Answer:
Kingbird Company
a. The amount of Net Sales = $5,040.
b. The amount of the estimated liability for refunds = $180
Explanation:
a) Data and Calculations:
Units of products sold to Logan Inc. = 290
Selling price = $18
Sales revenue = $5,220 ($18 * 290)
Cost of each unit = $11
Expected returns = 10/290 = 0.03448
Net sales = $5,220 * (1 - 0.03448)
= $5,040
Estimated liability for refunds = $180 ($5,220 - $5,040)
Coronado Industries reported the following year-end information: Beginning work in process inventory $ 25000 Beginning raw materials inventory 9000 Ending work in process inventory 28000 Ending raw materials inventory 6000 Raw materials purchased 560000 Direct labor 210000 Manufacturing overhead 120000 How much is Coronado’s total cost of work in process for the year?
Answer:
$890,000
Explanation:
The computation of the total cost of work in process is shown below
But before that following calculations are needed
Cost of Raw material consumed = Beginning inventory + Raw material purchased - Closing inventory
= $9,000 + $560,000 - $6,000
= $563,000
And,
Cost of manufacturing = Cost of raw material consumed + Direct labor + Manufacturing overhead
= $563,000 + $210,000 + $120,000
= $893,000
Now
Cost of work in progress = Beginning WIP inventory - Ending WIP inventory + Cost of manufacturing
= $25,000 - $28,000 + $893,000
= $890,000
At the end of the prior year, Doubtful Inc. had a deferred tax asset of $18,500,000 attributable to its only timing difference, a temporary difference of $47,000,000 in a liability for estimated expenses. At that time, a valuation allowance of $3,730,000 was established. At the end of the current year, the temporary difference is $42,000,000, and Doubtful determines that the balance in the valuation account should now be $5,000,000. Taxable income is $14,700,000 and the tax rate is 35% for all years.
Required:
Prepare journal entries to record Doubtful's income tax expense for the current year.
Answer:
Journal entries to record Doubtful's income tax expense for the current year.
No Account titles and Explanation Debit'$ Credit'$
1 Income tax expense 8,945,000
Deferred tax asset 3,800,000
[(42,000,000*35%) - 18,500,000]
Income taxes payable 5,145,000
[(14,700,000*35%)]
(To record tax expenses)
2 Income tax expense 1,270,000
Valuation allowance - deferred tax asset 1,270,000
(3,730,000 - 5,000,000
(To record valuation allowance)
Which of the following products CANNOT be sold BOTH the consumer and industrial markets?
O Pens
O X-Ray Machine
O Microwave
O Water
The X-Ray machine can only be sold to the industrial market
1. Cullumber Cosmetics acquired 13% of the 301,200 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2020. On June 30, Elite declared and paid a $70,100 dividend. On December 31, Elite reported net income of $226,500 for the year. At December 31, the market price of Elite Fashion was $15 per share.
2. Bramble Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey’s 32,700 outstanding shares of common stock at a total cost of $10 per share on January 1, 2019. On June 15, Kasey declared and paid a cash dividend of $31,600. On December 31, Kasey reported a net income of $116,000 for the year.
Required:
Prepare all the necessary journal entries for 2019 for Cullumber Cosmetics.
Answer:
1. 18-Mar
Dr Available for Sale Securities $548,184
Cr Cash $548,184
30-Jun
Dr Cash $9,113
Cr Dividend Revenue $9,113
31-Dec
Dr Securities Fair Value Adjustment $39,156
Cr Unrealized Holding Gain $39,156
2.1-Jan
Dr Investmeht in Nadal Corp. $81,750
Cr Cash $81,750
15-Jun
Dr Cash $7,900
Cr Investment in Nadal Corp. $7,900
31-Dec
Dr Investment in Nadal $29,000
Cr Revenue from Investment in Sub $29,000
Explanation:
1.Preparation of all the necessary journal entries for 2019
18-Mar
Dr Available for Sale Securities $548,184
Cr Cash $548,184
(13%*301,200*$14)
(To purchase 10% of Ramirez Fashion)
30-Jun
Dr Cash $9,113
Cr Dividend Revenue $9,113
(13%$70,100)
(To record a 13% dividend revenue $70,100)
31-Dec
Dr Securities Fair Value Adjustment $39,156
Cr Unrealized Holding Gain $39,156
[($15-$14)*13%*301,200]
(To adjust securities to FMV in an Equity account)
2.1-Jan
Dr Investmeht in Nadal Corp. $81,750
Cr Cash $81,750
(25%*32,700*$10)
(To purchase 25% of Nadal Corp.)
15-Jun
Dr Cash $7,900
Cr Investment in Nadal Corp. $7,900
(25%$31,600)
(To record cash dividend of $31,600)
31-Dec
Dr Investment in Nadal $29,000
Cr Revenue from Investment in Sub $29,000
(25%*$116,000)
(To record 25% revenue of $116,000 from Nada)
A company purchased land for $82,000 cash. Commissions of $8,000, property taxes of $8,500, and title insurance of $2,200 were also incurred. The $8,500 in property taxes includes $5,400 in back taxes paid by the company on behalf of the seller and $3,100 due for the current year after the purchase date. For what amount should the company record the land
Answer:
the amount that company should record the land is $97,600
Explanation:
The computation of the amount that company should record the land is shown below:
The Amount should be recorded for land is
= Purchase price + Commission + Property tax paid on behalf of seller + Title insurance
= $82,000 + $8,000 + $5,400 + $2,200
= $97,600
hence, the amount that company should record the land is $97,600
Five years ago, Logocom made a $5 million investment in a new high-temperature material. The product was not well accepted after the first year on the market. However, when it was reintroduced 4 years later, it did sell well during the year. Major research funding to broaden the applications has cost $15 million in year 5. Determine the rate of return for these net cash flows (in $1,000 units).
Jonathan has a debt of $3,000 that needs to be repaid with 3 annual equal principal repayments with interest on the outstanding balance. The debt has an annual effective interest rate of 8%. In order to match his payment obligations exactly, Jonathan decides to purchase the following zero coupon bonds. Time to Maturity Par Value 1 year $1,000 2 years $ 800 3 years $ 900 Calculate the number of units of the 3-year bond Jonathan should buy, assuming fractional purchase is possible
Answer:
Jonathan
The number of units of the 3-year bond that Jonathan should buy is:
3.88 or 3 and 22/25 bonds.
Explanation:
a) Data and Calculations:
Present value of debt = $3,000
Annual effective interest rate = 8%
Total future value of the debt with interest = $3,492.30
Equal annual repayment of the debt = $1,164.10 ($3,492.30/3)
Number of 3-year bond that Jonathan should buy = $3,492.30/$900 = 3.88 or 3 and 22/25 bonds
Time to Maturity Par Value
1 year $1,000
2 years $ 800
3 years $ 900
From an online calculator, the total amount to be paid with interest is $3,492.30:
N (# of periods) 3
I/Y (Interest per year) 8
PV (Present Value) 3000
FV (Future Value) 0
Results
PMT = $1,164.10
Sum of all periodic payments $3,492.30
Total Interest $492.30
Answer:
1.2
Explanation:
Given that we are making 3 Equal Principle Payments on a loan of $3000, the principle that we will repay each year will be [tex]\frac{3000}{3} = $1000[/tex].
First Year:
The interest that we will need to repay during the first year will be 3000*.08 which will be $240 dollars of interest, so we will be paying a total of 1000 + 240, or $1240 for the first year reducing the amount due to $2000.
Second Year:
The interest that we will need to repay during the second year will be 2000*.08 which will be $160 of interest, so we will be paying a total of 1000 + 160, or $1160 which will reduce the amount due $1000.
Third Year:
This is the year that we care for. We have a total interest amount of $80, so we will be paying a total of $1080 for the third year.
Given that the par value of the Zero Coupon bond for the third year is $900, we will need [tex]\frac{1080}{900} = 1.2[/tex] coupons for the final year, giving us our answer of 1.2 3-year bonds that Jonathan should buy.
A store has the following sales for the next three month: May $ 240,000 June $ 200,000 July $ 190,000 Cash sales are 25% and all the remaining credit sales (75%) are collected in the month following the sale. The total amount of cash expected to be collected from customers in July is
Answer:
$197,500
Explanation:
Calculation for July cash collections
Cash collection = $ 190,000 x 25 % + $ 200,000 x 75 %
= $197,500
The total amount of cash expected to be collected from customers in July is $197,500.
Tamarisk, Inc. purchased a delivery truck for $29,200 on January 1, 2020. The truck has an expected salvage value of $2,200, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 16,100 in 2020 and 12,800 in 2021.
1. Calculate depreciation expense per mile under units-of-activity method.
2. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double- declining-balance method.
3. Prepare the journal entry to record 2020 depreciation.
4. Assume that Marigold uses the straight-line method. Show how the truck would be reported in the December 31, 2020, balance sheet.
Answer:
1. Depreciation expense per mile = $0.27 per mile
2-1. The straight-line method
We have:
Depreciation expense for 2020 = $3,375
Depreciation expense for 2021 = $3,375
2-2. Units-of-activity method
We have:
Depreciation expense for 2020 = $4,347
Depreciation expense for 2021 = $3,456
2-3. The double-declining-balance method
We have:
Depreciation expense for 2020 = $7,300
Depreciation expense for 2021 = $5,475
3. See the journal entries below.
4. Net book value = $25,825
Explanation:
1. Calculate depreciation expense per mile under units-of-activity method.
Depreciation expense per mile = (Purchase price delivery truck - Expected salvage value) / Expected driven miles = ($29,200 - $2,200) / 100,000 = $0.27 per mile
2. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double- declining-balance method.
2-1. The straight-line method
Annual depreciation expense = (Purchase price of the delivery truck - Expected salvage value) / Estimated useful life = ($29,200 - $2,200) / 8 = $3,375
Therefore, we have:
Depreciation expense for 2020 = Annual depreciation expense = $3,375
Depreciation expense for 2021 = Annual depreciation expense = $3,375
2-2. Units-of-activity method
Depreciable amount = Purchase price of the delivery truck - Expected salvage value = $29,200 - $2,200 = $27,000
Therefore, we have:
Depreciation expense for 2020 = Depreciable amount * (Actual miles driven in 2020 / Expected driven miles) = $27,000 * (16,100 / 100,000) = $4,347
Depreciation expense for 2021 = Depreciable amount * (Actual miles driven in 2021 / Expected driven miles) = $27,000 * (12,800 / 100,000) = $3,456
2-3. The double-declining-balance method
Straight-line method depreciation rate = 1 / Estimated useful life = 1 / 8 = 0.1250, or 12.50%
Double-declining-balance method depreciation rate = Straight-line method depreciation rate * 2 = 12.50% * 2 = 25%
Therefore, we have:
Depreciation expense for 2020 = Purchase price of the delivery truck * Double-declining-balance method depreciation rate = $29,200 * 25% = $7,300
Depreciation expense for 2021 = (Purchase price of the delivery truck - Depreciation expense for 2020) * Double-declining-balance method depreciation rate = ($29,200 - $7,300) * 25% = $5,475
3. Prepare the journal entry to record 2020 depreciation.
3-1. The straight-line method
Date Particulars Debit ($) Credit ($)
2020 Depreciation expense 3,375
Accumulated dep. – Delivery truck 3,375
(To record 2020 depreciation expense.)
3-2. Units-of-activity method
Date Particulars Debit ($) Credit ($)
2020 Depreciation expense 4,347
Accumulated dep. – Delivery truck 4,347
(To record 2020 depreciation expense.)
3-3. The double-declining-balance method
Date Particulars Debit ($) Credit ($)
2020 Depreciation expense 7,300
Accumulated dep. – Delivery truck 7,300
(To record 2020 depreciation expense.)
4. Assume that Marigold uses the straight-line method. Show how the truck would be reported in the December 31, 2020, balance sheet.
Tamarisk, Inc.
Balance sheet (Partial)
As at the Year Ended December 31, 2020
Details $
Fixed Assets
Delivery truck 29,200
Accumulated depreciation (3,375)
Net book value 25,825
A government had the following transfers reported in its governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances: (1) a transfer from the General Fund to a debt service fund in the amount of $1,100,000; and (2) a transfer from the General Fund to a special revenue fund in the amount of $500,000. The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be: $0. $500,000. $1,100,000. $1,600,000.
Answer:
The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be:
= $0.
Explanation:
a) Data and Calculations:
Transfer from the General Fund to a debt service fund = $1,100,000
Transfer from the General Fund to a special revenue fund = $500,000
Transfer out = $0
b) The transfers of $1,100,000 to the Debt Service Fund and $500,000 to the Special Revenue Fund are Internal Service funds involving governmental activities. They are unlike enterprise funds that reach the control of the government's internal services. In this case, therefore, there is no transfer out, as the transfers were within or internal.
Copybold Corporation is a start-up company that has a capital structure with a debt/assets ratio equal to 0.75. Copybold has no preferred stock. There are two possible scenarios with respect to the firm's operations : Feast or Famine. The Feast scenario has a 60 percent probability of occurring, and the forecast earnings before interest and taxes (EBIT) in this scenario is $60,000. The Famine scenario has a 40 percent chance of occurring, and the EBIT is expected to be $20,000. Further, the firm's cost of debt is 12 percent. The firm has $400,000 in total assets, and its marginal tax rate is 40 percent. The company has 10,000 shares of stock outstanding. What is the difference between the earnings per share (EPS) forecasts for the Feast scenario and the Famine scenario
Answer:
The value of the difference between the earnings per share (EPS) forecasts for Feast and Famine is $2.40
Explanation:
The solution is as evident in the attached Excel Sheet. In the excel sheet the formulas are used which are also given in the second sheet.
For the data values from the question are used.
A company had credit sales of $46,000 and cash sales of $18,000 during the month of May. Also during May, the company paid wages of $16,000 and utilities of $5800. It also received payments from customers on account totaling $15,800. At the beginning of May, the company had a cash balance of $25,000. What is the company's cash balance at the end of May
Answer:
the cash balance at the end of May is $37,000
Explanation:
The computation of the cash balance at the end of May is shown below:
= Opening cash balance + cash sales + received payment - paid wages - utilities
= $25,000 + $18,000 + $15,800 - $16,000 - $5,800
= $37,000
Hence, the cash balance at the end of May is $37,000
We simply applied the above formula to determine the cash balance at the end of May
Read this article describes some of Teddy Roosevelt's contemporaries. In your journal, offer suggestions for at least three more leaders who you believe also reflect the traits of those profiled in this article and explain why
Answer:
1)autocratic leader
2)democratic leader
Explanation:
1- this leader is one who works fast without consulting employees.
2- this leader consults employees and make sure everyone takes par in decision making
sorry only know 2...
Robert Company, which allocates overhead to production on the basis of machine hours, reported the following data for the period just ended:
Actual units produced: 12,000
Actual variable overhead incurred: $77,770
Actual machine hours worked: 18,800
Standard variable overhead cost per machine hour: $4.50
Robert estimates that it takes 1.5 hours to manufacture a completed unit.
Required:
Compute all standards & variances. Prepare all journal entries using standard costing.
Answer:
Variable overhead rate variance = Actual Variable overhead incurred - Actual Hours of Input, at Standard Rate
Variable overhead rate variance = ($4.5*18800 - $77,700)
Variable overhead rate variance = $6,900 Favorable
Variable overhead efficiency variance = Actual Hours of Input, at Standard Rate - Standard Hours allowed for Actual Output at Standard Rate
Variable overhead efficiency variance = (12000*1.5 - $18,800)*$4.5 =
Variable overhead efficiency variance = $3,600 Unfavorable
Variable overhead cost variance = Actual Variable overhead incurred - Standard Hours allowed for Actual Output at Standard Rate
Variable overhead cost variance = (12000*1.5*$4.5) - $77,700
Variable overhead cost variance = $3,300 Favorable
Select all the correct answers.
Amber is writing to an accountant that she would like to interview to gain information about the career field. What information should she include in her letter?
a request for a list of contacts that she could also interview
a request to meet for 15 minutes to gain firsthand advice
an explanation of why she is leaving her current job
a list of the questions she intends to ask in the interview
a copy of her résumé and cover letter
Answer:
answer from edmentum for you :)
Explanation:
Answer:
b & d
Explanation:
on plato
State the main responsibilities of a sales manager. Think about your own potential strengths and weaknesses as a sales manager. For each function (responsibiity), briefly state why you would enjoy or would not enjoy it, and whether you think you would be good at it and why you feel this way. Your response should be between 150 and 300 words.
Answer:
A sales manager has several responsibilities that, when performed effectively, are able to increase the profitability and positioning of a company in the market.
Explanation:
The sales area in an organization is one of the most important for a company to achieve its objectives and goals defined in strategic planning. The sales department's goal is to manage the sales process of a company's products and services according to its objectives. That is why the role of a sales manager is essential, it is he who will be responsible for managing, leading and building relationships with the sales team so that sales occur as planned.
So there are some responsibilities of the sales manager:
Create a sales planset sales goalsmonitor sales progressanalyze sales data and informationsupervise the sales teamEach role of the sales manager is essential for optimal coordination between the process and the company's objectives, so each step must be monitored and controlled in real time, correcting possible bottlenecks, ordering the objectives, motivating the sales team and seeking always the continuous improvement of processes.
The Iberia Tire Company has 3,000 tires in its inventory which are considered obsolete. Each tire originally cost the company $35 and the normal selling price was $45 per tire. Management is considering two options to reduce these inventory levels. Option one is to sell the tires directly to car dealerships for $30 per tire as opposed to the normal selling price of $45 per tire. The other option is to offer their current customers a $10 per tire rebate on their purchase. In addition to the $10 rebate, the program would cost the company approximately $24,000 to manage. They predict that either option will rid them completely of their excess The decision to sell directly to the car dealerships over offering the rebate will result in:_______
A. A $21,000 increase in profits.
B. A $9,000 increase in profits.
C. A $15,000 decrease in profits.
D. A $24,000 decrease in profits.
Answer:
B. A $9,000 increase in profits
Explanation:
Calculation to determine what The decision to sell directly to the car dealerships over offering the rebate will result in:
First step is to calculate the net selling prices for each group
Car dealership total price of sales = 3000 × 30 Car dealership total price of sales =$90,000
Current customers;
First step is to calculate the price of 1 tire
Price of 1 tire = $45 - $10 rebate
Price of 1 tire = $35
Total selling price = 35 × 3000
Total selling price= $105,000
Second step is to calculate net amount gotten from sales to customers
Net income= $105,000 - $24,000
Net income= $81,000
Now let calculate what the decision to sell directly to the car dealerships over offering the rebate will result in:
Decision to sell = 90,000 - 81,000
Decision to sell= $9,000 increase in profits
Therefore the decision to sell directly to the car dealerships over offering the rebate will result in:$9,000 increase in profits
You are the manager of a local bank. Due to unstable financial conditions, savers are worried that your bank may fail. When they show up in large numbers to withdraw their savings, you find that you do not have enough cash to meet the obligations. Where can you turn for a loan if no other bank will lend to you? The stock market The bond markets The discount window The market for overnight loans
Answer:
The discount window
Explanation:
As we can see that there is a liquidity problem for the bank as it has not enough funds to payoff back to the depositors. Also No other bank is ready to lend.
The discount window would be the monetary policy instrument that controlled by the central bank in which it permits the institutions that they are eligible for borrow the money so that they could meet their shortage and this money would be lend for short term duration by the central bank
Therefore it is a discount window
As a policy option for regulating natural monopoly, average (total) cost pricing is attractive because Select one: a. the resulting output exceeds that which would occur in a perfectly competitive industry. b. the losses that occur are a sign that consumers are not harmed by the firm's exercise of market power. c. it ensures productive efficiency. d. the regulated firm will always break even.
Answer: c. it ensures productive efficiency.
Explanation:
The average cost pricing is used by the government in order to control the price that may be charged by the monopolist.
With the average cost pricing, monopolists are forced to reduce the price that twhy charge for a product to a point whereby the average total cost of the firm and the market demand curve will intersect.
This is vital as it brings about productive efficiency, increase production and also the reduction in the price of a good.
Therefore, the correct option is C "it ensures productive efficiency".
On March 1, 2020, the Teal Company received a $45,000 payment for annual magazine subscriptions (the subscriptions run from the March, 2020 edition through the February 2021 edition). Upon receipt of the payment, Teal Company credited the amount to sales revenue. Provide any entries necessary to correctly state sales revenue on the 2020 income statement. Show your computation.
Answer:
The company has incorrectly credited the sales revenue account at the time of the receipt of payment. So, the journal entry to record the transaction is as follows:
Date Particulars Debit Credit
March 1, 20 Sales Revenue A/c $45,000
To Unearned Sales Revenue A/c $45,000
(To record Unearned sales revenue)
A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results.
Machine 1 Measirement 17 15 15 17
Machine 2 Measurement 16 25 18 25
Machine 3 Measurement 23 24 23 22
What are the Mean chart three-sigma upper and lower control limits?
a. 22 and 18
b. 23.16 and 16.84
c. 22.29 and 16.71
d. 23.5 and 16.5
e. 24 and 16
Answer:
b. 23.16 and 16.84
Explanation:
Mean (X-bar) = Sum of observations / No of observations
Range (R) = Highest observation - Lowest observation
Machine 1
Mean (X-bar) = (17 + 15 + 15 + 17) / 4
Mean (X-bar) = 16
Range (R) = (17 - 15)
Range (R) = 2
Machine 2
Mean (X-bar) = (16 + 25 + 18 + 25) / 4
Mean (X-bar) = 21
Range (R) = (25 - 16)
Range (R) = 9
Machine 3
Mean (X-bar) = (23 + 24 + 23 + 22) / 4
Mean (X-bar) = 23
Range (R) = (24 - 22)
Range (R) = 2
Mean of means (X-double bar) = Sum of X-bar / Number of samples = (16 + 21 + 23) / 3 = 20
Mean of ranges (R-bar) = Sum of R / Number of samples = (2 + 9 + 2) / 3 = 4.33
From table of constants for calculating the 3-sigma upper and lower control limits, For n = 4, A2 = 0.729
UCL = X-double bar + (A2 x R-bar)
UCL = 20 + (0.729 x 4.33)
UCL = 23.1566
UCL = 23.16
LCL = X-double bar - (A2 x R-bar)
LCL = 20 - (0.729 x 4.33)
LCL = 16.8434
LCL = 16.84
The average variable costs of a company are equal to $20 per unit produced at its current level of output in the short run. Its average fixed costs are equal to $30 per unit produced. The total costs at this output level are equal to $2,500.
Required:
a. What is the company’s current output level?
b. What are the total variable costs at this output level?
c. What are the total fixed costs?
Answer:
Results are below.
Explanation:
First, we need to calculate the number of units produced:
Number of units= total cost/ average unitary cost
Number of units= 2,500 / (20 + 30)
Number of units= 50 units
Now, the total variable cost:
Total variable cost= 50*20
Total variable cost= $1,000
Finally, the fixed costs:
Fixed cost= 50*30
Fixed cost= $1,500
On January 1, 2019, QRS Company granted 80,000 stock options to certain executives. The options may be exercised on or after December 31, 2022, and expire on January 1, 2026. Each option can be exercised to acquire one share of $1 par common stock for $5. The fair value of each options was estimated to be $3 on the grant date. What amount should QRS recognize as compensation expense for 2020
Answer:
The amount QRS should recognize as compensation expense for 2020 is $80,000.
Explanation:
NS = Number of shares granted as stock option = 80,000
FV = Fair value of the options on the date of grant = $3
N = Number of years from December 31, 2022 to January 1, 2026 = 3
Therefore, we have:
Total compensation expenses = NS * FV = 80,000 * $3 = $240,000
Amount QRS should recognize as compensation expense for 2020 = Total compensation expenses / n = $240,000 / 3 = $80,000
Lucy sells her partnership interest, a passive activity, with an adjusted basis of $305,000 for $330,000. In addition, she has current and suspended losses of $28,000 associated with the partnership and has no other passive activities. a. Calculate Lucy's total gain and her current deductible loss. Her total gain is $fill in the blank 1 and her deductible loss is $fill in the blank 2 . b. What type of income can the deductible loss offset
Answer:
A. $25,000 gain
B. ($3,000)
Explanation:
A. Calculation to determine Lucy's total gain
Amount realized $330,000
Less Adjusted basis ($305,000)
Total gain $25,000
($330,000-$305,000)
Therefore Lucy's total gain is $25,000
B. Calculation to determine her current deductible loss.
Amount realized $330,000
Less Adjusted basis ($305,000)
Total gain $ 25,000
($330,000-$305,000)
Less Suspended losses ($28,000)
Not passive Deductible loss ($3,000)
($25,000-$28,000)
Therefore her current deductible loss is ($3,000)
Bacchus Enterprises has $12B in book value of common stock selling at a book to market rate of 1.35 and a beta of 1.5. The combined preferred stock is valued at $8.5B with a beta of 1.23. The restructured debt has a book value of $4.8B in book value and has a coupon of 6%, maturing in 9 years, and selling at 102.5%. The market is doing quite well and is returning 14% with a risk free asset returning 4%. What is the Cost of Preferred Stock
Answer: 16.3%
Explanation:
Given the details in the question, the cost of preferred capital can be calculated using the CAPM method.
Cost of preferred stock using the Capital Asset Pricing Model is:
= Risk free rate + Beta * ( Market return - Risk free rate)
= 4% + 1.23 * (14% - 4%)
= 16.3%
The following information pertains to Sheridan Video Company.
1. Cash balance per bank, July 31, $7,943.
2. July bank service charge not recorded by the depositor $37.
3. Cash balance per books, July 31, $7,964.
4. Deposits in transit, July 31, $1,840.
5. Bank collected $1,240 note for Sheridan in July, plus interest $45, less fee $29. The collection has not been recorded by Sheridan, and no interest has been accrued.
6. Outstanding checks, July 31, $600.
Required:
Prepare a bank reconciliation at July 31.
Answer:
Bank reconciliation for the month ended July 31
Particulars Amount
Balance as per bank $7,943
Add: Deposit in transit $1,840
Less: Outstanding checks $600
Adjusted balance as per bank $9,183
Balance as per books $7,964
Add: Direct collections by bank $1,256
($1,240 + $45 - $29)
Less: Bank charges $37
Adjusted balance as per books $9,183
Pierre, a cash basis, unmarried taxpayer, had $1,700 of state income tax withheld during 2020. Also in 2020, Pierre paid $425 that was due when he filed his 2019 state income tax return and made estimated payments of $1,190 towards his 2020 state income tax liability. When Pierre files his 2020 Federal income tax return in April 2021, he elects to itemize deductions, which amount to $17,450, including the state income tax payments and withholdings, all of which reduce his taxable income. a. What is Pierre's 2020 state income tax deduction
Answer:
$3,315
Explanation:
Calculation to determine Pierre's 2020 state income tax deduction
Using this formula.
2020 state income tax deduction=State income tax withheld+State income tax return amount due+State income tax liability
Let plug in the formula
2020 state income tax deduction=$1700+$425+$1190
2020 state income tax deduction=$3,315
Therefore Pierre's 2020 state income tax deduction is $3,315
When the sales department needs to hire more staff, the corporate skills inventory system was used to determine if any current employees had the skills needed for the new position. This is an example of :________. .
Answer: Internal recruiting
Explanation:
Internal recruiting is when an organization fills its vacancies from its existing workforce.
In this case, rather than looking for applicants to the position outside the company, the company fills the available position with some of its staff. On the other hand, external recruitment is when the position is filled by outsiders.
Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co.
Required:
a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order.
b. Briefly explain the reason why accepting this additional business will increase operating income.
c. What is the minimum price per unit that would produce a positive contribution margin?
Answer:
18000*2
Explanation:
g The liquidity trap refers to the situation where Multiple Choice the Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand. excessive consumer debt limits the growth in consumer spending necessary to bring the economy out of recession. the public debt is so large that federal borrowing drives up interest rates and discourages private sector spending. a financial crisis causes a run on banks and the elimination of billions in excess reserves.
Answer:
The Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand
Explanation:
liquidity trap can be regarded as a case whereby monetary policy becomes ineffective as a result of very low interest rates, and activities of
consumers, whereby consumer will prefer saving their money instead of
investing it in some investment as well as higher-yielding bonds. It should be noted that the The liquidity trap refers to the situation where The Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand