Answer:
a) true.
Explanation:
This statement is true, because emotions are feelings inherent to the human being, and therefore they also directly influence work, even though there is a posture geared more to the execution of reason due to professional posture than to emotions.
The ideal is therefore that there is a management aimed at creating an organizational culture aimed at the development of positive emotions, such as ethics, mutual respect, adequate communication, preservation of individual values, etc.
Emotions are capable of directly influencing the actions of employees, when they are positive they motivate and encourage the performance of productive work, when they are negative it can generate conflicts, demotivation, employee turnover, etc.
Coronado, Inc. had net sales in 2017 of $1,493,700. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $329,800 debit, and Allowance for Doubtful Accounts $4,060 credit. If Coronado estimates that 9% of its receivables will prove to be uncollectible. Prepare the December 31, 2017, journal entry to record bad debt expense.
Answer:
December 31,
DR Bad Debt Expense $25,622
CR Allowance for Doubtful Accounts $25,622
Explanation:
The Allowance for Doubtful Accounts helps provide a sort of cushion for the business by accounting for potential bad debts for the business so that if bad debts occur, they are taken from this account and not the Receivables account.
Coronado estimates that 9% of receivables will be uncollectible so;
= 9% * 329,800
= $29,682
However, $4,060 is already in the account so the new balance that should be brought into the account to ensure that it totals $29,682 is;
= 29,682 - 4,060
= $25,622
Poppy Corporation owns 60 percent of Seed Company's common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: Poppy Corporation Seed Company Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Seed Company Stock Total Assets Liabilities and Owners' Equity Accounts Payable Bonds Payable Common Stock ($10 par value) Retained Earnings Total Liabilities and Owners' Equity $ 51, eee 86,000 119, eee 680,000 (210,000) 141,000 $ 907,000 $ 33,000 52,000 97,000 390,000 (78,000) $494,000 $ 117,000 250, eee 300,000 240,000 $ 907,000 $ 59,000 200,000 100,000 135,000 $494,000
The bonds of Poppy Corporation and Seed Company pay annual interest of 8 percent and 10 percent, respectively. Poppy's bonds are not convertible Seed's bonds can be converted into 10,000 shares of its company stock any time after January 1, 20X1. An income tax rate of 40 percent is applicable to both companies. Seed reports net income of $36,000 for 20x2 and pays dividends of $10,000 Poppy reports income from its separate operations of $46,000 and pays dividends of $20,000
Required: Compute basic and diluted EPS for the consolidated entity for 20x2. (Round your answers to 2 decimal places.) Basic earnings per share Diluted earnings per share
Answer:
Poppy Corporation
Consolidated EPS
Basic Earnings per share = $67,600/10,000 = $6.76 per share.
Diluted earnings per share = $74,800/10,000 = $7.48 per share
Explanation:
With the conversion of the Seed's bonds, the interest of $20,000 would be included in its income. And an after tax increase of $12,000 (after taking out tax of 40% on $20,000) would be added to the net income, making the net income to become $48,000 ($36,000 + 12,000). The group's share of the net income would become $28,800 ($48,000 x 60%). This amount is added to the Poppy's net income of $46,000 to get a consolidated net income of $74,800 after the conversion of the bonds.
Before the conversion, the consolidated net income is $67,600 ($46,000 + 60% of $36,000).
EPS becomes diluted with the conversion of convertible debt securities. The effect for a consolidated entity like Poppy is the increase in the net income attributable to the holding company with the elimination of the interest expense. However, the number of shares outstanding for the group would remain the same as before the conversion since it was the bonds of the subsidiary that was converted and not the group's.
Skysong, Inc. acquires a delivery truck at a cost of $54,000. The truck is expected to have a salvage value of $13,000 at the end of its 5-year useful life. Compute annual depreciation expense for the first and second years using the straight-line method.
Answer:
Annual depreciation= $8,200
Explanation:
Giving the following information:
Skysong, Inc. acquires a delivery truck for $54,000. The truck is expected to have a salvage value of $13,000 at the end of its 5-year useful life.
To calculate the depreciation expense, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (54,000 - 13,000)/5
Annual depreciation= $8,200
Select a problem that a firm might have bringing out a new product or service and discuss how the firm could overcome that problem.
