The maximum depreciation deduction including §179 expensing for Lenter LLC's machinery and equipment (seven-year property) with a basis of $1,600,000 placed in service on April 29, 2019, would be $1,102,807.
The maximum depreciation deduction including §179 expensing for Lenter LLC's machinery and equipment (seven-year property) with a basis of $1,600,000 placed in service on April 29, 2019, would be:
First, apply §179 expensing to the basis of the property. For 2019, the maximum §179 deduction was $1,020,000, and the phase-out threshold began at $2,550,000. Since Lenter's basis of $1,600,000 is less than the phase-out threshold, it can take the full §179 deduction. Therefore, the adjusted basis of the property for depreciation purposes is
$580,000 ($1,600,000 - $1,020,000).
Next, calculate the maximum depreciation deduction using the Modified Accelerated Cost Recovery System (MACRS) seven-year property depreciation table. For property placed in service in 2019, the first-year depreciation rate for seven-year property is 14.29%. Therefore, the maximum depreciation deduction for Lenter would be
$82,807 ($580,000 x 14.29%).
So, the maximum depreciation deduction for Lenter LLC, including §179 expensing, would be $1,102,807 ($1,020,000 + $82,807).
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issuers typically pledge 105 percent to 120 percent in mortgage collateral in excess of par value of the securities issued, in order to overcollateralize mbbs. group startstrue or falsetrue, unselectedfalse, unselectedgroup ends
Issuers typically pledge 105 percent to 120 percent in mortgage collateral in excess of par value of the securities issued, in order to overcollateralize mbbs is True.
Issuers typically pledge 105 percent to 120 percent in mortgage collateral in excess of par value of the securities issued, in order to overcollateralize MBBS (Mortgage-Backed Bond Securities). This is true, which is why overcollateralization is used in mortgage-backed securities to ensure the bondholders that they will receive a regular payment on their investments.
Overcollateralization helps in reducing the risks associated with investment in securities issued by the bank and also provide additional security to the bondholders. This additional security to the bondholders is in the form of mortgages held in the pool by the trustee.
These mortgage pools must be created with the same type of mortgages and should be similar in nature, which helps in minimizing risks associated with the bonds issued.
Thus, the use of overcollateralization helps in reducing risks associated with the investment in mortgage-backed securities.
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What two aspects are critical to organizational change efforts and foundational to the HR function in managing change?
Select one:
a. clarifying and communicating the policies and total reward systems
b. initiating and evaluating all human resource functions
c. integrating business strategy with all human resource functions training and education
d. clarifying and communicating the values and organizational learning
Option (c), Training and education are two factors that are essential to organizational change efforts and the cornerstone of the HR function in managing change, and they should be integrated with all human resource functions.
What essential components are driving organizational change?The literature analysis reveals that a range of organizational factors, including the organization's structure, size, project capabilities, clients, leadership, rivalry, culture, teamwork, and change preparedness, have an effect on business transformation projects.
Using their familiarity with the organization's employees, HR professionals can use their assistance with change management in two key ways: 1) by participating in the planning and execution phases with other managers to ensure that general change objectives are met; and 2) by understanding the needs and expectations of the organization's workforce during a change.
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Once signed a lease cannot be changed, even if conditions change
dramatically True or False
Answer:
False
Explanation:
If you have a reasonable lawyer they can change any lease depending on your circumstance. also depends on the lease
Explanation:
True. A landlord cannot make changes to a lease after either party signs it
What are the differences between a Markov chain in discrete time and continuous-time Markov chains?
Markov chain in discrete time is a sequence of random variables, also referred to as states. Continuous-time Markov chains, on the other hand, are stochastic processes where the sequence of state transitions occurs at random times, which might be non-integer.
Discrete-time Markov chains are probabilistic models that describe the evolution of a system in discrete time steps. Each time step is independent of all other time steps, meaning the probability of transitioning from one state to another is dependent only on the current state. In discrete time, the sequence of state transitions occurs at certain points in time, usually at integer values.
Continuous-time Markov chains, on the other hand, are probabilistic models that describe the evolution of a system over a continuous period of time. In this case, the probability of transitioning from one state to another is dependent on the current state and the elapsed time since the last state transition. These kinds of chains arise naturally when events happen randomly over time.
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the customer value proposition lays out the company's approach to multiple choice meeting profitability guidelines without the risk of losing customers. operating efficiently given the current level of customers. embracing rival company approaches to gaining customers. satisfying customer wants and needs at a price that customers will consider a good value. assuring that the company makes enough profits based on its per-unit cost.
The customer value proposition lays out the company's approach to satisfying customer wants and needs at a price that customers will consider a good value. A customer value proposition is a promise of value that a company intends to provide its customers in exchange for payment.
A company's customer value proposition should describe the key customer segments the company aims to serve, the value offered to each customer segment, and the company's plan to achieve this value. Discuss the given options: Option 1: Meeting profitability guidelines without the risk of losing customers is a company's goal rather than a customer value proposition.
Option 2: Operating efficiently given the current level of customers is a company's goal rather than a customer value proposition.
Option 3: Embracing rival company approaches to gaining customers is a company's goal rather than a customer value proposition.
Option 4: Satisfying customer wants and needs at a price that customers will consider a good value is a customer value proposition.
Option 5: Assuring that the company makes enough profits based on its per-unit cost is a company's goal rather than a customer value proposition.
In light of the above discussion, it is apparent that satisfying customer wants and needs at a price that customers will consider a good value is the correct option.
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The last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts (for the same four weeks) were 60, 80, 95, and 75 units. Calculate MAD, MSE, and MAPE for these four weeks.
Sales
Forecast
Error
Error squared
Pct. error
80
60
20
400
.25
100
80
20
400
.20
105
95
10
100
.095
90
75
15
225
.167
The last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts (for the same four weeks) were 60, 80, 95, and 75 units. Calculate MAD, MSE, and MAPE for these four weeks.
Sales
Forecast
Error
Error squared
Pct. error
80
60
20
400
.25
100
80
20
400
.20
105
95
10
100
.095
90
75
15
225
.167
The MAD for these four weeks is 16.25, the MSE is 281.25, and the MAPE is .178.
To calculate MAD (Mean Absolute Deviation), MSE (Mean Squared Error), and MAPE (Mean Absolute Percentage Error) for these four weeks, we need to first calculate the error, error squared, and percentage error for each week. These values are then used to calculate the MAD, MSE, and MAPE.
MAD = (Sum of absolute errors) / (Number of weeks)
= (|20| + |20| + |10| + |15|) / 4
= (65) / 4
= 16.25
MSE = (Sum of squared errors) / (Number of weeks)
= (400 + 400 + 100 + 225) / 4
= (1125) / 4
= 281.25
MAPE = (Sum of absolute percentage errors) / (Number of weeks)
= (.25 + .20 + .095 + .167) / 4
= (.712) / 4
= .178
Therefore, the MAD for these four weeks is 16.25, the MSE is 281.25, and the MAPE is .178.
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which of the following situations will result in recognizing a gain on sale of a plant asset? multiple choice question. an asset that cost $5,000 with accumulated depreciation of $3,000 is sold for $1,500. a fully depreciated asset is sold for $1,000. an asset with book value of $2,000 is sold for $2,000. an asset with a book value of $2,000 is sold for $1,500. a fully depreciated asset is discarded.
The situation that will result in recognizing a gain on the sale of a plant asset is: An asset with a book value of $2,000 is sold for $2,000. Therefore, option C is correct.
A plant asset is also known as a fixed asset or property, plant, and equipment (PPE). It refers to long-term real assets that are used in the operations of a business.
These assets are not intended for sale as part of the company's normal course of business. They are typically expected to provide economic benefits to the company over a long period of time, usually more than one accounting period.
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A company just issued $497000 of perpetual 6% debt and used the proceeds to repurchase stock. The company expects to generate 127000 of EBIT in perpetuity. The company distributes all its earnings as dividends at the end of each year. The firm’s unlevered cost of capital is 15% and the tax rate is 40%. Use APV method to calculate the value of the company with leverage.
Given Information: Amount of perpetual 6% debt = $497,000EBIT in perpetuity = $127,000Unlevered cost of capital = 15%Tax rate = 40%Using APV method to calculate the value of the company with leverage Solution: APV Method APV method stands for Adjusted Present Value method.
APV method is a financial approach that calculates the net present value (NPV) of an investment as the sum of the NPVs of all related cash flows, including the impact of financing. It takes into account the value of debt tax shields and other financing side effects. In APV method, the following steps are involved:
1. Calculate the present value of free cash flows to the firm (FCFF) for each year of explicit forecast period.
2. Calculate the present value of tax shield (PVTS).
3. Add the present value of the tax shield to the present value of free cash flows to the firm (PVFCFF) to find the value of the firm.Calculations1. PV of FCFF The formula to calculate PV of FCFF is: PVFCFF = FCFF / (1 + k) where k = unlevered cost of capital FCFF = EBIT (1 - tax rate) + Depreciation - Capital expenditure - change in working capital The calculations are as follows: Year EBIT(1- tax rate)Depreciation Capital expenditure Change in working capitalFCFF$127,000(1 - 0.4)$0$0$0$76,200PVFCFFYear 1PVFCFF= $76,200 / (1+0.15) = $66,086.96(Note: The FCFF value remains constant throughout all years, hence we don't need to calculate for year 2 onwards)2. PV of Tax Shield PV of tax shield is the present value of the tax shield generated by interest tax-deductible payment on debt. The formula to calculate PV of tax shield is: PVTS = Tax shield / (1 + k) where k = unlevered cost of capital Tax shield = Interest payment x Tax rate Year Debt balance Interest payment Tax shield$497,000$29,820$11,928PVTSYear 1PVTS = $11,928 / (1+0.15) = $10,365.22(Note: The interest payment remains constant throughout all years, hence we don't need to calculate for year 2 onwards)
4. Value of the Firm The formula to calculate the value of the firm is: Value of the firm = PVFCFF + PVTS Value of the firm = $66,086.96 + $10,365.22Value of the firm = $76,452.18Therefore, the value of the company with leverage using APV method is $76,452.18.
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Malvolio Ltd traded its delivery van in for a new van on the 31st December 2016. The old van was purchased during the year ended the 31st December 2011 for £28,000, and has been depreciated using 15% straight line (a full year depreciation is charged in the year of purchase, none in the year of sale).
The purchase price of the new van is £35,000 but Malvolio Ltd only needed to pay £27,000 following the trade in.
The gain or loss on disposal of the old van is:
£8,000 gain
£1,000 gain
£1,000 loss
£8,000 los
The gain or loss on disposal when the old van is sold, can be found to be B. £1,000 gain
How to find the gain or loss on disposal ?First, find the amount that the old van was depreciated to from 2011 to 2016. This amount was a straight line depreciation which is :
= ( 28, 000 x 15 % ) x 5 years
= £21, 000
The netbook value of the van is:
= 28, 000 - 21, 000
= £ 7, 000
The gain on the old van is:
= Amount new van is worth - Amount paid by Malvolio - netbook value of old van
= 35, 000 - 27, 000 - 7, 000
= £ 1, 000 gain
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Q1. The local Toyota dealer from problem 2 is considering installing either a Q or P system for inventory control. The past standard deviation of demand has been 2.5 units per month, and the replenishment lead time is two months. A 95 percent service level is desired.
a. If a continuous review system is used, what is the value of Q and R that should be used? (5 Marks)
b. If a periodic review system is used, what is that mean? (5 Marks)
If a continuous review system is used, the value of Q and R is 71 units and 150 units respectively.
The continuous review system is used to monitor the inventory of the product continuously. In this method, the reorder point and order quantity are determined so that a minimum inventory level is maintained between the times when the order is placed and when the product is received. The maximum inventory level is also determined in this system.
The formula for finding the optimal order quantity in the continuous review system is:
Q* = √ (2DS / H)
Where Q* is the optimal order quantity, D is the annual demand, S is the setup cost per order, and H is the holding cost per unit per year.
The formula for the reorder point in the continuous review system is:
R = D * L
Where R is the reorder point, D is the daily demand, and L is the lead time.
If a continuous review system is used, the value of Q and R that should be used are:
Q* = √(2DS / H)
= √(2 * 2.5 * 24 / 0.2)
= 70.7 units (rounded to 71 units)
R = D * L
= 2.5 * 60
= 150 units
Note: The question is incomplete. The complete question probably is: The local Toyota dealer from problem 2 is considering installing either a Q or P system for inventory control. The past standard deviation of demand has been 2.5 units per month, and the replenishment lead time is two months. A 95 percent service level is desired. If a continuous review system is used, what is the value of Q and R that should be used?
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would your response to part e change if the st. cloud plant could use the facilities necessary to produce parts for job no. 110 for another job that could earn an incremental profit of $27,000?
Yes, my response to part e would change if the St. Cloud plant could use the facilities necessary to produce parts for job no. 110 for another job that could earn an incremental profit of $27,000.
The extra profit of $27,000 would make the St. Cloud plant an attractive option, and this would have to be taken into account when making a decision.
In order to determine the best course of action, an analysis would need to be conducted to compare the cost of production at the St. Cloud plant to the cost of production at other plants. The cost of labor, materials, overhead, and other production costs would need to be taken into consideration.
Additionally, the capacity of the St. Cloud plant and the demand for the new product would need to be evaluated to ensure that production would be successful. The decision should be made based on the total cost of production, considering the incremental profit of $27,000, and other factors.
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David, a member, is a sole practitioner CPA. Based on the work that David does for Jackson Spine, Inc., he is not independent with respect to the company. Jackson Spine, Inc. requires audited financial statements for its line of credit with Graymore Bank. The company has hired Hanson & Potter, CPA's to perform the audit and issue the audited statements to the bank. Hanson & Potter, CPA's would like to utilize David on the audit of Jackson Spine, Inc. because of his extensive experience with the client and his knowledge of the books and records. Would Hanson & Porter, CPA's use of David on the audit impair their independence with respect to Jackson Spine, Inc.?a) Hanson & Potter, CPA's is barred by the Code of Professional Conduct from using David on the audit for any purpose.b) As long as Hanson & Potter, CPA's uses David's work in a manner similar to an internal auditor and complies with AICPA Statements on Auditing Standards, their independence would not be impaired.c) David's lack of independence with respect to Jackson Spine, Inc. would not impair Hanson & Potter, CPA's independence because David's firm was not the firm engaged to perform the audit and issue the audited financial statements.
CPA's uses David's work in a manner similar to an internal auditor and complies with AICPA Statements on Auditing Standards, their independence would not be impaired. The correct answer is Option b)
This is because the AICPA Code of Professional Conduct allows for the use of non-independent individuals on an audit as long as their work is used in a manner similar to an internal auditor and the auditing firm complies with the AICPA Statements on Auditing Standards. The correct answer is Option b)
This means that Hanson & Potter, CPA's can use David's work as long as they treat it as they would the work of an internal auditor and follow the AICPA guidelines for using the work of non-independent individuals. As long as they do this, their independence with respect to Jackson Spine, Inc. would not be impaired.
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you invest $3,000 annually in a mutual fund that earns 10 percent annually, and you reinvest all distributions. how much will you have in the account at the end of 20 years?
To determine the total amount of money that will be available in the account after 20 years of an annual investment of $3,000 at a 10% annual interest rate, the future value of an annuity equation is applied.
The formula is expressed as follows:
FV = P [(1 + r)n - 1] / r
Where: P = periodic payment or investment ($3,000); r = annual interest rate (10%); and n = number of periods (20 years).
We can now substitute the values:
FV = $3,000 [(1 + 0.10)^20 - 1] / 0.10FV = $3,000 [(6.72750) - 1] / 0.10FV = $3,000 (5.72750) / 0.10FV = $172,725
Therefore, the total amount of money that will be available in the account after 20 years of an annual investment of $3,000 at a 10% annual interest rate is $172,725.
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Post adjusting entries to the T-accounts. Cash 7/1 13.200 7/1 2.200
7/21 1.760 7/5 2.040
7/18 1.650
7/20 2.200
7/31 320
7/31 660
Account receivable
7/12 4.070 7/21 1.760
7/25 2.750 ----- ------------
The supplies used =$790 -$280 =$510
Adjusting Journal Entry and Adjusted Trial BalanceCalculations:-
1. Prepaid Insurance expired =$1560 x1/12 months =$130
2. Supplies used =$790 -$280 =$510
Unadjusted balances refer to account balances that have not been corrected or modified for any adjustments or entries at the end of an accounting period.
These balances are typically the raw data from transactions that have been recorded in an organization's books.
Unadjusted balances serve as a starting point for the preparation of financial statements, but they may not accurately reflect the financial position or performance of an organization if there are errors, omissions, or other issues in the underlying transactions.
Therefore, it is important to make appropriate adjustments and corrections to the account balances before finalizing financial statements.
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If you can’t pay immediately, what is one course of action you can take? what are the criteria?
There are two main ways to make a tax payment. You can either set it up to have your bank account automatically debited.
Or you can pay the tax in person by mailing a check or calling us to arrange the payment of the outstanding tax.
Another way to pay our taxes is to send our refunds directly to them until your balance is paid in full.
If you are unable to pay your taxes immediately, one option is to send your refund directly to our office. Failure to pay by a certain date is punishable and the state can charge additional interest.
A tax is an amount of money that a government collects from people based on their income, the value of their property, and other factors, and is used to pay for government services.
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Complete question:
What are the two primary ways you can make tax payments? What is one other way you can pay? If you can’t pay immediately, what is one course of action you can take? What are the criteria?
Identify at least three risks that auditors need to consider for companies that process Web-based sales transactions, including credit card payments. For each risk identified, develop a mitigation risk strategy. Provide specific examples.
Auditors need to consider three risks for companies that process web-based sales transactions, including credit card payments: cybersecurity threats, revenue recognition, and compliance risks.
To mitigate the risk of cybersecurity threats, auditors can recommend implementing the latest encryption technologies and ensuring that all software and applications are up-to-date. For example, a mitigation strategy could be to implement two-factor authentication for customers that process credit card payments.
To mitigate the risk of revenue recognition, auditors need to ensure that companies are following the correct accounting policies and principles. A mitigation strategy could be to implement automatic fraud detection mechanisms to detect fraudulent transactions.
To mitigate compliance risks, auditors need to ensure that companies are following all the rules and regulations set by the government. A mitigation strategy could be to conduct regular audits of the company's financial statements and transactions to ensure compliance.
In summary, auditors can mitigate the risks of cybersecurity threats, revenue recognition, and compliance risks for companies that process web-based sales transactions by implementing appropriate mitigation strategies such as two-factor authentication, automatic fraud detection mechanisms, and regular audits.
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Tureno Bhd provides you with the following information relating to its expected output (per unit) for one of its product for December 2014:
Item Per unit Cost (RM) Total (RM)
Material X 2 kg 3.00 6.00
Material Y 3 kg 2.50 7.50
Material Z 4 kg 4.00 16.00
Skilled labour 3 hours 8.50 25.50
Semi-skilled labour 1 hour 6.50 6.50
The product is sold for RM 100 per unit and fixed costs for December 2014 are estimated at RM 40,000. The variable overhead cost per unit is RM 1.50. The maximum demand at this price is anticipated to be no more than 4,000 units. The resources available in December are believed to be as follows; material X, 20,000 kg; material Y, 18,000 kg; material Z, 12,000 kg; skilled labour, 12,000 hours; semi-skilled labour, 2,000 hours.
Required:
(a) Identify any shortfall of resources for the month of December 2014.
(b) Calculate the maximum profit if the company decided to increase the capacity of semi-skilled labour by 2,000 hours.
(c) Calculate the profit if the company eliminated all the scarce resources.
a) The shortfall of resources for the month of December 2014 are material X, material Y, material Z, skilled labour, and semi-skilled labour. b) The maximum profit if the company decided to increase the capacity of semi-skilled labour by 2,000 hours is $ 413,000. c) The profit if the company eliminated all the scarce resources is $193,000.
a) By analyzing the given information, it can be seen that there is a shortfall of resources for December 2014. Specifically, the total demand for the product (4,000 units) is higher than the available resources: material X (20,000 kg), material Y (18,000 kg), material Z (12,000 kg), skilled labour (12,000 hours), and semi-skilled labour (2,000 hours).
b) If the company increases the capacity of semi-skilled labour by 2,000 hours, the maximum profit can be calculated by adding the additional revenue from the 2,000 units produced to the total revenue from the 4,000 units (100 x 4,000 = 400,000). The additional revenue can be calculated by multiplying the additional 2,000 units by the cost of production for each unit (6.50 x 2,000 = 13,000).
Thus, the total profit for the company is 413,000 (400,000 + 13,000).
c) The profit if the company eliminates all the scarce resources can be calculated by subtracting the total cost of production (material X (6.00 x 4,000 = 24,000), material Y (7.50 x 4,000 = 30,000), material Z (16.00 x 4,000 = 64,000), skilled labour (25.50 x 4,000 = 102,000), semi-skilled labour (6.50 x 4,000 = 26,000) and variable overhead cost (1.50 x 4,000 = 6,000)) from the total revenue (400,000).
Thus, the total profit for the company is 193,000 (400,000 - 207,000).
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Propose a new product, service, or feature. Come up with 2 potential ideas—no matter what they are—for a product, service, or feature that you think will provide value or solve a need in your customers’ lives.
There are a multitude of potential products, services, or features that can provide value or solve a need in customers' lives and two ideas are Smart Grocery List App , Virtual Interior Designer.
Smart Grocery List App: This app would automatically track the items that you buy on a regular basis and create a grocery list for you based on your previous purchases.
It could also suggest new items that you might like based on your buying habits and provide coupons for the items on your list. This would save customers time and money while grocery shopping.
Virtual Interior Designer: This service would allow customers to upload pictures of their home and virtually try out different furniture, paint colors, and decor. It would also provide recommendations for products based on the customer's style and budget.
This would make it easier for customers to plan and visualize their home decor without having to physically move furniture or paint walls.
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Both of these ideas have the potential to provide value and solve a need in customers' lives by making everyday tasks easier and more efficient.
4. A product engineer has developed the following equation for the cost of a system component: C=(10P)2, where C is the cost in dollars and P is the probability that the component will operate as expected. The system is composed of two identical components, both of which must operate for the system to operate. The engineer ean spend $173 for the two components. To the nearest two decimal places, what is the largest component probability that ean be achieved?
Two components cost $173 to the engineer. • The cost of two components is equal to two (10P). • Component cost Equals component selling price.
What is an illustration of a component?
A single button in a graphical user interface, a little interest calculator, and an interface to a database management are all examples of user interface elements. Components of a network can be placed on various servers and communicate with one another to provide required services. The subject, predicate, punctuation, and capitalization are the key components of a sentence. The subject of the phrase performs the action or verb, while the direct object receives the action. The predicate of a sentence is formed by the verb and its objects.
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Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6789. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jason’s Social Security number is 111-11-1111, and June’s is 123-45-6788. Roberta does not want to contribute $3 to the Presidential Election Campaign Fund.
Roberta, an advertising executive, earned a salary of $80,000 in 2014. Her employer withheld $9,000 in Federal income tax and $3,100 in state income tax.
Roberta has legal custody of Jason and June. The divorce decree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during summer vacation. Wayne indicates that his expenses for Jason are $10,500. Roberta can document that she spent $6,500 for Jason’s support during 2014. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2014, she has decided not to do so. Robertaprovides all of June’s support.
Roberta’s mother died on January 7, 2014. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mother’s life insurance policy, Roberta received insurance proceeds of $300,000. Her mother’s cost basis for the life insurance policy was $120,000. Roberta’s favorite aunt gave her $13,000 for her birthday in October.
On November 8, 2014, Roberta sells for $22,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2009. Walt’s cost basis for the stock was $26,000, and the stock was worth $23,000 on December 5, 6-416-422009. On December 1, 2014, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2011, for $8,000.
An examination of Roberta’s records reveals that she received the following:
-Interest income of $2,500 from First Savings Bank.
-Groceries valued at $750 from a local grocery store for being the 100,000th customer
-Qualified dividend income of $1,800 from Amber
-Interest income of $3,750 on City of Springfield school bonds.
-Alimony of $16,000 from Wayne.
-Distribution of $4,800 from ST Partnership. Her distributive share of the partnership passive taxable income was $5,300. She had no prior passive losses.
From her checkbook records, she determines that she made the following payments during 2014:
-Charitable contributions of $4,500 to First Presbyterian Church and $1,500 to the American Red Cross (proper receipts obtained).
-Mortgage interest on her residence of $7,800
-Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car.
-Estimated Federal income taxes of $3,800 and estimated state income taxes of $1,000.
-Medical expenses of $5,000 for her and $800 for Jason. In December, her medical insurance policy reimbursed $1,500 of her medical expenses.
-A $1,000 ticket for parking in a handicapped space.
-Attorney’s fees of $500 associated with unsuccessfully contesting the parking ticket
-Contribution of $250 to the campaign of a candidate for governor.
-Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $994.
Calculate Roberta’s net tax payable or refund due for 2014. Use the appropriate forms and schedules. Complete cumulative tax problem, You will prepare the manual tax return utilizing – Form 1040 and Schedules A, B, D & E.
Tax Planning Response: Roberta is asking for your advice regarding her 2014 tax situation. She paid off the mortgage on her home in April 2013 with the insurance proceeds she received. June her daughter, is getting married in September and will file a joint tax return with her spouse. Roberta will be receiving a $30,000 bonus in May and is concerned that she have enough tax withheld given these changes. She would like you to project her taxable income and tax liability for 2014. She will not sell any stocks this year and will not receive any prizes, otherwise all other income items and itemized deductions will be the same except as noted above.
First, let's calculate Roberta's taxable income for 2014 Salary $80,000 Interest income from First Savings Bank $2,500 Qualified dividend income from Amber $1,800 Alimony received $16,000 Distribution from ST Partnership $4,800 Total Income $105,100.
What is an Income ?Income refers to the money that an individual or entity receives from various sources, such as employment, investments, business activities, and government benefits. It is generally considered as the inflow of economic resources, such as wages, salaries, interest, dividends, capital gains, and rental income. Income can be earned or unearned and may be subject to taxes or other types of deductions. It is a crucial factor in determining an individual's financial well-being and is used to calculate various tax liabilities and government benefits.
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assume the partial equity method is applied. how much equity income will kaye report on its internal accounting records as a result of fiore's operations?
Kaye would report $10,000 of equity income on its internal accounting records as a result of Fiore's operations.
Assuming that the partial equity method is applied, the amount of equity income that Kaye would report on its internal accounting records as a result of Fiore's operations can be calculated by the following formula:
Equity income = (Ownership percentage x Fiore's net income) - Dividends received
Assuming that Kaye owns 30% of Fiore, and Fiore's net income is $100,000 and Fiore pays a dividend of $20,000. Then Kaye's equity income from Fiore would be calculated as follows:
Equity income = (0.3 x $100,000) - $20,000
Equity income = $30,000 - $20,000
Equity income = $10,000
Therefore, equity income is $10,000 of Kaye by partial equity method on its internal accounting records as a result of Fiore's operations.
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Beckman Investments is considering an investment with the following cash flows:
CF0 -$500,000
CF1 $125,000
CF2 $150,000
CF3 $175,000
CF4 $630,000
What is the rate of return on this investment?
a.) 28.65%
b.)26.47%
c.)18.92%
d.)25.985%
Beckman Investments is considering an investment with the following cash flows:CF0 -$500,000CF1 $125,000CF2 $150,000CF3 $175,000CF4 $630,000The rate of return on this investment is approximately 26.47%.
To calculate the rate of return on this investment, the NPV is used, which can be calculated using the following formula: NPV = CF0 + CF1/(1+r) + CF2/(1+r)² + ... + CFn/(1+r)^n Here CF0, CF1, CF2, CF3, CF4 are the cash flows of years 0, 1, 2, 3, and 4, respectively. r = the rate of return, and n = the number of periods Let's plug the values of CF0, CF1, CF2, CF3, CF4 into the above formula.
NPV = -$500,000 + $125,000/(1+r) + $150,000/(1+r)² + $175,000/(1+r)³ + $630,000/(1+r)⁴To solve this problem, let's use a financial calculator to solve for r. When the above formula is solved using a financial calculator, the rate of return on this investment is approximately 26.47%, which is closest to the answer (b.)26.47%.Therefore, the correct answer is (b.)26.47%.
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The statement of cash flows classifies cash receipts and cash
payments into three different activities: operating, investing, and
financing.
Group of answer choices
True
False
The statement of cash flows classifies cash receipts and cash payments into three different activities: operating, investing, and financing. The statement is true.
The statement of cash flows is a financial statement that provides information about a company's cash receipts and cash payments during a particular period. It classifies these cash flows into three activities: operating, investing, and financing.
Operating activities are the cash flows that are related to the company's primary business activities, such as sales and purchases of goods and services. Investing activities are the cash flows that are related to the acquisition and disposal of long-term assets, such as property, plant, and equipment. Financing activities are the cash flows that are related to the company's capital structure, such as issuance or repayment of debt, and issuance or repurchase of equity shares.
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A Treasury bill has a face value of $250,000, matures in 32 days, has a bid yield of 2.50 percent and an asked yield of 2.02 percent. What is the selling price of this Treasury bill in the market? (Enter the answer accurate to two decimal places. Just enter a number - do not add a $ symbol or any other punctuation.)
A Treasury bill with a face value of $250,000 will have a selling price of the Treasury bill in the market is 249,098.92.
How to calculate the the selling price of this Treasury bill in the marketA Treasury bill, also known as a T-bill, is a short-term debt security issued by the U.S. government. Treasury bills have maturities of one year or less, and are sold in denominations ranging from $1,000 to $5,000,000.
Treasury bills are typically sold at a discount to face value, and pay no interest until maturity, at which point the holder receives the full face value of the bill.
We can use the following formula to calculate the price of the Treasury bill:
Price = Face Value / (1 + Yield x Days to Maturity / 360)
Plugging in the given values:
Price = 250000 / (1 + 0.0202 x 32 / 360) = 249098.92
Therefore, the selling price of the Treasury bill in the market is $249,098.92.
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Over time, what can you say about the company's leverage? group of answer choices leverage is increasing leverage is decreasing leverage has a u-shape. Leverage is constant
Over time, about the company's leverage is increasing and leverage has a U-shape. The correct option is A and C.
Leverage is those amount of debt in which the company has in its mix of debt and equity or basically its capital structure. That company with more debt than average for its organization is said to be highly leveraged.
The debt and leverage is affected the cash flow statement and balance sheet of that company or organization. The type of cash flow has three type which is operating cash flow, investing cash flow, and financing cash flow. The type of leverage is categorized into two main types which are financial and operating leverage.
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on march 5, 2013, the dow jones industrial average set a new high. the index closed at 16,634.53, which was up 154.20 that day. what was the return (in percent) of the stock market that day?
On March 5, 2013, the Dow Jones Industrial Average established a new high. The index closed at 16,634.53, which was up 154.20 that day. The percentage return of the stock market that day was 0.93%.
Dow Jones Industrial Average (DJIA) is a popular index that monitors the stock market's performance. It is also known as the stock market index. It is a weighted index, which means that stocks with a greater market value have a more significant effect on the index's performance than stocks with a lower market value. The formula for calculating the return on investment is as follows:
Return on Investment = (Current Price - Original Price) / Original Price × 100.
By using the above formula, calculate the return on investment for March 5, 2013, as follows:
Return on Investment = (16,634.53 - 16,480.33) / 16,480.33 × 100
Return on Investment = 154.20 / 16,480.33 × 100
Return on Investment = 0.0093 × 100
Return on Investment = 0.93%
Therefore, the return (in percent) of the stock market that day was 0.93%.
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Mars Co. purchased a machine on January 1, 2021, for $2,500,000 for the express purpose of leasing it. The machine is expected to have a five-year life, with no salvage value, and be depreciated on a straight-line monthly basis. On January 1, 2021, Mars leased the machine to Dunbar Company for $750,000 a year for a four-year period with an implicit rate of 6%. Payments are due to Mars on January 1 of each year starting in 2021. This is an operating lease from the lessee perspective.
a. Create the journal entries for the lessee, Dunbar, for January 1, 2021
b. Create the journal entries for the lessee, Dunbar, for December 31, 2021.
a. The journal entry for Dunbar Company on January 1, 2021, is as follows: Lease Receivable $2,040,674, Lease Revenue $2,040,674 . b. The journal entry for Dunbar Company on December 31, 2021, is as follows: Lease Expense $750,000 Lease Payable $750,000
The lease receivable is calculated by discounting the lease payments using the implicit rate of 6%. The present value of the lease payments over the four-year period is $7,793,000. Therefore, the monthly lease payment is $162,766 ($7,793,000/48).
The journal entry for Dunbar Company on December 31, 2021, is as follows: Lease Expense $750,000 Lease Payable $750,000 The lease payment of $750,000 is due to Mars on January 1, 2022.
However, since the lease is an operating lease, the lessee recognizes the lease expense for the period ending December 31, 2021. The lease expense is calculated as the total lease payments ($750,000 per year) divided by the number of periods (12 months).
Therefore, the lease expense for December 31, 2021, is $62,500 ($750,000/12). In summary, Dunbar Company recognized lease revenue of $2,040,674 on January 1, 2021, and lease expense of $62,500 on December 31, 2021.
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when there is excess demand in the loanable funds market, which of the following will occur? responses national savings will exceed investment spending. national savings will exceed investment spending. the economy will remain at full employment. the economy will remain at full employment. real interest rates will increase. real interest rates will increase. an inflationary gap will exist. an inflationary gap will exist. the money supply will increase.
When there is excess demand in the loanable funds market, the real interest rates will increase. This will lead to a decrease in borrowing and an increase in saving.
The loanable funds market is a market where lenders lend and borrowers borrow money. This market comprises savers, borrowers, and financial intermediaries, including banks, insurance companies, pension funds, and so on.
When there is excess demand in the loanable funds market, this means that there is more demand for money or loans than there is the supply of loans. This will lead to a scarcity of loans, and lenders will have more bargaining power, which leads to an increase in interest rates. When the interest rate increases, the borrowers will have to pay more interest on the loans, and this will lead to a decrease in borrowing.
The borrowers will have to pay more interest on the loans, and this will lead to a decrease in borrowing, which will lower the demand for money. As a result, the demand for loans decreases, and the interest rates come down. Hence, when there is excess demand in the loanable funds market, the real interest rates will increase.
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The following data relates to the operations of Lancelot plc: The company uses between 5000 units and 25000 units of material A and between 4000 units and 15000 units of material B. suppliers can supply material A within 1 to 3 months after ordering whiles material B may be supplied within 1 to 2 months. The company decides to keep a maximum stock level of 80000 units and 60000 units of materials A and B respectively. Which of the following statement is correct?A. The reorder level of material A is 75000 units and the reorder quantity of material B is 30000 unitsB. The reorder level of material B is 30000 units whiles the reorder quantity of material A is 15000 unitsC. The reorder level of material A is 75000 units whiles the reorder quantity of material A is 34000 unitsD. The reorder level of material B is 30000 units whiles the reorder quantity of material A is 10000 units*
The correct statement is D. The reorder level of material B is 30000 units while the reorder quantity of material A is 10000 units.
The reorder level is the level at which you should place an order to the supplier to replenish your stock. This is calculated by adding the maximum stock level to the lead time (in this case, the time it takes to receive the order from the supplier).
For material A, the maximum stock level is 80000 units and the lead time is 3 months, giving a reorder level of 80000 + (3 x 5000) = 95000 units. The reorder quantity for material A is the difference between the maximum stock level and the reorder level, which is 80000 - 95000 = 15000 units.
For material B, the maximum stock level is 60000 units and the lead time is 2 months, giving a reorder level of 60000 + (2 x 4000) = 30000 units. The reorder quantity for material B is the difference between the maximum stock level and the reorder level, which is 60000 - 30000 = 10000 units.
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If npv is conceptually the best tool for capital budgeting, why do you think multiple measures are used in practice? what is the relationship between the profitability index and the npv? are there any situations in which you might prefer one method over the other?
Although NPV is thought to be the most reliable and theoretically sound way for analysing capital budgeting choices, managers may employ several metrics based on the particular scenario or decision being made
The process of preparing a budget defines how a company will distribute its financial resources over a specific time period. It include forecasting future income and spending, deciding on priorities, and establishing performance goals. A crucial component of financial management is budgeting, which enables businesses to keep expenditures in check, allocate resources efficiently, and make long term plans. Accurate financial data, communication across departments and stakeholders, and a clear grasp of the organization's goals and objectives are necessary for effective budgeting. Budgeting helps companies to make educated decisions, adjust to changing conditions, and maintain long-term sustainability by defining clear financial goals and tracking performance against them.budgeting
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