Answer:
A. $130,000
B. 2021
Dr Bad debt expense 45,470
Cr Allowance for uncollectible account 45,470
C. $36,800
D. $36,800
Explanation:
A. Calculation to determine What was the balance in gross accounts receivable as of 12/31/2020
Gross accounts receivable as of 12/31/2020 = $13000/ 10%
Gross accounts receivable as of 12/31/2020= $130,000
B. Preparation of the journal entry that Johnson should record to recognize bad debt expense for 2021
2021
Dr Bad debt expense ($216,700*10% + 23,800) 45,470
Cr Allowance for uncollectible account 45,470
C. Calculation to Determine the amount of accounts receivable written off during 2021.
Accounts receivable written off = $13000 - (-$23,800)
Accounts receivable written off= $36,800
D. Based on the information given in a situation were Johnson used the direct write of method, what would bad debt expense be for 2021 is $36,800
Metropolitan Water Utilities purchases surface water from Elephant Butte Irrigation District at a cost of $100,000 per month in the months of February through September. Instead of paying monthly, the utility makes a single payment of $800,000 at the end of each calendar year for the water it used. The delayed payment essentially rep- resents a subsidy by Elephant Butte Irrigation Dis- trict to the water utility. At an interest rate of 0.25% per month, what is the amount of the subsidy
Answer:
The amount of the subsidy is $6,000.
Explanation:
Since the payment is made at the end of each calendar year and the months of usage are the months of February through September, this implies the payment was due at the end of September but dalayed for 3 months from the end of September to the end of December.
The amount of subsidy can therefore be calculated as follows:
Subsidy amount = Total utility bill * Interest rate per month * Number of months the payment is delayed = $800,000 * 0.25% * 3 = $6,000
Therefore, the amount of the subsidy is $6,000.
While Charles and Esther Kveragas were in a rented motel room at the Scottish Inns, Inc., in Knoxville, Tennessee, three intruders kicked open the door, shot Charles, and injured Esther. The intruders also took $3,000 belonging to the Kveragases. The Kveragases brought an action against the motel owners, claiming that the owners had been negligent in failing to provide adequately for the safety of the motel s guests. At trial, the evidence showed that the door had a hollow core and that it fit poorly into the door frame. There was no deadbolt lock on the door, although such locks were easily available and commonly used in motels. The only lock on the door was one fitted into the door handle, which was described as a grade three lock, although a security chain was attached to the door. The Kveragases had both locked and chained the door, but still, a single kick on the part of the intruders was all that was necessary to open it. Evidence at trial also indicated that a deadbolt lock would have withstood the force that was applied to the door.
Required:
Did the motel owners have a duty to protect their guests from criminal acts on the motel premises, and if so, did the owners breach that duty of care by failing to provide more secure locks on the doors of the motel rooms?
Answer:
yes they had a duty of protection to guests and they breached this duty
Explanation:
Did this motel have the duty to protect the Kveragas from this kind of activity?
The answer is yes under the tort law. This motel has a duty of care to safeguard the life, security and properties of others. This is a law obligation and the motel has to take necessary actions to follow through.
The kveragas were occupants of this motel, during ther stay here, this question has made us to understand that they were attacked by intruders and they also lost their properties in this attack. The motel did not fulfill its duty of care to the kveragas because the room they rented was not properly secured. The door did not have proper lock. An Insufficient and bad lock system is what gave this criminals entry and brought the occupants to harm.
Therefore it is evident that the motel owners breached there duty of care by not having a secure lock system.
Aflak Corporation, an Omani firm, is currently planning goods market in India. Aflak Corporation will most likely discover that_____ beliefs and values are more open to change in India. Select one:
a. core
b. traditional
c. primary
d. secondary
The correct answer is B) traditional.
Aflak Corporation, an Omani firm, is currently planning goods market in India. Aflak Corporation will most likely discover that traditional beliefs and values are more open to change in India.
When a multinational company is planning on initiating operations in another country, it has to be very sensible of the traditional values of that country. The company is getting into a new market and people could have different belief systems, different culture, traditions, and customs, that need to be carefully assessed by the multinational company if they are about to be successful in the new country.
