Answer:
Express condition
Explanation:
An Express condition may be defined as the conditions or the terms that is explicitly mentioned or written in the contract. It occurs when the two or more parties signing the contract agrees that an event must occur before the burden of the responsibility to be completed the contract arises.
In the context, a contract signed between two parties, Fatima and Cal that states that Cal cannot file a case against Fatima after the final inspection of the Building Department for two years of Cal's building.
The contract provision used under this agreement between Cal and Fatima is referred to as express condition.
CalMark is a privately held company, so there is no information about beta available. However, a company in the same business with a debt to equity ratio the same as that of CalMark is publicly traded and has a beta which is two times that of the market. If the risk free rate is 4%, and the market risk premium is 5%, what is the estimated cost of existing equity for CalMark
Answer:
r - Calmark = 14%
Explanation:
Based on the comparative company analysis and using the CAPM we can calculate the required rate of return for CalMark. The comparative company analysis means to use the companies similar to the subject company to assume various ratios and factor about the subject company.
The formula to calculate the cost of equity which is also known as the required rate of return (r) is,
r = rRF + Beta * rpM
Where,
rRF is the risk free raterpM is the market risk premiumThe beta for market is always equal to 1. So a beta twice of the market will be 2.
r - Calmark = 4% + 2 * 5%
r - Calmark = 14%
gPlease record the following items in journal entry format. Clearly indicate the (a) account name (b) whether it is a (debit) or (credit) and (c) the amount. See my example below: The firm bought supplies for $6,400 on account. The firm purchased land for $450,000, $160,000 of which was paid in cash and a note payable signed for the balance. The firm paid for the supplies ($6,400) purchased on account above. The firm paid $1,000 for salaries for the month. The firm accepted cash for repair services made in the amount of $5,000 and billed additional customers for repair services of the amount of $2,500 The firm received cash from customers on account in the amount of $2,000 . The firm repaid $16,000 of its loan. The firm paid the rent and utility bill for the month for $2,000 The firm paid a cash dividend of $1,000. Example: The firm purchased Equipment for $1,000. Clearly indicate the (a) account name (b) whether it is a (debit) or (credit) and (c) the amount Correct way to answer: Equipment (debit) $1,000 Cash (credit) $1,000
Answer:
Journal Entry Format:
1. Supplies (debit) $6,400 Accounts payable (credit) $6,400
2. Land (debit) $450,000 Cash (credit) $160,000 Notes Payable (credit) $290,000
3. Accounts payable (debit) $6,400 Cash (credit) $6,400
4. Salaries Expense (debit) $1,000 Cash (credit) $1,000
5. Cash (debit) $5,000 Service Revenue (credit) $1,000
6. Accounts receivable $2,500 Service Revenue (credit) $2,500
7. Cash (debit) $2,000 Accounts receivable (credit) $2,000
8. Dividends (debit) $1,000 Cash (credit $1,000
Explanation:
With the above journal format, the account that receives value is debited while the account that gives value is credited. This follows the accounting principle of debiting the receiver and crediting the giver. It shows that assets, expenses, and losses have debit balances while liabilities, equity, gains, and revenues have credit balances.
Discuss the benefits of businesses that are involved in the macro environment
A loss contingency can be accrued when it is certain that funds are available to settle the disputed amount. the amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability has been incurred. it is probable that an asset has been impaired or a liability incurred even though the amount of the loss cannot be reasonably estimated. an asset may have been impaired.
Answer: The amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability has been incurred.
Explanation:
A loss contingent is an expense that is based on a future event for instance, if the company loses a law suit and would have to pay settlement costs.
Loss contingents are only permitted to be accrued if the probability that they will happen is likely and even at that, the amount of loss needs to be capable of being reasonably estimated. This way, a proper estimate can be made that will represent the situation adequately.
In an ethical dilemma such as the one presented above
Multiple Choice
there are two choices, neither of which resolves the situation in an ethically acceptable manner
there are two choices, either of which resolves the situation in an ethically acceptable manner
there are two choices, one of which resolves the situation in an ethically acceptable manner
there is only one choice
there are no choices
Answer:
there are two choices, neither of which resolves the situation in an ethically acceptable manner
Explanation:
Given that Ethical dilemma is a philosophical term that describes circumstances whereby an individual is having two available decisions for him to pick one. However, none of them supersede the other in terms of ethical requirements.
Therefore, in this case, the correct answer is "there are two choices, neither of which resolves the situation in an ethically acceptable manner."
Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,500 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.)
Answer:
Underapplied overhead= $1,640
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 497,040 / 21,800
Predetermined manufacturing overhead rate= $22.8 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 22.8*21,500
Allocated MOH= $490,200
Finally, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 492,040 - 490,200
Underapplied overhead= $1,640
A person managing a dry-cleaning store for $30,000 per year decides to open a dry-cleaning store. The revenues of the store during the first year of operation are $100,000 and the expenses are $35,000 for salaries, $10,000 for supplies, $8,000 for rent, $2,000 for utilities, and $5,000 for interest on a bank loan. Calculate (a) the explicit costs, (b) the implicit costs, (c) the business profit, (d) the economic profit, and (e) indicate whether the person should open the dry-cleaning store.
Answer:
$60,000
$40,000
$30,000
$10,000
he can open the store
Explanation:
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
Explicit cost = $35,000 + $10,000 + $8,000 + $2,000 + $5,000 = $60,000
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. If he didn't open the dry cleaning stores he could be earning $30,000 as a manager. $30,000 is his implicit cost
Accounting profit or business profit = total revenue - explicit cost
$100,000 - $60,000 = $40,000
Economic profit = accounting profit - implicit cost
$40,000 - $30,000 = $10,000
Since his economic and accounting profit are positive, he can open the store
Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $15,000 cash, an investment with a fair value of $20,000 (inside basis of $10,000), and a parcel of land with a fair value of $10,000 (inside basis of $5,000) to Randolph in complete liquidation of his interest. RD has no liabilities at the date of the distribution. Randolph's basis in his RD Partnership interest is $48,000. What is Randolph's basis in the distributed investment and land
Answer:
Randolph's basis in the distributed investment and land are as follows:
Investment = $10,000
Land = $23,000
Explanation:
The first step is that Randolph's basis in his RD Partnership interest of $48,000 is allocated to the distributed assets in an amount equal to the basis RD Partnership.
After this, Randolph will allocate remaining basis to assets which are not cash, hot assets and investment with unrealized appreciation.
Based on the above explanation, Randolph's basis in the distributed are as follows:
Cash = $15,000
Investment = Investment's Inside basis = $10,000
Land = Randolph's basis in his RD Partnership interest - Cash - Investment = $48,000 - $15,000 - $10,000 = $23,000
Book Co. is an online book store which sells both fiction and non-fiction books. After analyzing the online book retail industry and assessing its current and predicted sales, Book Co. decides to move away from non-fictions and target only the fiction market which is expected to have a 20% growth in sales. This is an example of __________ strategy.
Answer:
A corporate-level strategy
Explanation:
Book Co. is an online book store that sells both fiction and non-fiction books. After analyzing the online book retail industry and assessing it's current and predicted sales, Book Co. decides to move away from non-fiction and target only the fiction market which is expected to have a 20% growth in sales. This is an example of a corporate-level strategy.
What are corporate-level strategies?That destination influences all the techniques and decisions in each other as a part of your enterprise. So, for instance, in case your commercial enterprise has reached market saturation and also you want to diversify to continue to exist, your company-degree method might be to unfold to new markets.
What are the 3 corporate strategies?To expand the business and increase profits.To maintain current business operations.To revive an ailing business.Learn more about corporate strategies here: https://brainly.com/question/17151786
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vaughn Inc. acquired all of the outstanding common stock of Roberts Co. on January 1, 2020, for $276,000. Annual amortization of $21,000 resulted from this acquisition. Vaughn reported net income of $80,000 in 2020 and $60,000 in 2021 and paid $24,000 in dividends each year. Roberts reported net income of $50,000 in 2020 and $57,000 in 2021 and paid $12,000 in dividends each year. What is the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied
Answer:
$317,000
Explanation:
Calculation for the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied
Investment in Roberts Co. balance = $276,000 + $50,000 - $ 12,000 - $21,000 + $ 57,000 - $12,000 - $ 21,000
Investment in Roberts Co. balance = $317,000
Therefore the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied is $317,000
Scenario: Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. Freeland's efforts to provide opportunities to its emerging industries is an example of its ________.
Answer:
Economic motive.
Explanation:
An economic motive can be defined as the tendency of an investor or government to advocate and choose economic models, resources and factors of production that would positively and significantly impacts its economy.
In this scenario, Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. Freeland's efforts to provide opportunities to its emerging industries is an example of its economic motive because it would ensure that the jobs within the country is protected while creating opportunities for the company.
Hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's: A. desire to increase prices throughout the economy. B. inability to conduct open-market operations. C. need to generate revenue to pay for spending. D. responsibility to increase nominal interest rates by increasing expected inflation.
Answer:
C. need to generate revenue to pay for spending.
Explanation:
Inflation can be defined as the persistent rise in the price of goods and services in an economy.
Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.
Furthermore, when this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation
Hence, hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's need to generate (tax) revenue to pay for spending.
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
what is a bond? in your own words. economics.
Answer:
A bond is simply a loan taken out by a company. Instead of going to a bank, the company gets the money from investors who buy its bonds. In exchange for the capital, the company pays an interest coupon, which is the annual interest rate paid on a bond expressed as a percentage of the face value.
Explanation:
Answer:
A bond is a fixed income Instrument that represents a loan made by investors to a borrower ( typically corporate or governmental).
what is capital? in your own words. economics.
Answer:
In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business. ... In classical economics, capital is one of the four factors of production. The others are land, labor and organization
Which of the following is the type of notice provided by recording?
Select one:
a reasonable
b. constructive
c. protective d. actual
Answer:
b
Explanation:
1. Cash balance per bank, July 31, $7,308.
2. July bank service charge not recorded by the depositor $42.
3. Cash balance per books, July 31, $7,392.
4. Deposits in transit, July 31, $2,982.
5. $1,680 collected for Cullumber Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Cullumber Company.
6. Outstanding checks, July 31, $1,260.
(a) Prepare a bank reconciliation at July 31, 2010
(b) Journalize the adjusting entries at July 31 on the books
Answer:
Part a
Bank reconciliation at July 31, 2010
Balance as per Bank Statement $ 7,308
Add Outstanding Lodgments $2,982
Less Unpresented Checks ($1,260)
Balance as per Cash Book $9,030
Part b
Adjusting entries at July 31 on the books
Item 2
Debt : Bank service charge $42
Credit : Cash $42
To record the Bank service charge
Item 5
Debt : Cash $1,680
Credit : EFT Payment - Account Receivable $1,680
To record the amount collected on behalf of Cullumber Company
Explanation:
The Bank Reconciliation Statement is used to determine the true Cash Balance at the end of the month.
Updated Cash Book
Debit :
Balance $7,392
Credit Transfer $1,680
Total $9,072
Credit
Bank service charge $42
Balance (Balancing amount) $9,030
Total $9,072
Clarisa, an engineering manager, wants to purchase a resort accommodation to rent to skiers. She is considering the purchase of a three-bedroom lodge in upper Montana that will cost $250,000. The property in the area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up the prices. If Clarisa spends an average of $500 per month for utilities and the investment increases at a rate of 2% per month, how long would it be before she could sell the property for $100,000 more than she has in
Answer:
18.5 months approximately
Explanation:
initial investment x (1 + appreciation rate)ⁿ = initial investment + $100,000 + ($500 x n)
$250,000 x (1 + 2%)ⁿ = $350,000 + $500n
1.02ⁿ = $350,000/$250,000 + $500n/$250,000
1.02ⁿ = 1.4 + 0.002n
I tried to solve it by trial and error:
50 months:
2.69 ≠ 1.5
40 months:
2.21 ≠ 1.48
30 months:
1.81 ≠ 1.46
20 months:
1.49 ≈ 1.44 ⇒ getting closer
18 months:
1.43 ≈ 1.44 ⇒ almost
18.5 months:
1.44 = 1.44 ✓
The balance sheet of Sheffield Company at December 31, 2019, includes the following.
Notes receivable $51,200
Accounts receivable 195,600
Less: Allowance for doubtful accounts 24,600 $222,200
Transactions in 2020 include the following.
1. Accounts receivable of $151,300 were collected including accounts of $67,500 on which 4% sales discounts were allowed.
2. $5,670 was received in payment of an account which was written off the books as worthless in 2019.
3. Customer accounts of $24,800 were written off during the year.
4. At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $20,900. This estimate is based on an analysis of aged accounts receivable.
Required:
Prepare all journal entries necessary to reflect the transaction above.
Answer:
S/n Accounts titles Debit Credit
1. Cash[$151,300 - ($67,500*4%)] $148,600
Sales Discounts ($67,500*4%) $2,700
Accounts Receivable $151,300
2. Accounts Receivable $5,670
Allowance for Doubtful Accounts $5,670
Cash $5,670
Accounts Receivable $5,670
3. Allowance for Doubtful Accounts $24,800
Accounts Receivable $24,800
4. Bad Debt Expense $15,430
Allowance for Doubtful Accounts $15,430
Workings:
$24,600 + $5,670 - $24,800 = $5,470
$20,900 - $5,470 =
Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows:
1 Price per unit
$60,000.00
2 Cost of goods sold
28,000.00
3 Gross profit per unit
$32,000.00
In addition, the company incurs selling and administrative expenses of $226,250. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are:
1
Activity
Budgeted Activity Cost
Activity Base
2
Customer service
$31,500.00
Number of service requests
3
Project bidding
74,000.00
Number of bids
4
Engineering support
120,750.00
Number of customer design changes
5
Total costs
$226,250.00
Activity-base usage and unit volume information for the three customers is as follows:
Gough Industries
Breen Inc.
The Martin
Group
Total
Number of service requests 36 28 116 180
Number of bids 50 40 95 185
Number of customer design changes 18 35 108 161
Unit volume 30 16 4 50
Required:
1. Determine the activity rates for each of the three nonmanufacturing activity pools. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries.
2. Determine the activity costs allocated to the three customers, using the activity rates in (1). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries.
3. Construct customer profitability reports for the three customers, dated for the year ended December 31, using the activity costs in (2). The reports should disclose the gross profit and income from operations associated with each customer. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Colons (:) will automatically appear if required. Enter all amounts as positive numbers, except for a negative income from operations.
Labels
December 31
For the Year Ended December 31
Selling and administrative activities
Amount Descriptions
Breen Inc.
Cost of goods sold
Customer service
Engineering support
Gough Industries
Gross profit
Income from operations
Other income (expense)
Plantwide factory overhead rate
Product cost distortion
Project bidding
Revenues
The Martin Group
Total selling and administrative activities
1. Determine the activity rates for each of the three nonmanufacturing activity pools. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries.
1 per serv. req.
2 per bid
3 per design change
2. Determine the activity costs allocated to the three customers, using the activity rates in (1). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries.
1 Activity Costs
2
3
4
3. Construct customer profitability reports for the three customers, dated for the year ended December 31, using the activity costs in (2). The reports should disclose the gross profit and income from operations associated with each customer. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Colons (:) will automatically appear if required. Enter all amounts as positive numbers, except for a negative income from operations.
Arctic Air Inc.
Customer Profitability Report
1
Gough Industries
Breen Inc.
The Martin Group
2
3
4
5
6
7
8
9
10
Answer:
See below
Explanation:
Activity rate = Overhead costs/Estimated driver
Customer service : 175 per serv. req.
Project bidding : 400 per bid
Engineering support : 750 per design change
Activity costs allocated = Activity rate × Driver consumed
Activity costs
Gough industries. 39,800
Been inc. 47,150
The Martin group. 139,300
Artic Air inc.
Customer profitability report for the year ended, December 31
Gough industries Been inc. Martin Grou
Revenues
1,800,000 960,000 240,000
Cost of goods sold
840,000 448,000 112,000
Gross profit
960,000 512,000 128,000
Selling and administrative activities:
Customer service
6,300 4,900 20,300
Project bidding
20,000 16,000 38,000
Engineering support
13,500 26,250 81,000
Total selling and administrative support
39,800 47,150 139,300
Operating income(loss)
920,200 464,850 (11,300)
Kingston Company, which needs 10,000 units of a certain part to be used in its production cycle, can make or buy the part. If Kingston buys the part from Utica Company, Kingston could not use the released facilities in another manufacturing activity within the coming year. 60% of the fixed overhead applied will continue regardless of which decision option is chosen. The following per-unit cost information to make the part by Kingston is available: Direct materials $ 37 Direct labor 148 Variable overhead 74 Fixed overhead applied 93 $ 352 Cost to buy the part from Utica Company $ 85 In deciding whether to make or buy the part, Kingston's total relevant cost to make the part would be:
Answer: $2,962,000
Explanation:
60% of the fixed overhead cannot be avoided which means that only 40% can be avoided. This is the amount to include in the analysis.
To make 10,000 units, the cost would be:
= Direct materials + Direct labor + Variable Overhead + Fixed overhead applied
= (10,000 * 37) + ( 10,000 * 148) + (10,000 * 74) + (10,000 * 93 * 40%)
= 370,000 + 1,480,000 + 740,000 + 372,000
= $2,962,000
Analyze Johnson Stores’ staffing budget for holidaysJohnson Stores is planning its staffing for the upcoming holiday season. From past history, the store determines that it needs one additional sales clerk for each $12,000 in daily sales. The average daily sales is anticipated to increase by $96,000 from Black Friday until Christmas Eve, or 27 shopping days. Each additional sales clerk will work an eight-hour shift and will be paid $14 per hour.a. Determine the amount to budget for additional sales clerks for the holiday season.Holiday staff budget for additional clerks $b. If Johnson Stores has an average 40% gross profit on sales. What is the additional profit generated if a staff is added for the increased sale?Additional profit $
Answer:
Johnson Stores
Staffing Budget for Holidays:
a. The amount to budget for additional sales clerks for the holiday season is:
= $24,192.
b. The additional profit generated if a staff is added for the increased sale is:
= $1,209.60.
Explanation:
a) Data and Analysis:
Number of sales clerk required for each $12,000 in daily sales = 1
Average sales increase = $96,000
Number of sales clerk required for the $96,000 sales increase = 8 ($96,000/$12,000)
Number of shopping days from Black Friday to Christmas Eve = 27
Sales clerk works a shift per day = 8 hours
Wages per hour = $14
Total hours to be worked by the additional sales clerk = 8 * 27 * 8 = 1,728
Total wages = 1,728 * $14 = $24,192
Average gross profit on sales = 40%
Total gross profit on sales = $24,192 * 40% = $9,676.80
Additional gross profit generated by adding a staff = $1,209.60 ($9,676.80/8)
Spindler, Inc. (a U.S.-based company), imports surfboards from a supplier in Brazil and sells them in the United States. Purchases are denominated in terms of the Brazilian real (BRL). During 2020, Spindler acquires 400 surfboards at a price of BRL 1,600 per surfboard, for a total of BRL 640,000.00. Spindler will pay for the surfboards when it sells them. Relevant exchange rates are as follows:
Date U.S. Dollar per Brazilian Real (BRL)
1-Sep-20 $0.24
1-Dec-20 0.23
31-Dec-20 0.25
1-Mar-21 0.235
Required:
a. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December 1, 2020. What is the effect of the exchange rate fluctuations on reported income in 2020?
b. Assume that Spindler acquired the surfboards on December 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and 2021?
c. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and in 2021?
Answer:
a. The effect on reported income in 2020 is a foreign exchange gain of $6,400.
b-1. The effecton reported income in 2020 is a foreign exchange loss of -$12,800.
b-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.
c-1. The effect on reported income in 2020 is a foreign exchange loss of -$6,400.
c-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.
Explanation:
a. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December 1, 2020. What is the effect of the exchange rate fluctuations on reported income in 2020?
Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is higher than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange gain calculated as follows:
Foreign exchange gain on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.23) = $6,400
b. Assume that Spindler acquired the surfboards on December 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and 2021?
b-1. Since the U.S. Dollar per Brazilian Real on 1-Dec-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:
Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-De-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.23 - $0.25) = -$12,800
b-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:
Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600
c. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and in 2021?
c-1. Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:
Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.25) = -$6,400
c-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:
Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600
A registered representative at a member firm only deals in stocks and other equity investments. The registered representative helps an associate at that firm negotiate an underwriting of municipal bonds with a municipal issuer official that he knows very well from other business dealings. He does this as a 1-time event and is paid a finder's fee for his help. Which statement is TRUE?
a. the registered representative is considered to be a municipal finance professional and is subject to the political contribution rule.
b. an "mfp" - a municipal finance professional - is an associated person who solicits business from municipal issuers, renders financial advisory services to municipal issuers, or who performs research or writes reports on municipal issues.
c. because the representative was paid a finder's fee for get the municipal underwriting business from the issuer, that registered representative is defined as an mfp and comes under the $250 political contribution limit.
Answer: a. the registered representative is considered to be a municipal finance professional and is subject to the political contribution rule.
Explanation:
Municipal Finance Professionals are people who offer financial services to municipal issuers by soliciting business for them, advising them on financial matters and even performing research for them for which the MFP will be paid.
As the registered representative was paid a fee for helping negotiate an underwriting of municipal bonds, it can be said that he offered financial services to the municipal issuer and so is an MFP. As such, he is under the $250 political contribution limit that an MFP is subject to.
Of the following, the most important cause of the Great Depression was soaring energy costs soaring energy costs:________
A. serious dislocation in international trade serious dislocation in international trade
B. European abandonment of the gold standard European abandonment of the gold standard
C. confiscatory social security taxes confiscatory social security taxes
D. excessive government spending
Answer:
The correct answer is the option A: Serious dislocation in international trade.
Explanation:
To begin with, the Great Depression is the famous name that receives the financial crisis that started in the United States with the breakdown of the New York's stock exchange market and that quickly spread throught out the whole world ended up shooking the entire global economy for about a complete decade.
The major causes of it where a couple of various things and situation that finally tended to the explosion of the stock market. The context was that the United States after winning the First War became the most powerful nation in the world and with that also the country with more gold reserves so it obligate the european nations to pay the debts of the war as well as difficult them to trade in the international market by elevating the taxes to their imports and pushing its own exports to every other country. So thats basically how the whole international trade suffered from a dislocation.
The most important cause of the Great Depression was A. serious dislocation in international trade.
What was the Great Depression?The Great Depression was the global economic meltdown that was experienced by many nations following the end of the first world war.
After the defeat of Germany, many reparation sanctions were imposed on it for civilian damages caused by aggressive Germany.
Many nations who participated in the war also experienced economic stagnation and uncertainty with war debts suffocating economic activities.
Thus, the most important cause of the Great Depression was Option A.
Learn more about the Great Depression at https://brainly.com/question/441267
People who agreed with the argument made in the speech would most likely have recommended which of the following solutions? Separate but equal segregated facilities to increase job opportunities for white workers Separate but equal segregated facilities to increase job opportunities for white workers A Continuation of the gold standard as the basis for money Continuation of the gold standard as the basis for money B Reduced government involvement in the economy in order to create more competition Reduced government involvement in the economy in order to create more competition C A stronger government role in the economic system A stronger government role in the economic system D
Answer:
A stronger government role in the economic system.
Explanation:
A stronger government role in the economic system will enable the increase of job opportunities for white workers. The government will intervene in the organizations and persuade them to hire and provide work to white workers perhaps a quota can be established or a general advice to all the organizations to increase the job opportunities for the white workers.
You and your partner have become very interested in cross-country motorcycle racing and wish to purchase entry-level equipment. You have identified two alternative sets of equipment and gear. Package K has a first cost of $200,000, an operating cost of $6,000 per quarter, and a salvage value of $30,000 after its 2-year life. Package L has a first cost of $280,000 with a lower operating cost of $2,200 per quarter and an estimated $30,000 salvage value after its 4-year life. Which package offers the lower present worth analysis at an interest rate of 20% per year, compounded quarterly
Answer:
Package K offers the lower present worth analysis.
Explanation:
This can be determined using the following 3 steps.
Step 1: Calculations of present worth of Package K
First cost = $200,000
Present value of quarterly operating cost = quarterly operating cost * ((1- (1/(1 + r))^n)/r) ....... (1)
Where;
r = quarterly interest rate = interest rate per year / Number of quarters in a year = 20% / 4 = 5%, or 0.05
n = number of quarters = Number of years * Number of quarters in a year = 2 * 4 = 8
Substituting the values into equation (1), we have:
Present value of quarterly operating cost = $6,000 * ((1- (1/(1 + 0.05))^8)/0.05) = $38,779.28
Present value of salvage value = Salvage value / (1 + quarterly interest rate)^Number of quarters = $30,000 / (1 + 0.05)^8 = $20,305.18
Present worth of package K = First cost + Present value of quarterly operating cost - Present value of salvage value = $200,000 + $38,779.28 - $20,305.18 = $218,474.10
Step 2: Calculations of present worth of Package L
First cost = $280,000
Present value of quarterly operating cost = quarterly operating cost * ((1- (1/(1 + r))^n)/r) ....... (1)
Where;
r = quarterly interest rate = interest rate per year / Number of quarters in a year = 20% / 4 = 5%, or 0.05
n = number of quarters = Number of years * Number of quarters in a year = 4 * 4 = 16
Substituting the values into equation (1), we have:
Present value of quarterly operating cost = $2,200 * ((1- (1/(1 + 0.05))^16)/0.05) = $23,843.09
Present value of salvage value = Salvage value / (1 + quarterly interest rate)^Number of quarters = $30,000 / (1 + 0.05)^16 = $13,743.35
Present worth of package L = First cost + Present value of quarterly operating cost - Present value of salvage value = $280,000 + $23,843.09 - $13,743.35 = $218,474.10 = $269,900.25
Step 3: Comparison of present worth
Present worth of package K = $218,474.10
Present worth of package L = $269,900.25
Therefore, Package K offers the lower present worth analysis.
The rationale behind PPP is that: ________
1. Inflation and interest rate have positive relation.
2. Interest rate increases make local currency stronger in the future
3. Interest rate increases make local currency weaker in the future
4. Interest rate increases make local currency weaker in forward market
5. Interest rate increases make local currency stronger in forward market
6. Higher inflation makes local currency weaker in the future
7. Higher inflation makes local currency stronger in the future
8. Higher inflation makes local currency weaker in forward market
9. Inflation makes local currency stronger in forward market
Answer:
9. Inflation makes local currency stronger in forward market
Explanation:
The PPP consists of a measure of prices, in various nations that are used for the process of specific goods. In order to compare the absolute purchasing power of the nations. PPP makes an inflation rate and its equal to the price for a basket of goods. The PPP exchange rates may differ from those of market rates due to the tariffs and translation coats.Album Co. issued 10-year $200,000 debenture bonds on January 2. The bonds pay interest semiannually. Album uses the effective interest method to amortize bond premiums and discounts. The carrying value of the bonds on January 2 was $185,953. A journal entry was recorded for the first interest payment on June 30, debiting interest expense for $13,016 and crediting cash for $12,000. What is the annual stated interest rate for the debenture bonds
Answer: 12%
Explanation:
Stated interest rate is used in the calculation of the annual interest payment.
Interest payment = Face value of bonds * Stated interest rate
Annual Interest payment = Semi annual interest payment * 2
= 12,000 * 2
= $24,000
24,000 = 200,000 * Stated interest
Stated interest = 24,000 / 200,000
= 0.12
= 12%
Determinants of Interest Rate for Individual Securities The Wall Street Journal reports that the rate on 3-year Treasury securities is 8.30 percent, and the 6-year Treasury rate is 8.45 percent. From discussions with your broker, you have determined that expected inflation premium is 3.70 percent next year, 3.95 percent in Year 2, and 4.15 percent in Year 3 and beyond. Further, you expect that real interest rates will be 4.10 percent annually for the foreseeable future. What is the maturity risk premium on the 6-year Treasury security
Answer:
20%
Explanation:
Calculation for What is the maturity risk premium on the 6-year Treasury security
Maturity risk premium=
8.45% = 4.15% + 4.10% + MP
MP = 8.45% − (4.15% + 4.10%)
MP=8.45%-8.25%
MP=0.20*100
MP=20%
Therefore the maturity risk premium on the 6-year Treasury security will be 20%
Which of the following is the basic accounting equation?
A. Stockholders' or Owner's Equity = Liabilities + Assets
B. Assets = Liabilities + Income
C. Liabilities = Assets + Stockholders' or Owner's Equity
D. Assets = Liabilities + Stockholders' or Owner's Equity
Answer:
owner's equity=liabilities+assets(A)
Answer:
Assets=Liabilities+Stockholders' or Owner's equity
Explanation:
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