When Bruno's basis in his LLC interest is $150,000, he receives cash of $55,000, a proportionate share of inventory, and land in a distribution that liquidates both the LLC and his entire LLC interest. The inventory has a basis to the LLC of $45,000 and a fair market value of $48,000. The land's basis is $70,000, and the fair market value is $60,000. How much gain or loss does Bruno recognize, and what is his basis in the inventory and land received in the distribution?

Answers

Answer 1

Answer:

Please see attachment

Explanation:

Please see attachment .

Please note that B= Bruno

When Bruno's Basis In His LLC Interest Is $150,000, He Receives Cash Of $55,000, A Proportionate Share

Related Questions

Crane Companyplanned to use 1 yard of plastic per unit budgeted at $91 a yard. However, the plastic actually cost $90 per yard. The company actually made 4100 units, although it had planned to make only 3300 units. Total yards used for production were 4160. How much is the total materials variance?

Answers

Answer:

$1300 U    

Explanation:

Budgeted cost of plastic per yard = $91

Actual cost of the plastic per yard = $90

Actual units made = 4100

Budgeted units to be made = 3300

Actual plastic used = 4160 yards

Now,

Materials quantity variance

= ( Budgeted material - Actual material ) × Actual cost

= ( 1 × 4100 - 4160 ) × $90

= -$5,400       [Here negative sign means unfavorable ]

Materials price variance = ( Budgeted cost - Actual cost ) × Actual units

= ( $91 - $90 ) × 4100

= $4100

Therefore,

Total material variance = $4,100 - $5,400  

= - $1,300

i.e $1300 U    

Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: D0 = $0.80; P0 = $22.50; and g = 8.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings?

Answers

Answer:

Cost of equity from retained earning is 11.84 %

Explanation:

We have given dividend [tex]D_0=$0.80[/tex]

Price at the beginning [tex]P_0=$22.50[/tex]

Growth rate g = 8 %

We have to find the cost of equity from retained earning

Now dividend at the end of year [tex]D_1[/tex] = $0.80×1.08 = 0.864

We know that cost of equity is given by

[tex]Ke=\frac{D_1}{P_O}+g=\frac{0.864}{22.50}+0.08=0.1184=11.84%[/tex]

So cost of equity from retained earning is 11.84 %

Clothing Frontiers began operations on January 1 and engages in the following transactions during the year related to stockholders’ equity.January 1 Issues 700 shares of common stock for $34 per share.April 1 Issues 110 additional shares of common stock for $38 per share.Record the transactions, assuming Clothing Frontiers has either $1 par value common stock or $1 stated value stock. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)1. Record the issuance of 700 shares of common stock for $34 per share.2. Record the issuance of 110 additional shares of common stock for $38 per share.

Answers

Final answer:

The two transactions related to the issuance of shares by Clothing Frontiers should be recorded by debiting cash for the total amount received, crediting common stock for the amount equal to number of shares times the par or stated value, and crediting 'Paid-In Capital in Excess of Par – Common Stock' for the remaining amount. This applies to both the original 700 shares and the 110 additional shares.

Explanation:

When a corporation issues stock, an entry is made to recognize this transaction in the books. Assuming Clothing Frontiers has either $1 par value common stock or $1 stated value stock, the entries would be recorded as follows:

1. The issuance of 700 shares of common stock for $34 per share would be:
Debit: Cash (700 shares * $34)= $23,800
Credit: Common Stock (700 shares *  $1)= $700
Credit: Paid-In Capital in Excess of Par – Common Stock=$23,100

2. The issuance of 110 additional shares of common stock for $38 per share would be:
Debit: Cash (110 shares * $38)= $4,180
Credit: Common Stock (110 shares *  $1)= $110
Credit: Paid-In Capital in Excess of Par – Common Stock=$4,070

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Final answer:

Clothing Frontiers' common stock issuances are recorded by debiting Cash for the total funds received, crediting Common Stock for the par or stated value, and crediting Additional Paid-in Capital for the excess received over par value.

Explanation:

The transactions occurring in Clothing Frontiers during the year are related to the issuance of common stock. Assuming the company has either $1 par value or $1 stated value common stock, the recording of these transactions in the ledger would look as follows:

Issuance of 700 shares of common stock for $34 per share: Debit Cash for $23,800 (700 shares * $34) and credit Common Stock for $700 (the par or stated value, which is $1 * 700 shares) and Additional Paid-in Capital for $23,100 (the difference between cash received and par value).Issuance of 110 additional shares of common stock for $38 per share: Debit Cash for $4,180 (110 shares * $38) and credit Common Stock for $110 (the par or stated value, which is $1 * 110 shares) and Additional Paid-in Capital for $4,070 (the difference between cash received and par value).

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Commercial paper is very popular with many firms because Multiple Choice it can usually be issued below the prime rate. there are no required lines of credit at the bank. it satisfies the firm's need for long-term funds. it is very simple to roll over (refinance) in times of economic turmoil.

Answers

Answer:There are no required line of credit at the bank.

It's very simple to roll over(refinance) in times of economic turmoil.