This is the case of India, which has always have very strict traditional values, although younger generations are relaxing those values in recent years.
Identify the reasons why the quantity demanded of a product increases as the price of that product decreases. a. as the price declines, the real income of the consumer increases b. as the price of product A declines, it makes it more attractive than product B c. as the price declines, the consumer will always demand more on each successive price reduction d. a and b e. a and c
Answer:
D) A and B
Explanation:
a. as the price declines, the real income of the consumer increases
b. as the price of product A declines, it makes it more attractive than product B
Hope this helps!
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During 2020, Jasmine (age 12) received $6,500 from a corporate bond. She also received $600 from a savings account established for her by her parents. Jasmine lives with her parents and she is their dependent. Assuming her parents' marginal tax rate is 24%, what is Jasmine's gross tax liability
Answer:
$605
Explanation:
Jasmine's total gross income = $6,500 + $600 = $7,100
standard deduction = $1,050 or earned income + $350. She she doesn't have earned income, then $1,050
taxable income = $7,100 - $1,050 = $6,050
tax liability = $6,050 x 10% (lowest bracket) = $605
At year-end (December 31), Chan Company estimates its bad debts as 1.00% of its annual credit sales of $917,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $459 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off.Prepare Chan's journal entries for the transactions.
Answer:
Dec 31
Dr Bad debts expense 9,170
Cr Allowance for doubtful accounts 9,170
Feb 01
Dr Allowance for doubtful accounts $459
Cr Accounts receivable—P. Park $459
Jun 05
Dr Accounts receivable—P. Park $459
Cr Allowance for doubtful accounts $459
Jun 05
Dr Cash $459
Cr Accounts receivable—P. Park $459
Explanation:
Preparation of Chan's journal entries for the transactions.
Dec 31
Dr Bad debts expense 9,170
Cr Allowance for doubtful accounts 9,170
(1.00%*$917,000)
Feb 01
Dr Allowance for doubtful accounts $459
Cr Accounts receivable—P. Park $459
Jun 05
Dr Accounts receivable—P. Park $459
Cr Allowance for doubtful accounts $459
Jun 05
Dr Cash $459
Cr Accounts receivable—P. Park $459
On January 1, 2021, Desert Company announced their intent to build a new headquarters building. Construction began on February 1st. On March 1st, Desert took out a loan from Cactus Capital for $500,000 at 8% interest over 3 years and at that time made their first expenditure. Construction was complete on December 1st. What is the date on which they can begin capitalizing interest costs? Group of answer choices
Answer:
Desert Company
The date on which Desert Company can begin capitalizing interest costs is March 1, 2021.
Explanation:
This is the date it obtained the construction loan for 3 years. Desert should only capitalize interest during the construction period. This is the period when the asset is being prepared for its future use. Interest can only be capitalized when the related asset will yield future economic benefits. Otherwise, it should be expensed.
Kiner Co. computed an overhead rate for machining costs ($400000) of $5 per machine hour. Machining costs are driven by machine hours. If computed based on direct labor hours, the overhead rate for machining costs would be $10 per direct labor hour. The company produces two products, Cape and Chap. Cape requires 50400 machine hours and 20000 direct labor hours, while Chap requires 29600 machine hours and 30000 direct labor hours. Using activity-based costing, machining costs assigned to each product is:_______.
Cape Chap
a. $750000 $250000
b. $252000 $148000
c. $216615 $183385
d. $200000 $300000
Answer:
b. $252000 $148000
Explanation:
Total OH using MC Hrs = $400000
Mch Hr OH Rate = $5 per Mc Hr
No of Mc Hrs = $400000/5 = 80,000 Mc Hrs
Cape uses 50400 Mc Hrs. So Mc OH = 50400*$5 = $252,000
Chap uses 29600 Mc Hrs. So Mc OH = 29600*$5 = $148,000
The demand for spring water at the SLC WalMart is 600 liters per week. The setup cost for placing an order to replenish inventory is $25. The order is delivered by the supplier which charges WalMart $0.10/liter for the cost of transportation from the Rocky Mountains to SLC. This transportation cost increases the cost of water to $1.25/liter. The water loses its freshness while stored at the SLC WalMart. To account for this, the WalMart charges an annual holding cost of $2.6/liter.
