Answer:
25%
Explanation:
the weekly amount may not exceed the lesser of two figures: 25% of the employee's disposable earnings, or the amount by which an employee's disposable earnings are greater than 30 times the federal minimum wage
The cash account for Norwegian Medical Co. at April 30 indicated a balance of $403,784. The bank statement indicated a balance of $468,460 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
A. Checks outstanding totaled $73,870.
B. A deposit of $51,230, representing receipts of April 30, had been made too late to appear on the bank statement.
C. The bank collected $50,630 on a $48,220 note, including interest of $2,410.
D. A check for $9,160 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $916. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account.
E. A check drawn for $680 had been erroneously charged by the bank as $860.
F. Bank service charges for April amounted to $170.
Required:
1. Prepare a bank reconciliation. Be sure to complete the statement heading.
2. Journalize the necessary entries. The accounts have not been closed.
DATE DESCRIPTION POST. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1 Apr. 30 Cash 0,630.00
2 Interest Revenue 2,410.00
3 Apr. 30 Accounts Payable-
Universal Supply Co.8,244.00
4 Cash 8,244.00
5 Apr. 30 Miscellaneous
Expense 170.00
6 Cash 170.00 1
3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash?
Answer:
Explanation:
cash account balance $403,784
note collected by bank $50,630
Error in check ($8,244)
Bank service fees ($170)
reconciled cash account $446,000
bank account balance $468,460
outstanding checks ($73,870)
deposit in transit $51,230
error in charging check $180
reconciled bank account $446,000
Dr Cash 50,630
Cr Notes receivable 48,220
Cr Intertest revenue 2,410
Dr Accounts payable 8,244
Cr Cash 8,244
Dr Bank fees expense 170
Cr Cash 170
Cash balance = $446,000
You are the general manager of a firm that manufactures personal computers. Due to a soft economy, demand for PCs has dropped 50 percent from the previous year. The sales manager of your company has identified only one potential client, who has received several quotes for 10,000 new PCs. According to the sales manager, the client is willing to pay $800 each for 10,000 new PCs. Your production line is currently idle, so you can easily produce the 10,000 units. The accounting department has provided you with the following information about the unit (or average) cost of producing three potential quantities of PCs:
10,000 PCs 15,000 PCs 20,000 PCs
Materials (PC components) $600 $600 $600
Depreciation 300 225 150
Labor 150 150 150
Total unit cost $1,050 $975 $900
Required:
Based on this information, should you accept the offer to produce 10,000 PCs at $800 each? Explain.
Answer:
Yes I would
Explanation:
We have these costs
Variable cost:
Materials = 600 dollars for each of component.
Labour is at a rate of 150 dollars each
For fixed cost depreciation = 300 dollars
Now we have to calculate the average variable cost
Cost of production of 1 pc + labour price of 1
= 600 + 150
AVC = 750
The sales price for each of the 10000 pc = 800 dollars
Now we can see that price p is greater than or equal to avc. 800 >=750
So the I have to accept to produce these pcs at the rate of 800 for 1 pc.
800-750 = 50
50x10000 = $500000 from the sale of the 10000 pcs
If consumer has rational, monotonic and convex preferences, which of the following is true concerning the substitution effect of a decrease in price of good X.
A) It always will lead to an increase in consumption of good X.
B) It will lead to an increase in consumption of good X only if X is a Giffen good.
C) It will lead to an increase in consumption of good X only if X is an inferior good.
D) It will lead to an increase in consumption of good X only if X is a normal good.
Answer:
It will lead to an increase in consumption of good X only if X is a normal good ( D )
Explanation:
If consumer has rational, monotonic and convex preference the decrease in price of good X will lead to an increase in consumption of good X only if X is a Normal good .
This is because the demand for Normal goods increases with increase in consumers income. therefore a decrease in price will automatically lead to an increase in demand because of the increase in the purchasing power of the consumer's income.
Based on the reading of the following, and given that a company is using a product structure, which of the following outcomes would you predict?
Company A produces televisions, stereos, radios, and security systems. They use a product structure that creates separate divisions for each product line. Each product has a team, and each team is responsible for production, production planning, and quality control. The radio team has an inventory of assembled components that are identical to those used by the television team.
A. The radio team will outperform the television team.
B. The television division will spend time doing unnecessary work.
C. Shared services will spot the duplicated effort.
D. Division teams will compete for resources.
Given that a company is using a product structure then the outcome which can be predicted is C. Shared services will spot the duplicated effort.
Product structure is a hierarchical corruption of a product, generally known as the bill of accouterments. As business becomes more responsive to unique consumer tastes and secondary products grow to meet the unique configurations, BOM operation can come ungovernable.
Product structure is an illustration of how the corridor of a product fit together and interrelate with one another; generally arranged in situations of detail according to the structure. It delivers a hierarchical sorting of the particulars forming a product. For illustration, if a company has a bakery division and apparel division, each of those product-grounded divisions will have its own deals department, marketing department, manufacturing department and other functional groups.
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Based on your understanding of the impact of macroeconomic factors, identify which of the following statements are true or false?
1. Countries with strong balance sheets and declining budget deficits tend to have lower interest rates.
2. When the economy is weakening, the Fed is likely to increase short-term interest rates. During the credit crisis of 2008, investors around the world were fearful about the collapse of real estate markets, shaky stock markets, and illiquidity of several securities in the United States and several other nations.
3. The demand for US Treasury bonds increased, which led to a rise in their price and a decline in their yields.
4. When the economy is weakening, the Fed is likely to decrease short-term interest rates.
Answer:
TrueFalseTrueTrueExplanation:
When an economy has a strong balance sheet and a declining budget deficit, it means that there is less need to borrow from the market which would keep rates lower.
When the economy is weakening, the Fed will try to stimulate it by engaging in actions that weaken short term interest rates so that people and businesses can borrow at lower cost and invest or buy goods and services.
When investors are worried about the riskiness of other financial assets, they usually come to safer assets like U.S. Treasury bonds so that they do not lose money and this is what happened in the credit crisis of 2008. More demand for the bonds led to a rise in their price.
The First Chance Casino has gambling facilities, a bar, a restaurant, and a hotel. All employees are allowed to obtain food from the restaurant at no charge during working hours. In the case of the employees who operate the gambling facilities, bar, and restaurant, 60% of all of Casino's employees, the meals are provided for the convenience of the Casino. However, the hotel workers, demanded equal treatment and therefore were also allowed to eat in the restaurant at no charge while they are at work. Which of the following is correct?A) All the employees are required to include the value of the meals in their gross income.B) Only the restaurant employees may exclude the value of their meals from gross income.C) Only the employees who work in gambling, the bar, and the restaurant may exclude the meals from gross income.D) All of the employees may exclude the value of the meals from gross income.E) None of the above.
Answer:
D) All of the employees may exclude the value of the meals from gross income.
Explanation:
Meals provided at the workplace (in this case the casino) by the employer are nontaxable fringe benefits. This means that the employees are not required to include them as part of their gross income.
Also, if the providing the meals benefits the employer, they can deduct 50% of the cost.
During the spring and summer of 2016, when gasoline prices were rising quickly, politicians in several countries proposed and a moratorium on some or all gasoline taxes to help consumers. In the Uniter States, one of Republican candidate for president, proposed suspending the federal gasoline tax of $0.4 for the summer, when demand tends to be high. An active candidate for the Democratic nomination for president, also pushed the plan. How would these short-run policies have affected the prices on consumers if the price had been enacted?
Answer:
consumers would find it cheaper to buy gasoline
Explanation:
In the short run a tax cut or tax suspension as we have In this question is able to increase demand because it increases peoples disposable income. This tax cut of $0.4 would remove burden on gasoline consumers. By removing the tax on gasoline the price of gasoline would become lower and consumers would find it easier and cheaper to purchase
You decide to go on a shopping spree. You make a purchase at Sears, and the cashiers says "Can I put your purchase on your Sears Card?" You reply "I don't have a Sears Card." The cashier asks you if you would like to apply for one. You say "Sure!" Throughout your shopping spree you purchase items at many different stores. At each of the stores this same scenario happens, the cashier asks you to apply for credit and you say yes. What will happen to your credit score?
A. It will decrease because of the number of times you have applied for credit.
B. It won't change at all because you were denied the credit card.
C. It will increase because of the number of times you have applied for credit.
Answer:
A and it can raise red flags for future creditors
What are some specific examples of how they can be used?
Interview can be defined as an attempt to
a.
make two persons communicate
b.
test the suitability of the candidate for the job under consideration
c.
develop relationship between two persons
d.
secure minimum information from the candidate
Answer:
B
Explanation:
Machinery purchased for $72,000 by Oriole Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,800 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,400 at the end of that time. Assume straight-line depreciation.
Prepare the entry to correct the prior years' depreciation, if necessary.
Answer:
No journal entry would be recorded
Explanation:
The journal entry is shown below:
No journal entry would be recorded for recognizing the prior year depreciation
So no journal entry would be passed for the same
Hence, the same would be relevant
The process of bond valuation is based on the fundamental concept that the current price of a security can be determined by calculating the present value of the cash flows that the security will generate in the future.
There is a consistent and predictable relationship between a bond's coupon rate, its par value, a bondholder's required return, and the bond's resulting intrinsic value. Trading at a discount, trading at a premium, and trading at par refer to particular relationships between a bond's intrinsic value and its par value. These result from the relationship between a bond's coupon rate and a bondholder's required rate of return.
Remember, a bond's coupon rate partially determines the interest-based return that a bond (might/will) pay, and a bondholder's required return reflects the return that a bondholder(would like/is obligated) to receive from a given investment.
The mathematics of bond valuation imply a predictable relationship between the bond's coupon rate, the bondholder's required return, the bond's par value, and its intrinsic value
These relationships can be summarized as follows:
When the bond's coupon rate is equal to the bondholder's required return, the bond's intrinsic value will equal its par value, and the bond will trade at par.
When the bond's coupon rate is greater to the bondholder's required return, the bond's intrinsic value will ________(be less than/exceed/equal) its par value, and the bond will trade at a premium.
When the bond's coupon rate is less than the bondholder's required return, the bond's intrinsic value will be less than its par value, and the bond will trade_________ (at a premium/at par/at a discount).
Answer:
When the bond's coupon rate is greater to the bondholder's required return, the bond's intrinsic value will EXCEED (be less than/exceed/equal) its par value, and the bond will trade at a premium.
When the bond's coupon rate is less than the bondholder's required return, the bond's intrinsic value will be less than its par value, and the bond will trade AT A DISCOUNT (at a premium/at par/at a discount).
Explanation:
When the coupon rate of a bond, e.g. 5%, is less than the market rate, e.g. 6%, the value of hte bond will be lower than the face value, therefore, it will be sold at a discount.
On the other hand, if the coupon rate, e.g. 6%, is higher than the market rate, e.g. 5%, the value of the bond will be higher than the face value, therefore, it will sell at a premium.
Hector received three A’s and one b in his college course. What is his grade point average? Assume each course is three credits. A=4.0, b=3.0, c=2.0, d=1.0
Answer:
I think it is A id don't know
Discuss Three (3) types of lobbying in detail please .
Answer:
Legislative lobbying
Regulator advocacy lobbying
Budget advocacy
Consider the following financial statement information for the Hop Corporation:
Item Beginning Ending
Inventory $16,284 $19,108
Accounts receivable 11,219 13,973
Accounts payable 13,960 16,676
Net sales $219,320
Cost of goods sold 168,420
Calculate the operating and cash cycles.