Explanation:
A potentially serious problem for a company is to launch a new product or service on the market without conducting marketing research to investigate the acceptance of its product to its target audience.
Marketing research is an essential tool for a company to collect relevant data and information about what the consumers' needs and desires are, what benefits they expect from a product or service, what features the product should have, the design, the price, and several other essential variables to help the company better understand the market and make the best decisions when launching a new product
Bendel Incorporated has an operating leverage of 7.3. If the company's sales volume increases by 3%, its net operating income should increase by about:
Answer:
21.9%
Explanation:
Given that
Operating leverage = 7.3
Increase in sales = 3%
According to the given situation, the computation of net operating income is shown below:-
Increase in operating income = Operating leverage × Increase in sales
= 7.3 × 3 %
= 21.9%
Therefore for computing the increase in operating income we simply applied the above formula.
The cost structure of two firms competing in the same industry is represented by the following cost formulas: Company X = $2,276,000 + $50/ unit; Company Z = $1,052,000 + $98/unit. The selling price is $145 per unit for both companies. Required: 1. Calculate the indifference point between the two cost structures, that is, the amount of unit sales that produce exactly the same operating income for Company X and Company Z.
Answer:
Indifference point= 25,500
Explanation:
Giving the following information:
Company X = $2,276,000 + $50/ unit
Company Z = $1,052,000 + $98/unit
We need to find the indifference point where the two companies provide the same total cost.
We need to equal both cost equations:
2,276,000 + 50x = 1,052,000 + 98x
1,224,000 = 48x
25,500= x
x= number of units
To prove:
Company X = $2,276,000 + $50*25,500= $3,551,000
Company Z = $1,052,000 + $98*25,500= $3,551,000
On March 4, Micro Sales makes $4,850 in sales on bank credit cards that charge a 2.5% service charge and deposits the funds into Micro Sales' bank accounts at the end of the business day. Journalize the sales and recognition of expense as a single journal entry.
Answer:
Please see the journal entry below
Explanation:
Dr Cash. $4,728
($4,850 - $121.25)
Dr Credit card expense. $121.25
(2.5% × $4,850)
Cr Sales $4,850
We can infer from the question that sales can be debited to cash since the deposit is at the end of the business day.
The company has a bank loan and has incurred (but not recorded) interest expense of $3,500 for the year ended December 31, 2018. The company must pay the interest on January 2, 2019.
Answer:
The journal entry to record accrued interests:
December 31, 2018, accrued interests on bank loan
Dr Interest expense 3,500
Cr Interest payable 3,500
The journal entry to record the interest payment:
January 2, 2019, accrued interests paid
Dr Interest payable 3,500
Cr Cash 3,500
Farrow Co. expects to sell 200,000 units of its product in the next period with the following results:
Sales (200,000 units) $3,000,000
Costs and expenses:
Direct materials 400,000
Direct labor 800,000
Overhead 200,000
Selling expenses 300,000
Administrative expenses 514,000
Total costs and expenses 2,214,000
Net income $786,000
The company has an opportunity to sell 20,000 additional units at $13 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the following incremental costs:
1. total overhead would increase by 15%
2. administrative expenses would increase by $86,000.
Required:
Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit.
Answer:
Combined net income =$810,000
Explanation:
In order to carry out an incremental analysis, only relevant cash flows should be considered.
The relevant cash flows from accepting the special order are the variable costs and the sales revenue plus the incremental cost of overhead and administrative cost . Please, note that the fixed costs are not relevant for this decision. Simply because they would be incurred either way.
The relevant cash flows include:
The sales revenueThe variable cost And the increase in overhead and administrative costSelling price per unit = $13
Variable cost per unit of additional sales
= (Direct material + Direct labour cost)/200,000 = 6
Analysis of incremental net income
$
Additional sales revenue ( 13×× 20,000) = 260,000
Incremental variable cost (6 × 20,000) = 120000
Incremental overhead (15%× 200,000) = (30000)
Incremental admin cost (86,000)
Net income from additional sales 24,000
Combined net income = original Net income + Additional net income
= 786,000 + 24000 = $810,000
Combined net income =$810,000
Activities included (and not included) in the calculation of GDP
The gross domestic product (GDP) of the United States is defined as the all in a given period of time.
Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020.
Scenario 2020 GDP
Included Excluded
1. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 14, 2020. An elementary school student buys the chocolate bar on December 24.
2. The Jones family buys an antique silver platter at an auction in upstate New York on March 11, 2020.
3. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 25, 2020. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2020. (Note: Focus exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.)
4. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 6, 2020. It sells the car at a dealership in San Francisco on February 2, 2020.
5. Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 11, 2020. Roadway Motors imports the convertible into the United States on May 29, 2020.
Answer:
Included in 2020 GDP
1. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 14, 2020. An elementary school student buys the chocolate bar on December 24.
4. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 6, 2020. It sells the car at a dealership in San Francisco on February 2, 2020.
5. Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 11, 2020. Roadway Motors imports the convertible into the United States on May 29, 2020.
NOT INCLUDED IN 2020 GDP
2. The Jones family buys an antique silver platter at an auction in upstate New York on March 11, 2020.
3. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 25, 2020. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2020
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
The purchase of chocolate would be added to GDP as part of consumption spending on non durable items.
the purchase of the antique silver platter would not be added as part of GDP because it wasn't produced in 2020 and only goods produced in 2020 would be added to 2020 GDP.
The corn syrup is an intermediate good and it would not be added in the calculation of GDP. only final goods are added in the calculation of GDP.
The automobile would be added to GDP as part of investment spending by businesses.
the import of cars would be added as part of net export in 2020 GDP
On December 1, 2018, ABC signed a $300,000, 5%, six-month note payable with the amount borrowed plus accrued interest due six months later on June 1, 2019. ABC records the appropriate adjusting entry for the note on December 31, 2018. What amount of cash will be needed to pay back the note payable plus any accrued interest on June 1, 2019?
Answer:
$315,000 will be needed to pay back
Explanation:
When the note payable is signed, the entries would be as follows :
Cash $300,000 (debit)
Note Payable $300,000 (credit)
Interest that accrues over the period of the over the note receivable is
Interest expense $15,000 (debit)
Note Payable $15,000 (credit)
Interest expense = $300,000 × 5%
= $15,000
On June 1, 2019 the Note Payable plus Interest that needs to be paid would be :
Note Payable $315,000 (debit)
Cash $315,000 (credit)
The amount of cash should be $315,000 will be needed to payback.
Calculation of the amount of the cash needed:At the time When the note payable is signed, the entries should be
Cash $300,000 (debit)
Note Payable $300,000 (credit)
Interest that accrues over the period of the over the note receivable should be
Interest expense $15,000 (debit)
Note Payable $15,000 (credit)
here,
Interest expense = $300,000 × 5%
= $15,000
On June 1, 2019, the Note Payable plus Interest that needs to be paid should be
Note Payable $315,000 (debit)
Cash $315,000 (credit)
learn more about cash here: https://brainly.com/question/2055753
Fit-for-Life Foods reports the following income statement accounts for the year ended December 31
Gain on sale of equipment $ 6,250 Depreciation expense—Office copier $ 500
Office supplies expense 700 Sales discounts 16,000
Insurance expense 1,300 Sales returns and allowances 4,000
Sales 220,000 TV advertising expense 2,000
Office salaries expense 32,500 Interest revenue 750
Rent expense—Selling space 10,000 Cost of goods sold 90,000
Sales staff wages 23,000 Sales commission expense 13,000
Prepare a multiple-step income statement.
Answer:
Fit-for-Life Foods
Multiple-step income statement, for the year ended December 31
Sales 220,000
Less Sales returns and allowances (4,000)
Net Revenue 216,000
Less Cost of goods sold (90,000)
Gross Profit 126,000
Less Operating Expenses :
General and Administrative Expenses
Gain on sale of equipment ( 6,250)
Office supplies expense 700
Depreciation expense—Office copier 500
Insurance expense 1,300
Office salaries expense 32,500 (28,750)
Selling and Distribution Expenses
TV advertising expense 2,000
Sales discounts 16,000
Sales commission expense 13,000
Sales staff wages 23,000
Rent expense—Selling space 10,000 (64,000)
Operating Income / (Loss) 33,250
Less Non - Operating Expenses
Interest revenue 750
Net Income / (Loss) 34,000
Explanation:
A multiple-step income statement shows separately profit generated from Primary Activities of the Company (Operating Profit) and profits that included Secondary Activities of the Company (Net Profit)
Lola, age 67, began receiving a $1,000 monthly annuity in the current year upon the death of her husband. She received seven payments in the current year. Her husband contributed $48,300 to the qualified employee plan.
Use the Simplified Method Worksheet below to calculate Lola's taxable amount from the annuity.
If your answer is zero, enter "0". If required, round your answers to the nearest whole dollar.
Simplified Method Worksheet
1. Enter total amount received this year.
1. $________
2. Enter cost in the plan at the annuity starting date.
2. $_______
3. Age at annuity starting date
Enter
55 and under 360
56–60 310
61–65 260
66–70 210
71 and older 160
3.________
4. Divide line 2 by line 3.
4. $______
5. Multiply line 4 by the number of monthly payments this year. If the annuity starting date was before 1987, also enter this amount on line 8, and skip lines 6 and 7. Otherwise, go to line 6.
5. $______
6. Enter the amount, if any, recovered tax-free in prior years.
6. $______
7. Subtract line 6 from line 2.
7. $______
8. Enter the smaller of line 5 or 7.
8. $______
9. Taxable amount this year: Subtract line 8 from line 1. Do not enter less than zero.
9. $______
Answer:
1.$7,000
2.$48,300
3.210
4.$230
5.$1,610
6.$0
7.$48,300
8.$1,610
9.$5,390
Explanation:
1. The total amount lola will received this year will be:
$1,000 monthly annuity*7 payments in the current year
=$7,000
2. The cost in the plan at the annuity starting date will be :
$48,300
3. The Age at annuity starting date will be 210 because Lola age is 67 in which age 66–70 is 210
4. When we Divide line 2 by line 3 we would have $230 calculated as
$48,300/210=$230
5. In a situation where we Multiply line 4 by the number of monthly payments this year we would have $1,610 calculated as:
$230*7=1,610
6. We have $0 recovered tax-free in prior years.
7. When we Subtract line 6 which is $0 from line 2 which is $48,300 we would have $48,300.
$48,300-$0=$48,300
8. The smaller of line 5 which is 1,610 or 7 which is $48,300 will be $1,610
9. The Taxable amount this year will be calculated as the Subtraction of line 8 which is $1,610 from line 1 which is $7,000 we would have $5,390
$7,000-$1,610=$5,390
A classified income statement has four major sections—operating revenues, cost of goods sold, operating expenses, and non-operating revenues and accounts receivables.
A. True
B. False
Answer: False
Explanation:
The statement in the question that a classified income statement has four major sections which are the operating revenues, cost of goods sold, operating expenses, and non-operating revenues and accounts receivables is not true.
It should be noted that a classified income statement is made up of the revenue, the expenses and the non operating revenues and expenses.
Moe's Pizza Shop sells a large pizza for $12.00. Unit variable expenses total $8.00. The breakeven sales in units is 7,000 and budgeted sales in units is 8,000. What is the margin of safety in dollars?
Answer:
$12,000
Explanation:
Margin of safety = Current sales level - Break even point
=(8,000 ×12) - (7,000 × 12)
= 96,000 - 84,000
= $12,000
An investment adviser is opening that day's mail and receives a check from a customer made out to the "Jones Cleaning Service" - the check was mailed in error to the adviser. The same day, the investment adviser mails the check back to Jones Cleaning Service. Under NASAA rules, the investment adviser:
Complete Question:
An investment adviser is opening that day's mail and receives a check from a customer made out to the "Jones Cleaning Service" - the check was mailed in error to the adviser. The same day, the investment adviser mails the check back to Jones Cleaning Service. Under NASAA rules, the investment adviser:
I. is deemed to have taken custody of the customer's funds
II. has not taken custody of the customer's funds
III. must keep a record of the check received
IV. is not required to keep a record of the check received
A. I and III
B. I and IV
C. II and III
D. II and IV
Answer:
C. II and III
Explanation:
In this scenario, an investment adviser is opening that day's mail and receives a check from a customer made out to the "Jones Cleaning Service" - the check was mailed in error to the adviser. The same day, the investment adviser mails the check back to Jones Cleaning Service. Under North American Securities Administrators Association (NASAA) rules, the investment adviser has not taken custody of the customer's funds and must keep a record of the check received.