Explanation:

A commercial paper is issued by banks or large companies to finance short term requirements like working capital.

It does not require having a line of credit credit with the bank and can be easily rollover.

However it's rate are normally higher than prevailing prime rate since non financial institutions are involved and it's usually for a short period.

Bet'R Bilt Bikes just announced that its annual dividend for this coming year will be $2.42 a share and that all future dividends are expected to increase by 2.5% annually. What is the market rate of return if this stock is currently selling for $22 a share?

Answers

Answer:

13.50%

Explanation:

The computation of the market rate of return is shown below:

Current selling price for share = Annual dividend ÷ (Market rate of return - growth rate)

$22 = $2.42 ÷ (Market rate of return - 2.5%)

(Market rate of return - 2.5%) = $2.42 ÷ $22

(Market rate of return - 2.5%) = 11%

So, the market rate of return would be

= 11% + 2.5%

= 13.50%

Final answer:

The market rate of return for Bet'R Bilt Bikes, given the current annual dividend of $2.42 per share, an expected annual dividend growth rate of 2.5% and the current share price of $22, is calculated to be approximately 13.5%.

Explanation:

Your question is about determining the market rate of return for Bet'R Bilt Bikes, given the annual dividend and the expected annual dividend growth. To do this, we use the Gordon Growth Model, also known as the Dividend Discount Model (DDM). The formula is as follows:

Market Rate of Return = (Annual Dividend payment/Price per share) + Annual Growth Rate

Plugging in the values from your question, we get:

Market Rate of Return = (2.42 / 22) + 0.025 = 0.135 or 13.5%

So, the market rate of return for Bet'R Bilt Bikes, given the information provided, is approximately 13.5%.

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Jiu has $105,000 of losses from a real estate rental activity in which she actively participates. She has other rental income of $25,000 and other passive activity income of $32,000. Her AGI before considering these items of income and loss is $95,000.Does she have any suspended losses to carry over? Explain.

Answers

Final answer:

Jiu may have $23,000 in suspended losses to carry over to future years. She can offset $57,000 of her $105,000 real estate rental activity loss with her passive activity income and potentially deduct an additional $25,000 of the loss against her AGI of $95,000, due to IRS allowance for rental real estate losses.

Explanation:

The question pertains to whether Jiu has any suspended losses to carry over after accounting for rental activity losses, additional rental income, other passive activity income, and her adjusted gross income (AGI). Suspended losses are losses from passive activities that exceed income from passive activities and cannot be deducted in the current year, but can be carried forward to future tax years.

Jiu's real estate rental activity loss is $105,000. She actively participates in this activity, which allows her to offset this loss against her passive activity income ($25,000 from other rental income and $32,000 from additional passive activity income), totaling $57,000.

After applying the passive activity income ($57,000) against the rental activity loss ($105,000), Jiu would be left with $48,000 ($105,000 - $57,000) in losses that cannot be currently deducted. Considering her AGI of $95,000, which is before considering these items of income and loss, the nondeductible portion depends on additional tax rules that apply to losses from passive activities and her income level.

However, the IRS allows up to $25,000 in rental losses to be deducted if the taxpayer's modified AGI is $100,000 or less, with the deduction phaseout starting at an AGI of $100,000 and completely phasing out at $150,000. Since Jiu's AGI is $95,000, she can deduct $25,000 of the loss, potentially reducing the suspended loss to $23,000 ($48,000 - $25,000). The remaining loss may be carried over to future years.

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Jiu has $23,000 suspended losses to carry over after offsetting $25,000 special allowance and $57,000 passive income.

To determine if Jiu has any suspended losses to carry over, we need to consider the passive activity loss (PAL) rules under the Internal Revenue Code. Passive activity losses can only offset passive activity income unless certain exceptions apply.

Jiu's scenario is as follows:

- Real estate rental activity loss: $105,000

- Other rental income: $25,000

- Other passive activity income: $32,000

- Adjusted Gross Income (AGI) before considering these items: $95,000

Step-by-Step Analysis:

1. Calculate Total Passive Activity Income:

  - Other rental income: $25,000

  - Other passive activity income: $32,000

  - Total passive activity income: $25,000 + $32,000 = $57,000

2. Offset Losses Against Passive Income:

  - Jiu can use her passive activity income to offset her passive activity losses.

  - Loss from real estate rental activity: $105,000

  - Passive activity income available to offset this loss: $57,000

  Therefore, $105,000 (loss) - $57,000 (income) = $48,000 (remaining loss)

3. Special Allowance for Real Estate Activities:

  - The IRS allows an exception for real estate professionals and those who actively participate in rental real estate activities, permitting them to offset up to $25,000 of real estate losses against non-passive income if their AGI is $100,000 or less. This allowance phases out between $100,000 and $150,000 AGI.

  - Jiu's AGI before considering these items is $95,000, so she qualifies for the full $25,000 special allowance.

  Therefore, from the remaining $48,000 loss:

  - Special allowance: $25,000

  Remaining loss after special allowance: $48,000 - $25,000 = $23,000

Conclusion:

Jiu has $23,000 of suspended passive activity losses to carry over to future years because she has utilized $25,000 against the special allowance and $57,000 against passive income.

Summary in 20 words:

Jiu has $23,000 suspended losses to carry over after offsetting $25,000 special allowance and $57,000 passive income against $105,000 loss.

A senator renounces his past support for protectionism: "The U.S. trade deficit must be reduced, but import quotas only annoy our trading partners. If we subsidize U.S. exports instead, we can reduce the deficit by increasing our competitiveness."

Show the effect of an export subsidy on the market for foreign exchange.

The value of dollars in the market for foreign-currency exchange.....falls or rise.... as a result of this export subsidy.

True or False: The export subsidy reduces the trade deficit.

Answers

Answer

The answer and procedures of the exercise are attached in a the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

On January 1, 2019, Ellen Greene Company makes the following acquisition.
Purchases land having a fair value of $200,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $337,012.
On December 31, 2019, how much interest expense should be recognized on the zero-interest-bearing promissory note? (Hint: First solve for the implied interest rate) Round your final answer to the nearest dollar.

Answers

Answer:

The interest expense should be recognized on the zero-interest-bearing promissory note is 22.000

Explanation:

Interest expense = (Fair value of the land * Interest rate)

Supposing a interest rate of 11% we get:

Interest expense = 200.000 * 11% = 22.000

The interest expense that should be recognized on the zero-interest-bearing promissory note will be $22000.

From the complete question, the land that was purchased have a fair value of $200,000 and the company has to pay 11% interest for funds from its bank.

Therefore, the interest will be calculated thus:

= Interest rate × Fair value

= 11% × $200,000

= 0.11 × $200,000

= $22000.

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Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,530 per month plus $44 per boat. For the month of April, the company planned for activity of 58 boats, but the actual level of activity was 12 boats. The actual cleaning equipment and supplies for the month was $3,160. The spending variance for cleaning equipment and supplies in April would be closest to:_________.

Answers

Answer:

$102 unfavorable

Explanation:

The computation of the spending variance is shown below:

= Actual supplies cost - expected supplies cost

where

Actual supplies cost is $3,160

And, the flexible supplies cost would be

= Actual level of activity × price per boat + supplies cost per month

= 12 boats ×$44 + $ 2,530

=  $528 + $ 2,530

= $3,058

Now put these values to the above formula  

So, the value would equal to  

= $3,160 - $3,058

= $102 unfavorable

= $11,389

Now put these values to the above formula  

So, the value would equal to  

= $11,700 - $11,389

= $311 unfavorable

Action Aaron McKinney is a cost accountant for Majik Systems Inc. Martin Dodd, vice president of marketing, has asked Aaron to meet with representatives of Majik Systems’ major competitor to discuss product cost data. Martin indicates that the sharing of these data will enable Majik Systems to determine a fair and equitable price for its products. Would it be ethical for Aaron to attend the meeting and share the relevant cost data? Why or why not?

Answers

Answer:It will not be ethical for Aaron to attend the meeting and share relevant cost data

Explanation:

Sharing of the relevant cost data will enable the competitor to have a good idea of what goes into Aaron production and it's pricing policy which may be use to the advantages of the competitor.

Furthermore there is no law that protect a firm from his competitor abuse of information obtain through mutual consent.

Final answer:

Sharing cost data with a competitor would be unethical and potentially illegal. Aaron should decline the invitation and communicate the concerns to his superiors.

Explanation:

It would not be ethical for Aaron to attend the meeting and share the relevant cost data. As a cost accountant, Aaron has a responsibility to his company and its customers to keep sensitive information confidential. Sharing proprietary cost data with a competitor could harm his company's competitive advantage and violate confidentiality agreements.

Furthermore, sharing cost data with a competitor could be seen as anti-competitive behavior and may even be illegal under antitrust laws. Companies are expected to compete fairly and independently determine their prices based on their own cost structures.

Aaron should decline the invitation and communicate the potential ethical and legal concerns to his superiors. He could suggest exploring other strategies for determining a fair and equitable price, such as market research, customer feedback, or benchmarking against industry standards.

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State whether each of the following events will result in a movement along the market demand curve for labor in electronics factories in China or whether it will cause the market demand curve for labor to shift. If the demand curve shifts, indicate whether it will shift to the left or to the right and draw a graph to illustrate the shift.

The wage rate declines.

b. The price of televisions declines.

c. Several firms exit the TV market in China.

d. Chinese high schools introduce new vocational courses in assembling electronic products

Answers

Final answer:

The decline in wage rate results in movement along the demand curve for labor. The decrease in the price of televisions and the exit of several firms from the TV market in China cause the demand curve for labor to shift to the left. New vocational courses could potentially shift the demand curve for labor to the right.

Explanation:

When analyzing shifts in the market demand curve for labor in electronics factories in China, different factors will have distinct impacts. Below are the analyzed scenarios:

The wage rate declines: This will result in a movement along the existing demand curve for labor, as it reflects a change in the quantity of labor demanded at a lower wage rate, rather than a shift in the overall demand for labor.The price of televisions declines: This will likely cause the demand curve for labor to shift to the left, since lower prices for televisions could reduce producers' revenue and, consequently, the number of workers they can afford to hire.Several firms exit the TV market in China: This would also typically result in a shift to the left of the labor demand curve because there would be fewer firms demanding labor.Chinese high schools introduce new vocational courses in assembling electronic products: This could potentially shift the labor demand curve to the right as it might increase the productivity of the labor force, making workers more valuable to employers.

In​ long-run equilibrium, all firms in the industry earn zero economic profit. Why is this​ true? All firms in perfectly competitive industries earn zero economic profit in the long run because A. firms are price​ takers, maximizing profit by producing where total revenue equals total cost. B. if profit were​ positive, then firms would produce more​, increasing ​price, and if profit were​ negative, then firms would produce less​, decreasing price. C. firms are price​ takers, maximizing profit by producing where price equals marginal cost. D. if profit were​ positive, then firms would​ enter, decreasing​ price, and if profit were​ negative, then firms would​ exit, increasing price. E. barriers to entry and exit prevent firms from earning positive or negative economic profit.

Answers

Answer:

D. if profit were​ positive, then firms would​ enter, decreasing​ price, and if profit were​ negative, then firms would​ exit, increasing price.

Explanation:

Perfectly competitive firms are price takers, hence they cannot influence the price of their products.

Perfectly competitive industries have no barriers to entry or exist of firms ,so if in the short run, firms are earning economic profit, then firms would​ enter into the industry , decreasing​ price, and if profit were​ negative, then firms would​ exit, increasing price. This makes perfect competitive firms to earn zero economic profit in the long run.

Ted’s wallet is as empty as his bank account, and he needs $3,500 immediately.Fortunately, he has three gold coins that he inherited from his grandfather.Each is worth $2,500, but it is Sunday, and the local rare-coin store is closed. When approached, Ted’s neighbor Andreaagrees to buy the first coin for $2,300. Another neighbor, Cami, agrees to buy the second for $1,100. A final neighbor,Lorne, offers 'all the money I have on me"—SlOO—for the last coin. Desperate, Ted agrees to the proposal. Which of thedeals is supported by consideration? (a) Ted’s agreement with Andrea, only(b) Ted’s agreements with Andrea and Cami, only(c) All three ofthe agreements(d) None ofthe agreements

Answers

Answer:B. Teddy's agreement with Andrea and Cami, only.

Explanation:

Consideration is anything of value that moves from both parties to a contract, it must equally be specific and devoid of ambiguity.

The agreement with Andrea and Camil both meet these requirements. However the agreement with Lorne is not devoid of ambiguity because we are not sure of the amount of his consideration.

Company has 130 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting​ period, Hacken produced 190 units and sold 320 units for $ 250 each. All units incurred $ 55 in variable manufacturing costs and $ 30 in fixed manufacturing costs. Hacken also incurred $ 7 comma 700 in Selling and Administrative​ Costs, all fixed. Calculate the operating income for the year using absorption costing and variable costing.

Answers

Answer:

The operating income for the year using absorption costing and variable costing is $45,100 and $49,000 respectively

Explanation:

The computation of the operating income for the year using absorption costing and variable costing is shown below:

Absorption costing:

Sales (320 units × $250)                                            $80,000

Less: Total manufacturing cost (320 units × $85)    ($27,200)

Contribution margin                                                   $52,800

Less: Selling and Administrative​ Costs                     ($7,700)

Net income                                                                   $45,100

Variable costing:

Sales (320 units × $250)                                            $80,000

Less: Variable cost (320 units × $55)                        ($17,600)

Contribution margin                                                    $62,400

Less: Fixed manufacturing costs  (190 units × $30)  $5,700    

Less: Selling and Administrative​ Costs                      ($7,700)

Net income                                                                   $49,000

Final answer:

Operating Income for the year using: Absorption Costing is $45,100, Variable Costing is $49,000.

Explanation:

To calculate the operating income using absorption costing and variable costing, we'll follow a step-by-step process for each. Let's start with absorption costing.

Absorption Costing
Step 1: Determine the cost per unit under absorption costing.
Under absorption costing, both variable and fixed manufacturing costs are included in the cost per unit.
Variable Manufacturing Costs: $55 per unit
Fixed Manufacturing Costs: $30 per unit
Total Cost per Unit: $55 (variable) + $30 (fixed) = $85 per unit
Step 2: Calculate Cost of Goods Sold (COGS).
To find COGS under absorption costing, we need to account for the units sold from both the beginning inventory and those produced.
Units from Beginning Inventory: 130 units (at $85 each)
Units produced and sold: 320 units sold - 130 units from inventory = 190 units (at $85 each)
COGS = (130 units * $85) + (190 units * $85)
Step 3: Calculate the sales revenue.
Sales Revenue = Units Sold * Sale Price per Unit
Sales Revenue = 320 units * $250
Step 4: Calculate the operating income under absorption costing.
Operating Income (Absorption) = Sales Revenue - COGS - Selling and Administrative Costs
Operating Income (Absorption) = (Sales Revenue) - [(130 units * $85) + (190 units * $85)] - $7,700

Variable Costing
Step 1: Determine the variable cost per unit under variable costing.
Under variable costing, only variable manufacturing costs are considered in the cost per unit.
Variable Manufacturing Costs: $55 per unit
Step 2: Calculate the variable COGS.
Units from Beginning Inventory: 130 units (at $55 each)
Units produced and sold: 320 units sold - 130 units from inventory = 190 units (at $55 each)
Variable COGS = (130 units * $55) + (190 units * $55)
Step 3: Calculate the contribution margin.
Contribution Margin = Sales Revenue - Variable COGS
Step 4: Calculate the operating income under variable costing.
Operating Income (Variable) = Contribution Margin - Selling and Administrative Costs - Fixed Manufacturing Costs (for the entire production)
Fixed Manufacturing Costs.for production = 190 units produced * $30 fixed cost per unit
Operating Income (Variable) = (Contribution Margin) - $7,700 - (190 units * $30)

Calculating the Results
Now, let's perform the calculations:
Absorption Costing:
COGS = (130 units * $85) + (190 units * $85) = ($11,050 + $16,150) = $27,200
Sales Revenue = 320 units * $250 = $80,000
Operating Income (Absorption) = $80,000 - $27,200 - $7,700 = $45,100
Variable Costing:
Variable COGS = (130 units * $55) + (190 units * $55) = ($7,150 + $10,450) = $17,600
Contribution Margin = $80,000 - $17,600 = $62,400
Fixed Manufacturing Costs for production = 190 units * $30 = $5,700
Operating Income (Variable) = $62,400 - $7,700 - $5,700 = $49,000

Conclusion
Operating Income for the year using:
- Absorption Costing: $45,100
- Variable Costing: $49,000

Hugo has been working on his company’s new marketing campaign for the past few weeks. He is now looking at the target market and the message, trying to decide between using an email marketing campaign or a guerilla marketing campaign. Which step of the marketing planning process is Hugo struggling with at the moment? a. the fourth step: defining the message b. the eighth step: measuring the results and refining the approach as needed c. the sixth step: determining the promotional mix: which tools to use, when, and how much

Answers

Answer:C. the sixth step determining the promotional mix: which tools to use, when and how much.

Explanation:

By working on his product, the market, the message content, advertising methods,the target market, all this show that he his in the sixth step.

Which of the following statements is FALSE?
A) Expected return should rise proportionately with volatility.
B) Investors would not choose to hold a portfolio that is more volatile unless they expected to
earn a higher return.
C) Smaller stocks have lower volatility than larger stocks.
D) The largest stocks are typically more volatile than a portfolio of large stocks

Answers

Answer:C. Smaller stock have lower volatility than larger stock.

Explanation:

Volatility refers to the prones of a stock price to changes in market conditions. The higher the impact of changes in market conditions on a stock the higher the volatility level and the lower the impact of changes in market conditions on a stock price the lower the volatility. However the size of a stock does not necessarily determine the level of his volatility, a

stock may be small but still have a large volatility level and stock may be large and have low volatility level.

Yellow​ Press, Inc., buys paper in​ 1,500-pound rolls for printing. Annual demand is 3 comma 000 3,000 rolls. The cost per roll is ​$ 875 875​, and the annual holding cost is 20 20 percent of the cost. Each order costs ​$ 75 75. a. How many rolls should Yellow Press order at a​ time?

Answers

Answer:

59 orders

Explanation:

For computing the how many rolls should order at a time, first we have to determine the economic order quantity which is shown below:

The computation of the economic order quantity is shown below:

= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]

where,

Carrying cost = $875 × 20% = $175

And, other items values would remain the same

ow put these values to the above formula

So, the value would be equal to

= [tex]\sqrt{\frac{2\times \text{3,000}\times \text{\$75}}{\text{\$175}}}[/tex]

= 50.71 units

Now The number of orders would be equal to

= Annual demand ÷ economic order quantity

= $3,000 ÷ 50.71 units

= 59 orders

Using the Economic Order Quantity (EOQ) formula, it's determined that Yellow Press should order approximately 51 rolls at a time to minimize costs.

Explanation:

To determine how many rolls Yellow Press should order at a time, we apply the Economic Order Quantity (EOQ) model. The EOQ formula is given as:

EOQ = √(2DS)/H}

where:

D is the annual demand (in this case, 3,000 rolls),

S is the cost per order (in this case, $75),

H is the annual holding cost per unit (which is 20% of the cost per roll, so 0.20 x $875 = $175).

Plugging the numbers into the EOQ formula, we get:

EOQ =√{(2 × 3000 rolls × $75) / $175}

EOQ = √{(450,000) / $175}

EOQ = √{2,571.43}

EOQ ≈ 50.71 rolls

Since Yellow Press cannot order a fraction of a roll, it should order 51 rolls at a time to minimize the combined costs of ordering and holding inventory.

Which of the following formulas is accurate for calculating gross rating points (GRP)? Multiple Choice A. impressions multiplied by frequency reach multiplied by B. impressions reach multiplied by frequency reach divided by C. impressions reach divided by frequency

Answers

Answer:

The correct answer is : reach multiplied by frequency.

Explanation:

In marketing, the Gross Rating Point or GRP measures the size of an ad campaign during a given medium or schedule. The concept is typically confused with the measure of the size of potential consumers reached but GRP is not in charge of that matter. The GRP is calculated in percent of the target market reached multiplied by the exposure frequency.

A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual fixed cost of $100,000 and variable costs of $22 per unit. Alternative B would have annual fixed costs of $120,000 and variable costs of $20 per unit. Alternative C would have fixed costs of $80,000 and variable costs of $30 per unit. Revenue is expected to be $50 per unit. A) Which alternative has the lowest break-even quantity? B) Which alternative will produce the highest profits for an annual output of 10,000 units? C) At what volumes of output would the company be indifferent between each pair of choices? Path: p Words:0

Answers

Answer:

A) Alternative A has the lowest preak-even point at 3,572 units

B) Both alternatives A and B will produce the highest profit of $180,000.

C) 10,000 units between A and B

2,500 units between A and C

4,000 units between B and C

Explanation:

The revenue functions for each of the alternatives are:

[tex]R_A = (\$50-\$22)n - \$100,000\\R_B = (\$50-\$20)n - \$120,000\\R_C = (\$50-\$30)n - \$80,000[/tex]

Where 'n' is the annual output, in units produced.

A) At the break-even point, revenue is equal to zero. The break-even outputs for each alternative are:

[tex]0 = (\$50-\$22)n_A - \$100,000\\n_A = 3,572\\0 = (\$50-\$20)n_B - \$120,000\\n_B = 4,000\\0 = (\$50-\$30)n_C - \$80,000\\n_A = 4,000\\[/tex]

Alternative A has the lowest preak-even point at 3,572 units.

B) The revenues for each alternative at n=10,000 units are:

[tex]R_A = (\$50-\$22)10,000 - \$100,000\\R_A = \$180,000R_B = (\$50-\$20)10,000 - \$120,000\\R_B= \$180,000\\R_C = (\$50-\$30)10,000 - \$80,000\\R_C =  \$120,000[/tex]

Both alternatives A and B will produce the highest profit of $180,000.

C) As seen above, for n=10,000 the company would be indifferent between A and B.

Between A and C:

[tex]R_A = R_C\\ (\$50-\$22)n - \$100,000 = (\$50-\$30)n - \$80,000\\n=\frac{100,000-80,000}{28-20} \\n=2,500[/tex]

Between B and C:

[tex]R_B = R_C\\ (\$50-\$20)n - \$120,000 = (\$50-\$30)n - \$80,000\\n=\frac{120,000-80,000}{30-20} \\n=4,000[/tex]

Final answer:

The break-even quantity, highest profits for an annual output of 10,000 units, and volumes of output where the company would be indifferent between each pair of options can be calculated using principles of cost-analysis and revenue. These involve the calculation of break-even points, profits and equality of total costs.

Explanation:

In order to calculate the break-even quantities for alternatives A, B, and C, we need to figure out the point at which the total revenue equals the total costs. This can be done using the formula for break-even point: Break-even quantity = Fixed costs / (Price - Variable costs per unit).

To find the highest profits for an annual output of 10,000 units, we need to calculate the total costs for each option and subtract these from the total revenue. This yields the profit for each option: Profit = Total revenue - Total costs.

Lastly, to determine at what volumes of output the company would be indifferent between each pair of choices, we need to set the total costs for each option equal to each other and solve for the quantity: Total costs_A = Total costs_B = Total costs_C.

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​Wilson's has​ 10,000 shares of common stock outstanding at a market price of​ $35 a share. The firm also has a bond issue outstanding with a total face value of​ $250,000 which is selling for 102 percent of face value. The cost of equity is 11 percent while the preminus tax cost of debt is 8 percent. The firm has a beta of 1.1 and a tax rate of 34 percent. What is​ Wilson's weighted average cost of​ capital?

Answers

Answer:

8.62%

Explanation:

Weighted average cost of capital  is WACC.

First, find the market values of equity and debt

Market value of equity = 10,000*35 = 350,000

Market values of Debt =  250,000

WACC formula is ;

WACC= wE*rE + wD*rD(1-tax)

whereby,

wE = weight of equity = 350,000/(350,000+250,000) = 0.5833

rE = Cost of equity = 11% or 0.11 as a decimal

wD = weight of debt = 250,000/(350,000+250,000) = 0.4167

rD = pretax cost of debt = 8% or 0.08 as a decimal

tax = 34%

So, WACC = (0.5833*0.11) + [ 0.4167 *0.08(1-0.34) ]

WACC = 0.0642 + 0.02200

= 0.0862

Therefore, weighted average cost of capital (WACC)= 8.62%

Allen Boating Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Allen uses standard costs to prepare its flexible budget. For the first quarter of the​ year, direct materials and direct labor standards for one of their popular products were as​ follows: Direct​ materials: 2 pound per​ unit; $ 12 per pound Direct​ labor: 2 hours per​ unit; $ 19 per hour Allen produced 3 comma 000 units during the quarter. At the end of the​ quarter, an examination of the direct materials records showed that the company used 6 comma 500 pounds of direct materials and actual total materials costs were $ 99 comma 900. What is the direct materials efficiency​ variance?

Answers

Answer:

42,000 unfavorable

Explanation:

The computation of the direct materials efficiency​ variance is shown below:

= (Actual quantity - Standard quantity) × standard price

= (6,500 pounds - 3,000 pounds) × $12 per pound

= 3,500 pounds × $12 per pound

= 42,000 unfavorable

Since the standard quantity is less than the actual quantity so the direct material efficiency variance would come unfavorable

All other information which is given is not relevant. Hence, ignored it

Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1954? Check all that apply.

Car sales declined.

Total real income increased.

The unemployment rate declined.

Corporate profits increased.

Answers

All optionsTotal real income increased.probably occurred as the U.S. economy experienced increasing real GDP in 1954

When the economy grows and real GDP rises, overall income tends to increase as more goods and services are produced, leading to higher wages and earnings.

Economic growth typically leads to job creation, as businesses expand production and hire more workers, reducing unemployment.

Corporate profits increased: With a growing economy, businesses often experience higher demand for their products and services, which generally leads to increased profits.

Constanza, who is single, sells her current personal residence (adjusted basis of $213,000) for $596,400. She has owned and lived in the house for 30 years. Her selling expenses are $29,820. What is Constanza’s realized and recognized gain? Constanza’s realized gain is $_________ and her recognized gain would be___________?

Answers

Answer:

Realized gain = $353,580.

Recognized gain = $103,580

Explanation:

Data provided in the question:

Sales = $596,400

Adjusted basis = $213,000

Selling expenses = $29,820

Now,

Amount realized = Sales - Selling expense

= $596,400 - $29,820

= $566,580

Realized gain = Amount realized - Adjusted basis

= $566,580 - $213,000

= $353,580

Recognized gain = Realized gain - Exclusions

also,

since Constanza is single her exclusion will be $250,000

Hence,

Recognized gain = $353,580 - $250,000

= $103,580

In 2019, Britt drove her automobile 16,200 miles for business. She incurred $900 in gas expenses and $235 in tolls associated with the business mileage. Assuming Britt uses the standard mileage method, her deduction is

Answers

Answer:

$9,631

Explanation:

In 2019, the Standard mileage rate deduction for the business purposes is 58 cents per mile.

Therefore,

Her deduction is as follows:

= (No. of miles drove × 58 cents per mile) + Tolls associated with the business mileage

= (16,200 × 58 cents per mile) + $235

= 9,396 + 235

= $9,631

Therefore, by using the standard mileage method, her deduction is $9,631.

An indication that the customer has not taken control of the good or service is...(a)the selling company has right to payment for the good or service.(b)the customer has physical possession of the asset.(c)the customer has no significant risks or rewards of ownership.(d)the selling company has transferred legal title to the asset.

Answers

Answer:The answer is (a) The selling company has the right to payment for the good or service

Explanation:

The contract for the sale of goods can be defined as an agreement between the buyer and the seller in which the seller agree to sell the goods to the buyer in exchange for value known as money..in sale of goods contract, there are two terms that goes to the fundamental of the contract for the sale of goods which are sale and agreement to sale.

Sale can be defined as the situation whereby the seller has agree to sell the goods to the buyer in exchange for value known as money and the buyer has actually made payment for the goods. In this case the ownership of the goods has passed from the seller to the buyer. On the other hand, agreement to sale is when the seller has agreed to sell the goods to the buyer in exchange for money but the buyer has not actually made payment, in this case the ownership of the goods still reside with the seller of the goods.

The ownership of the goods however will be passed to the buyer at a future date or at a time in which the conditions that goes with the contract between the buyer and the seller has been fulfilled. The basis of the contract for the sale of goods is the ownership of the goods bought by the buyer from the seller. In the contract the seller has the legal right to sue the buyer for the price when the ownership of the goods passes to the buyer.

January 1, Edison Corporation had 1,000,000 shares of $10 par value common stock outstanding. On March 31, the company declared a 20% stock dividend. Market value of the stock was $18/share. As a result of this event,A. Edison's Paid-in Capital in Excess of Par account increased $1,600,000.B. Edison's total stockholders' equity was unaffected.C. Edison's Stock Dividends account increased $3,600,000.D. All of these answers are correct.

Answers

Answer:

D All of these answers are correct.

Explanation:

Given that the corporation had 1,000,000 shares of $10 par value common stock outstanding. On March 31, the company declared a 20% stock dividend. Market value of the stock was $18/share. As a result of this event

Paid-in Capital in Excess of Par = 1000000*20%*(18-10) = 1600000

Stock dividend = 1000000*20%*18= 3600000

Edison's total stockholders' equity was unaffected because increase in Stock dividend leads to decrease in retained earnings by the same amount.

Answer is option D All of these answers are correct.

Rogue Motors Inc. has a 11% required rate of return. The firm does not expect to initiate dividends for 10 years, at which time it will pay $2.00 per share in dividends. At that time, the firm expects its dividends to grow at 6% forever. What is an estimate of the firms' price in 10 years (P10) if its dividend at the end of year 10 is $2.00?Group of answer choicesa. $31.20b. $42.40c. $42.80d. $33.40

Answers

Answer:

The correct answer is B that is $42.40

Explanation:

As per the dividend discount model, present price of the share is the present value of future dividend is computed as:

Price of the firm in 10 years = Dividend at the end of the year 10 × (1 + Growth rate in dividends) / (Required return - Growth rate in dividends)

where

Dividend at the end of the year 10 is $2.00

Growth rate in dividends is 6%

Required return is 11%

Putting the value above,

= $2.00 × (1 + 6%) / (11% - 6%)

= $2.00 × (1 + 0.06) / 5%

= $2.00 × 1.06 / 0.05

= $ 2.12 / 0.05

= $42.4

To produce espressos, a coffee shop has fixed costs of 200 dollars each day and variable costs of one dollar per espresso. The number of espressos that the coffee shop sells on a given day depends linearly on the price of each espresso: If the price is $1.00, then they sell 200 espressos, and if the price is $2.00, then they sell 100 espressos. What is the choice of price that will maximize their profit?

Answers

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

First, figure out what the price of each espresso is in relation to the number of espressos the shop sells. $2 per expresso is the correct answer.

What is the best price option for them to maximize their profit?

[tex]\text{N} = -100 \text{ x }\text{P}+300\\\text{Profit} = \text{Revenue - Cost}\\\text{Profit} = \text{P} \text{ x } \text{N} - 200\\\text{Profit} = \text{P} \text{x} (-100 \text{ x } \text{P} +300)-200-(-100 \text{x} \text{P}+300) \\= -100 \text{ x } \text{P}^2+400\text{P}-500\\\text{P} = 2, \\\text{Profit} = -300\\[/tex]

The choice of the price will be $2/ coffee to maximize their profit.

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Kando Company incurs a $11.00 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $6.00 per unit and sell it for $11.30 per unit. If it does so, unit sales would remain unchanged and $6.00 of the $11.00 per unit costs of Product A would be eliminated.
1. Prepare Incremental cost analysis. Should the company continue to manufacture Product A or purchase it for resale? (Round your answers to 2 decimal places.)
In the format below:
Manufacture A Purchase Product B
sales
costs
aviodable cost
unavoidable costs
cost to purchase
totals costs
sales
The company should...

Answers

Final Answer:

Manufacture A:

- Sales: $13.50 per unit

- Costs: $11.00 per unit

- Avoidable costs: $6.00 per unit

- Unavoidable costs: $5.00 per unit ([$11.00 - $6.00] per unit)

- Total costs: $11.00 per unit

Purchase Product B for Resale:

- Sales: $11.30 per unit

- Cost to purchase: $6.00 per unit

- Total costs: $6.00 per unit

The company should purchase Product B for resale rather than manufacturing Product A, as the total cost per unit for Product B is lower compared to the total cost per unit for manufacturing Product A.

Explanation:

The incremental cost analysis compares the costs and revenues associated with manufacturing Product A against purchasing and reselling Product B. For manufacturing Product A, the sales price is $13.50 per unit, with a cost of $11.00 per unit. However, $6.00 per unit of these costs can be avoided, leaving $5.00 per unit as unavoidable costs. Thus, the total cost of manufacturing Product A remains at $11.00 per unit.

On the other hand, purchasing Product B for resale incurs a cost of $6.00 per unit but allows sales at $11.30 per unit. In this scenario, the total cost per unit for Product B is $6.00, which is lower than the $11.00 total cost per unit for manufacturing Product A. As a result, opting to purchase Product B for resale would be more beneficial for Kando Company, offering a lower total cost per unit and potentially increasing overall profitability compared to manufacturing Product A.

David and Darlene Jasper have one child, Sam, who is 6 years old (birthdate July 1, 2012). The Jaspers reside at 4639 Honeysuckle Lane, Los Angeles, CA 90248. David's Social Security number is 577-11-3311, Darlene's is 477-98-4731, and Sam's is 589-22-1142. David's birthdate is May 29, 1985 and Darlene's birthday is January 31, 1987. David and Darlene's earnings and withholdings for 2018 are:

Answers

Final answer:

The student needs assistance with a tax-related issue for the Jasper family, but further details are required to provide a specific and concise response.

Explanation:

The student appears to be asking for help with tax-related information for the Jasper family. To answer the question accurately, we would need more information about what is specifically being asked. Are they looking for help in filing their taxes, understanding tax law, or calculating their tax refund or liability? The mention of earnings and withholdings for 2018 suggests this could be an accounting or tax preparation exercise. Clear instructions are necessary to provide a complete and factual response.

we are provided with information about the Jaspers' personal details and earnings. However, there is no specific question asked related to this information. It seems like this information is provided for reference purposes, possibly for a business or financial analysis.

Therefore, the grade of this question is High School.

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