Answer:
journal entries:
raw materials 285,000 debit
Account Payable 285,000 credit
--to record purchase of materials--
Work in Process Inventory 270,000 debit
Raw Materials 270,000 credit
--to record use of direct materials--
Factory overhead 64,600 debit
Utilities Expense 11,400 debit
Utilities Payable 76,000 credit
--to record incurred utilities in plant and non-manufacturing departments--
Explanation:
We record the journal entries considering that debit = credit
(a) as the business didn't pay cash we use account payable account
(b) we transfer the used amount of materials into WIP inventory
(c) we calculate the proportional use for factory and non-manufacturing departments
76,000 x 85% = 64,600
76,000 x 15% = 11,400
Keith Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by changes in other product lines. 30% of the fixed costs are direct, and the other 70% are allocated. Results of June follow:
Sour Cream Ice Cream Yogurt Butter Total
Units sold 2,000 500 499 200 3,100
Revenue 10,000 20,000 10,000 20,000 60,000
Variable departmental costs 6,000 13,000 4,200 4,800 28,000
Fixed costs 7,000 2,000 3,000 7,000 19,000
Net income (loss) (3,000) 5,000 2,800 8,200 13,000
Required:
Prepare an incremental analysis of the effect of dropping the sour cream product line.
Answer:
Dropping Sour would lead to a net loss of $(1,900)
Explanation:
To determine whether or not it will be profitable to drop a loss making product, we compare the savings in fixed cost to the lost contribution from dropping it.
It is noteworthy that only the fixed cost attributed to the product would be saved should it be discontinued.
The incremental analysis is done as follows:
Direct fixed cost of Sour = 30%× 7,000 = 2,100
Lost contribution = sales value - variable cost = 10,000-6,000= 4,000
$
Lost contribution (4,000)
Savings in fixed cost 2,100
Net loss in contribution (1,900)
Dropping Sour would lead to a net loss of $(1,900)
Chavez S.A., a Venezuelan company, wishes to borrow $8,000,000 for eight weeks (maturity). A rate of 6.250% per year is quoted by potential lenders in Great Britain, and Switzerland. British, and the Swiss-Euro bond definitions of interest (day count conventions) are 56 days and 60 days, respectively. Numbers of days in a financial year are 360. From which source should Chavez borrow?
Answer:
Chavez should borrow from the British market.
Explanation:
We need to compare the interest payment of both markets to make the decision
First, calculate the Interest payment in case, if borrowed from the British market
Interest Payment ( British ) = Principal Value x Interest rate x Time fraction
Interest Payment ( British ) = $8,000,000 x 6.250% x 56/360
Interest Payment ( British ) = $77,777.78
First, calculate the Interest payment in case if borrowed from Swiss market
Interest Payment ( Swiss ) = Principal Value x Interest rate x Time fraction
Interest Payment ( Swiss ) = $8,000,000 x 6.250% x 60/360
Interest Payment ( Swiss ) = $83,333.33
As the British market offers a lower rate, Chavez should borrow from the British market.
Mona is opening a new business selling fake fur coats. She organizes the company as a limited liability company called Fake-It, LLC and borrows $100,000 from a local bank in Fake-It's name. She also signs a personal guarantee at the bank promising to pay the debt of Fake-It. A friend of hers, Tanner, a second-year law student, advises her not to worry about the personal guarantee, because under the law of limited liability companies, it would be illegal for anyone to attempt to hold her liable for debts of the company. Is Tanner right?
Answer:
Yes but see explanation.
Explanation:
In lay man terms, the LLC is standing as a legal entity in itself. It can sue and be sued; as if it were a person. Tanner is right but Mona is a 'member' of the company (the owner or starter is called or seen as 'a member') and part of the liabilities of the company lie on her!
The legal document that determines who to hold liable for debts of the company is the Article of Organization. This document describes the rights, the powers, the responsibilities and the liabilities of each member of the limited liability company. So, if in this document, Mona bears a bulk of the financial liability of the company, then if the company is found wanting - on the basis of debt - and a court case comes up; Mona will be one of the members on the 'hot seat'.
Her personal bank account or financial assets might be protected in a company debt case but she'll still have to appear in court and be questioned accordingly. In lay man language, it is she - a human - who opened the business, so if there's debt, the humans involved (members) will be called upon.
Alexa and David are managers of different sales teams. Together, they decide to have a competition between teams to see who can bring in the most new clients this month. To increase the sense of competition, they create spirit days where they wear team colors (Alexa's team: blue, David's black), strategize ways to beat the other group, and keep a running total of who is winning on a white board. Alexa and David are employing______to increase productivity.
A. Social identity theory.
B. Parasocial interaction theory.
C. Leader-member exchange theory.
D. Vigilant interaction theory.
E. Expectancy theory.
Answer:
D. Vigilant interaction theory
Explanation:
It is correct to say that Alexa and David are employing the theory of vigilant interaction to increase productivity.
This theory is related to the team's decision-making process, that is, its objective is the integration and collaboration of the entire group with innovative and creative contributions that help in solving problems, helping in a more effective decision-making that contributes for the positive end result of the team.
Therefore, when using the strategy of increasing the sense of competition in the teams, managers seek the theory of vigilant interaction so that the final result and the goals of the teams are achieved.
two ways in which best bank can adapt to the challenges of the macro environment
Answer:
Mergers or Information Management
Explanation:
Mergers-In order to respond to certain challenges, businesses may choose to merge with another business. The new business will have a larger market share than either of the original businesses did.
Information management -All changes lead to new information that needs to be distributed to all the relevant parties.
Information must be managed efficiently and a system must be in place so that the relevant staff can easily access it.
Information must be protected and kept secure to protect the company's intellectual property.
Adjusted Trial Balance
Account Title Debit Credit
Cash 1,500
Accounts Receivable 1,460
Prepaid Insurance 800
Supplies 900
Equipment 5,500
Accumulated Depreciation-Equipment 550
Accounts Payable 1,300
Wages Payable 760
Owner, Capital 6,550
Owner, Drawing 1,400
Service Revenue 8,900
Wages Expense 3,000
Rent Expense 1,500
Supplies Expense 900
Utilities Expense 600
Depreciation Expense—Equipment 500
18,060 18,060
Required:
From the above adjusted trial balance, journalize the necessary closing entries.
Answer:
a. Dr Service Revenue $8,900
Cr Income Summary $8,900
b. Dr Income Summary $6,500
Cr Wages Expense $3,000
Cr Rent Expense $1,500
Cr Supplies Expense $900
Cr Utilities Expense $600
Cr Depreciation Expense Equipment $500
c. Dr Income Summary $2,400
Cr Owner, Capital $2,400
d. Dr Owner, Capital $1,400
Cr Owner, Drawing $1,400
Explanation:
Preparation of the Closing Entries
a. Dr Service Revenue $8,900
Cr Income Summary $8,900
b. Dr Income Summary $6,500
($3,000+$1,500+$900+$600+$500)
Cr Wages Expense $3,000
Cr Rent Expense $1,500
Cr Supplies Expense $900
Cr Utilities Expense $600
Cr Depreciation Expense Equipment $500
c. Dr Income Summary $2,400
($8,900-$6,500)
Cr Owner, Capital $2,400
d. Dr Owner, Capital $1,400
Cr Owner, Drawing $1,400
The point where total expenses equals total income
Answer:
Break Point
Explanation:
EDGE 2021 :D !
Patents are on the books of a British subsidiary of a U.S. firm at a value of 50,000 pounds. The patents were acquired in 2017 when the exchange rate was 1 pound = $1.50. The British subsidiary was acquired by the U.S. firm in 2019 when the exchange rate was 1 pound = $1.40. The exchange rate on December 31, 2020, the date of the most current balance sheet, is 1 pound = $1.55. The average rate of exchange for 2020 is $1.53. Assuming the dollar is the functional currency of the subsidiary, what exchange rate will be used to re-measure patents for the consolidated statements dated December 31, 2020?
Answer:
The exchange rate that will be used to re-measure patents for the consolidated statements dated December 31, 2020 is:
= 1 pound = $1.55.
Explanation:
a) Data and Calculations:
Patents on the books of a British subsidiary = 50,000 pounds
Patent's acquisition date = 2017 at 1 pound = $1.50
Subsidiary's acquisition date = 2019 at 1 pound = $1.40
Current exchange rate, most current balance sheet on December 31, 2020 = 1 pound = $1.55.
Average rate of exchange for 2020 is $1.53
Value of Patent for the consolidated accounts = $77,500 (50,000 pounds * $1.55)
b) The accounting standard rule is that assets and liabilities of subsidiaries should be consolidated at the current exchange rates. Business transactions are translated at the average rate of exchange for the year. For equity accounts, you can use either the current or historical exchange rates.