Answer:
Operating cycle = 59.29 days
Cash cycle = 26.1115 days
Explanation:
From the information given:
[tex]\text{Beginning Inventory \$16,284} \\ \\ \text{Beginning Accounts receivable 11,219} \\ \\ \text{Beginning Accounts payable 13,960} \\ \\ \text{Ending Inventory $19,108} \\ \\ \text{Ending Accounts receivable 13,973} \\ \\ \text{Ending Accounts payable 16,676} \\ \\ \text{Net sales \$219,320} \\ \\ \text{Cost of goods sold 168,420} \\ \\[/tex]
[tex]\text{Ending Inventory \$19,108} \\ \\ \text{Ending Accounts receivable 13,973} \\ \\ \text{Ending Accounts payable 16,676} \\ \\ \text{Net sales \$219,320} \\ \\ \text{Cost of goods sold 168,420} \\ \\[/tex]
To start with:
[tex]\text{Average inventory = } \dfrac{Beginning \ value +Ending \ value}{2} \\ \\ =\dfrac{ 16,284 + 19,108} {2} \\ \\ = \dfrac{35,392}{ 2} \\ \\ = \$17,696[/tex]
[tex]\text{Average receivable }=\dfrac{ Beginning value + Ending value }{ 2} \\ \\ =\dfrac{ 11,219 + 13,973 }{2} \\ \\ =\dfrac{ 25,192 }{ 2} \\ \\= \$12,596 \\ \\[/tex]
[tex]\text{Average payable }= \dfrac{Beginning \ value + Ending\ value}{ 2} \\ \\ = \dfrac{13,960 + 16,676 }{2} \\ \\= \dfrac{30,636}{2} \\ \\ = \$15,313[/tex]
[tex]\text{Days of inventory outstanding} = \dfrac{Average \ inventory }{ Cost \ of \ goods \ sold } \times 365 \\ \\ \dfrac{= 17,686}{ 168,420} \times 365 \\ \\ = 0.105\times 365 \\ \\= 38.329 \ days[/tex]
[tex]\text{Days \ of \ receivable \ outstanding }= \dfrac{Average \ receivable }{ sales }\times 365 \\ \\ \dfrac{= 12,596 }{ 219,320} \times 365 \\ \\ = 0.0574 \times 365 \\ \\= 20.951 \ days[/tex]
[tex]\text{Days of payable outstanding} = \dfrac{Average payable}{cost of goods sold} \times 365 \\ \\ = \dfrac{15,313 }{ 168,420} \times 365 \\ \\ = 0.0909 \times 365 \\ \\= 33.1785 days[/tex]
[tex]\text{Operating Cycle = Days of inventory outstanding + Days of receivable outstanding} \\ \\ = 38.339 + 20.951 \\ \\ = 59.29 days[/tex]
[tex]\text{Cash Conversion Cycle = Operating cycle - Days of payable outstanding} \\ \\ = 59.29 - 33.1785 \\ \\ = 26.1115 days \\ \\[/tex]
what is a tax bracket? in your own words.
Answer:
a range of income level that is taxed at a certain percentage.
Which of the following statements would most likely be included in a procedure?
A. A"In FY2015, St. Eligius saw a 25% decline in lost time due to malware incidents."
B. "Step 5: After the installation of the antivirus tool is complete, click the Tools menu, then Actions, then âUpdate Definitions Now.â"
C. "St. Eligius Healthcare uses Symantec Endpoint Protection version 12 or later."
D. "Antivirus protection will be installed on all workstations at St. Eligius Healthcare."
Answer:
The statement that would most likely be included in a procedure is:
D. "Antivirus protection will be installed on all workstations at St. Eligius Healthcare."
Explanation:
A procedure is the formal, official, or standard and established manner of carrying out business processes. It is quite different from a process, which details the steps that a procedure may follow. A goods example of a process is the B statement, "Step 5: After the installation of the antivirus tool is complete, click the Tools menu, then Actions, then Update Definitions Now."
Zachary Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc. Never-Fail is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accounting course. The company’s motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it can deliver, it pays Zachary to carry the excess. Zachary contracts with independent pilots to fly its planes on a per-trip basis. Zachary recently purchased an airplane that cost the company $4,636,000. The plane has an estimated useful life of 24,400,000 miles and a zero salvage value. During the first week in January, Zachary flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Zachary paid $420 for the pilot and $370 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $370 for the pilot and $185 for fuel. The round trip between Chicago and San Francisco is approximately 4,300 miles and the round trip between Chicago and New York is 1,300 miles.
Required:a. Select if the costs mentioned below are direct or indirect.b. Determine the total cost of each trip. (Do not round intermediate calculations.)
Answer: See explanation
Explanation:
a. Based on the information given, the direct costs are:
• Pilot Cost
• Fuel Cost.
The indirect cost is:
• Depreciation Cost
b. To know the total cost for each trip, we need to know the depreciation per mile which will be:
= $4,636,000 / 24,000,000
= 0.19
Cost for Trip 1
Pilot Cost = $420
Fuel Cost = $370
Depreciation Cost = (0.19 × 4,300) = $827
Total Cost = $1617
Trip 2
Pilot Cost = $370
Fuel Cost = $185
Depreciation Cost = (0.19 × 1,300) = $247
Total Cost = $802
Winnebagel Corp. currently sells 15,000 motor homes per year at $22,500 each, and 6,000 luxury motor coaches per year at $42,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 9,500 of these campers per year at $6,000 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,250 units per year, and reduce the sales of its motor coaches by 450 units per year.
Required:
What is the amount to use as the annual sales figure when evaluating this project?
Answer:
$88,500,000
Explanation:
Calculation to determine What is the amount to use as the annual sales figure when evaluating this project
Campers sale revenue $57,000,000
(9,500*$6,000)
Add: Increase in motor homes sales $50,625,000
(2,250 units*$22,500 each)
Less: Decrease in luxury motor coaches ($19,125,000)
(450 units per year*$42,500 each)
Annual sales figure $88,500,000
($57,000,000+$50,625,000-$19,125,000)
Therefore the amount to use as the annual sales figure when evaluating this project is $88,500,000
Stellar Corporation had the following activities in 2020.
1. Payment of accounts payable $844,000
2. Collection of note receivable $97,000
3. Issuance of common stock $275,000
4. Issuance of bonds payable $469,000
5. Payment of dividends $380,000
6. Purchase of treasury stock $49,000
Compute the amount Stellar should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash select an option by financing activities $enter a dollar amount
Answer:
Net cash provided by financing activities $315,000
Explanation:
The computation of the net cash provided or used by financing activities is shown below:
Issuance of common stock $275,000
Issuance of bonds payable $469,000
Less: Payment of dividends $380,000
Less: Purchase of treasury stock $49,000
Net cash provided by financing activities $315,000
explain the difference between a flat tax and a graduated income tax.
Answer:Progressive tax systems have tiered tax rates that charge higher income individuals higher percentages of their income and offer the lowest rates to those with the lowest incomes. Flat tax plans generally assign one tax rate to all taxpayers. ... A flat tax would ignore the differences between rich and poor taxpayers.
Maureen has a net spendable income of $2,100 per month. She sets up the following transportation budget for herself.
3. Transportation (15% - 20%) 350
a. Car payments 150
b. Gas/Oil 120
c. Insurance 60
d. License/Registration 2
e. Taxes 5
f. Maintenance/Repair 50
What has Maureen done wrong?
A.
She budgeted more than the maximum recommended amount of money for transportation.
B.
She has more money in the main category than she budgeted for in the subcategories.
C.
She has more money in the subcategories than she budgeted for in the main category.
D.
She budgeted less than the minimum recommended amount of money for transportation.
Which of the following is true?
A. Attaining a passing score on the part of the Uniform CPA Examination that covers professional ethics is evidence of integrity and commitment to ethical conduct.
B. A professional accountant should resign his position rather than become involved in the distribution of financial statements indicating insolvency.
C. Federal securities laws regarding the issuance of misleading financial statements apply not only to the independent auditors, but to management of the company as well.
D. The existence of generally accepted accounting principles (GAAP) eliminates the need for professional judgment except in very unusual circumstances.
Answer:
The answer is "Choice C".
Explanation:
The federal securities legislation governs its sales or offering of stock, investment management, the companies of some industry professional persons, investment companies like mutual funds, tender documents, proxy statements, and, more particularly, publicly-traded company control. It's not just the external directors, but also the managers of the organization apply to these rules mostly on the release of erroneous financial reports.
Journalize the following transactions for Henderson Company. Assume a perpetual inventory system. Also, assume a constant gross profit ratio for all items sold. Make sure to enter the day for each separate transaction.
October 1 Sold goods costing $9,000 to Hernandez Company for cash, $15,000.
October 7 Hernandez Company returned undamaged merchandise, purchased on
October 1, for a cash refund, $1,290.
Answer and Explanation:
The journal entries are shown below:
Cash Dr $15,000
To Sales $15,000
(Being cash is recorded)
Cost of goods sold Dr $9,000
To Merchandise inventory $9,000
(being cost of the merchandise is recorded)
Sales returns & allowances $1,290
To Cash $1,290
(being sales return is recorded)
Merchandise inventory ($1,290 × $9,000 ÷ $15,000) $774
To Cost of goods sold $774
(being merchandise inventory is recorded)
When looking at a firm's behavior, you know it is engaging in price discrimination when it:__________
a. charges a different price to different customers that is not reflective of the firm's costs.
b. charges customers more than they would prefer to pay.
c. asks about personal information such as race, gender, and sexual orientation before offering services.
d. does not accept payment with a smartphon
Answer:
a. charges a different price to different customers that is not reflective of the firm's costs.
Explanation:
The price discrimination strategy occurs when an organization charges a different price to different customers that does not reflect the company's costs, that is, the company divides its potential customers into groups, usually based on customer perceptions and characteristics and demographic data to evaluate which group of customers is willing to pay more or less for a particular product or service.
This is a strategy that can be favorable for companies to charge a maximum price for their product knowing that it will be accepted, but it is effective in large companies that have a high position in the market.
The cost of manufacturing a specific good in a developing country is less than the cost to manufacture it in the United States. What is the most likely result if that country exports the good to U.S. markets? Prices will decrease and the quantity produced will increase. Companies will expand production to compete in the industry. Congress will raise the rates on international tariffs. Prices will remain stable but quality will decline.
Answer:
Prices will decrease and the quantity produced will increase.
Explanation:
Because labor costs are lower in developing countries, when these countries produce manufactured goods, they do it at a lower cost, meaning that these goods will also have a lower price for the final consumers. If these cheaper goods are exported to the U.S. market, the U.S. market is flooded with more goods at a lower price, something that may affect some U.S. firms, but that benefits the majority of U.S. consumers.
Franklin Freight Company owns a truck that cost $46,000. Currently, the truck’s book value is $22,000, and its expected remaining useful life is five years. Franklin has the opportunity to purchase for $31,700 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $5,600 per year more than fuel cost for the new truck. The old truck is paid for but, in spite of being in good condition, can be sold for only $15,000.
Required:
a. Calculate Total Relevand Costs for:
a) Keep Old
b) Replace with a New One
b. Should Brewton replace the old truck with the new fuel-efficient model, or should it continue to use the old truck until it wears out?
Continue to use the old truck
Replace the old truck
Answer:
Franklin Freight Company
a. Total relevant costs for:
1. Keep Old
= $28,000
2. Replace with New One
= $16,700
b. Franklin Freight Company is quickly replace the old truck with the new fuel-efficient model:
Replace the old truck
Explanation:
a) Data and Calculations:
Cost of old truck = $46,000
Book value of old truck = $22,000
Expected remaining useful life of old truck = 5 years
Fuel cost for the old truck in excess of the new truck = $5,600 per year
Total fuel inefficiency cost of old truck = $28,000 ($5,600 * 5)
Cost of new replacement truck = $31,700
Salvage value of old truck = 15,000
Relevant cost of replacement = $16,700 ($31,700 - $15,000)
b) The salvage value of the old truck can only be realized when the new truck is procured and not without. Thus, the salvage value should be attributed to the replacement truck and not to the old truck.
The correct options in the Franklin Freight Company are:
(a). Total relevant costs to Keep Old is $28,000 and Replace with New One is $16,700.
(b). Franklin Freight Company is speedily renewed the elderly truck with the new fuel-efficient model.
What is the cost?Cost is simply meaning an amount that has to be paid or expended to purchase or acquire something.
It is the measurement of the secondary opportunities preceded in the selection of one good over others.
(a). Computation of the total relevant cost:
(i).
Replace the old truck:
According top the given information,
Cost of old truck = $46,000
Book value of old truck = $22,000
Expected left helpful life of old truck = 5 years
Fuel cost for the old truck in surplus of the new truck = $5,600 per year
Total fuel inefficiency cost of old truck :
[tex]\text{Total Efficiency Cost of Old Truck}=\text{Fuel Cost of Old Truck}\times \text{Estimated Useful Life}\\\\\text{Total Efficiency Cost of Old Truck}=\$5,600\times5 \text{years}\\\\\text{Total Efficiency Cost of Old Truck}=\$28,000[/tex]
(ii).
Computation of Relevant cost of replacement Truck:
According to the given information,
Cost of new replacement truck = $31,700
Salvage(S) value of old truck =$15,000
[tex]\text{Relevant Cost of Replacement}=\text{Cost of New Replacement Truck}-\text{S Value of the Old Truck}\\\\\text{Relevant Cost of Replacement}=\$31,700-\$15,000\\\\\text{Relevant Cost of Replacement}=\$16,700[/tex]
(b) After the new truck is acquired, the salvage value of the old truck can only be recognised.
Therefore, the salvage value should be assigned to the substitution truck and not to the elderly truck.
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On November 1 of this year, Jaxon borrowed $32,000 from Bucksnort Savings and Loan for use in his business. In December, Jaxon paid interest of $2,880 relating to the 12-month period from November of this year through October of next year.
A. How much interest, if any, can Jaxon deduct this year if his business uses the cash method of accounting for tax purposes?
B. How much interest, if any, can Jaxon deduct this year if his business uses the accrual method of accounting for tax purposes?
Answer:
Jaxon
A. If the business uses the cash method of accounting for tax purposes, the interest to be deducted this year is $2,880.
B. If the business uses the accrual method of accounting for tax purposes, the interest to be deducted this year is $480 (for November and December).
Explanation:
a) Data and Calculations:
Amount borrowed from Bucksnort Savings and Loan = $32,000
December 31, Interest paid for 12 months starting from November this year through October of next year = $2,880
Monthly interest expense = $240 ($2,880/12)
Interest expense for November and December = $480 ($240 * 2)
what is 4 P's in entrepreneur
Answer:
passion, persistence, perseverance, and preparation
Explanation:
I need money to buy something.
Answer:
Then, get yourself a job if you want money, even if it's one of the lamest jobs, get a job. Some people want money but, don't want to work. Others do work but, don't reviece money. Don't be like those people.
Explanation: