Torque Co. has equipment with a carrying amount of $1,600,000. The expected future net cash flows from the equipment are $1,630,000, and its fair value is $1,360,000. The equipment is expected to be used in operations in the future. What amount (if any) should Torque report as an impairment to its equipment?
1. No impairment should be reported.
2. $240,000
3. $30,000
4. $270,000

Answer:

Please see attachment

Explanation:

Please see attachment

This answer deals with how tariffs and subsidies affect the welfare of a small country. Tariffs increase prices and reduce welfare, while subsidies promote domestic production and consumption, increasing welfare. The optimal production subsidy aligns the marginal social benefit with the marginal cost of production.

The subject of this question is economics, focusing on the impact of tariffs and subsidies on the welfare of a small country. The concepts used in this scenario include demand and supply curves, world price, tariffs, and social benefits.

To calculate the total effect on welfare, we first need to understand how tariffs and subsidies impact price, quantity demanded and supplied, and the overall equilibrium in the market.

(a) A tariff of 5 per unit raises the price from 10 (world price) to 15. Plugging this into the supply (S= 20 +10 P) and demand (D = 400- 5 P) equations gives the new quantities. The change in consumer and producer surplus implies the welfare effect of the tariff.

(b) A production subsidy of 5 per unit effectively reduces the cost of production. This shifts the supply curve down by the amount of the subsidy, leading to an equilibrium with a lower price and higher quantity than before. The change in consumer and producer surplus from this new equilibrium gives the welfare impact.

(c) A subsidy improves welfare more than a tariff as it encourages domestic production without raising the price for consumers. Therefore, unlike tariffs, subsidies stimulate both consumption and production, resulting in a greater gain in welfare.

(d) The optimal production subsidy can be derived by setting the marginal social benefit equal to the marginal cost of production. Solving for the price in the supply function, then comparing it with the world price plus the subsidy, we can determine the optimal subsidy level.

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Answer:

d. the actual usage of materials was less than the standard allowed.

Explanation:

For evaluating the price or quantity variance, we do not take into consider the number of quantity purchased, instead we focus on the number of quantity actually being used for manufacturing the targeted unit. So, we can easily eliminate the first two options.

Now, as per the question, there was an unfavourable material price variance of $380. That means, the budgeted price for the material is less than the actual price for manufacturing the product. However, the third option exactly contradicts the above situation.

The correct option is (d), because the actual usage of material was less than the budgeted one, which gives the favourable quantity variance of $120.  

Answer:

D.$793,000.

Explanation:

Please see attachment

Answer:

Option 3. Assigns a property right to pollute the atmosphere

Explanation:

It makes a cap on the pollution and the permits are transferable so that it assign how much to pollutes means assigning property rights to the firms to pollute.

Everyone is not required to reduce pollution if the firm can buy permits to pollute.

Answer:

a) price per pound: 3.76 dollars

b)  4.30 pounds

c) standard cost: std raw material quantity * std price

4.30 * $3.76 = $16.168

Explanation:

Raw material cost: we must include all the necessary cost to get theraw material ready for use:

3.04 raw materials +0.49 fregiht +0.23 handling= 3.76 total cost

Pounds per gallon of finished product: we must inclde the allowance because, iof we input less gallon we aren't ending with a gallon of finished product.

3.50 + 0.80 allowance = 4.30 pounds

Answer:

a. 3.76

b.4.30

c.16.168

Explanation:

a. 3.04 raw materials +0.49 freight +0.23 handling= 3.76 total cost

b. 3.50 + 0.80 allowance = 4.30 pounds

c. 4.30 * $3.76 = $16.168

Answer:

B. Fraud will be eliminated.

Explanation:

Controls when established provides the quality of assurance that the procedures are followed properly, regarding each and every accounting transactions.

There is an inbuilt rate of fraud in any business, which is unavoidable irrespective of any controls established.

Thus, controls do not assure elimination of fraud, but yes the effective implementation of control makes the fraud difficult to occur, as the controls set a standard procedure of doing an act.

This is basically because the controls establish the strict rules to be followed while accounting for transactions which states the clear picture of fair practice of accounting.

Controls are not designed to provide assurance thatFraud will be eliminated. "The correct answer is B.

Controls in an organization are designed to ensure that various aspects of operations are conducted effectively and efficiently. Here's the rationale behind each option:

A. Transactions are executed in accordance with management's authorization. Controls are indeed designed to ensure that transactions are executed according to management's authorization. This is to prevent unauthorized transactions and ensure that all actions taken are within the scope of management's directives.

B. Fraud will be eliminated. While controls are designed to reduce the risk of fraud, they cannot guarantee that fraud will be completely eliminated. Fraud can be perpetrated by individuals who are skilled at circumventing controls, or it can be due to collusion among employees. Therefore, controls can mitigate but not entirely eliminate the risk of fraud.

C. Access to assets is permitted only in accordance with management's authorization. Controls are designed to ensure that access to assets is restricted and only granted to authorized personnel. This helps in safeguarding the assets and preventing unauthorized use or theft.

D. The recorded accountability for assets is compared with the existing assets at reasonable intervals. Controls include regular reconciliations and physical counts of assets to ensure that the recorded accountability matches the actual assets on hand. This is to detect any discrepancies that might indicate theft, loss, or errors in record-keeping.

In summary, while controls can significantly reduce the risk of unauthorized transactions, unauthorized access to assets, and discrepancies in asset records, they cannot ensure the complete elimination of fraud. Hence, the statement that controls are not designed to provide assurance that fraud will be eliminated is correct."

Answer:

D) firms whose average private cost is less than price will stay in (or enter) the dry cleaning

industry even though their average social cost exceeds price.

Explanation:

When there is pollution as a result of the daily business, then it involves a huge social cost, as you cause harm to public.

But company's do not consider it in making the decision for business, as it generally do not impact the business in financial matters.

As even if the average cost is less then revenue the profit will be there to run the business.

But till the moment the financial impact is not strong of the social cost the pollution will not affect.

Answer:

A) The price of a donut is $2.00 in 2009.

B) Rina's wage is $14.00 per hour in 2009.

Explanation:

The nominal value of a variable is its monetary amount, in this case, in dollars which is susceptible to currency fluctuations and inflation. Therefore, statements A and B present the nominal value of a variable.

When valuing a variable as an exchange for another good, that is assigning a real value to that variable since monetary changes won't affect the relationship between two goods.

The answers are A) and B)

Final answer:

In economics, nominal value refers to measurements in terms of actual prices, while real value refers to measurements adjusted for inflation. In the given scenario, the variables representing nominal value are the price of a donut and Rina's wage. The variable representing real value is Rina's wage in terms of paperback novels per hour.

Explanation:

In economics, the classical dichotomy refers to the separation of real and nominal variables. Nominal value refers to the measurement of a statistic in terms of actual prices that exist at the time. Real value, on the other hand, refers to the same statistic after it has been adjusted for inflation. In the given scenario, the variables that represent nominal value are:

The variable that represents real value is:

Answer: ko = ke(E/V) + kd(D/V)(1-T)

              ko = 18(100/150) + 11(50/150)(1-0.35)

              ko = 12 + 2.38

              ko = 14.38%

The correct answer is 14.38%

Explanation: WACC equals cost of equity multiplied by the ratio of equity to value of the firm plus cost of debt multiplied by the after-tax ratio of debt to the value of the firm. the variables are defined as follows:

Ko = WACC

ke = Cost of equity

E   = Market value of equity

kd = Cost of debt

D  = Market value of debt

T  = Corporate tax rate

The Modigliani's WACC is 14.38%.

Weight of equity = 1 ÷ (1+Debt equity Ratio) = 1 ÷ 1.5

Weight of Debt = 0.5 ÷ 1.5

WACC =Weight of Equity × Cost of Equity + Weight of Debt × Cost of Debt × (1-Tax rate)

=1 ÷ 1.5 × 18% + 0.5 ÷ 1.5 × 11% × (1 -35%)

= 14.38%

Therefore we can conclude that the first option is correct.

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The appropriate journal entry to record the transaction is: Debit Equipment  $7,1040; Debit Prepaid insurance $580; Credit  Cash              $3,220; Credit Accounts payable $68,400.

Orion Flour Mills journal entry

Debit Equipment  $7,1040

($63,000 + $5,400 + $880 + $1,760)

Debit Prepaid insurance $580

Credit  Cash              $3,220            

($880 + $1,760 + $580)

Credit Accounts payable $68,400      

($63,000 + $5,400)

Inconclusion the appropriate journal entry to record the transaction is: Debit Equipment  $7,1040; Debit Prepaid insurance $580; Credit  Cash              $3,220; Credit Accounts payable $68,400.

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The expenditures are recorded by debiting Machinery for the combined amounts of purchase price, sales tax, shipment, insurance, and installation. The machine, including its sales tax, is posted as accounts payable and the other expenditures are paid in cash.

The question is about tracking and recording the expenses related to the purchase of a machine by Orion Flour Mills. The relevant expenditures that need to be accounted for, include the purchase price, sales tax, shipment, insurance, and installation costs. It is important to note that the machine, including its sales tax, was purchased on account which means it's not paid for immediately.

Here's how to record the transactions:

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Answer:

Answers are enlisted below

Explanation:

1) year price

5 1120.43

10 1197.35

15 1246.48

20 1277.86

2) inverse relationship as maturity increases bond price increases

Answer:

The correct answer is letter "D": Many small firms; making zero profits.

Explanation:

An oligopoly is when the market is controlled by a small group of two or more firms. Businesses in an oligopoly can agree in price collusion and create barriers to entry for new commerce. When they compete against each other they act like perfect competitors which generate a price dropdown and causing zero profits for the firms.

Answer:

I disagree. It is clearly a bank liability.

Answer:

Letter A is correct. Unsystematic risk.

Explanation:

Unlike systematic risk, which is an inherent market risk, unsystematic risk is inherent in a specific sector or company.

The case in point concerns the investment of former AlphaEnergy employees, which is a unsystematic risk, as the investment risk in single-company shares includes regulatory changes, management changes, loss of market due to competition and withdrawal of the product from the market.

To reduce this type of risk, investors should seek diversification in their stock portfolio.

Answer:

amount will be available for its common stockholders is $82,200

Explanation:

Dividend paid  in 2020 is $30,000

Dividend for preferred stock holder in 2020 is =  12,000 × 60 × 8% = $57,600

Dividend accumulated for the next year is = 57600 - 30000 = $27,600

Dividend paid  in 2021 is $45,000

from 57600, company paid 27600 and tjis year dividend as $17400

so total $45000 is paid

Balance unpaid dividend is accumulated = $57,600 - $17,400 = $40,200

in 2022, Total dividend is $180,000

Dividend payable to preferred stock holder in 2020 = $57,600

so total amount allotted to preferred stock holder is = 57600+40200 = $97800

we know total dividend paid in 2022 is $180,000

so dividend payable to common stockholders is  =180000-  97800  = $82,200

Answer:

What journal entry did Pincus record to write off uncollectible accounts during 2021

Dr Allowance for Uncollectible Accounts $ 6,300

Cr Accounts receivable $ 6,300

What journal entry did Pincus record to recognize bad debt expense for 2021?

Dr Bad Debt Expense $ 8,040

Cr Allowance for Uncollectible Accounts $ 8,040

Explanation:

Pincus provided a total of $156,000 of services on account.  

Dr Accounts receivable $ 156,000

Cr Sales $ 156,000

In 2021, the company wrote off uncollectible accounts of $6,300  

Dr Allowance for Uncollectible Accounts $ 6,300

Cr Accounts receivable $ 6,300

By the end of 2021, cash collections on accounts receivable totaled $132,300.  

Dr Cash $ 132,300

Cr Accounts receivable $ 132,300

Balances on Accounts 31.12.2012 before adjustment  

Accounts receivable CREDIT $ 17,400

Allowance for Uncollectible Accounts DEBIT $ 6,300

Pincus estimates that 10% of the accounts receivable balance at 12/31/2021 will prove uncollectible.  

Dr Bad Debt Expense $ 8,040

Cr Allowance for Uncollectible Accounts $ 8,040

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of estimated value.

Because the company already has a DEBIT balance ($6,300) in the Allowance for Doubtful Accounts  it's necessary to register an entry that COMPLEMENT ($8,040) the existing value and reflect the value estimated as bad debts ($1,740).

Bad Debt Expense = $8,040 - $6,300 = $1,740

It's necessary to reflect $1,740 in the Allowance for Uncollectible Accounts as Credit, so we need an entry of $8,040.

Answer:

development

Explanation:

An individual when grows do not only grows individually, but also helps in the development of the organization.

Accordingly when the organization sees some potential in the individual of growth and development - it shall to develop the managerial skills and allow him to become a leader, send him for some leadership course.

The leadership course will develop the leadership potential professionally that shall help him and the organization as well.

Answer:Higher income families tend to have more people to support.

Explanation:

Income inequality refers to the differences in income among the populace.

The fact that a family has an high income does not suffice that all the income will be available for his consumption for he may have to give out the less privilege and this will not be captured by the census.

The fact that few move from one to another level of income to another will not disrupt census figure and this hold equally hold for in kind transfer they cannot disrupt census figure and can improve living standard.

Answer:

Question 1:  DR  Profit & Loss Account  $2,428,300

                    CR  Equipment                   $2,428,300

Question 2: DR  Depreciation Expense  $690,512.50

                   CR  Accumulated Depreciation $690,512.50

Explanation:

Question 1)

DR  Profit & Loss Account  $2,428,300

                  CR  Equipment                   $2,428,300

IAS 36 – Impairment of Assets states that the assets is considered to be impaired if the Carrying Amount of an asset is greater than the Recoverable Amount. Recoverable Amount of an assets is the higher of Fair Value less Cost to Sell and Value-in-Use.

In case of Monty Company, recoverable amount of Equipment will be $5,524,100 i.e. Value-in-Use as it is greater than the Fair Value les cost to sell. The carrying amount of Equipment $7,952,400 ($8,943,400 - $991,000 = $7,952,400) exceeds the recoverable amount $5,524,100, Therefore, the asset is considered impaired and must be written down by $2,428,300 ($7,952,400 - $5,524,100 = $2,428,300). The impairment loss is charged to the statement of profit and loss.

Question 2)

DR  Depreciation Expense  $690,512.50

                         CR  Accumulated Depreciation $690,512.50

Once the asset is impaired, the recoverable amount of the asset is then depreciated over the remaining useful life of the asset.  In case of Monty Company, depreciation charge for equipment in 2018 will be ($5,524,100 ÷ 8 = $690,512.50)

Answer:

C) 12.51%

Explanation:

Initial stock price = $59

Selling price = $66

Dividends paid = $0.38

The total return on the investment is the the sum of the dividend yield and the capital  gains yield on the investment:

[tex]R= DY +CGY\\R=\frac{dividends}{initial\ price}+ \frac{final\ price-initial\ price}{initial\ price} \\R=\frac{0.38}{59}+ \frac{66-59}{59}\\R=0.1251 = 12.51\%[/tex]

The return on the investment is 12.51%

To calculate the total return on the investment, the capital gains and dividends received are combined. The total earnings of $7.38, divided by the initial $59 investment and converted to a percentage, yield a total return of 12.51%.

The subject of this question is the calculation of total return on investment (ROI), which is a concept in finance and investing. To calculate the total return, we consider both the capital gains and any dividends received. The initial investment was $59, and the investment was sold for $66, resulting in a capital gain of $66 - $59 = $7. The investor also received a dividend payment of $0.38. The total earnings are therefore $7 (capital gain) + $0.38 (dividend), which equals $7.38. To find the total return as a percentage, we divide the total earnings by the initial investment and multiply by 100: ($7.38 / $59) × 100 = 12.51%. Therefore, the correct answer is C) 12.51%.

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Answer:

$23900

Explanation:

Given: Cumulative Preferred stock is 5900 shares of 6% at $50.

           Dividend paid in 2019= $11500

First lets calculate the value of preferred stock.

Preferred stock= [tex]5900 shares\times \$ 50\times \frac{6}{100}[/tex]

∴ Preferred stock= $17700.

Formula:

Dividend received by preferred stockholder= [tex][Preferred\ stock +(Preferred\ stock-Dividend\ paid)][/tex]

⇒Dividend received by preferred stockholder=[tex]17700+(17700-11500)[/tex]

⇒ Dividend received by preferred stockholder= [tex]17700+6200= \$ 23900[/tex]

∴ $23900 dividend received by preferred stockholder in 2020.