A machine that cost $225,000 has an estimated residual value of $15,000 and an estimated useful life of 15,000 machine hours. The company uses units-of-production depreciation and ran the machine 3,000 hours in year 1, 4,000 hours in year 2, and 5,000 hours in year 3. Calculate its book value at the end of year 3
Answer:
$57,000
Explanation:
Step 1 : Depreciation Rate
Depreciation Rate = (Cost - Residual Value) ÷ Estimated Production
therefore,
Depreciation Rate = $14.00 per machine hour
Step 2 : Depreciation expenses
Depreciation expense = Depreciation Rate x Annual production
therefore
Year 1 = $42,000
Year 2 = $56,000
Year 3 = $70,000
Total = $168,000
Step 3 : Book Value
Book Value = Cost - Accumulated Depreciation
= $225,000 - $168,000
= $57,000
Conclusion :
book value at the end of year 3 is $57,000
Discuss the economic conditions and economic institutions that affect personal finance.
Answer:
Economics and Personal Finance. Instruction in economics and personal finance prepares students to function effectively as consumers, savers, investors, entrepreneurs, and active citizens. Students learn how economies and markets operate and how the United States' economy is interconnected with the global economy.
Pls hurry ! In your own words, why is using an outline to take notes a good strategy?
Answer:
It is better used to locate things.
Explanation:
Answer:
helps organize your ideas
Explanation:
edg 2021
Big Corporation receives management consulting services from its 95 percent owned subsidiary, Small Inc. For the year 20X8, Small billed Big $140,000. Small's labor cost and other associated costs for the employees providing services to Big totaled $121,000 in 20X8. Big reported $2,567,000 of income from its own separate operations for 20X8, and Small reported net income of $695,000. Based on the preceding information, what amount of income should be assigned to the noncontrolling shareholders in the consolidated income statement for 20X8
Answer: $34750
Explanation:
The amount of income should be assigned to the noncontrolling shareholders in the consolidated income statement for 20X8 will be:
Net income of Small = $695,000
Bug company's share = 95% × $695000 = $660250
Therefore, non controlling shareholders at 5% will be:
= 5% × Net income of Small
= 5% × $695000
= 0.05 × $695000
= $34750
What is three ways eBay helps support small businesses? Full sentences please :)
Answer:
1. Gets you customers fast
2. There is a 95% chance you will make a profit
3. eBay is a big platform with multiple users
What two factors are necessary for demand?
good or service and its availability in the market.
Answer:
Desire for a good or service and its availability in the market.
The following information is available for Quality Book Sales's sales on account and accounts receivable:
Accounts Receivable Balance, January 1, Year 2 $78,500
Allowance for Doubtful Accounts, January 1, Year 2 4,710
Sales on Account, Year 2 550,000
Collections of Accounts Receivable, Year 2 556,000
After several collection attempts, Quality Book Sales wrote off $2,850 of accounts that could not be collected. Quality Book Sales estimates that 0.5% of sales on account will be uncollectible. Required:
(A) Compute the following amounts:
(1) Using the allowance method, the amount of uncollectible accounts expense for Year 2.
(2) Net realizable value of receivables at the end of Year 2.
(B) Explain why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible.
(1) Uncollectible accounts expense is an estimate of current receivables that may eventually be uncollectible.
(2) Uncollectible accounts expense is the actual amount that was determined in the current accounting period to be uncollectible.
Answer:
Quality Book Sales
1) Uncollectible accounts expense for Year 2 = $890
2) Net realizable value of receivables at the end of Year 2 = $69,650
B) The reason why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible is:
(2) Uncollectible accounts expense is the actual amount that was determined in the current accounting period to be uncollectible.
Explanation:
a) Data and Calculations:
Accounts Receivable Balance, January 1, Year 2 = $78,500
Allowance for Doubtful Accounts, January 1, Year 2 = 4,710
Sales on Account, Year 2 = 550,000
Collections of Accounts Receivable, Year 2 = 556,000
Uncollectibles written off = $2,850
Allowance for Uncollectible accounts = 0.5% of Sales ($550,000 * 0.5%)
= $2,750
1) Uncollectible accounts expense for Year 2 = $890 ($2,850 + $2,750 - $4,710)
2) Net realizable value of receivables at the end of Year 2 = $69,650
B) The reason why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible is:
(2) Uncollectible accounts expense is the actual amount that was determined in the current accounting period to be uncollectible.
Accounts Receivable Account
Account Titles Debit Credit
Beginning balance $78,500
Sales 550,000
Cash $556,000
Allowance for Uncollectibles 2,850
Ending balance 69,650
Allowance for Uncollectible Accounts
Account Titles Debit Credit
Beginning balance $4,710
Accounts receivable $2,850
Uncollectible Accounts Expense 890
Ending balance 2,750
Answer the question on the basis of the following cost data.
Output Average Fixed Cost Average Variable Cost
1 $50.00 $100.00
2 25.00 80.00
3 16.67 66.67
4 12.50 65.00
5 10.00 68.00
6 8.37 73.33
7 7.14 80.00
8 6.25 87.50
The marginal cost curve would intersect the average variable cost curve at about: ____________
a. 2 units of output.
b. 4 units of output.
c. 6 units of output.
d. 7 units of output.
Answer:
b. 4 units of output
Explanation:
MC and AVC have the following relationship:
a. MC is above AVC when AVC is rising
b. MC is below AVC when AVC is falling
c. MC = AVC when AVC is at its minimum
Thus, MC would intersect the AVC curve at its minimum point. Since AVC is minimum at 4 units of output equal to 65. It means MC intersects AVC at 4 units of output.
What was the price of a Coca-Cola's in 1945
A bottle of Coke cost only five cents in 1945.
Answer:
5 cents
Explanation:
The 40s and 50s A bottle of Coke (there were no cans of Coke then) coats only 5 cents during those times
You plan to visit Geneva, Switzerland in three months to attend an international business conference. You expect to incur the total cost of SF 5,000 for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.60/SF and the three-month forward rate is $0.63/SF. You can buy the three-month call option on SF with the exercise rate of $0.64/SF for the premium of $0.05 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The three-month interest rate is 6 percent per annum in the United States and 4 percent per annum in Switzerland.
Required:
a. Calculate your expected dollar cost of buying $F5,000 if you choose to hedge by a call option on SF.
b. Calculate the future dollar cost of meeting this SF obligation if you decide to hedge using a forward contract.
c. At what future spot exchange rate will you be indifferent between the forward and option market hedges?
d. Illustrate the future dollar cost of meeting the SF payable against the future spot exchange rate under both the options and forward market hedges.
Answer:
A. 3403.75 dollars
B. 3150
C. 0.579
D. Is an attachment
Explanation:
A. We first find the premium cost
= 0.05x5000 x 1+0.06/4
= 250x1.015
= 253.75
From here we find expected dollar cost
= Exchange rate x units + premium
= 0.63x5000+253.75
= 3,403.75 dollars
B. Forward rate = 0.63
Total cost of dollar
= 0.63x5000
= 3150
C. The investor would be indifferent at 0.579
Forward rate = unit * future + premium
3150 = 5000 * future + 253.75
3150-253.75 = 5000*future
We solve and divide through by 5000
Future = 0.579
D is in the attachment
The expected dollar cost of buying $F5,000 through the call option is $3403.75.
The first thing to do is to calculate the premium cost. This will be:
= (5% × 5000) × (1 + 6%/4)
= (0.05 × 5000) × (1 + 0.06/4)
= 250 × 1.015
= 253.75
The expected dollar cost will be:
= Exchange rate × Number of units + Call premium cost
= 0.63 × 5000 + 253.75
= 3403.75
The future dollar cost of meeting this SF obligation will be calculated thus:
= Forward rate × Number of units
= 0.63 × 5000
= $3150
The future spot exchange rate that the person will be indifferent will be:
= (3150 - 253.75) / 5000
= $0.579
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Jonathan was granted enough nonqualified stock options (NQSOs) to purchase 10,000 shares of Capital, Inc. stock at $10 per share two years ago. He exercised the options this year when Capital, Inc. stock was $25 per share. Three years later, Jonathan sells the 10,000 shares for $100 per share. Which of the following statements regarding the tax ramifications of Jonathan's transactions are CORRECT?
Capital gains tax is due the year the options are granted to Jonathan.
Jonathan's cost to exercise all of the NQSOs is $50,000.
Jonathan will have a $750,000 capital gain when he sells the stock at $100 per share.
Jonathan will have an additional $150,000 included in his W-2 compensation income, which is a type of ordinary income, subject to payroll taxes this year.
A) I, II, and III
B) III and IV
C) I and II
D) I, II, III, and IV
Answer: B. III and IV
Explanation:
Based on the information given, we should note that the capital gain will be:
= $1,000,000 - $250,000
= $750,000
Also, the bargain amount will be calculated as:
= 10000 × ($25 - $10)
= 10000 × $15
= $150,000
We should also note that the statement in option 1 that "Capital gains tax is due the year the options are granted to Jonathan" is wrong. Capital gain will only arise when the shares have been sold, therefore option I is incorrect.
Based on the information above, the answer is option III and IV.
H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached whereby J. Laney. would pay H. Tillman a legal fee of approximately $12800 by issuing 3100 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $3.90 per share. Given this information, the journal entry for J. Laney. to record this transaction is:
Answer:
The journal entry for J. Laney to record this transaction is
Dr legal expenses $12,990
______Cr Common stock $3,100
_______Cr Share premium $8,990
Explanation:
The common stocks are carried at par value of $1. This implies that any price paid in excess of the par value is made provision for in the share premium account.
Again, the common stocks issued are measured at the price required to settle the legal expenses and are paid in excess of par value of $1.
Share premium = ($3.90 - $1) × 3,100
Share premium = $8,990
Type the correct answer in the box. Spell all words correctly
While moving data into a data warehouse, Ivan and his team discover duplicate records in the transactional database. Which process in the
staging area is responsible for removing these duplicate records?
The data ______
process removes the duplicate data in the staging area.
Answer:
The data CLEANING process
Explanation:
The data cleaning process is used to remove the duplicate data from a data set.
What is data cleaning?The process of repairing or removing incorrect, corrupted, incorrectly formatted, duplicate, or incomplete data from a dataset is known as data cleaning.
Duplicate data is created during data collection. While combining data sets from multiple places, or when data is received from clients or multiple departments, duplicate data can be created.
The cleaning process in the staging area will remove duplicate records.
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Macmillan Toys Inc. is located in the nation of Ruffino near the nation of East Fenwick. Macmillan Toys is considering expanding into Rusalka. Both countries have similar consumer incomes and knowledge bases and share a common language. Also, the transportation networks between the countries are strong. Even so, the two nations have a long-standing dispute concerning the control of an area of land along their common border. Currently, Ruffino rules this land.
What would most likely prevent Macmillan Toys from expanding into Rusalka?
Answer: Political Distance
Explanation:
Political distance refers to a difference in opinion and policies as well as relations that countries have amongst themselves. In this scenario, this is the most likely bone of contention that would prevent Macmillan Toys from expanding into Rusalka.
This is because land disputes fall under political distance and can get very serious. So serious in fact that nations have gone to war over such disputes with the latest being Azerbaijan and Armenia. Macmillan Toys may therefore find it difficult to expand into the country due to this land dispute.
Explain the significance of capital structure.
what is marketing strategies
Answer:
A marketing strategy refers to a business's overall game plan for reaching prospective consumers and turning them into customers of their products or services :)
Explanation:
In other words!
It refers to a business's overall game plan for getting more costumers and more money with the work of their products and services.
The Argentine peso was fixed through a currency board at Ps1.00/$ throughout the 1990s. In January 2002 the Argentine peso was floated. On January 29, 2003 it was trading at Ps3.20/$. During that one year period Argentina's inflation rate was 20% on an annualized basis. Inflation in the United States during that same period was 2.2% annualized.
Required:
a. What should have been the exchange rate in January 2003 if PPP held?
b. By what percentage was the Argentine peso undervalued on an annualized basis?
c. What were the probable causes of undervaluation?
Answer:
1. 1.17416 peso/$
2. -63.30%
Explanation:
1. The exchange rate in January if PPP is held
1.00 = exchange rate
20 % = inflation in Argentina
0.22% = us inflation
1.00(1+0.20)/(1+0.022)
= 1.00x1.20/1.022
= 1.17416 pesos/$
B. Percentage by which pesos was devalued
(PPP/actual exchange rate)-1
= 1.17416/3.20 -1
= 0.366925-1
= -0.6330
= -63.30%
C. At 20 % we can see that inflation is really high in Argentina which is probably the reason for the undervaluation. But the truth is inflation alone cannot be held responsible. Severe crisis in Argentinas balance of payment is partly responsible
An investment project provides cash inflows of $1,350 per year for eight years. a. What is the project payback period if the initial cost is $4,250
Answer:
It will take 3 years and 55 days to cover the initial investment.
