Answer:
Current net income for Cawley Company = $64,300
Explanation:
The following income are given in the question:
Net income of Tingler = $24,532
Net income of Shocker = $72,568
Net income of Stunner = (-$32,800), or -$32,800
Therefore, the current net income for Cawley Company can be calculated as follows:
Current net income for Cawley Company = Net income of Tingler + Net income of Shocker + Net income of Stunner = $24,532 + $72,568 + (-$32,800) = $24,532 + $72,568 - $32,800 = $64,300
Classic Limo, Inc., provides limousine service to Tri-Cities airport. The price of the service is fixed at a flat rate for each trip and most costs of the providing the service are stable for each trip. Marc Pence, the owner, budgets income by estimating two factors that fluctuate with the economy: the fuel cost associated with each trip and the number of customers who will take trips. Looking at next year, Marc develops the following estimates of contribution margin (price less variable cost of the trip, including fuel) and for the estimated number of customers. Although Marc understands that it is not strictly true, he assumes that the cost of fuel and the number of customers are independent. In addition to the costs of a ride, Marc estimates that other service costs are $50,000 plus $5 for each customer (ride) in excess of 6,000 rides. Annual administrative and marketing costs are estimated to be $25,000 plus 10 percent of the contribution margin.
Required:
Using the above information, construct an Excel spreadsheet to prepare an analysis of the possible operating income for Classic Limo, Inc., similar to that in Exhibit 13.15 on page 558 of the textbook. You must submit this part of the assignment as an Excel file and utilize formulas for all calculations. You will be graded on the answers provided, formulas/calculations, and presentation. If you would like feedback on this part of the assignment before submitting, please email your spreadsheet to me at least 48 hours prior to the due date.
Answer:
Poor $(14,250)
Fair $26,250
Excellent $87,000
Poor $6,000
Fair $60,000
Excellent $141,000
Poor $44,250
Fair $138,750
Excellent $280,500
Explanation:
Prepare of an analysis of the possible operating income for Classic Limo, Inc.,
Contribution MarginA Numbers of CustomersB Total Contribution MarginC=A*B Service costsD Marketing & AdminE=25,000+(C*10%) Operating Profit / (Loss)F=C-D-E
Poor $15* 4,500= $67,500- $50,000- $31,750 =$(14,250)
Fair $25 *4,500= $112,500 -$50,000 -$36,250 =$26,250
Excellent $40* 4,500=$180,000-$50,000-$43,000=$87,000
Poor $15*6,000=$90,000-$50,000-$34,000=$6,000
Fair $25*6,000=$150,000-$50,000-$40,000=$60,000
Excellent $40*6,000=$240,000-$50,000-$49,000=$141,000
Poor $15*10,500=$157,500-$72,500-$40,750=$44,250
Fair $25*10,500=$262,500-$72,500-$51,250=$138,750
Excellent $40*10,500=$420,000-$72,500-$67,000=$280,500
CALCULATION FOR SERVICE COST
Service costs=$50,000+($10,500-$6,000)*5
Service costs=$50,000+($4,500*5)
Service costs=$50,000+$22,500
Service costs=$72,500
CALCULATION FOR Marketing & AdminE=25,000+(C*10%)
$25,000+(Total Contribution margin *10%)
Poor $25,000+($67,500*10%)=$31,750
Fair $25,000+($112,500*10%)=$36,250
Excellent$25,000+($180,000*10%)=$43,000
Poor $25,000+($90,000*10%)=$34,000
Fair $25,000+($150,000*10%)=$40,000
Excellent $25,000+($240,000*10%)=$49,000
Poor $25,000+($157,500*10%)=$40,750
Fair $25,000+($262,500+10%)=$51,250
Excellent $25,000+($420,000*10%)=$67,000
Therefore the possible operating income for Classic Limo, Inc.,are
Poor $(14,250)
Fair $26,250
Excellent $87,000
Poor $6,000
Fair $60,000
Excellent $141,000
Poor $44,250
Fair $138,750
Excellent $280,500
On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,864. Cash receipts yet to be deposited into the checking account total $3,258, and checks written by the academy but not yet processed by the bank total $1,345. The company's balance of cash does not reflect a bank service fee of $27 and interest earned on the checking account of $38. These amounts are included in the balance of cash of $5,962 reported by the bank as of the end of August.
Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)
THE DEAN ACTING ACADEMY
Bank Reconciliation
August 31, 2021
Bank's Cash Balance Company's Cash Balance
Per Bank Statement Per General Ledger
Bank Balance per Reconciliation Company Balance per Reconciliation
Record the necessary entry(ies) to adjust the balance for cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Explanation:
The Preparation of bank reconciliation is shown below:-
The Dean Acting Academy
Bank reconciliation
August 31, 2021
Bank cash balance Amount Company cash balance Amount
Per bank statement $5,902 Per general ledger $7,804
Deposit outstanding $3,198 Service fees ($21)
Checks outstanding ($1,285) Interest earned $32
Bank balance per Company balance per
reconciliation $7,815 reconciliation $7,815
2. The Journal entries are shown below:-
a. Cash Dr, $32
To Interest Revenue $32
(Being note and interest collected by the bank is recorded)
Here we debited the cash as it increased the assets and we credited the interest revenue as it also increased the revenue
b. Service Fee Expense Dr, $21
To Cash $24
(Being bank service fee is recorded)
Here we debited the service fee expenses as it increased the expense and we credited the cash as it decreased the assets Credits to xlvtifax9856 founded on brainly.
Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions.
Bank's Balance Sheet
Assets Liabilities and Owners' Equity
Reserves $175 Deposits $1,400
Loans $700 Debt $225
Securities $875 Capital (owners' equity) $125
Suppose the owners of the bank contribute an additional $200 from their own funds and use it to buy securities in the name of the bank. This would increase the securities account and the account. This would also bring the leverage ratio from its initial value of to a new value of . Which of the following is true of the capital requirement?
A. The higher the percentage of assets a bank holds as loans, the higher the capital requirement.
B. It specifies a minimum leverage ratio for all banks.
C. Its intended goal is to protect the interests of those who hold equity in the bank.
Answer and Explanation:
In the case when the bank borrow $200 so it would be increase the capital account
The initial value of the leverage ratio is
= total assets ÷ total equity
= (Reserves+ loans+ securities) ÷ (owner's enquity)
= ($175 + $700 + $875) ÷ $125
= $1750 ÷ 125
= 14
Now the new value of the leverage ratio is
= total assets ÷ total equity
= (Reserves+ loans+ securities) ÷ (owner's enquity)
= ($175 + $700 + $875 + $200) ÷ $125 +
= $1950 ÷ $125
= 15.6
The statement i.e. true for the capital requirement is that the more the percentage of the asset the bank hold the greater the capital requirement
Broussard Skateboard's sales are expected to increase by 15% from $8.8 million in 2018 to $10.12 million in 2019. Its assets totaled $3 million at the end of 2018. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2018, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 65%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.
Answer:
$208,740
Explanation:
Calculation to determine additional funds needed for the coming year Using the AFN equation
AFN= Increase in Assets-Increase in Liabilities – Addition in Retained Earnings
Let plug in the formula
AFN=($3 million*15%)-($450,000+$450,000*15%)-[$10.12 million *3%*(100%-65%)]
AFN=($3 million*15%)-(900,000*15)-($10.12 million *3%*35)
AFN=$450,000-$135,000-$106,260
AFN=$208,740
Therefore the additional funds needed for the coming year will be $208,740
Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,300, Work in ProcessâCutting $3,000, Work in ProcessâAssembly $10,700, and Finished Goods $32,000. During July, the following transactions occurred.
1. Purchased $62,600 of raw materials on account.
2. Incurred $60,100 of factory labor. (Credit Wages Payable.)
3. Incurred $71,000 of manufacturing overhead; $41,000 was paid and the remainder is unpaid.
4. Requisitioned materials for Cutting $15,800 and Assembly $9,000.
5. Used factory labor for Cutting $33,100 and Assembly $27,000.
6. Applied overhead at the rate of $19 per machine hour. Machine hours were Cutting 1,690 and Assembly 1,750.
7. Transferred goods costing $67,700 from the Cutting Department to the Assembly Department.
8. Transferred goods costing $135,000 from Assembly to Finished Goods.
9. Sold goods costing $151,000 for $201,000 on account.
Required:
Journalize the transactions.
Answer:
Item 1
Debit : Raw Materials $62,600
Credit : Accounts Payable $62,600
Item 2
Debit : Wages expense $60,100
Credit : Wages Payable $60,100
Item 3
Debit : Overhead expenses $71,000
Credit : Cash $41,000
Credit : Accounts Payable $30,000
Item 4
Debit : Work in Process - Cutting $15,800
Debit : Work in Process - Cutting $9,000
Credit : Raw Materials $24,800
Item 5
Debit : Work In Process - Cutting $33,100
Debit : Work In Process - Assembly $27,000
Credit : Wages Expense $60,100
Item 6
Debit : Work in Process - Cutting $32,110
Debit : Work in Process - Assembly $33,250
Credit : Overheads $65,360
Item 7
Debit : Work in Process - Assembly Department $67,700
Credit : Work in Process - Cutting Department $67,700
Item 8
Debit : Finished Goods Inventory $135,000
Credit : Work in Process - Assembly Department $135,000
Item 9
Debit : Accounts Receivable $201,000
Debit : Cost of Sales $151,000
Credit : Sales Revenue $201,000
Credit : Finished Goods Inventory $151,000
Explanation:
When Costs are Incurred :
Debit the Account to which cost is accumulating and Credit cash when the cash is paid or Accounts Payable when there is no immediate payment.
When items are used in Production :
Debit the Work in Process Account to which the cost relates to and Credit the Account attached to that cost.
When there is a transfer :
Debit the Work in Process Account to which the items are flowing to and Credit the Work in Process Account from which the items are flowing.
Toshovo Computer owns four production plants at which computer workstations are produced. The company can sell up to 40,000 computers per year at a price of $1500 per computer. For each plant, the production capacity, the production cost per computer, and the fixed cost of operating a plant for a year are given in the file P06_56.xlsx . Determine how Toshovo can maximize its yearly profit from computer production.
Question Completion:
Toshovo computer data
Plant 1 Plant 2 Plant 3 Plant 4
Plant fixed cost $6,000,000 $5,000,000 $3,000,000 $2,000,000
Cost per computer $1,000 $900 $800 $750
Capacity 15,000 10,000 12,000 8,000
Answer:
Toshovo Computer
Toshovo can maximize its yearly profits from computer production by producing at full capacity at Plants 4, 3, and 2. At Plant 1, it should produce only 10,000.
It can also decide to double its capacity at Plants 4 and 3 and eliminate its Plants 1 and 2 with high fixed costs.
Explanation:
a) Data and Calculations:
Estimated number of computers per year = 40,000
Price per computer = $1,500
Toshovo computer data
Plant 1 Plant 2 Plant 3 Plant 4
Plant fixed cost $6,000,000 $5,000,000 $3,000,000 $2,000,000
Cost per computer $1,000 $900 $800 $750
Fixed cost per unit 400 500 250 250
Total costs per unit $1,400 $1,400 $1,050 $1,000
Selling price per unit $1,500 $1,500 $1,500 $1,500
Profit per unit $100 $100 $450 $500
Capacity 15,000 10,000 12,000 8,000
Plants Units to be Profit
Produced Per Unit
Plant 1 8,000 $500
Plant 2 12,000 $450
Plant 3 10,000 $100
Plant 4 10,000 -$100
Total produced 40,000
Sheila, a widow, makes out a will leaving one-half of her property equally to two of her adult children, Mark and Paula. The other one-half of her peoperty she is leaving to her neighbor Ned. Her third adult child, Elmo was left nothing. Sometime later a court declares Sheila mentally incompetent. Sheila dies 6 months after that. Mark, paula and Elmo now seek to invalidate the will.
1. What legal arguments may be used to invalidate the will?
A. Sheila was unable to understand what she was signing when she signed the will.
B. Sheila is not permitted to disinherit any of her children.
C. Either of these arguments are legally valid.
D. neither of these arguments are legally valid.
2. If the will is deemed to be invalid how would Sheila's estate be distributed?
a. one third each to Elmo, Mark and Paula.
b. 50% to Elmo. 25% each to Mark and Paula.
c. 25% to Ned, Mark Paula and Elmo.
d. 100% to the government.
Answer:
1. A.
2. a.
Explanation:
1. In this scenario, the only legal argument that they can make would be that Sheila was unable to understand what she was signing when she signed the will. Even though the bar for mental incompetence when dealing with a Will is extremely low, they can still dispute the will under this claim. Mainly due to the fact that she was declared Mentally Incompetent by a court judge, thus giving the claim much more validity and possibility of being accepted by the court.
2. If the court accepts this claim then the entirety of Sheila's estate will be distributed evenly among her next of kin, which in this case would be her children. Therefore, the estate will be divided evenly, one third each to Elmo, Mark and Paula, who are all of Sheila's adult children.
Absorption and Variable Costing Comparisons Red Arrow Blueberries manufactures blueberry jam. Because of bad weather, its blueberry crop was small. The following data have been gathered for the summer quarter of last year: Beginning inventory (cases) 0 Cases produced 8,000 Cases sold 7,000 Sales price per case $ 115 Direct materials per case $ 25 Direct labor per case $ 40 Variable manufacturing overhead per case $ 10 Total fixed manufacturing overhead $ 192,000 Variable selling and administrative cost per case $ 2 Fixed selling and administrative cost $ 38,000 Functional Income Statement Contribution Income Statement Ending Inventory Analysis (a) Prepare a functional income statement for the quarter using absorption costing. (Round answers to the nearest dollar. Do not use negative signs with your answers, EXCEPT if you calculate a net loss.) RED ARROW BLUEBERRIES Functional (Absorption Costing) Income Statement For the Summer Quarter (Last Year) Sales Answer 805,000 Cost of goods sold: Variable costs Answer 616,000 Fixed costs Answer 192,000 Goods available Answer 808,000 Ending inventory Answer 99,000 Answer 693,000 Gross profit Answer 112,000 Operating expenses: Variable selling and administrative Answer 14,000 Fixed selling and administrative Answer 38,000 Answer 52,000 Net income (loss) Answer 60,000
Answer:
Red Arrow Blueberries
RED ARROW BLUEBERRIES Functional (Absorption Costing) Income Statement For the Summer Quarter (Last Year)
Sales $805,000
Cost of goods sold:
Variable costs 600,000
Fixed costs 192,000
Goods available 792,000
Ending inventory 99,000 693,000
Gross profit 112,000
Operating expenses:
Variable selling & administrative 14,000
Fixed selling and administrative 38,000
Total operating expenses 52,000
Net income (loss) 60,000
Explanation:
a) Data and Calculations:
Beginning inventory (cases) 0
Cases produced 8,000
Cases sold 7,000
Ending inventory (cases) 1,000 (8,000 - 7,000)
Sales price per case $ 115
Direct materials per case $ 25
Direct labor per case $ 40
Variable manufacturing overhead per case $ 10
Total fixed manufacturing overhead $ 192,000
Variable selling and administrative cost per case $ 2
Fixed selling and administrative cost $ 38,000
Variable costs:
Direct materials per case $ 25
Direct labor per case $ 40
Variable manufacturing
overhead per case $ 10
Total variable cost per case $ 75
Total variable costs = $600,000 ($75 * 8,000)
Ending cost of
Sandhill, Inc. has a defined-benefit pension plan covering its 50 employees. Sandhill agrees to amend its pension benefits. As a result, the projected benefit obligation increased by $3060000. Sandhill determined that all its employees are expected to receive benefits under the plan over the next 5 years. In addition, 10 employees are expected to retire or quit each year. Assuming that Sandhill uses the years-of-service method of amortization for prior service cost, the amount reported as amortization of prior service cost in year one after the amendment is $1020000. $714000. $612000. $204000. Save for Later
Answer:
$1020000
Explanation:
Calculation to determine what amount to be reported as amortization of prior service cost in year one after the amendment is
First step is to calculate the employees 5years Expected benefits
Expected benefits =50+40+30+20+10
Expected benefits =150
Now let calculate the amortization of prior service cost in year one
Amortization of prior service cost=($3060000/150)*50
Amortization of prior service cost=20,400 *50
Amortization of prior service cost=$1020000
Therefore the amount to be reported as amortization of prior service cost in year one after the amendment is $1020000
Alden Co.’s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. Predict future total costs when sales volume is (a) 376,000 units and (b) 416,000 units.
Question Completion:
Month Units Sold Total Cost
1 318,000 $155,500
2 163,000 99,250
3 263,000 203,600
4 203,000 98,000
5 288,000 199,500
6 188,000 110,000
7 362,000 292,624
8 268,000 149,750
9 76,400 67,000
10 148,000 128,625
11 92,000 92,000
12 98,000 83,650
Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)
Answer:
Alden Co.
Future total costs when sales volume is:
(a) 376,000 units (b) 416,000 units
Variable costs $297,040 $328,640
Fixed costs 6,644 6,644
Total costs $303,684 $335,284
Explanation:
a) Data and Calculations:
Highest: Month 7 362,000 $292,624
Lowest: Month 9 76,400 $67,000
Difference 285,600 $225,624
Variable cost = $0.79 ($225,624/285,600)
Total variable cost:
At Highest Level = $285,980 ($0.79 * 362,000)
Fixed cost = Total costs - Total variable cost
= $6,644 ($292,624 - $285,980)
Check:
At lowest level:
Variable cost = $60,356 ($0.79 * 76,400)
Fixed costs = $6,644 ($67,000 - $60,356)
Jason's mother would like him to go to college, so in June he enrolls at the local university. He also quits his job and tells his mother his plans to take classes. His mother says, "I'm so happy that you are going to college that I want to pay for your books." Jason then sends her a bill for $485. Jasonâs mother's promise is:
a. unenforceable, because it is a unilateral contract.
b. unenforceable, because his mother is not getting any legal benefit for her promise to pay for his books.
c. enforceable, because Jason is giving up the right to do something else.
d. enforceable, because Jason returned to college.
Answer:
b. unenforceable, because his mother is not getting any legal benefit for her promise to pay for his books.
Explanation:
Note, Jason's mother only made a declaration or "promise" to give without any benefit derived from the actions of the other party (Jason).
Her statement in no way shows any legal benefit or considered been offered by the other party in return for payment.
Remember too that Jason's mother wholeheartedly or voluntarily offered to pay for his books because she was happy, and in this same way she can decide not to do so because no legal benefit was received in return.
Answer:
B. unenforceable, because his mother is not getting any legal benefit for her promise to pay for his books.
Explanation:
Hope this helps
Describing Tasks for Mechanical Engineers
Click this link to view O*NET's Tasks section for Mechanical Engineers. Note that common tasks are listed toward
the top, and less common tasks are listed toward the bottom. According to O*NET, what are some common tasks
Mechanical Engineers perform? Check all that apply.
O assisting drafters in developing the structural design of products
researching and designing mechanical products, equipment, systems, and processes
O observing and recording information about the movement of planets
reading and interpreting blueprints and technical drawings
O examining samples of plants and animals under microscopes
O analyzing the political history of a nation
Answer:
A,B,D
Explanation:
Answer:
A. designing, implementing, maintaining, or improving electrical instruments and equipment
C. preparing technical drawings
D. operating computer-assisted engineering or design software
g Shanken Corp. issued a 30-year, 6.2 percent semiannual bond 7 years ago. The bond currently sells for 108 percent of its face value. The company’s tax rate is 35 percent. (Assume that the face value of one coupon bond is $1,000.) a. What is the pretax cost of debt? b. What is the aftertax cost of debt? c. Which is more relevant, the pretax or the aftertax cost of debt? Why?
Answer and Explanation:
The computation is shown below:
a. Pre tax cost of debt is
Given that
NPER = 30 - 7 = 23 × 2= 46
PMT =$1,000 × 6.2% ÷ 2 = $31
FV = $1,000
PV = $1000 × 108% = $1,080
The formula is shown below:
= RATE(NPER,PMT,-PV,FV,TYPE) × 2
AFter applying the above formula, the rate is 5.58%
b. The after tax cost of debt is
= 5.58% × (1 - 0.35)
= 3.63%
c. The after tax cost of debt would be considered more relevant
Journalize the following transactions in the accounts of Arizona Interiors Company, a Restaurant Supply Company that uses the allowance method of accounting for uncollectible receivables:
May 1. Sold merchandise on account to Taiwan Palace Co., $13,400. The cost of the merchandise sold was $9,600.
Aug. 30. Received $2,800 from Taiwan Palace Co. and wrote off the remainder owed on the sale of May 1 as uncollectible.
Dec. 8. Reinstated the account of Taiwan Palace Co. that had been written off on August 30 and received $10,600 cash in full payment.
Answer:
May 1
Dr Cost of merchandise sold $9,600
Cr Merchandise inventory $9,600
Aug. 30
Dr cash $2,800
Dr Allowance for doubtful accounts $10,600
Cr accounts receivable-peking palace co $13,400
Dec. 8
Dr Accounts receivable - peking palace co $10,600
Cr Allowance for doubtful accounts $10,600
Explanation:
Preparation of the journal entries in the accounts of Arizona Interiors Company
May 1
Dr Cost of merchandise sold $9,600
Cr Merchandise inventory $9,600
Aug. 30
Dr cash $2,800
Dr Allowance for doubtful accounts $10,600
($13,400-$2,800)
Cr accounts receivable-peking palace co $13,400
Dec. 8
Dr Accounts receivable - peking palace co $10,600
Cr Allowance for doubtful accounts $10,600
g Suppose that the economy is producing at its potential level of output and full employment. An economic stimulus which includes increases in government spending will ____________. Select the correct answer below: cause stagflation raise inflationary pressures cause a permanent increase in output not have any effect, as the economy is already at maximum productione
Answer:
Suppose that the economy is producing at its potential level of output and full employment. An economic stimulus which includes increases in government spending will ____________.
raise inflationary pressures.
Explanation:
Inflationary pressures increase when an economy has reached its full employment and potential GDP levels with the introduction of some economic stimulus, through increased government spending, for example. This situation will cause demand and prices to increase. The money available will be too much for the goods available. While producers try to increase production, they cannot exceed their capacity since they have already attained full capacity.
Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $12,820. After estimating costs and revenues, Barney projects a net cash inflow from the retreading machine of $2,700 annually for 7 years. Barney hopes to earn a return of 9% on such investments. What is the present value of the retreading operation
Answer:
the present value is $13,588.97
Explanation:
The computation of the present value of the retreading operation is shown below:
As we know that
Present value = Future value ÷ (1 + rate of interest)^time period
= $2,700 ÷ 1.09^1 + $2,700 ÷ 1.09^2 + $2,700 ÷ 1.09^3 + $2,700 ÷ 1.09^4 + $2,700 ÷ 1.09^5 + $2,700 ÷ 1.09^6 + $2,700 ÷ 1.09^7
= $13,588.97
Hence, the present value is $13,588.97
Question 4 of 10 How does the Consumer Credit Protection Act require lenders to be honest in their dealings? O A. It requires borrowers under the age of 18 to have a co-signer. B. It was the first of all statues restricting lending institutions. C. It says the APR not exceed the monthly interest rate for all loans. O D. It forces lenders to disclose all charges to the borrower. SUBMIT
Answer:
The answer is D ( It forces lenders to disclose all charges to the borrower.)
ill give brainliest
Amanda submitted her taxes, but someone from the IRS called her because they want to talk more about her tax return. What is Amanda MOST likely experiencing?
A.
estimated payment
B.
tax audit
C.
tax deduction
D.
exemption
Answer:
B. Tax Audit
The correct answer is Option B.
When the IRS decides to look over your tax return more carefully and make sure that your claimed income and deductions are true, this is known as a tax audit.
What is tax audit?In a tax audit, the IRS checks your tax return's data to make sure all the information provided is accurate. Field, correspondence, taxpayer compliance measurement program, and office audits are the four different types of tax audits. An audit may be initiated by inaccurate data or incomplete tax returns.Tax audits are crucial because they help the government to organize the extent of tax avoidance and tax evasion, to ensure that satisfactory returns are submitted by tax payers, and to maintain the economic and financial order and stability.To learn more about tax audit refer to:
https://brainly.com/question/9371502
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Joe is a self-employed electrician who operates his business on the accrual method. This year Joe purchased a shop for his business, and for the first time at year-end he received a bill for $4,500 of property taxes on his shop. Joe didn't pay the taxes until after year-end but prior to filing his tax return. Which of the following is a true statement?
a. If he elects to treat the taxes as a recurring item, Joe can accrue and deduct $4,500 of taxes on the shop this year.
b. The taxes are a payment liability.
c. The taxes would not be deductible if Joe's business was on the cash method.
d. Unless Joe makes an election, the taxes are not deductible this year.
e. All of the choices are true.
Answer:
Jeo (Self-employed Electrician)
The true statement is:
c. The taxes would not be deductible if Joe's business was on the cash method.
Explanation:
Since Joe did not pay the property taxes this year, it will not be deductible if he were on the cash method. But the property taxes of $4,500 will be deductible because Joe operates on the accrual method. The difference between the cash and accrual methods is that using the cash method, Joe's business expenses are recognized when they are paid. But with an accrual method, Joe's business expenses are recognized when incurred and not when paid is made.
A firm currently sells $1,500,000 annually of an expensive product line. That firm is considering a similar, less expensive, discount line, and projects sales of $300,000. The discount line is expected to reduce sales of the expensive product line to $1,320,000. What is the incremental revenue associated with the discount product line?
Answer:
$120,000
Explanation:
Calculation to determine the incremental revenue associated with the discount product line
First step is to calculate the lost revenue due to erosion
Lost revenue due to erosion=$1,500,000-$1,320,000
Lost revenue due to erosion=$180,000
Now let calculate the Incremental revenue
Using this formula
Incremental revenue=Discount line revenue -Lost revenue due to erosion
Let plug in the formula
Incremental revenue=$300,000-$180,000
Incremental revenue = $120,000
Therefore the incremental revenue associated with the discount product line is $120,000
Examine Alexa’s skill in ordering drinks from Starbucks
Answer:
Just say, "Alexa, open Starbucks." Alexa will then tell you what your usual order is, how much it costs and for which store the order will be placed. You will then need to confirm or cancel the order. You can also say things like: "Alexa, tell Starbucks to start my usual order."
Explanation:
I hope this helps.
17. Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $29,000 of cash and land with an FMV of $74,000. Her basis in the land is $39,000. Andrew contributes equipment with an FMV of $31,000 and a building with an FMV of $52,000. His basis in the equipment is $27,000, and his basis in the building is $39,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew
Answer:
SA General Partnership
The amount of gain that SA General Partnership must recognize on the transfer of these assets from Sue and Andrew is:
= $52,000.
Explanation:
a) Data and Calculations:
Contributions by partners
Sue Andrew Partner's Partnership
FMV FMV Basis Gain/(Loss)
Cash $29,000 $29,000
Property:
Land 74,000 39,000 $35,000
Equipment 31,000 27,000 4,000
Building 52,000 39,000 13,000
Total property $74,000 $83,000 $134,000 $52,000
Partner's' basis $103,000 $83,000 $134,000 $52,000
The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2019: Net cash provided by financing activities $ 116,000 Dividends paid 18,300 Loss from discontinued operations, net of tax savings of $38,133 114,400 Income tax expense 25,568 Other selling expenses 14,600 Net sales 645,000 Advertising expense 47,600 Accounts receivable 58,400 Cost of goods sold 367,650 General and administrative expenses 142,100 Required: a. Calculate the operating income for Manahan Co. for the year ended December 31, 2019.
Answer:
See below
Explanation:
a. Operating income statement for the year ended December 31, 2019
Net sales $645,000
Less: Cost of goods sold ($367,650)
Gross profit $277,350
Less: Expenses
Selling, general, administrative expenses ($142,100)
Other selling expenses ($14,600)
Advertising expense ($47,600)
Operating income $73,050
b.
Operating income $73,050
Less:
Income tax expense ($25,568)
Income from continuing operations before taxes $47,482
Loss from discontinued operations, net of savings $38,133 ($14,400)
Net income $33,082
Assume you sell for $100,000 a 10 percent ownership stake in a future payment one year from now of $1.5 million. A. What are you saying about the implied return for the 10 percent owner
Explanation:
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The implied return which is the rate of return will be 50%.
Based on the information given, the dollar return will be:
= $1,500,000 × 10%
= $1,500,000 × 0.1
= $150,000.
The implied return will now be:
= ($150000 - $100000) / $100000 × 100
= 50000/100000 × 100
= 0.5 × 100
= 50%
Therefore, the implied return is 50%.
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Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $3 per labor-hour. Strawberry and vanilla flavors are produced in Department SV. Chocolate is produced in Department C. Sven manages Department SV and Charlene manages Department C. The product costs (per 1,000 gallons) follow:
Strawberry Vanilla Chocolate
Direct labor $755 $830 $1,130
Raw materials 805 505 605
Required:
If the number of hours of labor per 1,000 gallons is 56 for strawberry, 66 for vanilla and 100 for chocolate, compute the total cost of 1,000 gallons of each flavor using plant-wide allocation.
Answer:
Results are below.
Explanation:
First, we need to allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Strawberry= 3*56= 168
Vanilla= 3*66= 198
Chocolate= 3*100= 300
Now, the total cost for each product line:
Strawberry:
Total cost= 168 + 755 + 805= $1,728
Vanilla:
Total cost= 198 + 830 + 505= $1,533
Chocolate:
Total cost= 300 + 1,130 + 605= $2,035
For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,750,000. Its useful life was estimated to be five years, with a $155,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:_______.
($ in thousands)
Year Straight Line Declining Balance Difference
2018 $ 548 $ 1,200 $ 652
2019 548 720 172
2020 548 432 (116 )
$ 1,644 $ 2,352 $ 708
Required:
Prepare any 2021 journal entry related to the change.
Answer:
Dr Depreciation expense(notes) $81,000
Cr To Accumulated depreciation $81,000
Explanation:
Preparation of any 2021 journal entry related to the change.
First step is to Compute the new depreciation related to the change.
Details Amount
Asset’s cost at the beginning $2,750,000
Accumulated depreciation to date ($ 2,352,000)
Less Undepreciated cost $ 398,000
($2,750,000- $2,352,000)
Less Estimated residual value ($155,000)
To be depreciated over remaining 3 years $ 243,000
($398,000-$155,000)
Annual straight-line depreciation for remaining 3 years =$ 243,000/ 3 years $81,000
Now let prepare the Journal entry
Dr Depreciation expense(notes) $81,000
Cr To Accumulated depreciation $81,000
Consider the case of Bogdan Enterprises:
At the present time, Bogdan Enterprises does not have any preferred stock outstanding but is looking to include preferred stock in its capital structure in the future. Bogdan has found some institutional investors that are willing to purchase its preferred stock issue provided that it pays a perpetual dividend of $10 per share. If the investors pay $110.22 per share for their investment, then Bogdan's cost of preferred stock (rounded to four decimal places) will be:________.
a. 8.6165%
b. 9.0700%
c. 8.163090
d. 9.5235%
Answer:
b. 9.0700
Explanation:
Calculation to determine Bogdan's cost of preferred stock will be:
Using this formula
Cost of preferred stock = Annual dividend / Current price
Let plug in the formula
Cost of preferred stock = $10.00 / $110.22
Cost of preferred stock = 0.0907*100
Cost of preferred stock = 9.0700%
Therefore Bogdan's cost of preferred stock will be:9.0700%
Suppose payments will be made for 7 1/4 years at the end of each month from an ordinary annuity earning interest at the rate of
4.25%/year compounded monthly. If the present value of the annuity is $47,000, what should be the size of each payment from the
annuity? (Round your answer to the nearest cent.)
Please help!
Answer:
The size of the payment = $628.63
Explanation:
An annuity is a series of equal payment or receipt occurring for certain number of period.
The payment in question is an example of an annuity . We can work back the size of the payment using the present value of the ordinary annuity formula stated below
The Present Value of annuity = A × (1- (1+r)^(-n))/r
A- periodic cash flow,= ? r- monthly rate of interest - 4.25%/12= 0.354%
n- number of period- (71/4×12)= 87.
Let y represent the size of the payment, so we have
47,000 = y × ( 1-1.00354^(-87))/0.00354
47,000 = y× 74.76
y =47,000/74.7656= 628.63
The size of the payment = $628.63
Can someone help me please
Answer: $1,955
Explanation:
First remove the deductible of $800 from the amount:
= 3,100 - 800
= $2,300
The Insurance company will then pay 85% of this amount:
= 85% * 2,300
= $1,955
There are two routes for driving from A to B. One is freeway, and the other consists of local roads. The benefit of using the freeway is constant and equal to 3.6, irrespective of the number of people using it. Local roads get congested when too many people use this alternative, but if not enough peoople use it, the few isolated drivers run the risk of becoming victims of crimes. Suppose that when a fraction of x of the population is using the local roads, the benefit of this mode to each driver is given by:
1 + 8x – 9x²
Required:
a. Draw a graph showing the benefits of the two driving routes as functions of x, regarding x as a continuous variable between 0 and 1.
b. Identify all possible equilibrium traffic patterns from your graph in part (a). Which equilibria are stable? Which ones are unstable? Explain.
c. What value of x maximizes the total benefit to the whole population?
Answer:
a) attached below
b) stable equilibria = x = 0.1 , x = 0.8
unstable equilibria = other value except 0.1 , 0.8
c) 0.5 , 0.6
Explanation:
Benefit of using the local roads = 1 + 8x - 9x^2
Benefit of using the free way = 3.6
a) Attached below is the required graph
b) Determine The possible equilibrium traffic patterns from the graph
stable equilibria : x = 0.1 , x = 0.8 ( this id because at these given value the benefits of using either routes is equal )
unstable equilibria : every other value of X except 0.1 and 0.8
c) Determine the value of x that maximizes the total benefit to the population
The value of X that maximizes the total benefit to the population = 0.5 and 0.6
attached below is the detailed solution