Answer:
a. $161,350
b. $398,050
c. $81,140
Explanation:
Total amount of manufacturing overhead
Factory utilities $16,500
Depreciation on factory equipment $12,650
Indirect factory labor $48,900
Indirect materials $70,800
Factory manager's salary $8,000
Property taxes on factory building $2,500
Factory repairs $2,000
Total $161,350
Note : Manufacturing Overheads are Indirect Manufacturing Costs that can not be easily traced to the Product being manufactured.
The total amount of product costs
Direct materials used $157,600
Direct labor $79,100
Manufacturing Overhead $161,350
Total $398,050
Note : Product Costs are Direct Manufacturing Costs that can be easily traced to the Product being manufactured.
The total amount of period costs
Depreciation on delivery trucks $3,800
Sales salaries $48,400
Repairs to office equipment $1,300
Advertising $23,000
Office supplies used $4,640
Total $81,140
Note : All Non Manufacturing Costs are Period Cost. Period Costs are expensed in the Income Statement.
a. Was Apple wrong for not complying with the FBI’s request?
b. If so, why? If not, why not?
c. What ethical issues are involved in this case?
d. Who are the stakeholders in this situation?
e. Is the company’s decision consistent with its values? Is that important?
Suppose the cross-price elasticity of demand between oranges and clementines is 4. Holding everything else constant, if the price of oranges increases, then the demand for _____ will _____.
Answer:
Suppose the cross-price elasticity of demand between oranges and clementines is 4. Holding everything else constant, if the price of oranges increases, then the demand for clementines will _decrease_.
Explanation:
The term cross price elasticity tell the responsiveness of demand of one commodity against the price of other commodities. When the value is positive which is 4 in our question, the oranges and clemenities are substitute commodities, both can be replaced with one another. In this case, when price of A increase, the demand for B will decrease.
Maria, a citizen and resident of Mexico, received the following investment income during 2018: $1,000 of dividend income from ownership of stock in a U.S. corporation, $2,000 interest from a bond issued by a U.S. corporation, $3,000 of rental income from property located in the United States, and $500 capital gain from sale of a stock in a U.S. corporation. How much of Maria’s income will be subject to U.S. taxation in 2018?
Answer: $6,000
Explanation:
Maria is a citizen and resident of Mexico so the only way the U.S. can tax Maria is by taxing income that is in U.S. jurisdiction before it comes to Maria.
This will include the dividend from ownership of stock in a U.S. Corporation, the interest from a U.S. company issued bond and rental income from a property located in the U.S.
The U.S. will be unable to tax the capital gain from sale of stock however because the sale might not be conducted in the U.S.
Income subject to U.S. taxation is therefore:
= 1,000 + 2,000 + 3,000
= $6,000
Presented below is information related to equipment owned by Novak Company at December 31, 2020.
Cost $11,250,000
Accumulated depreciation to date 1,250,000
Expected future net cash flows 8,750,000
Fair value 6,000,000
Assume that Novak will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years.
Required:
Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020.
Answer:
Debit : Impairment loss $1,250,000
Credit : Accumulated impairment loss $1,250,000
Explanation:
Impairment of an asset happens when, the Carrying Amount of an Asset is greater than the Net Realizable Value of an asset.
Carrying Amount is Cost of asset less Accumulated depreciation. Carrying Amount for the equipment is $10,000,000 ($11,250,000 - $1,250,000).
The Net Realizable Value of an asset is the higher of Fair Value of Asset and Future Value. For the equipment the Net Realizable Value is $8,750,000
Then, since Carrying Amount ($10,000,000) > Net Realizable Value ($8,750,000), the equipment is impaired.
Impairment loss will be $1,250,000 ($10,000,000 - $8,750,000).
The journal entry to record the impairment loss would be :
Debit : Impairment loss $1,250,000
Credit : Accumulated impairment loss $1,250,000
Natural gas is often priced in units of dollars per therm. One therm equals 100,000 BTUs . A certain family uses 600 therms of energy to heat its home annually using a natural gas furnace that is 80 percent efficient. The family is considering replacing its current furnace with one that is 96 percent efficient. Assuming the cost of a therm is $0.30.
Required:
What would be the family's annual savings in the cost of home heating?
Answer:
-$28.8.
Explanation:
Note, we were told,
to assume the cost of a therm is $0.30the family uses 600 therms of energy annually.Savings on old furnace:
600 * $0.30 * 0.80 (or written as 80%) = $144Savings on new furnace:
600 * $0.30 * 0.96 (or written as 96%) = $172.8Difference: $144 - $172.8 = -$28.8.
The family's annual savings in the cost of home heating will be (-$28.8).
Here, we are assuming the cost of a therm is $0.30 and that the family uses 600 therms of energy annually.
The savings on the old furnace equals:
= 600 * $0.30 * 0.80
= $144
Hence, the savings on old furnace: is $144.
The savings on new furnace equals:
= 600 * $0.30 * 0.96
= $172.8
Hence, the savings on old furnace is $172.8.
In conclusion, the family's annual savings in the cost of home heating will be (-$28.8).
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Mass Company is investing in a giant crane. It is expected to cost $6 million in initial investment, and it is expected to generate an end-of-year cash flow of $3 million each year for three years. At the end of the fourth year, there will be a $1 million disposal cost. Calculate the MIRR for the project if the cost of capital is 12 percent.
Answer:
17.8%
Explanation:
the formular for MIRR
= [tex]\frac{FVcashinflow}{PVcashoutflow } ^{1/n} -1[/tex]
we solve for the future value =
3(1+0.12)³ + 3(1+0.12)² + 3(1+0.12) =
4.2147 + 3.7632 + 3.36
= 11.3379
we also calculate present value
= [tex]6-[\frac{1}{1+0.12}] ^{4}[/tex]
= 6-0.6355
= 5.3645 million
MIRR = [tex][\frac{11.3379}{5.3645}] ^{1/4}[/tex]-1
= 0.178
= 17.8%
World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company expects to use 25,000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.625 direct labor hour per unit. At the 80% capacity level, the total budgeted cost includes $50,000 fixed overhead cost and $275,000 variable overhead cost. In the current month, the company incurred $305,000 actual overhead and 22,000 actual labor hours while producing 35,000 units. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations.)
Answer:
Following are the solution to this question:
Explanation:
Please find the complete question in the attachment file.
Applied to fixed overhead
Overhead fixed by DL hr. [tex]=\frac{50000}{25000}\ \ \ \ \ \ \ \ \ \ \ =2[/tex]
DL hours standard [tex]=35000 \times \frac{25000}{50000 \times 80\%} \ \ \ \ \ \ \ \ \ \ \ \ =21875[/tex]
Application of fixed overhead [tex]= 21875 \times 2.0 \ \ \ \ \ \ \ \ \ \ = 43750[/tex]
Variance in volume
Application of total fixed overhead [tex]= \$43,750[/tex]
Fixed total estimates Superfast [tex]=\$50,000[/tex]
Variance of volume [tex]= \$6,250[/tex]
According to the video, what qualities are needed by Merchandise Displayers and Window Trimmers? Check all that
apply
O creativity
O leadership
O marketing skills
ability to work under pressure
O research skills
O ability to speak clearly
Answer:
he/she is correct
Explanation:
i can verify
The qualities needed by Merchandise Displayers and Window Trimmers are creativity, marketing skills, and the ability to work under pressure.
Retail merchandise displays are set up for maximum impact by merchandise displayers and window trimmers, who also need the ability to multitask under time constraints.
The purpose of merchandise displays is to draw in and entice customers by giving a special presentation of a store's merchandise. To achieve this requirement, they must have strong marketing abilities that enable them to interact with clients successfully.
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What is this point of becoming a access?
You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of .4 percent per year, compounded monthly for the first six months, increasing thereafter to 16.1 percent compounded monthly. Assume you transfer the $5,100 balance from your existing credit card and make no subsequent payments. How much interest will you owe at the end of the first year
Answer:
$435.63
Explanation:
Calculation to determine How much interest will you owe at the end of the first year
First step is to calculate the Face Value of a lump sum, After the first six months
FV = $5,100 [1 + (.004 / 12)]^6
FV = $5,110.21
Second step is to calculate The Face Value of a lump sum in another six months
FV = $5,110.21[1 + (.161 / 12)]^6
FV = $5,535.63
Now let calculate the Interest
Interest = $5,535.63 − $5,100
Interest = $435.63
Therefore How much interest will you owe at the end of the first year is $435.63
ABC reports income tax expense of $800,000. Income tax payable at the beginning and end of the year are $50,000 and $70,000, respectively. What is the amount of cash paid for income taxes
Answer: $780,000
Explanation:
Income taxes paid for the year are:
Cash paid for income taxes = Beginning income tax payable + Income tax expense - Ending income tax payable
= 50,000 + 800,000 - 70,000
= $780,000
what are other information that should be included in the deposit and withdrawal forms?
Answer:
account number needed , name of bank, withdrawing needs pin e.t.c
Which of the following is true about duration and modified duration?
I. The Macaulay duration calculates the weighted average time before a bondholder would receive the bond's cash flows.
II. Modified duration measures price sensitivity of a bond to changes in YTM by adjusting duration with a factor based on current yield.
III. The value of duration and modified duration are usually very close, but duration is almost always a larger number.
a. Only I and II are true.
b. All but IV are true.
c. Only II and III are true.
d. All are true.
Answer:
The truth about Macaulay Duration and Modified Duration is:
d. All are true.
Explanation:
Principally, the Macaulay Duration, used mainly with immunization strategies, measures the weighted average time an investor holds a bond until the period when the present value of the bond’s cash flows equals to the initial bond amount.
On the other hand, the Modified Duration, providing a risk measure by being sensitive to interest rates, identifies the amount by which the duration changes for each percentage change in the yield and, at the same time, measures how the amount of a change in the interest rates impacts a bond's price.
Bill is making $100 a week, and is saving for a $500 expense. How long will it
take him to save up enough money if he saves everything he earns?
A. More than 5 weeks
B. Less than 5 weetcs
O C. Exactly 5 weeks
D. Almost a year
Answer:
more than five weeks
Explanation: deductions
Exactly 5 weeks: it takes him to save up enough money if he saves everything he earns. Thus, option C is the correct option.
What is savings?Deferred consumption, or not spending money, is saving. Savings strategies involve setting money away in places including cash, investment funds, pension accounts, and deposit accounts. Reducing expenses, such as regular expenses, is another aspect of saving. Savings refers to any income not spent for immediate consumption.
In terms of personal finance, saving often refers to low-risk preservation of money, such as in a savings account, as opposed to investing, where the risk is much higher. Interest is not always taken into account while saving. Savings are distinct from savings. In contrast to the latter, which refers to either several chances to cut expenditures or one's assets in the form of cash, the former relates to the act of not using one's assets.
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How can social media help employers during the hiring process ? Check all that apply
Social Media often provides a place for employers to begin their search, social media can fill in gaps on resumes or provide additional details, some sites can be a platform for recruiters to promote job openings.
Explanation: just got it right e2020
Employers frequently start their search on social media; it can complete information gaps on resumes or provide new information, and some sites can be used as a platform by recruiters to advertise job openings.
What is media?The term media, which is the word form of medium, refers to the human activity channels through which we disseminate news, music, movies, education, promotional messages, and other data This can include anything from black and white paper to digital data and includes art, news, educational content and numerous other forms of information.
Social media sites can be used to advertise job openings, find prospects, and confirm applicant backgrounds. Promote your employer brand. Sharing media about corporate values and employee events can assist build an employer brand to draw potential employees and clients.
Social media platforms provide human resources hiring departments with significantly more candidate information than they would have otherwise had at their fingertips. Employers have typically been restricted to the data that candidates include on their paper resumes.
Therefore, Thus option (B) is correct.
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In the month of November, Oriole Company Inc. wrote checks in the amount of $10,410. In December, checks in the amount of $11,075 were written. In November, $8,245 of these checks were presented to the bank for payment, and $10,700 in December. There were no outstanding checks at the beginning of November. What is the amount of outstanding checks at the end of November
Answer: $2165
Explanation:
Based on the information given, the amount of outstanding checks at the end of November will be the difference between the amount of checks written in November and the amount of checks that were presented to the bank for payment. This will be:
= $10,410 - $8245
= $2165
Therefore, the answer is $2165.
Marketing managers must choose between the various forms of advertising media available as they develop their communication plans.
a. True
b. False
Answer:
true
Explanation:
During January, Luxury Cruise Lines pays employee salaries of $2 million. Withholdings in January are $153,000 for the employee portion of FICA, $300,000 for federal income tax, $125,000 for state income tax, and $20,000 for the employee portion of health insurance (payable to Blue Cross/Blue Shield). The company incurs an additional $124,000 for federal and state unemployment tax and $60,000 for the employer portion of health insurance.
Required
Record the employee salary expense, withholdings, and salaries payable.
Answer:
See the journal entry below.
Explanation:
The journal entry will look as follows:
General Journal Debit ($) Credit ($)
Salaries Expense 2,000,000
FICA Taxes Payable 153,000
Federal Income Taxes Payable 300,000
State Income Taxes Payable 125,000
Health Insurance Payable 20,000
Salaries Payable (w.1) 1,402,000
(To record the employee salary expense, withholdings and salaries payable.)
Working:
w.1: Salaries payable = Salaries Expense - FICA Taxes Payable - Federal Income Taxes Payable - State Income Taxes Payable - Health Insurance Payable = $2,000,000 - $153,000 - $300,000 - $125,000 - $20,000 = $1,402,000
Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 1,000 $ 14 $ 16 $ 20 B 800 19 15 22 C 700 7 6 12 D 600 11 8 10 E 800 18 16 17 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 35 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Answer:
Forester Company
1. The carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to individual products, is:
= $47,800
2. The carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory, is:
= $49,800
3. Assuming inventory write-downs are common for Forester, the necessary year-end adjusting entry based on requirement 2 is:
Debit Cost of goods sold (Inventory write-down) $5,200
Credit Inventory $5,200
To write down the inventory value from $55,000 (purchase costs) to $49,800 (replacement costs).
Explanation:
a) Data and Calculations:
Product Quantity Unit Cost Unit Replace- Unit Selling LCM Value
ment Cost Price
A 1,000 $ 14 $ 16 $ 20 $14,000 ($14*1,000)
B 800 19 15 22 12,000 ($12*800)
C 700 7 6 12 4,200 ($6*700)
D 600 11 8 10 4,800 ($8*600)
E 800 18 16 17 12,800 ($16*800)
Total 3,900 $47,800
Total costs = (1,000*$14 + 800*$19 + 700*$7 + 600*$11 + 800*$18)
= ($14,000 + 15,200 + 4,900 + 6,600 + 14,400)
= $55,000
Tota replacement costs = (1,000*$16 + 800*$15 + 700*$6 + 600*$8 + 800*$16)
= ($16,000 + 12,000 + 4,200 + 4,800 + 12,800)
= $49,800
Total market value = (1,000*$20 + 800*$22 + 700*$12 + 600*$10 + 800*$17)
= ($20,000 + 17,600 + 8,400 + 6,000 + 13,600)
= $65,600
Total cost = $55,000
Total replacement cost = $49,800
Inventory write-down = $5,200
g Ming Company has 500,000 shares of $10 par value common stock outstanding. During the year Ming declared a 10% stock dividend when the market price of the stock was $30 per share. Two months later Ming declared a $2.00 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by: Note that you have two types of dividends that you have to take into consideration. Group of answer choices
Answer:
$2,600,000
Explanation:
total shares of ming company = 500000
the dividend = 10%
10% * 500000 = 50000
stock dividend amount = 50000 share x 30 dolarrs
= 1500000
outstanding shares aftrr dividend = 500000+(500000*10%)
= 500000 + 50000 = 550,000
cash dividend = $2 per share
= 550000 * 2
= 1100000
decrease in retained earning = stock dividend + cash dividend
= 1500000 + 1100000
= $2,600,000
n March 2021, the Phillips Tool Company signed two purchase commitments. The first commitment requires Phillips to purchase inventory for $103,000 by June 15, 2021. The second commitment requires the company to purchase inventory for $153,000 by August 20, 2021. The company's fiscal year-end is June 30. Phillips uses a periodic inventory system. The first commitment is exercised on June 15, 2021, when the market price of the inventory purchased was $86,500. The second commitment was exercised on August 20, 2021, when the market price of the inventory purchased was $121,500. Required: Prepare the journal entries required on June 15, June 30, and August 20, 2021, to account for the two purchase commitments. Assume that the market price of the inventory related to the outs
Answer:
1.June 15, 2021
Dr Purchases $86,500
Dr Loss on purchase commitment $16,500
Cr Cash $103,000
2. June 30, 2021
Dr Estimated loss on purchase commitment $11,800
Cr Estimated liability on purchase commitment $11,800
3. August 20, 2021
Dr Purchases $121,500
Dr Loss on purchase commitment $19,700
Dr Estimated liability on purchase commitment $11,800
Cr Cash $153,000
Explanation:
Preparation of the journal entries required on June 15, June 30, and August 20, 2021, to account for the two purchase commitments
1. June 15, 2021
Dr Purchases $86,500
Dr Loss on purchase commitment $16,500
($103,000-$86,500)
Cr Cash $103,000
2. June 30, 2021
Dr Estimated loss on purchase commitment $11,800
Cr Estimated liability on purchase commitment $11,800
($153,000-$141,200)
3. August 20, 2021
Dr Purchases $121,500
Dr Loss on purchase commitment $19,700
($141,200-$121,500)
Dr Estimated liability on purchase commitment $11,800
($153,000-$141,200)
Cr Cash $153,000
Davidsons has 15,000 shares of stock outstanding with a par value of $1 per share and a market value of $45 per share. The balance sheet shows $15,000 in the common stock account, $158,000 in the capital in excess of par account, and $132,500 in the retained earnings account. The firm just announced a stock dividend of 50 percent. What is the value of the retained earnings account after the dividend
Answer: -$205,000
Explanation:
Retained earnings balance = Retained earnings amount - Dividends declared
Dividends declared = Percent dividend * Number of shares * Market value
= 50% * 15,000 * 45
= $337,500
Retained earnings balance after dividend:
= 132,500 - 337,500
= -$205,000
The stage of Bruce Tuckman’s group decision-making process in which the members express their individual needs and opinions is ________.
The needs of the individual and the opinion should be mandatory.
What is the stage of Bruce Tuckman’s group?In the year 1965, Bruce Tuckman is psychologist mentioned that the team should go via five stages of development i.e. forming, norming, storming, performing, and adjourning. The stages begin from the time when the group should be first meeting till the end of the project.
hence, The needs of the individual and the opinion should be mandatory.
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What does bolding do to text?
Answer:
Explanation:
Usually you select the word or sentence you want to bold using your cursor, to make the word lines thicker and have the words stand out more. Most websites have the bold function denoted with a B so you can easily understand that the button is used for making a word or sentences bold. It's used in newspapers to highlight sections or to emphasize words or the beginning of paragraphs.
Karen and Anika, the owners of a new personal assistant firm called Assist You 2, are interested in offering their services in a community filled with other start-up firms and local shops. Now that they have completed the segmentation and targeting processes, to ensure that they are best positioning their service within this community, they must next Multiple Choice evaluate feedback from their customers. identify their target market. understand the position of their competitors. identify their market segment.
Answer:
understand the position of their competitors.
Explanation:
For a business to strive in an environment where competitors are also operating it is very important to have a good understanding of position of competitors in the market place.
In the given scenario there are other other start-up firms and local shops operating in the same community.
The business has completed the segmentation and targeting processes, to ensure that they are best positioning their service within this community.
Next they will have to understand the competition's aims, strategies, and strengths in order to adequately counteract them.
X Company currently buys a part from a supplier for $14.30 per unit but is considering making the part itself next year. This year, they purchased 3,000 units of this part; next year, they will need 3,500 units. Estimated costs to make the part next year are:'
Answer:
If the part is purchased externally it will cost
$50,050 [$14.3 * 3,500]
If the part is made internally then the costs to be added up is:
Direct material per unit
Direct Labor per unit
Variable overheads per unit
and Fixed overhead per unit
the total of these costs per unit will be multiplied by the units required to be made i.e 3,500.
X Company should choose the option with the lowest total cost for 3,500 units
Explanation:
If the part is purchased externally it will cost
$50,050 [$14.3 * 3,500]
If the part is made internally then the costs to be added up is:
Direct material per unit
Direct Labor per unit
Variable overheads per unit
and Fixed overhead per unit
the total of these costs per unit will be multiplied by the units required to be made i.e 3,500.
X Company should choose the option with the lowest total cost for 3,500 units
Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1 par value. During its first year, the following selected transactions were completed:
Issued 5,400 shares of common stock for cash at $24 per share.
Issued 1,400 shares of common stock for cash at $27 per share.
Complete the table below, indicating the account, amount, and direction of the effect for the above transactions. (Enter any decreases to account balances with a minus sign.
Assets = Liabilities + Stockholders’ Equity
a.
b.
Prepare the journal entry required for each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1. Record the issuance of 5,100 shares of common stock with a par value $2 for a price of $21 per share.
2. Record the issuance of 1,100 shares of common stock with a par value $2 for a price of $24 per share
3. Prepare the stockholders’ equity section as it should be reported on the year-end balance sheet. At year-end, the accounts reflected Net income of $200.
INCENTIVE CORPORATION
Balance Sheet (Partial)
At December 31
Stockholders’ Equity
Contributed Capital:
Total Contributed Capital 0
Total Stockholders’ Equity $0
+
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4. Incentive Corporation has $49,000 in the company’s bank account. What is the maximum amount of cash dividends the company can declare and distribute?
Maximum amount of cash dividends=
Answer:
Incentive Corporation
A. Assets = Liabilities + Stockholders’ Equity
a. Assets (Cash +$129,600 )= Liabilities + Stockholders' Equity (Common stock +$5,400 and Additional Paid-in Capital $1124,200)
b. Assets (Cash +$37,800 )= Liabilities + Stockholders' Equity (Common stock +$1,400 and Additional Paid-in Capital $36,400)
B. Journal Entries:
Debit Cash $129,600
Credit Common stock $5,400
Credit APIC $124,200
To record the issuance of 5,400 shares of common stock for cash at $24.
Debit Cash $37,800
Credit Common stock $1,400
Credit APIC $36,400
To record the issuance of 1,400 shares of common stock for cash at $27.
C. Journal Entries:
1. Debit Cash $107,100
Credit Common stock $10,200
Credit APIC $96,900
To record the issuance of 5,100 common stock shares with $2 par value for $21 per share.
2. Debit Cash $26,400
Credit Common Stock $2,200
Credit APIC $24,200
To record the issuance of 1,100 common stock shares with $2 par value for $24 per share.
3. Stockholders' Equity
INCENTIVE CORPORATION
Balance Sheet (Partial)
At December 31
Stockholders’ Equity
Contributed Capital:
Common Stock $6,200
Additional Paid-in Capital 121,100
Total Contributed Capital $127,300
Net income 200
Total Stockholders’ Equity $127,500
4. The maximum amount of cash dividends that Incentive Corporation can declare and distribute is $200, despite having $49,000 in the bank account.
Explanation:
a) Data and Calculations:
Authorized shares, 12,000 of common stock at $1 par value
Net income at year-end = $200
Cash balance at bank = $49,000
Transactions:
Cash $129,600 Common stock $5,400 APIC $124,200
Cash $37,800 Common stock $1,400 APIC $36,400
b) Transactions:
1. Cash $107,100 Common stock $10,200 APIC $96,900
2. Cash $26,400 Common Stock $2,200 APIC $24,200
Paul Parrino purchased from Daves Professional Wheelchair Service a wheelchair manufactured by 21st Century Scientific, Inc. The sales brochure from 21st Century Scientific stated that the wheelchair woulds erve [the buyer] well for many years tocome. Parrino had problems with the wheelchair within a few years and filed suit against Daves and 21st Century for breach of express warranty. Both defended on the grounds that the statement on years of service was puffery, not an express warranty. Are they right?
Answer:
In this case, 21st Century would probably win the lawsuit since its brochure never stated a specific amount of time, for example, 3, 5, or 10 years. So it cannot be considered an express warranty. Besides, the fact that the wheelchair actually lasted a few years (doesn't specify how many), it is more than consumer protection laws generally require.
Almost everything in economics can be traced back to the law of supply and demand, which states what?
Answer:
The law of supply and demand is a theory that explains the interaction between the sellers of a resource and the buyers for that resource. The theory defines the relationship between the price of a given good or product and the willingness of people to either buy or sell it.
Answer:The law of supply and demand is a theory that explains the interaction between the sellers of a resource and the buyers for that resource. The theory defines the relationship between the price of a given good or product and the willingness of people to either buy or sell it.
Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $130,500) is worth $156,600 and Johnathan's land has a fair market value of $123,975, Johnathan also gives Logan cash of $32,625. a. Logan's recognized gain is $fill in the blank 1. b. Assume that Johnathan's land is worth $140,940 and he gives Logan $15,660 cash. Logan's recognized gain is ________
Answer:
A. $26,100
B. $15,660
Explanation:
Calculation to determine Logan recognized gain
A. Based on the information given in a situation where Johnathan's land is worth the amount of $123,975, Logan's recognized gain will be the amount of $26,100 which is the lesser of the amount realized as gain ($156,600 realized amount − $130,500 adjusted basis = $26,100) or the fairmarket value of the boot received amount of ($32,625)
Therefore Logan recognized gain will be $26,100
B. Based on the information given Ina situation were Johnathan's land is worth the amount of $140,940, Logan's recognized gain will be the amount of $15,660, the lesser of th amount realized as gain ($156,600 realized amount − $130,500 adjusted basis = $26,100) or the fairmarket value of the boot received of the amount of ($15,660).
Therefore Logan recognized gain will be $15,660