Explanation:
Giving the following information:
Cash flows= $1,350
Initial investment= $4,250
The payback period is the time required to cover the initial investment:
Year 1= 1,350 - 4,250= -2,900
Year 2= 1,350 - 2,900= -1,550
Year 3= 1,350 - 1,550= -200
Year 4= 1,350 - 200= 1,150
To be more accurate:
(200 / 1,350)= 0.15*365= 55 days
It will take 3 years and 55 days to cover the initial investment.
A company decides to let go of some employees due to a financial crisis. Irena loses her job, while her colleagues with similar performance ratings and productivity retain their jobs. Irena's judgment of her loss when compared to her colleagues' is a perception of
Answer:
The correct answer is "Procedural unfairness".
Explanation:
A basis for a respondent to challenge constitutional amendments for setting aside legal procedures throughout family legal proceedings will be found procedurally unfair.Throughout the event that a participant challenges a court decision, as well as a basis for the appeal, involves procedural injustice throughout a community court appearance, the privy council should first address the procedural fairness issue.Essence of Skunk Fragrances Calculate the average collection period. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the receivables turnover? (Use 365 days a year. Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) What is the amount of the company’s average receivables? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
1. Average collection period 41.25 days
2. Receivable Turnover 8.84848485
3. Average Receivable $521,558.22
Explanation:
1. Calculation for Average collection period
First step is to calculate the Percentage of customers not receiving discounts
Percentage of customers not receiving discounts = 100% - 65%
Percentage of customers not receiving discounts= 35%
Now let calculate Average collection period
Average collection period = (65% * 15) + (35% *90)
Average collection period = 9.75 + 31.5
Average collection period= 41.25 days
Therefore the Average collection period is 41.25 days
2. Calculation to determine the Receivable Turnover using this formula
Receivable Turnover = 365 / Average collection period
Let plug in the formula
Receivable Turnover = 365/41.25
Receivable Turnover = 8.84848485
Therefore the Receivable Turnover is 8.84848485
3. Calculation to determine the amount of the company’s average receivables
First step is to calculate the Total Credit Sales
Total Credit Sales = $6,500 * $710
Total Credit Sales= $4,615,000
Now let calculate the Average Receivable using this formula
Average Receivable =Credit sales / Receivable turnover
Let plug in the formula
Average Receivable= $4,615,000 /8.84848485
Average Receivable= $521,558.22
Therefore Average Receivable is $521,558.22
Mission Corp. borrowed $50,000 cash on April 1, 2019, and signed a one-year 12%, interest-bearing note payable. The interest and principal are both due on March 31, 2020. Assume that the appropriate adjusting entry was made on December 31, 2019 and that no adjusting entries have been made during 2020. How much interest expense should Mission Corp. record on March 31, 2020?
Answer:
The amount of interest expense that Mission Corp. should record on March 31, 2020 is $1,500.
Explanation:
This can be calculated as follows:
Monthly interest expense = (Amount borrowed * Interest rate) / Number of months in a year = ($50,000 * 12%) / 12 = $500
Remaining number of months = Number of months from January 1, 2020 to March 31, 2020 = 3
Interest expense to record on March 31, 2020 = Monthly interest expense * Remaining number of months = $500 * 3 = $1,500
Tax Increment Financing zones encourage economic development by Group of answer choices reducing or eliminating state or local taxes paid by businesses locating in the zone. reserving taxes generated by a new tax base in the zone for infrastructure or other public services within the zone. cutting the interest rate on private debt issued on business investment increments in the zone. providing financing to help pay additional taxes when business expands in an impacted area. All of the above. None of the above.
Answer:
Tax Increment Financing zones encourage economic development by
reserving taxes generated by a new tax base in the zone for infrastructure or other public services within the zone.
Explanation:
A Tax Increment Financing (TIF) zone is an economic development tool that reserves the property taxes within the zone for a period of time. Thereafter, the accumulated taxes are used to finance approved infrastructure and development improvement projects in the TIF zone through developer refunds. As an economic tool, a TIF zone encourages continued development of an area by attracting investors to the location.