Required:
a. Determine the WalMart's Economic Order Quantity (in liters)?
b. How often should WalMart order for water (in weeks) ?
Answer:
Results are below.
Explanation:
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
Since:
D= 600*52= 31,200
S= $25
H= $2.6
Replacing:
EOQ= 2√[(2*31,200*25) / 2.6]
EOQ= 775 units
To calculate the time between orders, we need to use the following formula:
Time between orders= EOQ / Weekly demand
Timer between orders= 775 / 600
Time between orders= 1.3 weeks
In 2018, U.S. government spending was $3.90 trillion, tax revenue was $4.50 trillion, GDP was $14.02 trillion, and total consumer spending was $10.75 trillion. If the economy has no exports or imports, what was the national savings in 2018? How much was public savings? How much was private savings?
Answer: See explanation
Explanation:
Government spending = $3.90 trillion
Tax revenue = $4.50 trillion
GDP = $14.02 trillion
Consumer spending = $10.75 trillion.
National savings will be:
= GDP - Consumer spending - Government expenditure
= $14.02 - $10.75 - $3.90
= -$0.63 trillion
Public savings will be:
= Tax revenue - Government spending
= $4.50 trillion - $3.90 trillion
= $0.60 trillion
Private savings will be:
= GDP - Consumer spending - Tax revenue
= $14.02 - $10.75 - $4.50
= -$1.23 trillion
QUESTION 11
A(n) is a union that consists of many local unions in a particular industry, skilled trade, or geographic area and thus represents workers throughout an
entire
country.
O national union
union conglomerate
O federated union
unionized association
Answer: National Union
Explanation:
A manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $540, and B for $523. In addition, A offers a three-day rate of $474 and a nine-day rate of $403, and B offers a four-day rate of $451 and a seven-day rate of $422. Annual holding costs are 36 percent of unit price. Four hundred and twenty boxes are to be shipped, and each box has a price of $150. Which shipping alternative would you recommend
Answer:
Ship 2days using B $647.27
Explanation:
Calculation to determine Which shipping alternative would you recommend
First step is to calculate the holding cost
Holding cost = .36 (420 boxes) ($150 per box) (1/365 days)
Holding cost= $62.137
Now let determine Which shipping alternative would you recommend using this formula
Cost = Fixex Cosy + Daily holding cost
Let plug in the morning
Shippers A
Option Cost
2 days $664.27
[$540+2days ($62.137)]
3 days $660.41
[$474+3days ($62.137)]
9 days $962.23
$403+9days ($62.137)
Shippers B
Option Cost
2 days $647.27
[$523+2days ($62.137)]
4 days $699.55
[$451+4days ($62.137)]
7 days $856.96
$422+7days ($62.137)
Based on the above calculation the shipping alternative that I would recommend is Ship 2 days using B with the amount of $647.27 because it is the cheapest of all.
Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing. 2019 2020 2021 Sales revenue $290,990 $ 361992 $406,460 Sales returns and allowances (11,310) (13,570) Net sales 279680 348,422 Beginning inventory 18,810 30,350 Ending inventory 30350 291870 Purchases 11540 261,520 296,357 Purchase returns and allowances (4,790) (8,210) (10,760) Freight-in 8,610 9,340 13,020 Cost of goods sold (231,970) (293000) (292,188) Gross profit on sales 47,710 85,860 91,540
Incomplete question. However, I determined the missing amounts for each tabulation, and stated them below:
Explanation:
Sales revenue: 2014= $360,820.Sales returns and allowances: 2015= 20,740.Net sales: 2013= 282970, 2015= 393,440.Beginning inventory: 2015= 42,010.Ending inventory: 2013= 33,560, 2014= 42,010, 2015= 47,870.1-When would high Do you think making employees happier at work is a good way of motivating people? When would high satisfaction not be related to high performance?
2-In your opinion, what are the three most important factors that make people dissatisfied with their job? What are the three most important factors relating to organizational commitment? satisfaction not be related to high performance
Answer:
DAYTON, Ohio -- For decades, employees and employers alike have followed the motto that job satisfaction determines job performance. Not so, according to a new study by Wright State University.
Nathan Bowling, an assistant professor who specializes in industrial and organizational psychology, said three decades of data derived from thousands of employees in a cross-section of jobs -- blue collar and white collar -- prove that although job satisfaction and job performance do correlate, one does not cause the other.
Even researchers, Bowling said, get confused about how the two things connect.
Read More
"On days when ice cream sales are high, the number of crimes committed will also tend to be high, but this doesn't mean that ice cream sales cause crime," he said. "Rather, ice cream sales and crime are related because each is the result of the outdoor temperature. Similarly, satisfaction and performance are related because each is the result of employee personality."
By personality, Bowling pointed to such characteristics as self-esteem, emotional stability, extroversion and conscientiousness.
Studies, Bowling said, show that employees who have an overall negative attitude to all things in life likely won't find job satisfaction, regardless of performance, because of their personality characteristics.
"Emotional stability matters a lot," he said. "People who are neurotic, those who tend to be anxious, depressed ... typically won't find satisfaction no matter how many jobs they try."
The same goes for those with low self-esteem, he added. Studies show that employees with high self-esteem tend to be more satisfied with their jobs than those who do not have that level of confidence.
"Simply put, workplace interventions designed to improve performance by exclusively targeting employee satisfaction are unlikely to be effective," Bowling said.
So how can you have both?
"There are ways to select employees who will be successful," Bowling said. "Studies show that intelligence is one of the things that drives the performance."
He said solid performing employees also exhibit a high level of conscientiousness -- those who are detail-oriented and hard workers and who set goals.
Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the current year Junior:
Personally stayed in the home for 19 days.
Rented it to his favorite brother at a discount for 11 days.
Rented it to his least favorite brother for twelve days at the full market rate.
Rented it to his friend at a discounted rate for fourteen days.
Rented the home to third parties for 72 days at the market rate.
Did repair and maintenance work on the home for two days.
Marketed the property and made it available for rent for 156 days during the year (in addition to the days mentioned above).
How many days of personal use and how many days of rental use did Junior experience on the property during the year?
Days of personal use ?
Days of rental use ?
5. In year 1, Peter and Shaline Johnsen moved into a home in a new subdivision. Theirs was one of the first homes in the subdivision. In year 1, they paid $2,700 in real property taxes to the state government, $1,490 to the developer of the subdivision for an assessment to pay for the sidewalks, and $1,430 for real property taxes on land they hold as an investment. What amount of property taxes are the Johnsens allowed to deduct assuming their itemized deductions exceed the standard deduction amount before considering any property tax deductions?
Deductible tax amount?
Answer:
1. a. Days of Personal Use:
= Days stayed personally + Days rented at a discount + Days rented to family
= 19 + 14 + 11 + 12
= 56 days
b. Days of rental use:
= Days rented to third parties at full rate + Days taken for repairs and maintenance
= 72 + 2
= 74 days
2. Deductible tax amount:
= Real property taxes to state government + Property taxes on land held as investment
= 2,700 + 1,430
= $4,130
The Johnsens may not deduct the amount paid for the assessment for the sidewalks as they are considered local benefits much like streets and these are not tax deductible.
Show the effect of each transaction on the three basic accounting elements by indicating the dollar amount of the increase or decrease under the proper element heading. Compute the resulting accounting equation.
a. Owner invested $16,500 cash in the business.
b. Paid premium for two-year insurance policy, $1,500.
c. Purchased a van valued at $35,000 with $5,000 down payment; the balance to be paid over three years.
d. Paid the rent for the month, $900.
e. Purchased $470 of supplies for cash.
f. Cash sales for the month, $8,750.
g. Billed credit customers $14,200 for monthly services.
h. Paid monthly utility bill, $210.
i. Owner withdrew $2,200 for personal use.
j. Received payments of $3,300 from credit customers.
ASSETS
Accounts Prepaid
Cash + Rec. + Supplies + Ins. + Van
a.
b.
c.
d.
e. .