Answer:

Explanation:

The preparation of the statement of retained earnings for Amos Company is shown below:

Retained earnings at December 31, 2018 (before discovery of error) $858,000

Less: Depreciation expense two years ago -$45,600

Add: net income $209,000

Less: Cash dividends declared and paid during the year -$11,000

Retained earnings at December 31, 2019             $1,010,400

Answer:Make a single payment of principal when the bonds matured but multiple payment of interest over the life of the bond.

2.0600

Explanation:

Bonds normally has a life of span from one upward for which interest will be paid to the investors as compensation for use of their fund and the principal sum will be refunded on the expiration of the bond life.

The return on a bond is fixed as specified in the bond contract the inability to make payment as at when due may not affect the return obtainable from the bond initial contract.

Answer: Instant messaging is designed for messages online real time.

Explanation:

Which the message are received instantly when sent.

B. a Control, b. Convenience c. Litigation f. Speed

The user has control of it, it's convenient for use, can be used as evidence in litigation, however it's obtrusive it could be disturbing to the receiver and it's presence functionality cannot be determined until it's sent and received.

Instant messaging (IM) is increasingly used in business due to its convenience (b), unobtrusiveness (d), presence functionality (e), and speed (f). It enables easy, fast, and effective communication with less disruption.

Several factors contribute to the popularity of instant messaging (IM) in business environments. Among them are convenience, unobtrusiveness, presence functionality, and speed.

IM is convenient as it allows users to communicate quickly and effectively without the need to leave their workstations. In addition, IM is unobtrusive, since it allows users to receive and respond to messages at their own pace, causing less disruption compared to phone calls or face-to-face meetings.

Presence functionality is another significant advantage of IM. This feature shows whether a user is online and available to communicate, which can greatly aid in coordinating tasks and avoiding communication delays. Finally, speed is a critical factor. IM provides real-time communication, enabling instant sharing of information and quick problem-solving.

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Final answer:

The joint cost allocated to Commercial Building Lumber (CBL) using a physical-units basis is $224,200, which is calculated by finding the proportion of total units that are CBL and then applying that percentage to the total joint costs.

Explanation:

To allocate the joint costs to Commercial Building Lumber (CBL) using the physical-units basis, you first need to find the total number of units produced and then determine what percentage of these units are CBL.

Total units = MSB units + CBL units
= 68,000 MSB + 98,000 CBL
= 166,000 units

The relative proportion of CBL is:
Percentage of CBL = (CBL Units / Total Units) * 100
= (98,000 / 166,000) * 100
= 59%

The amount of joint cost allocated to CBL is then calculated by multiplying the total joint cost by the relative proportion of CBL:

Joint Cost Allocated to CBL = Total Joint Cost * (Percentage of CBL / 100)
= $380,000 * (59% / 100)
= $380,000 * 0.59
= $224,200 (rounded to the nearest dollar)

Answer:

B) systematic risk

Explanation:

Federal Reserve changes in monetary policies affect the entire securities market hence considered a Systematic risk. It is also known as the Non-diversifiable risk ; it cannot be diversified away unlike stock specific or industry specific risk(unsystematic ) which can be eliminated through diversification.

Systematic risk is unavoidable and may be difficult to predict. Other examples include increase in long term interest rates, recessions or wars. Additionally, Investors are only compensated for systematic risk and not for diversifiable risk.

Answer:

Please see attachment

Explanation:

Please see attachment

Answer:

economic cost for Fred's accounting business is $142,000

Explanation:

given data

earning = $95,000 per year

rent = $22,000 per year

salary = $32,000 per year

other expenses = $25,000 per year

to find out

economic cost for Fred's accounting business

solution

we know that economic costs include both the explicit costs and implicit costs and here explicit costs is the expenditure on factor of production purchase from outside

so implicit costs is opportunity cost of owner provided resource and other expense is an explicit cost

so here Economic cost is here

Economic cost = Foregone salary + Foregone rent + Other expenses  ..............1

put here value

Economic cost = 95,000 + 22,000 + 25,000

Economic cost = = $142000

so

economic cost for Fred's accounting business is $142,000

Answer:

The answer is develop a flowchart. Letter A

Explanation:

The first step in process flow analysis is to develop a flowchart