn more about on journal entry, here:
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Absorption-Costing Income Statement During the most recent year, Osterman Company had the following data: Units in beginning inventory — Units produced 10,000 Units sold ($47 per unit) 9,300 Variable costs per unit: Direct materials $9 Direct labor $6 Variable overhead $4 Fixed costs: Fixed overhead per unit produced $5 Fixed selling and administrative $138,000 Required: 1. Calculate the cost of goods sold under absorption costing. $ 223,200 2. Prepare an income statement using absorption costing. Enter amounts as positive numbers.
Answer:
Income Statment for the year ended december 31th, 20X9
Sales Revenue 437,100 (9,300 units x 47 price per unit)
COGS 223,200 (9,300 units x 24 unit cost)
Gross Profit 213,900
S&A 138,000
Net Income 75900
Explanation:
Unit cost:
DM + DL + VO + FO = 9 + 6 + 4 + 5 = 24
Final answer:
The cost of goods sold under absorption costing for the Osterman Company is $223,200. An income statement prepared using absorption costing shows a net income of $75,900, after accounting for sales revenue, cost of goods sold, gross margin, and fixed selling and administrative costs.
Explanation:
To calculate the cost of goods sold (COGS) under absorption costing, we must account for all manufacturing costs, including both variable and fixed costs, that are associated with the production of the goods sold. Given the information that the Osterman Company produced 10,000 units, sold 9,300 units at $47 each, and we know the variable costs per unit (direct material $9, direct labor $6, variable overhead $4) and fixed overhead per unit produced ($5), we can perform the following calculation:
Total variable costs per unit = $9 + $6 + $4 = $19
Total cost per unit under absorption costing = Total variable costs per unit + Fixed overhead per unit produced = $19 + $5 = $24
COGS under absorption costing = Total cost per unit x Units sold = $24 x 9,300 = $223,200 (as given)
The income statement using absorption costing for the Osterman Company would include Sales Revenue, Cost of Goods Sold, Gross Margin, Selling and Administrative expenses, and Net Income.
Sales Revenue: 9,300 units x $47 = $437,100
COGS: $223,200 (as calculated above)
Gross Margin: Sales Revenue - COGS = $437,100 - $223,200 = $213,900
Fixed Selling and Administrative costs: $138,000
Net Income: Gross Margin - Fixed Selling and Administrative costs = $213,900 - $138,000 = $75,900
On January 1, Year 1, Friedman Company purchased a truck that cost $33,000. The truck had an expected useful life of 8 years and an $7,000 salvage value. The book value of the truck at the end of Year 1, assuming that Friedman uses the double-declining-balance method, is: _________. (Do not round intermediate calculations.)
The book value of the truck at the end of Year 1, using the double-declining-balance method, is $24,750 after accounting for a depreciation expense of $8,250.
To calculate the book value of the truck at the end of Year 1 using the double-declining-balance method, we first determine the depreciation rate. The double-declining rate is twice the straight-line rate, so for an 8-year useful life, the straight-line rate is 1/8, or 12.5%. Therefore, the double-declining rate is 25%.
The annual depreciation expense for the first year is then 25% of the truck's cost, excluding the salvage value, since the double-declining-balance method does not consider the salvage value in the first year's calculation. Hence, the depreciation for the first year is 25% of $33,000, which is $8,250. To find the book value at the end of Year 1, subtract this depreciation expense from the original cost of the truck:
Original cost of the truck: $33,000Year 1 depreciation expense: $8,250Book value at the end of Year 1: $33,000 - $8,250 = $24,750You are the CEO of a company that has to choose between making a $100 million investment in either Russia or Poland. Both investments promise the same long-run return, so your choice of which investment to make is driven by considerations of risk. Assess the various risks of doing business in each of these nations. Which investment would you favor and why?
Answer: When assessing the risks of investment, one should consider the political, economic, and legal risks of doing business in either Russia or Poland. The risk in Russia would probably be considered higher than the risk in Poland since Poland has been a member state of the European Union since 1 May 2004, with the Treaty of Accession 2003 signed on 16 April 2003 in Athens as the legal basis for Poland's accession to the EU.
Poland has already gained benefits and stability offered by the EU. Russia, by contrast, is still many years away from even being in a position to be considered by the EU for membership.
Explanation: A diligent investor wouldn't put a penny in a risky country.
As a CEO of a company, one must decide to invest an amount like $100 million in Poland, if given an opportunity to choose between Russia and Poland, because this investment will result in less chances of being a risky investment.
What is the significance of an investment risk?An investment risk can be referred to or considered as the risk that is associated with the loss of capital, partly or wholly, while being involved in a monetary engagement into classes of investments. Risk assessment is an essential tool of identifying and reducing the risks associated with investments.
In the condition given above, the investment risks in Russia will be higher than in Poland. This is because Russia is a country with higher fluctuations in its economies over a longer period of time, and thus, Poland investment will be less risky.
Therefore, the significance regarding investment risks has been aforementioned.
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A television costs $100, but a new excise tax law imposes a $5 tax on the sale of the set. If Takeshi wants to buy a television, what would have to be his minimum willingness to pay? $105 more than $105 $100 between $100 and $105
Answer:
$105
Explanation:
It is obvious when any tax is imposed on the product it is ultimately collected from the consumer. Here, original cost was $100.00 and thereafter new excise tax of $5.00 on sales is imposed.
Which resulted in increase in price of Television from $100.00 to $105.00
Therefore, when a normal consumer buys such Television he shall be willing to pay $105.00
On January 1, 2018, Green Corporation purchased 34% of the outstanding voting common stock of Gold Company for $300,850. The book value of the acquired shares was $275,200. The excess of cost over book value is attributable to an intangible asset on Gold's books that was undervalued and had a remaining useful life of five years. For the year ended December 31, 2018, Gold reported net income of $125,150 and paid cash dividends of $25,450. What is the carrying value of Green's investment in Gold at December 31, 2018?
Answer:
Total Green's Investment 329,607.8
Explanation:
Book Value 275,200
Goodwill 25,650
First we calculate the goodwill, which will be amortize over 5 years
[tex]\frac{goodwill}{useful \: life} = amortization \: per \: year[/tex]
Amortization of Goodwill 25,650/5 = 5,130
Goodwill at December 31th 20,520
Next we use proportional equity to adjust the Green's book value Our proportion is 34%
Book Value 275,200
+ 34% of net income 125,120 = 42,540.8
-34% of cash dividends 25,450 = (8,653)
Book Value at December 31th 309,087.8
Book Value at December 31th 309,087.8
Goodwill at December 31th 20,520
Total Green's Investment 329,607.8
Panther Co. had a quality-assurance warranty liability of $356,000 at the beginning of 2018 and $311,000 at the end of 2018. Warranty expense is based on 3% of sales, which were $58 million for the year. What were the warranty expenditures for 2018?
Answer:
warranty expenditures for 2018: $ 1,785,000
Explanation:
warranty expected 3% of sales
58,000,000 x 3% = 1,740,000
Beginning - warrant expenditures + expected liab = ending warrant liability
We post our givens in the formula and solve for expenditures:
356,000 - X + 1,740,000 = 311,000
1,740,000 + 356,000 - 311,000 = expenditures
1,785,000 = expenditures
Bloom Company management predicts that it will incur fixed costs of $160,000 and earn pretax income of $164,000 in the next period. Its expected contribution margin ratio is 25%.Required: 1. Compute the amount of total dollar sales.2. Compute the amount of total variable costs.
Answer:
SALES IN DOLLAR $1,296,000VARIABLE COST IN DOLLAR $972,000Explanation:
The process would be to use formulas of the variable costing method to solve for each term:
We are going to use the operating income formula
contribution margin - fixed cost = operating income
Replace with the know values:
contribution margin - 160,000 = 164,000
now solve for the unknow value
contribution = 164,000 + 160,000 = 324,000
Next step we use the contribution margin ratio formula to get the sales:
contribution margin/sales = contribution ratio
Replace with the know values:
324,000/sales = 0.25
now solve for the unknow value:
sales = 324,000/0.25 = 1,296,000
Lastly we use the contribution margin formula to solve for variable cost:
sales - variable cost = contribution margin
Replace with the know values:
1,296,000 - variable cost = 324,000
now solve for the unknow value:
variable cost= 1,296,000 - 324,000 = 972,000
Total dollar sales is calculated to be $1,296,000 and total variable costs is calculated to be $972,000.
Explanation:The first part of the question asks for the total dollar sales. To find this, we use the formula for contribution margin: Contribution Margin Ratio = (Sales - Variable Costs) / Sales. Rearranging this formula, you get Sales = (Fixed Costs + Pretax income) / Contribution Margin Ratio. Plugging the provided values into the formula, we get Sales = ($160,000 + $164,000) / 0.25 = $1,296,000.
The second part asks for the total variable costs. Recall that the Contribution Margin Ratio is also equal to 1 - (Variable Costs / Sales). Rearrange this to get Variable Costs = Sales - (Sales × Contribution Ratio), and substituting the given values, it gives us Variable Costs = $1,296,000 - ($1,296,000 × 0.25) = $972,000.
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Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $300,000, and direct labor costs to be $150,000. Actual overhead costs for the year totaled $330,000, and actual direct labor costs totaled $170,000. At year-end, Factory Overhead account is:
Final answer:
Mango Company has an overapplied Factory Overhead balance of $10,000 at year-end due to the application of a predetermined overhead rate based on the actual direct labor costs.
Explanation:
The student's question relates to the calculation of the Factory Overhead account balance at year-end for Mango Company. Mango Company applies overhead based on direct labor costs. The estimated overhead costs were $300,000, while the actual overhead costs were $330,000. Direct labor costs were estimated to be $150,000, but the actual costs ended up being $170,000.
To find out the year-end balance of the Factory Overhead account, we need to calculate the applied overhead based on actual labor costs and compare it with the actual overhead costs incurred. The predetermined overhead rate is calculated as estimated overhead costs divided by estimated direct labor costs, which is $300,000 / $150,000 = 2. So, for every dollar of direct labor cost, Mango Company applies $2 in overhead costs.
Using this predetermined overhead rate, the applied overhead for the actual direct labor costs ($170,000) is 2 × $170,000 = $340,000. Since the actual overhead costs were $330,000, this results in a year-end Factory Overhead account with an overapplied balance of $340,000 - $330,000 = $10,000.