Cash + Rec. Accounts + DIIDIIDII LIIIIIIIII IIIIIIII IIIIIIII JULIDIIIII Supplies
ASSETS + Ins. Prepaid + Van II II A V V V V V V V V V V V v A V < LIAB. OWNER'S EQUITY Accounts Payable + Capital Drawing + Revenues - Expenses < <
a. <
b. JONI INT III IIII <
c. III <
d. <
e. <
f. <
g. V
h.
DODO DONE Doll ODIO < j. PROOF $ Cash Accounts Payable Accounts Receivable Capital Supplies Drawing -DUIT Prepaid Insurance Revenues |H-DOLIE Van Expenses $ Total Assets Total Liabilities and Owner' Equity
Answer:
a. Asset will increase and equity will increase
b. Asset will increase and liability will increase
c. Asset will increase and liability will increase
d. Asset decreases
e. Assets decrease and increase is balanced off
f. Assets increase and equity increase
g. Assets increase and liability increases.
h. Asset decreases
i. Equity decreases.
j. Asset increases.
Explanation:
Asset = Liability + Equity
This accounting equation is effected whenever any transaction is incurred. When the asset side of the accounts is increased then there will be increase in either liability or equity which off sets the account balances. The Assets will increase whenever owner invests in the business and the equity side also increases.
Suppose Jean-Luc earns ten dollars for time spent in the labor market or can produce a meal worth five dollars for an hour of cooking. On the other hand, suppose Beverly earns fifteen dollars for time spent in the labor market or can produce a meal also worth fifteen dollars for an hour of cooking. This implies that a) Jean-Luc is not as good (not as efficient) as Beverly in both activities. b) Beverly has absolute advantage in both activities. c) the opportunity cost of a home-cooked meal is lower when Beverly produces it than when Jean-Luc does. d) all of the above are correct.
Answer:
b) Beverly has absolute advantage in both activities.
Explanation:
Absolute advantage is defined as the ability of an entity to produce more output given the same resources as other entities.
It shows superior production capacity of one entity over another.
In the given scenario Jean-Luc earns ten dollars for time spent in the labor market or can produce a meal worth five dollars for an hour of cooking. On the other hand, suppose Beverly earns fifteen dollars for time spent in the labor market or can produce a meal also worth fifteen dollars for an hour of cooking.
For both time spent in the labour market and in home cooking Beverly outperforms Jean-Luc so she has absolute advantage in bother activities.
Discount Mart borrows $400,000 on July 1 with a short-term loan that has an annual interest rate of 6% payable on the first day of each subsequent quarter. What will Discount Mart need to accrue on September 30, assuming that no accrual had been made since the last interest payment? Select one: A. $6,000; Decrease liabilities, decrease cash B. $4,000; Increase liabilities, increase expenses C. $6,000; Increase expenses, increase liabilities D. $4,000; Increase expenses, decrease cash
Answer:
C. $6,000; Increase expenses, increase liabilities
Explanation:
The computation is shown below:
= Borrowed amount × rate of interest × given months ÷ Total months
= $400,000 × 6% × 3 months ÷ 12 months
= $6,000
So this $6,000 represent an increase in liabilities and increase in expenses
hence, the correct option is c.
A company produces a single product. Variable production costs are $12.70 per unit and variable selling and administrative expenses are $3.70 per unit. Fixed manufacturing overhead totals $43,000 and fixed selling and administration expenses total $47,000. Assuming a beginning inventory of zero, production of 4,700 units and sales of 3,950 units, the dollar value of the ending inventory under variable costing would be:
Answer:
$9,525
Explanation:
Given the above information, first we need to calculate ending inventory
Ending inventory
= Beginning inventory + Units produced - Units sold
= 0 + 4,700 - 3,950
= 750
Therefore, the value of the ending inventory under variable costing would be;
= Ending inventory × Variable cost per unit
= 750 units × 12.70 per unit
= $9,525
Presented below is information for Blossom Co. for the month of January 2022. Cost of goods sold $200,750 Rent expense $32,000 Freight-out 6,000 Sales discounts 8,000 Insurance expense 12,000 Sales returns and allowances 17,000 Salaries and wages expense 60,000 Sales revenue 390,000 Income tax expense 3,150 Other comprehensive income (net of $400 tax) 2,000Prepare a comprehensive income statement.BLOSSOM CO. Comprehensive Income Statement .
Answer:
Blossom Co.
Comprehensive Income Statement for the month ended January 2022.
Sales revenue 390,000
Less Sales returns and allowances (17,000)
Net Sales Revenue 373,000
Less Cost of goods sold (200,750)
Gross Profit 172,250
Less Expenses
Rent expense 32,000
Freight-out 6,000
Sales discounts 8,000
Insurance expense 12,000
Salaries and wages expense 60,000
Income tax expense 3,150 (121,150)
Net Profit for the Year 51,100
Other comprehensive income 2,000
Total Comprehensive Income 53,100
Explanation:
The Comprehensive Income Statement shows the Total Profit (including other comprehensive Income) resulting from the trading period.
Simon lost $5,700 gambling this year on a trip to Las Vegas. In addition, he paid $2,220 to his broker for managing his $222,000 portfolio and $1,505 to his accountant for preparing his tax return. In addition, Simon incurred $3,480 in transportation costs commuting back and forth from his home to his employer's office, which were not reimbursed. Calculate the amount of these expenses that Simon is able to deduct (assuming he itemizes his deductions).
Answer:
12,885
Explanation:
5700 lost of gambling
2,220 to his broker
1,505 for his accountant
3,480 for his transportation costs
Gomez runs a small pottery firm. He hires one helper at $11,000 per year, pays annual rent of $6,000 for his shop, and spends $22,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $4,500 per year if alternatively invested. He has been offered $17,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3,500 per year. Total annual revenue from pottery sales is $70,000. Calculate the accounting profit and the economic profit for Gomez’s pottery firm.
Answer:
$31000
$6000
Explanation:
Accounting profit= total revenue - explicit cost
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
explicit cost = $11,000 + $22,000 + $6,000 = $39,000
Accounting profit = $70,000 - $39,000 = $31,000
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
It includes the amount he could have earned if he invested is money , his entrepreneur talent and salary he could have earned
$31,000 - $4500 - $17,000 - $3,500 = $6000
Gomez’s pottery firm's accounting profit is $31,000 while the economic profit is $6,000
To calculate the accounting profit for Gomez's pottery firm, one must subtract all the explicit costs (i.e., actual monetary expenses) from the total revenue.
Total Revenue = $70,000
[tex]~$Explicit Costs = Helper's salary + Rent + Materials[/tex]
[tex]~$Explicit Costs = \$11,000 + \$6,000 + \$22,000[/tex]
[tex]~$Explicit Costs = \$39,000[/tex]
[tex]~$Accounting Profit = Total Revenue - Explicit Costs[/tex]
[tex]~$Accounting Profit = \$70,000 - \$39,000[/tex]
[tex]Accounting Profit = \$31,000[/tex]
To calculate the economic profit, one needs to consider both explicit costs and implicit costs (i.e., opportunity costs).
[tex]~$Implicit Costs = Opportunity Cost of Equipment + Opportunity Cost of Working for Competitor + Entrepreneurial Talents[/tex]
Opportunity Cost of Equipment = $4,500 (income that could be earned alternatively)
Opportunity Cost of Working for Competitor = $17,000 (annual salary offered)
Entrepreneurial Talents = $3,500
[tex]~$Economic Profit = Accounting Profit - Implicit Costs[/tex]
[tex]~$Implicit Costs = \$4,500 + \$17,000 + \$3,500[/tex]
[tex]~$Implicit Costs = \$25,000[/tex]
[tex]~$Economic Profit = \$31,000 - \$25,000[/tex]
Thus, the accounting profit for Gomez's pottery firm is $31,000, and the economic profit is $6,000, the economic profit considers opportunity costs, providing a more comprehensive view of the firm's profitability.
Learn more about the economic profit here:
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Cathy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and washcloths in a 4:3:2 mix (thus, a batch of 9 towels has 4 bath towels, 3 hand towels, and 2 washcloths). Each bath towel sells for $10 and costs $4, each hand towel sells for $5 and costs $2; and each washcloth sells for $2.50 and costs $1. The shop's annual fixed expenses are $324,000, and the income tax rate, t, is 40%. How many bath towels must the firm sell at the breakeven point
Answer:
36,000 baths
Explanation:
The computation of the bath towels that must the firm would sell at the break even point is shown below:
But before that the contribution margin per unit is
Particulars Bath towels Hand towels Wash towels
Selling price $10 $5 $2.5
Less: variable cost $4 $2 $1
Contribution margin $6 $3 $1.50
No of items in batch 4 3 2
Contribution margin per unit $24 $9 $3
Now the number of baths would be
= $324,000 ÷ ($24 + $9 + $3) × 4
= 36,000 baths
What is an example of a commercial bank?
Answer:
For example, Bank of Baroda, State Bank of India (SBI), Dena Bank, Corporation Bank and Punjab National Bank.
Answer:
Bank of Amercia
Explanation:
Each of the following firms benefits from barriers to entry in its industry. Indicate whether each of the barriers is natural or government created.
a. A small-town bar that is the only establishment in the county licensed to serve liquor.
b. A diamond company that owns nearly all of the world's diamond mines
c. A pharmaceutical company receives a patent for a new cancer-fighting drug
d. A soda company that spends over $3 billion on advertising every year
e. A waste-treatment plant that cost a lot to build even though it costs only two cents to treat each gallon of waste
Answer:
Natural:
b.A diamond company that owns nearly all of the world's diamond mines.
d.A soda company that spends over $3 billion on advertising every year.
e.A waste-treatment plant that cost a lot to build even though it costs only two cents to treat each gallon of waste.
Government
a.A small-town bar that is the only establishment in the county licensed to serve liquor.
c. A pharmaceutical company receives a patent for a new cancer-fighting drug.
Explanation:
Government barriers are licenses or patents that prevent future firms from entering, natural is everything else.
the dude above is right
A transfer payment is Group of answer choices a payment that is automatically transferred from your bank account to pay a bill or some other obligation. a payment for moving expenses a worker receives when he or she is transferred by an employer to a new location. the benefit that a person receives from an expenditure by government minus the taxes that were collected by government to fund that expenditure. a form of government expense that is not made in exchange for a currently produced good or service.
Answer: a form of government expense that is not made in exchange for a currently produced good or service.
Explanation:
Transfer payment are the goods or services that are supplied to the residents of a country. They're the form of government expense that is given to people in the society and such payments are not made due to the exchange of goods or services.
Examples of transfer payments include unemployment benefits, Social Security, etc. The reason behind transfer payments is to help in the redistribution of income and to help the less privileged in the society.
For the current year ($ in millions), Universal Corp. had $80 in pretax accounting income. This included warranty expense of $7 and $20 in depreciation expense. Two million of warranty costs were incurred, and depreciation deductions in the tax return amounted to $30. In the absence of other temporary or permanent differences, what was Universal's income tax payable currently, assuming a tax rate of 25%
Answer:
$18.75
Explanation:
Calculation to determine the Universal's income tax payable currently
Accounting income $80
Depreciation ($30 - 20) (10)
Warranty expense ($7 - 2) 5
Taxable income $75
($80-$10+$5)
Enacted tax rate 25%
Tax payable currently $18.75
(25%*$75)
Therefore the Universal's income tax payable currently will be $18.75
Jenna began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership debt consists of $6,000 of recourse debt, and $10,000 of nonrecourse debt at the beginning of the year, and $6,000 of recourse debt, and $13,000 of nonrecourse debt, at the end of the year. During the year, she was allocated $65,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership, and she has $4,000 of passive income from other sources.A) How much of Jenna's loss is limited by her tax basis?B) How much of Jenna's loss is further limited by her at-risk amount?C) How much of Jenna's loss is further limited by the passive activity loss rules?
Answer:
a) Jenna's tax basis = $45,000 + ($13,000 - $10,000) = $48,000
loss allocation = $65,000
loss limited by her tax basis = $65,000 - $48,000 = $17,000
b) Jenna's at risk loss = $48,000 - $13,000 = $35,000
c) Jenna's loss limited by passive activity = $35,000 - $4,000 = $31,000
The amount of loss limited by Jenna’s tax basis is $20,000; the amount of Jenna’s loss that is further limited by her at-risk amount is $10,000; and the amount of Jenna’s loss that is further limited by the passive activity loss rules is $31,000.
What is Tax -Basis?The basis for each partner's tax base is the sum of the partner's contribution amount and the share of the debt and any income earned. Distribution reduces the partner tax base.
Calculations of The Amount of Loss Limited Tax Basis, At-Risk Amount, and Passive Activity Loss Rules:
a) Amount of loss limited by Jenna’s tax basis is Loss allocated to Jena – Jena’s Tax Basis.
[tex]\rm\,Amount\; of \;loss \;limited\; by \;Jennas\; tax\; basis\; = \$65,000 - \$45,000[/tex]
Amount of loss limited by Jenna’s tax basis is $20,000
B) The amount of Jenna’s loss that is further limited by her at-risk amount can be calculated as follows: is At-risk limitation - Amount of loss limited by Jenna’s tax basis (1)
Where:
[tex]\rm\, At-risk\, limitation = Loss \,allocated \,to \,Jena - At\,-risk \,amount\, limitation\, \\\\= \,Loss\, allocated\, to\, Jena\, - (\,Tax \,basis\, - Nonrecourse\, Debt)[/tex]
[tex]= \$65,000 - (\$45,000 - \$10,000) \\= \$30,000[/tex]
Substituting the relevant values into equation (1), we have:
Amount of Jenna’s loss that is further limited by her at-risk amount
[tex]= \$30,000 - \$20,000\\ = \$10,000[/tex]
C) The amount of Jenna’s loss that is further limited by the passive activity loss rules can be calculated as follows:
Amount of Jenna’s loss that is further limited by the passive activity loss rules:
[tex]= \rm\,At-risk\; amount \;limitation - Passive \;income \\= Tax \;basis - Nonrecourse\; Debt) - Passive \;income \\= (\$45,000 - \$10,000) - \$4,000 \\= \$31,000[/tex]
To learn more about tax-basis, refer:
https://brainly.com/question/10137785
Bonita Corporation has the following cost records for June 2020. Indirect factory labor $5,540 Factory utilities $420 Direct materials used 22,490 Depreciation, factory equipment 1,760 Work in process, 6/1/20 3,340 Direct labor 41,640 Work in process, 6/30/20 4,470 Maintenance, factory equipment 1,890 Finished goods, 6/1/20 5,620 Indirect materials 2,530 Finished goods, 6/30/20 8,410 Factory manager’s salary 3,300 Prepare a cost of goods manufactured schedule for June 2020. BONITA CORPORATION Cost of Goods Manufactured Schedule
Answer:
See below
Explanation:
Given the above information, to calculate the cost of manufactured goods, we need to use the formula below;
Cost of goods manufactured = Beginning work in progress + direct materials of the period + direct labor + manufactured overhead - ending work in progress
Beginning work in process = $3,340
Direct materials = Beginning inventory + Purchase - ending inventory
= $22,490
Direct labor = $41,640
Manufactured overhead = (Indirect factory labor + Factory utilities + depreciation, factory equipment + Maintenance , factory equipment + indirect materials) = $5,540 + $420 + $1,760 + $1,890 + $2,530 = $12,140
Ending work in process = $4,470
Therefore,
Cost of goods manufactured = $3,340 + $22,490 + $41,640 + $12,140 - $4,470
Cost of goods manufactured = $75,140
IF IT'S RITE I WILL REWARD BRAINLIEST. Someone who works in quality assurance would spend their days meeting with customers and convincing them to buy the company’s products.
A.
True
B.
False
Answer: True
Explanation:
Quality assurance is assuring the customer that the product will work and that they will even offer a warranty if it some how breaks for free.
Answer:
True
Explanation: