Answer:
$25,276
Explanation:
The computation of the net present value is shown below:
The Present value of inflows is
= Cash inflow × Present value of discounting factor (rate% , number of years)
= $28,500 ÷ 1.1 + $28,500 ÷ 1.1^2 + $285,00 ÷ 1.1^3 + $28,500 ÷ 1.1^4 + $28,500 ÷ 1.1^5 + $28,500 ÷ 1.1^6 + $7,000 ÷ 1.1^6
= $128,076.25
And,
Present value of outflows is
= $95,800 + $7,000
= $102,800
So
As we know that
NPV = Present value of inflows - Present value of outflows
= $128,076.25 - $102,800
= $25,276
Margaret Lindley paid $15,040 of interest on her $300,400 acquisition debt for her home (fair market value of $500,400), $4,040 of interest on her $30,040 home-equity loan, $1,040 of credit card interest, and $3,040 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,040 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year
Answer:
$23,160
Explanation:
The Total interest = 15,040 + 4040 + 1040 + 3040
Total interest = $23,160
Hence, the Interest deductable this year = $23,160
Given the same demand and cost conditions, a revenue maximizing hospital will: a. Charge a higher price and produce more medical care than a profit maximizing hospital b. Charge a higher price and produce more medical care than an output maximizing hospital c. Charge a higher price and produce less medical care than an output maximizing hospital d. Charge a higher price and produce less medical care than a profit maximizing hospital
Answer:
c. Charge a higher price and produce less medical care than an output maximizing hospital
Explanation:
A revenue maximising firm's goal is to make the highest possible profit while the goal of an output maximising firm is to produce the highest possible number of output.
So, for a a revenue maximizing hospital, price would be higher but it would produce less medical care due to the law of demand.
The law of demand says the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
While for the output maximising hospital, it would produce more output and charge a lower price than a revenue maximizing hospital
Privett Company Accounts payable $34,234 Accounts receivable 69,135 Accrued liabilities 6,513 Cash 15,673 Intangible assets 43,529 Inventory 71,631 Long-term investments 90,421 Long-term liabilities 76,608 Marketable securities 31,804 Notes payable (short-term) 21,712 Property, plant, and equipment 614,336 Prepaid expenses 1,617 Based on the data for Privett Company, what is the quick ratio, rounded to one decimal point
Answer:
1.87%
Explanation:
Based on the above information, the formula for Quick ratio is
= ( Cash + Marketable securities + Accounts receivables ) / Current liabilities
Where;
Cash = $15,673
Marketable securities = $31,804
Accounts receivables = $69,135
Current liabilities = Accounts payable + Accrued liabilities + Notes payable
= $34,234 + $6,513 + $21,712
= $62,459
Quick ratio
= ($15,673 + $31,804 + $69,135) / $62,459
= $116,612 / $62,459
= 1.87%
The five competitive forces model suggests the bargaining power of buyers may affect industry competition. Which of the following is an example of a way buyers might affect an? industry?
A. The Technicolor Company no longer has any bargaining power over movie? studios, limiting the profitability of producing color movies.
B. McDonald's has significant bargaining power over napkin' suppliers, which raises the napkin prices they pay.
C. Walmart has limited bargaining power over suppliers, which results in many of their suppliers altering their distribution systems to accommodate Walmart's need to control the stocks of goods in stores.
D. GM has limited bargaining power in the tire market, which lowers tire prices.
E. Walmart has significant bargaining power over its suppliers, which decreases the profitability of the suppliers.
Answer: E. Walmart has significant bargaining power over its suppliers, which decreases the profitability of the suppliers.
Explanation:
Walmart as buyers have significant bargaining power over their suppliers because they are quite large in size and therefore buy in bulk.
As a result of this, they can negotiate prices with suppliers that favor them not the suppliers which will decrease the profitability of the suppliers who would be compelled to sell to Walmart because of how much of their goods Walmart can buy.
Billie Bob purchased a used camera (five-year property) for use in his sole proprietorship in the prior year. The basis of the camera was $2,400. Billie Bob used the camera in his business 60 percent of the time during the first year. During the second year, Billie Bob used the camera 40 percent for business use. Calculate Billie Bob's depreciation deduction during the second year, assuming the sole proprietorship had a loss during the year.
Answer:
Billie Bob
Depreciation deduction during the second year is:
$192.
Explanation:
a) Data and Calculations:
Property basis value = $2,400
Useful life = 5 years
Depreciable rate per year = $2,400/5 = $480
Depreciation deduction during the second year = $480 * 40% = $192
b) The depreciation deduction for year 2 is limited to the 40% business use. This implies that Billie Bob cannot claim the 100% depreciation of $480 for the property since he could only use it 40% for his business.
Mary invested $20,000 to open a bakery business. The cost of making one muffin is $1. Assuming that the sales reach 1000 pieces, she wishes to earn 10% as a return on investment. What is the target return price of product?
The target return price will be $
Answer:
The target return price will be $2
Explanation:
From the information given,
For the muffin product:
The sales made = 1000
Cost for 1 muffin = $1
Therefore, total money made
No of sales X cost price =
1000 X $1 = $1000
The amount invested on the business = $20,000
She want to earn 10% on the investment =
10% of $20,000 = $2000
The target return price would be,
Return on investment / no of sales made
= $2000/ 1000 = $2
Answer:
Did you ever figure it out because I saw it was 2 bucks.
Explanation:
Corporation conducts get-rich-quickly workshops and uses two measures of activity, classes and students in the cost formulas in its internal financial and operating reports The cost formula for workshops is $540 per month plus $103 per class plus $34 per student Dev.774 expected its activity in January to be 11 classes and 120 students, but the actual activity was 6 classes and 125 students
The actual cost for workshops in January was $5,230.
What was Pexura774's spending variance for workshops in January?
a. $178 F
b. $523 F
c. $178 U
d. $523 U
Answer:
a. $178(F)
Explanation:
Overhead spending variance = (Actual hours worked * Actual overhead rate) - (Actual hours worked × Standard overhead rate)
Overhead spending variance = Actual Cost- Standard Cost for Actual Output
Overhead spending variance = 5230 - 5408
Overhead spending variance = 178 (Favorable).
Alma, a sales associate, receives a 20% employee discount. Because she was the top sales associate of the month, Alma was given an additional 10% discount for the month of March. During March, Alma purchased a pair of running shoes for $89.50, a running suit for $129.99, two pairs of socks at $4.00 each and a t-shirt for $21.50. What was the dollar amount of Alma's purchases, including a 7.5% sales tax
Answer:
$187.365
Explanation:
Alma Purchases
Shoes $89.5
Running Suit $129.99
Socks 2 Paris $8
T-Shirts $21.5
Total purchase $248.99
Less: Discount $74.697 [30% * $248.99{
Less: Sales Tax $13.07198 {7.5% * $248.99}
Total Amount $187.365
Thus, the dollar amount of Alma's purchases, including a 7.5% sales tax is $187.365.
The dollar amount of Alma's purchases is $187.365.
What are purchases?In accounting, Purchases refer to the cost of buying goods or inventory during a period for the purpose of further production or resale. The amount of net purchases is calculated by adjusting the returns and discounts.
The total purchases of Alma will be:
[tex]\rm Total \:purchases = Running\: shoes + Running \:suit + Socks +T-shirt \\\\\rm Total \:purchases= \$89.50 + 129.99 + (\$4.00 \times 2) + \$21.50\\\\\rm Total \:purchases = \$248.99[/tex]
The amount of discount will be 30% of total purchases:
[tex]\rm Discount = Total\:purchases \times Rate\\\\\rm Discount = \$248.99 \times 30\%\\\\\rm Discount = \$74.697[/tex]
The sales tax amount will be:
[tex]\rm Sales \:tax = Total purchases \times Rate\\\\\rm Sales\: tax = 248.99 \times 7.5\%\\\\\rm Sales\: tax =\$18.67425[/tex]
Therefore the net purchase after sales tax will be:
[tex]\rm Net\:purchases = Total\:purchases - Discount - Sales\:tax \\\\\rm Net\:purchases = \$248.99 - \$74.697- \$18.67425\\\\\rm Net\:purchases = \$$187.365[/tex]
Learn more about purchases here:
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Pina Company began operations on January 2, 2019. It employs 10 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows.
Actual Hourly Wage Rate Vacation Days Used by Each Employee Sick Days Used by Each Employee
2019 2020 2019 2020 2019 2020
$11 $12 0 10 4 6
Pina Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to accrue vacation time. Year in Which Vacation Time Was Earned Projected Future Pay Rates Used to Accrue Vacation Pay 2019 $11.83 2020 12.76
Prepare journal entries to record transactions related to compensated absences during 2019 and 2020
Answer:
2019
Dr Salaries and wages expense 9,680
Cr Salaries and wages payable 9,680
Dr Salaries and wages expense 6,160
Cr Salaries and wages payable 6,160
Dr Salaries and Wages Payable 3,520
Cr Cash 3,520
2020
Dr Salaries and wages expense 10,560
Cr Salaries and wages payable 10,560
Dr Salaries and wages expense 6,720
Cr Salaries and wages payable 6,720
Dr Salaries and wages expense
800
Dr Salaries and wages payable 8,800
Cr Cash 9,600
Dr Salaries and Wages Expense 240
Dr Salaries and Wages Payable 5,520
Cr Cash 5,760
B. 2019 $10,410
2020 $12,175
Explanation:
(a) Preparation of journal entries to record transactions related to compensated absences during 2019 and 2020
2019
Dr Salaries and wages expense 9,680
Cr Salaries and wages payable 9,680
(10 employees * $11.00/hr. * 8 hrs./day * 11 days)
(Being to record accrue expense and liability for vacation)
Dr Salaries and wages expense 6,160
(10 employees * $11.00/hr. * 8 hrs./day * 7days)
Cr Salaries and wages payable 6,160
(Being to record accrue expense and liability for sick pay)
Dr Salaries and Wages Payable 3,520
Cr Cash 3,520
(10 employees * $11.00/hr. * 8 hrs./day*4 days)
2020
Dr Salaries and wages expense 10,560
(10 employees * $12/.00/hr. * 8 hrs./day * 11 days)
Cr Salaries and wages payable 10,560
(Being to accrue expense and liability for vacation)
Dr Salaries and wages expense 6,720
Cr Salaries and wages payable 6,720
(10 employees * $12.00/hr. * 8 hrs./day * 7 days)
(Being to record accrue expense and liability for sick pay)
Dr Salaries and wages expense
800
(9,600-800)
Dr Salaries and wages payable 8,800
(10 employees * $11.00/hr. X 8 hrs./day *10days)
Cr Cash 9,600
(10 employees * $12.00/hr. * 8 hrs./day X 10days)
(Being to record vacation time period))
Dr Salaries and Wages Expense 240
(10 employees * ($11-12) /hr. * 8 hrs./day * (7-4) last yr)
Dr Salaries and Wages Payable 5,520
(10 employees * $11.00/hr. * 8 hrs./day * (7-4) days) + (10 employees * $12.00/hr. * 8 hrs./day *(6-3) days)
=(2,640+2,880=5520)
Cr Cash 5,760
(10 employees * $12.00/hr. * 8 hrs./day * 6 days)
(Being to record sick leave paid)
B) Computation for the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019, and 2020
1. December 31, 2019
10 employees * $11.83/hr. * 8 hrs./day * 11 days =$10,410
2. December 31, 2020
10 employees * $11.83/hr. * 8 hrs./day * 1 day =$946
Add: 10 employees * $12.76/hr. * 8 hrs./day * 11 days = 11,229
Total $12,175
($11,229+$946)
Therefore the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 will be $10,410 and 2020 will be $12,175
A suggested project requires initial fixed assets of $227,000, has a life of 4 years, and has no salvage value. Assume depreciation is straight-line to zero over the life of the project. Sales are projected at 51,000 units per year, the price per unit is $47, variable cost per unit is $23, and fixed costs are $842,900 per year. The tax rate is 23 percent and the required return is 11.5 percent. Ignore taxes. What is the DOL at the base-case output level of 51,000 units
Answer:
The answer is "11.4".
Explanation:
Please find the complete question in the attached file.
The point of breakthrough financial:
[tex]\to \frac{ ( \frac{(227000 \times 11.5 \%}{( \frac{1-1}{1.115^4})}-\frac{227000}{4})}{\frac{(1-23 \%)+842900+ \frac{227000}{4})}{(47-23)}}\\\\\\\to \frac{ ( \frac{(26,105}{( \frac{0}{1.5456084})}-56,750)}{\frac{(0.77)+842900+56,750)}{(24)}}[/tex]
[tex]\to 38416.19\\\\\to DOL= \frac{38416.19 \times (47-23)}{(38416.19 \times (47-23)-842900)} \\\\[/tex]
[tex]=11.4[/tex]
A teacher buys 4.25 ounces of a compound for an experiment. The compound costs $5.76 per ounce. The teacher pays with a $50 bill. How much change does the teacher receive?
Answer:
hi!!!
$21.88 is the answer!!!
hope it helps!!!
Read the two statements and decide if they are true or false (I) Classical economists believe that prices are inflexible and that demand creates supply, so we should focus on increasing spending and stimulating aggregate demand to boost the economy out of a recession. (II) Keynesian economists believe that prices are flexible and that supply creates demand, and so we should focus on production rather than just increased spending.
Answer:
Both I and II are false
Explanation:
In the given situation, the condition should be reversed that means The Keynesian economists said that demand created the supply while on the other hand as per the classical economist it said that the supply created the demand
Therefore as per the given situation, both the statements are false as the reversion of the conditions are given in the question
The same is to be considered
In the Month of March, Baldwin Corporation received orders of 147 units at a price of $15.00 for their product Bill. Baldwin uses the accrual method of accounting and offers 30 day credit terms. Baldwin delivers 98 units in March and the balance of 49 units in April. They received payment for 49 units in March, 49 units in April, and 49 units in May. How much revenue is recognized on the March income statement from this order
Answer: $1,470
Explanation:
The Accrual method of Accounting means that revenue is to be recognized in the period the product was delivered to the customers.
In March, Baldwin delivered 98 units so the revenue recognized in March is;
= 98 * 15
= $1,470
Budgeting, ethics, pharmaceutical company. Chris Jackson was recently promoted to Controller of Research and Development for BrisC or, a Fortune 500 pharmaceutical company that manufactures prescription drugs and nutritional supplements. The company’s total R& ; D cost for 2017 was expected (budgeted) to be $5 billion. During the company’s midyear budget review, Chris realized that current R& ; D expenditures were already at $3.5 billion, nearly 40% above the midyear target. At this current rate of expenditure, the R& ; D division was on track to exceed its total year-end budget by $2 billion!
In a meeting with CFO Ronald Meece later that day, Jackson delivered the bad news. Meece was both shocked and outraged that the R&D spending had gotten out of control. Meece wasn’t any more understanding when Jackson revealed that the excess cost was entirely related to research and development of a new drug, Vyacon, which was expected to go to market next year. The new drug would result in large profits for BrisCor, if the product could be approved by year-end. Meece had already announced his expectations of third-quarter earnings to Wall Street analysts. If the R&D expenditures weren’t reduced by the end of the third quarter, Meece was certain that the targets he had announced publicly would be missed and the company’s stock price would tumble. Meece instructed Jackson to make up the budget shortfall by the end of the third quarter using "whatever means necessary." Jackson was new to the controller’s position and wanted to make sure that Meece’s orders were followed. Jackson came up with the following ideas for making the third-quarter budgeted targets:
1. Stop all research and development efforts on the drug Vyacon until after year-end. This change would delay the drug going to market by at least 6 months. It is possible that in the meantime a BrisCor competitor could make it to market with a similar drug.
2. Sell off rights to the drug Martek. The company had not planned on doing this because, under current market conditions, it would get less than fair value. It would, however, result in a one-time gain that could offset the budget shortfall. Of course, all future profits from Martek would be lost. Capitalize some of the company’s R&D expenditures, reducing R&D expense on the income statement. This transaction would not be in accordance with GAAP, but Jackson thought it was justifiable because the Vyacon drug was going to market early next year. Jackson would argue that capitalizing R&D costs this year and expensing them next year would better match revenues and expenses.
3. Referring to the "Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management,"
4. Which of the preceding items are acceptable to use? Which are unacceptable? What would you recommend Jackson do?
Answer:
BrisCor
Budgeting, ethics, pharmaceutical company
a. Referring to the "Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management,"
none of the preceding items are acceptable to use.
b. I would recommend Jackson to go ahead with the R&D throughout the year to ensure that the drug Vyacon was successfully brought to the market next year before the competitor. He can try to keep to the budget going forward. A budget remains a budget and not the actual. Budget overrun can result. What is important is its effectiveness in achieving business goals.
Explanation:
The announced expectations of third-quarter earnings to Wall Street analysts should not prevent the R&D on the drug Vyacon from continuing, provided Jackson is certain that the envisaged success would be attained. They remain expectations. They are not the actual results of operations for the year. Even if the company's stock price would tumble, it would still recover after the drug had received approval and gone to market, raking in large profits. After all, the projected increase in R&D cost might not result, and the drug Vyacon could be fully developed and ready for the market before year-end, thereby not exceeding its budget.
A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $320,000, and the following quantities of product and sales revenues were produced. Product Pounds Price per pound Feed 100,000 $ 1.60 Flour 72,000 2.50 Starch 40,000 1.50 How much of the $320,000 cost should be allocated to flour if the value basis is used
Answer:
the cost that should be allocated to flour is $144,000
Explanation:
The computation is shown below:
Particulars Total value
Feed (100,000 × $1.60) = $160,000
Flour (72,000 × $2.50) = $180,000
Starch (40,000 × $1.50) = $60,000
Total $400,000
Now the allocation made to flour is
= $180,000 ÷ $400,000 × $320,000
= $144,000
Hence, the cost that should be allocated to flour is $144,000
Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash 23000 Accounts payable 21000
Investments (short-term) 34000 Notes receivable (long-term) 36000
Accounts receivable 4200 Accrued liabilities payable 5300
Inventory 26000 Additional paid-in capital 90900
Equipment 49000 Retained earnings 33900
Factory building 101000 Notes payable (current) 48,000
Intangibles 4100
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $8,400 cash.
b. Lent $5,600 to a supplier who signed a two-year note.
c. Purchased equipment that cost $23,000; paid $5,600 cash and signed a one-year note for the balance.
d. Hired a new president at the end of the year. The contract was for $87,000 per year plus options to purchase company stock at a set price based on company performance. The new president begins her position on January 1 of next year.
e. Issued an additional 1,400 shares of $0.50 par value common stock for $11,000 cash.
f. Borrowed $16,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $1,900 cash.
h. Built an addition to the factory for $30,000; paid $8,100 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,100.
Required:
Post the current year transactions to T-accounts for each of the accounts on the balance sheet.
Answer:
Jaguar Plastics Company
Cash Account
Account Titles Debit Credit
Balance 23000
Short-term investments $8,400
Notes Receivable 5,600
Equipment 5,600
Common stock 700
Additional capital 10300
Notes payable 16000
Intangible (Patent) 1900
Equipment (refund) 3100
Investments (short-term)
Account Titles Debit Credit
Balance 34,000
Cash 8,400
Accounts Receivable
Account Titles Debit Credit
Balance 4200
Inventory
Account Titles Debit Credit
Balance 26000
Equipment
Account Titles Debit Credit
Balance 49000
Note payable 17400
Cash 5600
Cash (refund) 3100
Factory building
Account Titles Debit Credit
Balance 101000
Cash 8100
Note Payable (long-term) 21900
Notes receivable (long-term)
Account Titles Debit Credit
Balance 36,000
Cash 5,600
Intangibles
Account Titles Debit Credit
Balance 4100
Cash 1900
Notes payable (current)
Account Titles Debit Credit
Balance 48,000
Equipment 17400
Cash 16000
Common Stock (Calculated)
Account Titles Debit Credit
Balance 78200
Cash 700
Additional paid-in capital
Account Titles Debit Credit
Balance 90900
Cash 10300
Notes Payable (Long-term)
Account Titles Debit Credit
Factory building 21900
Explanation:
a) Data and Calculations:
Cash 23000 Accounts payable 21000
Investments (short-term) 34000 Accrued liabilities payable 5300
Accounts receivable 4200 Notes payable (current) 48,000
Inventory 26000 Additional paid-in capital 90900
Equipment 49000 Retained earnings 33900
Factory building 101000 Common Stock (Calculated) 78200
Notes receivable
(long-term) 36000
Intangibles 4100
If an economist is a proponent of free trade amongst nations, what would be concerning about the proliferation of regional trade agreements?
A. The nations involved with regional trade agreements make the economies more independent from each other.
B. Regional trade agreements may restrict trade from outside of the regions in the agreement.
C. Terms of regional trade agreements often conflict with agreements of the Anti- Tariff Act.
Answer: B. Regional trade agreements may restrict trade from outside of the regions in the agreement.
Explanation:
Regional trade agreement is a form of trade agreement usually between two or more countries in a particular region which will allow for easy movement of goods between the borders of that particular region. Examples are North American Free Trade Agreement, European Union etc.
If an economist is a proponent of free trade amongst nations, the economist will be worried that the proliferation of regional trade agreements may restrict trade from outside of the regions in the agreement. This is because there'll only be free trade for the countries that are in that particular region.
During the most recent month, the following activity was recorded: Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. All of the material purchased was used to produce 4,000 units of Zoom. 750 hours of direct labor time were recorded at a total labor cost of $14,925. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month.
Answer: See explanation
Explanation:
The following can be derived from the question:
Actual quantity = 20,000 pounds
Actual price = $2.35
Standard price = $2.50 per unit
Actual hours = 750 hours.
The standard quantity will be calculated as:
= 4,000 units × 4.6
= 18,400 pounds
The Actual rate will be calculated as:
= Total labor cost / Actual hours
= $14,925 / 750
= $19.90
Standard hours will be:
= 0.2 hours × 4,000 units
= 800 hours.
Standard rate = $18 per hour
1. Compute the materials price and quantity variances for the month.
Material price variance:
= (AQ × AP) - (AQ × SP)
= (20,000 × $2.35) - (20,000 × $2.50)
= 47000 - 50000
= -3000
Material quantity variance:
= (AQ × SP) - (SQ × SP)
= (20,000 × $2.50) - (18,400 × $2.50)
= 50,000 - 46000
= 4000
2. Compute the labor rate and efficiency variances for the month.
Labor rate variance:
= (AH × AR) - (AH × SR)
= ($750 × $19.90) - (750 × $18)
= 14925 - 13500
= 1425
Labor efficiency variance:
= (AH × SR) - (SH × SR)
= (750 × $18) - (800 × $18)
= 13500 - 14400
= 900
Sue invested $5,000 in the ABC Limited Partnership and received a 10 percent interest in the partnership. The partnership had $20,000 of debt she is not responsible to repay because she is a limited partner. Sue is allocated a 10 percent share of the debt resulting in a tax basis of $7,000 and an at-risk amount of $5,000. During the year, ABC LP generated a ($70,000) loss. How much of Sue's loss is disallowed due to her tax basis or at-risk amount
Answer:
$2,000
Explanation:
Calculation for How much of the Sue's loss is disallowed due to her tax basis or at-risk amount
Based on the information given we were told that that Sue is been allocated a 10% of the debt which resulted in a tax basis of the amount of $7,000 as well as an at-risk amount of $5,000 which means that the amount that the Sue's loss will be disallowed due to her tax basis Amount or at-risk amount will be calculated as :
Using this formula
Disallowed Sue's loss=Tax basis-At-risk amount
Let plug in the formula
Disallowed Sue's loss=$7,000-$5,000
Disallowed Sue's loss=$2,000
Therefore How much of the Sue's loss is disallowed due to her tax basis or at-risk amount will be $2,000
The following units of an inventory item were available for sale during the year: Beginning inventory 8 units at $49 First purchase 15 units at $51 Second purchase 27 units at $53 Third purchase 14 units at $55 The firm uses the periodic inventory system. During the year, 26 units of the item were sold. The value of ending inventory rounded to the nearest dollar using average cost is (Round average cost per unit to three decimal place.)
Answer:
$1,994
Explanation:
The computation of the ending inventory is shown below:
But before that the average cost is
= Total amount of purchased ÷ total units available
= (8 units × $49 + 15 units × $51 + 27 units × $53 + 14 units × $55) ÷ (8 units + 15 units + 27 units + 14 units)
= ($392 + $765 + $1,431 + $770) ÷ (64 units)
= $52.469
Now the ending inventory units is
= 64 units - 26 units
= 38 units
So, the ending inventory is
= 38 units × $52.469
= $1,994
An accountant of a business needs to prepare an income statement, statement of equity (retained earnings), cash flow statement, and .
Answer:
Balance Sheet
Explanation:
At the end of a financial year, the accountant needs to prepare the income statement, cash flow statement, equity (retained earnings), and balance sheet statement. Each of these statements relates to a company's financial performance and status.
The income statement reports the total profit or losses that the business has made in the financial period.The cash flow statement records and tracts the movement of cash in and out of business. It shows cash balances at the end of the period.The equity statement indicates the changes, if any, on retained earnings in that period.The balance sheet reports the values of assets, liabilities, and equity at the end of a period. Its preparation is guided by the accounting equation that assets equal liabilities plus equity.Swifty Corporation is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6380000 on March 1, $5270000 on June 1, and $8350000 on December 31. Swifty Corporation borrowed $3240000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6380000 note payable and an 11%, 4-year, $12650000 note payable. What is the actual interest for Swifty Corporation
Answer:
Swifty Corporation
The actual interest for Swifty Corporation is:
$2,418,300
Explanation:
a) Data and Calculations:
Expenditures were
on March 1, $6,380,000
on June 1, $5,270,000
on December 31 $8,350,000
Borrowings:
on January 1 on a 5-year, 12% note = $3,240,000 Interest = $388,800
Note payable, 10%, 3-year = $6,380,000 Interest = $638,000
Note payable, 11%, 4-year = $12,650,000 Interest = $1,391,500
Total interest for Swifty Corporation = $2,418,300
b) Computation of interests:
12% note = $3,240,000 * 12% = $388,800
10% note = $6,380,000 * 10% = $638,000
11% note = $12,650,000 * 11% = $1,391,500
A crossword puzzle is looking for another word for "fair." Which of the following would not be a good choice?
a. Common
b. Insufficient
c. Middling
d. Ordinary
Laramie Trucking's CEO is considering a change to the company's capital structure, which currently consists of 25% debt and 75% equity. The CFO believes the firm should use more debt, but the CEO is reluctant to increase the debt ratio. The risk-free rate, rRF, is 5.0%, the market risk premium, RPM, is 6.0%, and the firm's tax rate is 25%. Currently, the cost of equity, rs, is 11.5% as determined by the CAPM. What would be the estimated cost of equity if the firm used 60% debt?A) 10.95%.
B) 11.91%.C) 12.94%.D) 14.07%.E) 15.29%.
Answer:
Re = 15.29%
Explanation:
beta at current debt level:
11.5% = 5% + (beta x 6%)
6.5% = 6%beta
beta = 6.5% / 6 = 1.083
unlevered beta = 1.083 / {1 + [(1 - tax rate) x debt / equity]} = 1.083 / {1 + [(1 - 40%) x 25 / 75]} = 1.083 / 1.2 = 0.9025
cost of levered beta at 60% debt:
0.9025 = beta / {1 + [(1 - 40%) x 60 / 40]}
0.9025 x 1.9 = beta
beta = 1.7148
Re = 5% + (1.7148 x 6%) = 15.29%
Mohamed income elasticity for good A is equal to -1.5. His current income is Br.40, 000 per year and he buys 200 units of good A annually. If his income falls to Br.36, 000 how many units of good A will he purchase?
your mom hahahahahahhahaahhaahahjahahahahahhahadmdkuxndzmwcd9oo
The Intramural Sports Club reports sales revenue of $578,000. Inventory at both the beginning and end of the year totals $110,000. The inventory turnover ratio for the year is 3.9.
What amount of gross profit does the company report in its income statement?
Answer:
$363,500
Explanation:
Gross profit = Revenue - Cost of Goods Sold.
In the case
Revenue = $578,000.
The Cost of Goods Sold: COGS
Inventory turn over = COGS/ Average turnover
Average turnover = Opening stock + closing stock/2
In this case Opening stock + Closing stock = $110,000
Average turnover = $110,000 /2 =$55,000
Therefore:
3.9 = COGS/$55,000
COGS = $55,000 x 3.9
COGS =$214,500
Gross profit = $578,000 - $214,500
Gross profit = $363,500
You are working as a communication specialist for BMW which is releasing a new luxury car in March 2021. BMW have already carried out a market survey and have already determined the price of the product and the targeted audience.
Now that your company have to start a sale campaign, you have been asked to elaborate with your team the communication strategy for conducting this campaign during spring and summer (From March to August).
Answer:
Here is the answer!
Explanation:
You are working as a communication specialist for BMW which is releasing a new luxury car in March 2021. BMW have already carried out a market survey and have already determined the price of the product and the targeted audience.
You are working as a communication specialist for BMW which is releasing a new luxury car in March 2021. BMW have already carried out a market survey and have already determined the price of the product and the targeted audience. Now that your company have to start a sale campaign, you have been asked to elaborate with your team the communication strategy for conducting this campaign during spring and summer (From March to August). Write your strategy in almost five pages
person who provides services directly to individuals
Answer:
I just need to respond answers LUL
Explanation:
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In 2017, Kerry Corp's financial statement showed accrued losses on disposal of unused plant facilities of $3,600,000. The facilities were sold in December 2018 and a $3,600,000 loss was recognized for tax purposes then. Also in 2018, Kerry Corp's paid $150,000 for a two-year life insurance policy for their CEO Kerry, and the company was the beneficiary. Assuming that the enacted tax rate is 35% in both 2017 and 2018.
Question: the amount reported as net deferred income taxes on Kerry's balance sheet at December 31, 2017 should be an asset or liability?
Answer:
$1,260,000 Asset
Explanation:
The amount that Kerry Corp should report is as follows:
Amount to be reported = $3,600,000 * 35% = $1,260,000 asset.
Deferred tax arises because of temporary differences which results in future deductible amount. Future deductible amount leads to reduce taxable income and will provide future economic benefits of the company.
Mini, Inc., earns pretax book net income of $1,900,000 in 2019. Mini deducted $196,400 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes. Mini reports $1,995,000 of pretax book net income in 2020. Mini did not recognize any bad debt expense for book purposes in 2020 but did deduct $147,300 in bad debt expense for tax purposes. Mini reports no other temporary or permanent differences. The applicable U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax rate of return on capital of 8%. Enter below the 2020 end-of-year balance in Mini's deferred tax asset and deferred tax liability balance sheet accounts.
If an amount is zero, enter "0". If required, round your answers to the nearest dollar.
2020
a. Deferred tax asset account balance $
b. Deferred tax liability account balance $
c. In time value of money terms, what has been the cost to Mini of the deferred tax deduction for bad debts? The present value factor at 8% is 0.9259.
Answer:
a. $10,311
b. $0
c. $9,546.95
Explanation:
a. Deferred tax asset account:
= Deferred tax asset 2019 + Deferred tax asset 2020
Deferred tax asset 2019 = Bad debt for book purposes * tax rate
= 196,400 * 21%
= $41,244
Deferred tax asset 2020 = Bad debt for tax purposes * tax rate
= 147,300 * 21%
= -$30,933
Deferred tax account balance = 41,244 + (- 30,933)
= $10,311
b. Deferred tax liability account = $0
From the given details there are no tax liabilities.
c. Cost to Mini;
= Deferred tax asset * Present value factor
= 10,311 * 0.9259
= $9,546.95
The amount of income tax payable in future years or subsequent periods in respect of taxable transitory differences is referred to as the deferred tax liability. To put it another way, deferred tax (DT) is a tax that is due in the future.
The answers for questions a, b, and c are $10,311, no tax liabilities ($0), and $ 9.546.95 respectively.
a. Computation of Deferred tax asset (DT) account:
[tex]= \text{DT of 2019} + \text {DT of 2020}\\\text{DT of 2019}= \text{ Bad debts for book purchases} \text{ x } \text{Tax rate}\\\text{DT of 2019}= 196,400 \text{ x } 0.21\\\text{DT of 2019}= 41,244\\\\\text{DT of 2020}= \text{ Bad debts for book purchases} \text{ x } \text{Tax rate}\\\text{DT of 2020}= 147,300 \text{ x } 0.21\\\text{DT of 2020}= 30,933\\\\\text{ DT balance}= 41,244 + (-30,933) \\\text{ DT balance}=10,311[/tex]
b. Deferred tax liability account = $0
There are no tax liabilities based on the information provided.
c. Computation of the cost to Mini;
DT = Deferred Asset Tax
PV = Present value factor
[tex]=\text{DT} \text{ x } \text{PV}\\\= 10,311 \text{ x } 0.9259\\\=9,546.95[/tex]
Therefore, the deferred tax deduction for bad debts is $9,546.95
For more information regarding deferred tax computations, refer to the link:
https://brainly.com/question/15394738