According to NASAA rules, if an investment adviser inadvertently receives a check made out to a third party like it was made out to the "Jones Cleaning Service" in error, provided that the investment adviser mails the check to the third party (customer) within 3 business-working days, then the adviser has not taken custody of the customer's funds. Also, it is required that the investment adviser must keep a record of the check received.
Exercise 11-1 Compute the Return on Investment (ROI) [LO11-1] Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales $ 17,800,000 Net operating income $ 5,000,000 Average operating assets $ 35,800,000 Required: 1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.) 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.)
Answer:
1. 28.09 %
2.0.50 times
3.13.97 %
Explanation:
Margin = Profit / Sales × 100
= $ 5,000,000 / $ 17,800,000 × 100
= 28.09 % (2 decimal places.)
Turnover = Sales / Total Assets
= $ 17,800,000 / $ 35,800,000
= 0.50 times (2 decimal places.)
Return on investment = Divisional Profit Contribution / Assets employed in the division × 100
= $ 5,000,000 / $ 35,800,000 × 100
= 13.97 % (2 decimal places.)
I have recently received from your office a request to conduct evaluations this month on three of my employees. As you probably know, I was promoted to this supervisory position just one week ago as a result of the former supervisor’s termination. I don’t feel that I can presently conduct a fair evaluation of these employees. Do you want me to do them anyway?
Explanation:
Since this is a performance appraisal problem I say it's best we commend the employee for been honest and bold in sharing his concerns.
However, I do feel you are capable of carrying out this responsibilities, although you may need to get some tips. Why don't you check by my office tomorrow and we'll discuss for 15 minutes.
: Imagine that Canada, the US, and Mexico decide to adopt a fixed exchange rate system. What would be the likely consequences of such a system for the flow of trade and investment between all three countries
Answer:
The exchange rate would benefit the U.S. and Canada more, that it would benefit Mexico.
This is because the Mexican currency: Mexican Peso, is devalued when compared to the U.S. Dollar and the Canadian Dollar. This means that Mexican exports are comparatively cheaper than American or Canadian exports, causing a great growth of Mexican manufacturing in recent decades.
In a fixed exchange rate system, Mexico would lose this competitive advantage. It would still have lower labor costs, but the amount of manufacturing that would move from the U.S. and Canada to Mexico would probably be less.
Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,600 cushions and 15,500 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October 13,000 cushions November 15,000 cushions December 18,000 cushions Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 25 percent of the following month's production requirements and sufficient cushions on hand at the end of each month to meet 20 percent of the following month's budgeted sales. Five pounds of raw materials, at a standard cost of $0.90 per pound, are required to produce each cushion. Required a. Prepare a production budget for October and November. Do not use a negative sign with your answers.
Answer:
Production budget for October and November
October November
cushions cushions
Budgeted Sales 13,000 15,000
Add Budgeted Closing Inventory 3,000 3,600
Total Production needed 16,000 18,600
Less Budgeted Opening Inventory (2,600) (3,000)
Production Budget 13,400 15,600
Explanation:
A Production Budget shows the quantities of finished goods that must be produced to meet expected sales plus any increase in inventory levels that might be required.
When you send off the proposal three days later, you inadvertently learn from the client that he never received any correspondence from your coworker. "What dimension of professional behavior did your coworker violate when with the prospective client?
The question is incomplete:
You work for AdSmart, a marketing research firm. You and a new coworker are meeting a potential client for lunch. You have several morning meetings on the same day as the lunch meeting, so you arrange to meet your coworker and the potential client at 12:15 p.m. at the restaurant. You arrive five minutes early, and the prospective client arrives shortly thereafter. You both wait in the lobby until 12:35 p.m. when you decide to be seated. You check your smart phone and see no received communications from your colleague. Finally, at 12:45 p.m., your coworker arrives.
During the lunch, your coworker tells several white lies and reveals information regarding your boss that should have been kept confidential. The prospective client doesn't seem to notice these indiscretions, however, when your coworker begins to badmouth his former employer, a competitor of AdSmart, the client appears ill at ease.
Despite the rough start to the lunch meeting, all ends well. You believe that with the appropiate follow-up, the potential client will become one of the firm's more lucrative partnerships. Once you are back at the office, you debrief with your coworker and discuss the next steps. You decide to take on the task of putting together the proposal the client has requested, and your colleague agrees to send a follow-up note thanking the client and indicating that the proposal will arrive within the next week.
When you send off the proposal three days later, you inadvertently learn from the client that he never received any correspondence from your coworker. "What dimension of professional behavior did your coworker violate when with the prospective client?
Answer:
Courtesy and respect
Explanation:
The dimension of professional behavior that your coworker violated with the prospective client is courtesy and respect. He violated courtesy because it is about being polite and he was not polite because he arrived late to the meeting and he didn't let you know about it.
Also, he violated responsibility because it is about doing the things that you are in charge of and he was in charge of sending a follow-up note and he didn't do it.
"The Master Manufacturing Company has just announced a tender offer for its own common stock. Master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. After the announcement of the offer, the stock closed on the NYSE up 2.50 at $18.75. If a customer had 100 shares and sold at tomorrow's opening price, what is the price that he would receive per share?"
Answer:
$0
Explanation:
As it is mentioned in the question that 64% of shares being tendered so at this condition the client has no confirmation with respect to the amount paid for the shares after deciding the tender
Therefore in the given case, the price received per share would be $0 and the other information i.e mentioned in the question is not relevant. Hence, ignored it
"What are your goals when responding to the previous scenario"? Check all that apply. You are the owner of a cell phone store. A customer recently sent back a phone that she purchased at your store. She claims the phone won’t turn on. After examining the phone, you notice it has excessive water damage and is beyond repair. Unfortunately, the customer’s warranty expired three months ago.
Answer:
B. Explain clearly and completely.
C. Be fair.
D. Convey empathy and sensitivity.
Explanation:
The warranty for the device has already expired and it can be inferred that the water damage was from the customer because the warranty expired a while back. Since you cannot refund her, the best course of action is to explain to the customer in a clear, concise and complete tone, the problem with the phone. You should not place blame on the customer but rather be fair in your assessment. Your tone should also convey sensitivity and empathy because this is a problem that could happen to anyone and they need to know that.
Gordon purchased real estate for $900,000 and listed title to the property as "Gordon and Fawn, joint tenants with right of survivorship." Gordon predeceases Fawn when the real estate is worth $2,900,000. Gordon and Fawn are brother and sister.
What are the gift and estate tax consequences?
If an amount is zero, enter "0".
a. Gordon made a gift when the real estate was purchased of $_____ to Fawn.
b. Gordon's estate must include $______ as to the property.
c. How would the estate tax consequences change if it was Fawn (not Gordon) who died?
Fawn's estate would include $___0___ as to the property.
Answer:
a. Gordon made a gift when the real estate was purchased of $450,000 to Fawn.
Since Gordon gave 50% of the real estate to his sister as a gift when he purchased it, the gift must be valued at the time it happened ($900,000 x 50%)
b. Gordon's estate must include $2,900,000 as to the property.
Gordon purchased all the real estate by himself, so his estate must include the value of the whole property.
c. How would the estate tax consequences change if it was Fawn (not Gordon) who died?
Fawn's estate would include $0 as to the property.
Since Fawn didn't buy the property, her estate cannot include any amount of it.
Larry Jones gifts land to a school district, but the deed states "for so long as the land is used for a school." Jones owns a(n):
Answer:
Reversionary interest
Explanation:
If Larry Jones gifts land to a school district, but the deed states "for so long as the land is used for a school." Jones owns a reversionary interest.
A reversionary interest can be defined as a property law (deed) which states that when a property such as a land transfer is used on a clause; “for so long as” or “on condition that."
Hence, once the interest of the benefactor comes to an end, the property reverts back to its original owner (grantor). It also gives the grantor's next of kin, successor or heir the power or right to take the property back in the future if promises are broken or the agreement comes to an end.
This ultimately implies that, if a property stated in the deed is not used or used, for certain purposes.
In this scenario, Larry owns a reversionary interest because he gifts a land to the school district, but in the deed he stated "for so long as the land is used for a school."
Len contracts to work for Media Corporation during May for $4,500. On April 30, Media cancels the contract. Len declines a similar job with New Ads Inc., which would have paid $3,500. Len files a suit against Media. As compensatory damages, Len can recover:________.
a. $4,500.
b. $3,500.
c. $1,000.
d. $0.
Answer:
The correct answer is:
$3,500 (b.)
Explanation:
Compensatory damages are money paid to the plaintiff, to pay for losses incurred, injury or damages by negligence or unlawful conduct of the defendant in a civil court case. Before these compensations can be paid, the plaintiff has to prove in amount, the losses incurred and that these losses are directly related to the activity of the other party. Since the amount lost due to the choosing of the failed contract is $3,500, the plaintiff can file a suit for the compensation of the same amount.
On another hand, punitive damage may be compensation that is over and above the losses incurred by the plaintiff, and this is aimed mainly to provide an incentive against the repetition of such acts that caused the plaintiff such losses.
During 2022, Splish Brothers Inc. had $156000 in cash sales and $1224000 in credit sales. The accounts receivable balances were $216000 and $254400 at December 31, 2021 and 2022, respectively. Using the direct method of reporting cash flows from operating activities, what was the total cash collected from all customers during 2022?
Answer:
Total Cash collected from all customers during 2022 is $1,341,600
Explanation:
Items Amount
Credit sales $1,224,000
Add: Accounts Receivable Dec 31,2021 $216,000
Less: Accounts Receivable Dec 31,2022 ($254,400)
Cash collected from credit sales $1,185,600
Cash sales $156,000
Cash collected from credit sales $1,185,600
Total Cash collected from all customers $1,341,600
"A 7% general obligation bond is issued with 20 years to maturity. A customer buys the bond on a 7.50% basis. The bond contract allows the issuer to call the bonds in 5 years at 102 1/2, with the call premium declining by 1/2 point a year thereafter. The bond is puttable in 5 years at par. The price of the bond to a customer would be calculated based on the:"
The available options are:
A. 5 year call at 102 1/2
B. 5 year put at 100
C. 10 year call at 100
D. 20 year maturity
Answer:
20 year maturity
Explanation:
Given that, the bond has a stated rate of interest of 7%, and at the same time, priced to yield 7.50%, this implies that, the bond is being sold at a discount.
The amount of the discount to which this equates is about $140 (this is depending on the figure). The dollar price of the bond would be $860 to yield 7.50% to maturity. Based on MSRB rules, it is ideal that, bonds are priced on a worst case basis, meaning in this case where the discount is $140, and it is earned over the longest period of time. This can only occurs if the bonds are held to maturity.
It should be noted that, If the bonds are called earlier, the yield actually improves on the bonds, since the customer earns the discount faster.
Hence, The price of the bond to a customer would be calculated based on the: 20 year maturity.
The present value of free cash flows is $15 million and the present value of the horizon value is $100 million. Calculate the present value of the business.
A. $15 million
B. $100 million
C. $115 million
D. Cannot be determined.
Answer:
Option C, $115 million is the correct answer.
Explanation:
Given the present value (PV) of cash flow = $15 million
The present value of time horizon = $100 million
Now we have to calculate the present value (PV) of the business and this can be calculated by just adding the present value of free cash flows and the present value of horizon value.
The present value of the business = the present value (PV) of cash flow + The present value of the time horizon.
= 15 million + 100 million
= 115 million.
Therefore, option C. $115 million is correct.
Two college students share an apartment and split the cost of heating, electricity, and rent. They decide to include one more roommate and divide heat, electricity, and rent costs three ways instead of two ways.
If adding the third roommate reduces the amount of money they each pay for utilities and rent each month, this can be described as:_____________
Answer:
increasing returns to scale.
Explanation:
The returns to scale mean the rate at which there is change in the output when the inputs are changed by a similar factor
While on the other hand, an increasing return to scale refers that if there is an increase in input so by a larger proportion, the output is also increased as compared with the input
Therefore according to the given situation, since by adding the third roommate, it declines the amount of money by each one in respect to rent, utilities so it describes the increasing return to scale