Answer:
A. Balance Sheet
Merchandise Inventory $5,200 Understated
Current Asset $5,200 Understated
Total Assets $5,200 Understated
Owner's equity $5,200 Understated
B. Income Statement
Cost of merchandise sold $5,200 Overstated
Gross profit $5,200 Understated
Net income $5,200 Understated
C. Income Statement
Cost of merchandise sold $5,200 Understated
Gross profit $5,200 Overstated
Net income $5,200 Overstated
Explanation:
A. Calculation to State the effect of the error on the December 31, 20Y2, balance sheet of Missouri River Supply
BALANCE SHEET
Merchandise Inventory $5,200 Understated
Current Asset $5,200 Understated
Total Assets $5,200 Understated
Owner's equity $5,200 Understated
($238,600-$233,400)
B. Calculation to State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 20Y2.
INCOME STATEMENT
Cost of merchandise sold $5,200 Overstated
Gross profit $5,200 Understated
Net income $5,200 Understated
($238,600-$233,400)
C. Calculation to determine what would be the effect of the error on the 20Y3 income statement If uncorrected
INCOME STATEMENT
Cost of merchandise sold $5,200 Understated
Gross profit $5,200 Overstated
Net income $5,200 Overstated
($238,600-$233,400)
Brightstone Tire and Rubber Company has capacity to produce 204,000 tires. Brightstone presently produces and sells 156,000 tires for the North American market at a price of $100 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 24,000 tires for $86.5 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows:
Direct materials $54
Direct labor 24
Factory overhead (62% variable) 24
Selling and administrative expenses (44% variable) 25
Total $127.00
Brightstone pays a selling commission equal to 4% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $7.65 per tire. In addition, Euro has made the order conditional on receiving European safety certification. Brightstone estimates that this certification would cost $165,424.
Required:
a. Prepare a differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors.
b. Determine whether the company should reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors
c. What is the minimum price per unit that would be financially acceptable to Brightstone?
Answer:
Brightstone Tire and Rubber Company
a. Differential Analysis dated January 21
Alternative 1 Alternative 2
Reject Accept
Revenue from special order ($2,076,000) $2,076,000
Avoidable costs 2,493,120 2,831,520
Cost Differential ($417,120) ($755,520)
b. The company should reject the special order from Euro Motors as it will incur more costs when it accepts than when it rejects the special order.
c. The minimum price per unit that would be financially acceptable to Brightstone is $117.98.
Explanation:
a) Data and Calculations:
Production capacity in tires = 204,000
Current production and sales units = 156,000
Selling price per tire for the North American market = $100
Special order of 24,000 tires from Euro Motors = $86.50 per tire
Total cost per tire: Total Variable
Direct materials $54 $54
Direct labor 24 24
Factory overhead (62% variable) 24 14.88
Selling and administrative expenses (44% variable) 25 11
Total $127.00 $103.88
Special Order:
Offer price = $86.50
Reject Accept
Variable cost per unit $103.88 $2,493,120
Less selling commission (0.44)
Additional shipping cost 7.65
Cost of certification 6.89
Total per unit costs = $117.98 $2,813,520
Operating income (loss) ($31.48)
Parties to an administrative hearing may subpoena witnesses if they choose not to testify willingly.
True
False
Answer:
Parties to an administrative hearing may subpoena witnesses if they choose not to testify willingly.
True.
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm’s direct labor includes salaries of consultants that work at the client’s job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients.
Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 72,500 direct labor-hours would be required for the period’s estimated level of client service. The company also estimated $652,500 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm’s actual overhead cost for the year was $671,800 and its actual total direct labor was 77,550 hours.
Required:
1. Compute the predetermined overhead rate.
2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job:
Direct materials $ 43,500
Direct labor cost $ 23,400
Direct labor hours worked 300
Compute the total job cost for the Xavier Company engagement.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the predetermined overhead rate. (Round your answer to 2 decimal places.)
Predetermined overhead rate per DLH
Compute the total job cost for the Xavier Company engagement. (Round your intermediate calculations to 2 decimal places.)
Direct materials
Direct labor
Overhead applied
Total manufacturing cost
Answer:
1. $9.50 per Direct labor hour
2. $69,750
Explanation:
1. Computation for the predetermined overhead rate
First step is to calculate the Total Estimated overhead cost
Variable overhead cost $36,250
(72,500 Direct labor hours *$ 0.50 )
Add Fixed overhead cost $652,500
Total Estimated overhead cost $688,750
Now let calculate the predetermined overhead rate
Using this formula
Predetermined overhead rate = Total estimated overhead cost / Total estimated direct labor hours
Let plug in the formula
Predetermined overhead rate = $688,750 / 72,500
Predetermined overhead rate = $9.50 per Direct labor hour
Therefore Predetermined overhead rate will be $9.50 per Direct labor hour
2. Computation for the total job cost for the Xavier company Engagement
Direct Materials $43,500
Direct Labor $ 23,400
Overhead applied $2,850
(300 Direct labor * $9.50 )
Total Manufacturing cost $69,750
Therefore total job cost for the Xavier Company engagement will be $69,750
The Cluck-Cluck Corp. starts the year with a beginning inventory of 480 units at $23 per unit. The company purchases 590 units at $40 each in February and 560 units at $24 each in October. Cluck-Cluck sells 240 units during the year. Cluck-Cluck has a periodic inventory system and uses the FIFO inventory costing method. What is the amount of cost of goods sold
Answer:
the amount of the cost of goods sold is $5,520
Explanation:
The computation of the cost of goods sold is shown below;
= Unit sold × beginning inventory cost per unit
= 240 units × $23
= $5,520
By multiplying the unit sold with the beginning inventory cost per unit we can get the cost of goods sold
Hence, the amount of the cost of goods sold is $5,520
The same would be considered
Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2018. Insight Machines manufactured the equipment at a cost of $320,000 and lists a cash selling price of $437,424. Appropriate adjusting entries are made quarterly. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Related Information:
Lease term 5 years (20 quarterly periods)
Quarterly lease payments $24,000 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.
Economic life of asset 5 years
Interest rate charged by the lessor 4%
Required:
1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2018, and on March 31, 2018.
2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2018, and on March 31, 2018.
Answer:
Eye Deal Optometry and Insight Machines
Journal Entries for Eye Deal:
Debit Right of Use Asset $437,424
Credit Lease Liability $437,424
To record the right of use asset and lease liability.
Debit Lease Liability $22,906.44
Debit Interest Expense $1,093.56
Credit Cash $24,000
To record the first lease payment and interest expense.
March 31, 2018:
Debit Lease Liability $22,843.71
Debit Interest Expense $1,156.29
Credit Cash $24,000
To record the second lease payment and interest expense.
Journal Entries for Insight:
January 1, 2018:
Debit Lease Receivable $437,424
Credit Lease Asset $437,424
To record the lease receivable and asset.
Debit Cash $24,000
Credit Lease Receivable $22,906.44
Credit Interest Revenue $1,093.56
To record the first lease receipt and interest revenue.
March 31, 2018:
Debit Cash $24,000
Credit Lease Receivable $22,843.71
Credit Interest Revenue $1,156.29
To record the second lease receipt and interest revenue.
Explanation:
a) Data and Calculations:
Cost of equipment = $320,000
Cash selling price (fair market value/PV) = $437,424
Lease term = 5 years (20 quarterly periods)
Quarterly lease payments = $24,000
Lease Schedule for the first year:
Period PV PMT Interest FV
Jan. 1, 2018 $437,424.00 $24,000.00 $1,093.56 $462,517.56
Mar. 31 $462,517.56 $24,000.00 $1,156.29 $487,673.85
June 30 $487,673.85 $24,000.00 $1,219.18 $512,893.04
Sept. 30 $512,893.04 $24,000.00 $1,282.23 $538,175.27
Dec. 31 $538,416.17 $24,000.00 $1,406.04 $563,822.21
Starling Co. is considering disposing of a machine with a book value of $24,600 and estimated remaining life of five years. The old machine can be sold for $5,700. A new high-speed machine can be purchased at a cost of 65,300. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $23,300 to $19,600 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is a(n)
Answer:
The answer is "decrease of $41,100".
Explanation:
5-year cost-saving =[tex](23300-19600)\times 5 = \$18,500[/tex]
old machine Sale value = [tex]\$5,700[/tex]
Differential effect on income = cost savings for 5 years +Sale value of old machine - purchase cost of the new machine
[tex]= 18500+ 5700 - 65300\\\\= - 41,100[/tex]
Thomas believes that he has an NOL for the current year and wants to carry it back to a previous year and receive a tax refund. In determining his NOL, Thomas offset his business income by alimony payments he made to his ex-wife, contributions he made to his traditional Individual Retirement Account (IRA), and moving expenses he incurred. His reason for using these items in the NOL computation is that each item is a deduction for AGI.
Required:
Identify the relevant tax issues for Thomas
Answer:
The relevant tax issues for Thomas to consider are whether the amount of NOL would be reduced if ; payments made with regards to Alimony , Moving Expenses and contributions made to Traditional IRA are included .
Explanation:
The relevant tax issues for Thomas to consider are whether the amount of NOL would be reduced if ; payments made with regards to Alimony , Moving Expenses and contributions made to Traditional IRA are included .
according to rule : Non business deductions are limited in the Ongoing year's NOL hence Non business deductions made with regards to Alimony , Moving Expenses and contributions made to Traditional IRA are included the amount of NOL will reduce.
Eric works at an electronics store in a mall. Eric doesn't like to work hard, and it costs him $100 to do so. Eric's employer cannot observe whether Eric works hard. If Eric works hard, there is a 90% probability that electronics goods profits will equal $400 a day and a 10% probability that electronics goods profits will equal $100 a day. If Eric shirks, there is a 90% probability that electronics goods profits will equal $100 a day and a 10% probability that electronics goods profits will equal $400 a day. Suppose Eric is paid $200 if electronics goods profits are $400 a day and $50 if electronics goods profits are $100 a day. Eric will _____ because the net gain of _____ from shirking is _____ than the net gain of _____ from working hard.
Answer: work hard; $65; less; $85
Explanation:
The following can be deduced from the question:
The Expected profit from working hard will be:
= (90% × $200) + (10% × $50)
= (0.9 × $200) + (0.1 × $50)
= $180 + $5
= $185
Then, the profit will be the difference between revenue and coat which will be:
= $185 - $100
= $85
Then, the expected profit from shirking will be:
= (90% × $50) + (10% × $200)
= (0.90 × $50) + (0.10 × $200)
= $45 + $20
= $65
Then, the profit will be:
= $65 - $0
= $65
Eric will (work hard) because the net gain of ($65) from shirking is (less) than the net gain of ($85) from working hard.
Rock Adventures has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the actual direct deposit of payroll for the first week of January
Answer:
the actual direct deposit payroll is $12,843
Explanation:
The computation of the actual direct deposit payroll is shown below;
= Total salary - withholdings
= (15 × 40 × $30) - Federal income tax - state income tax - FICA tax
= $18,000 - ($18,000 × 0.15) - ($18,000 × 0.06) - ($18,000 × 7.65%)
= $12,843
Hence, the actual direct deposit payroll is $12,843
Basically we applied the above formula
Q.1.2.2 Explain the implications on Airbnb should South Africa implement a
command economy.
Answer:
Throughout the next part, the description of the question is detailed.
Explanation:
Airbnb had already expanded fast throughout South Africa but since its inception throughout 2015.
It received criticism from the established accommodation sector, like certain other innovative companies.Throughout order to assess Airbnb's impact, Creation story intelligence was requested for separate research to evaluate Airbnb's commercial importance.Based on the Marshall Laws of Derived Demand, labor demand is more inelastic when a. workers are making a product that uses a highly labor intensive technology b. workers are making a product with more inelastic demand c. workers are making a product that uses a capital input with elastic supply d. workers are making a product that uses a technology with a fixed labor-capital ratio
Answer:
b
Explanation:
According to Marshall Laws of Derived Demand, labor demand is more inelastic in the following circumstances :
the cost of employing labour constitutes a small proportion of the total cost of production.the demand for the product is relatively inelasticlabour cannot be easily substituted for in the production processwhen the supply of other factors of production is inelasticAardvark Enterprises has agreed to be acquired by Lawson Products in exchange for $16,000 worth of Lawson Products stock. Lawson has 1,100 shares of stock outstanding at a price of $15 a share. Aardvark has 1,700 shares outstanding with a market value of $21 a share. The incremental value of the acquisition is $3,800. What is the value of Lawson Products after the merger? $51,520 $41,440 $56,000 $49,280 $44,800
Answer: $56000
Explanation:
The value of Lawson Products after the merger will be calculated thus:
Number of shares = 1100
Price of share = $15
Value of Lawson share = $16500
Number of shares = 1700
Price of share = $21
Value of Aardvark share = $35700
Market value of both firms will be:
= $16500 + $35700
= $52200
We then less incremental earnings from the market value and this will be:
= $52200 + $3800
= $56000
Therefore, the value of Lawson Products after the merger is $56000
On January 1, Year 1, Eureka Company issued $290,000 of 4-year, 5% bonds at face value. The annual cash payment for interest is due on January 1 of each year beginning January 1, Year 2. Based on this information, what is the total amount of liabilities related to these bonds that will be reported on the balance sheet at December 31, Year 1
Answer:
$304,500
Explanation:
Interest payable on December 31, year 1 = $290,000 * 5%
Interest payable on December 31, year 1 = $14,500
Total amount of liabilities to be reported on the Balance Sheet, year 1:
= $290,000 + $14,500
= $304,500
So, the total amount of liabilities related to these bonds that will be reported on the balance sheet at December 31, Year 1 is $304,500.
The following selected account balances are taken from the records of Cooper Corporation for the past two years.
December 31
2018 2017
Equipment $750 $400
Accumulated depreciation 160 225
Land 92 50
Bonds payable 30 50
Common stock 120 100
Additional paid in capital 400 320
Retained earnings 825 675
Other information available for 2018:
Net income for the year was $200.
Depreciation expense on plant and equipment was $70.
Equipment with an original cost of $200 and Accum. Dep. of $135 was sold at a gain of $5.
No land was sold during the year.
Both new equipment and land were purchased during the year.
Bonds payable were retired
Common stock was issued for cash.
Cash dividends were declared and paid.
1. How much cash did Cooper Corp. receive from the sale of equipment?
a. 60
b. 135
c. 195
d. 70
e. None of the above
2. What is Cooper Corp's net increase (decrease) in cash from investing activities?
a. 18
b. (522)
c. (397)
d. (480)
e. None of the above
3. What is Cooper Corp's net increase (decrease) in cash from financing activities?
a. 50
b. (80)
c. 30
d. (50)
e. None of the above
Answer:
Cooper Corporation
1. Cash received from the sale of equipment:
= d. 70
2. Decrease in cash from investing activities:
= b. (522)
3. Increase in cash from financing activities:
= c. 30
Explanation:
a) Data and Calculations:
December 31
2018 2017 Change
Equipment $750 $400 +$350
Accumulated depreciation (160) (225) +65
Land 92 50 +42
Bonds payable 30 50 -20
Common stock 120 100 +20
Additional paid in capital 400 320 +80
Retained earnings 825 675 +150
Net income for the year = $200
Depreciation expense = $70
Less Gain from sale of equipment $5
Equipment
Account Titles Debt Credit
Beginning balance $400
Cash purchase 550
Sale of equipment $200
Ending balance 750
Sale of equipment
Equipment $200
Accumulated depreciation $135
Cash 70
Gain from sale 5
Retained earnings:
Beginning balance $675
Net income 200
Dividends 50
Ending balance 825
Statement of Cash Flows (partial):
Investing activities:
Sale of equipment $70
Purchase of equipment -550
Purchase of land -42
Decrease in cash $522
Financing activities:
Bonds payable -20
Common stock +20
Additional paid in capital +80
Dividends paid -50
Increase in cash $30
To combat a recession with discretionary fiscal policy, Congress and the president should A) decrease government spending to balance the budget. C) lower interest rates and increase investment by increasing the money supply. B) decrease taxes to increase consumer disposable income. D) raise taxes on interest and dividends, but not on personal income.
Answer:
B) decrease taxes to increase consumer disposable income.
Explanation:
Recession can be defined as a period of economic meltdown, in which there's a general decline in all economic activities such as trade.
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
Furthermore, if during a severe recession, Congress passes legislation to cut taxes, this would be an example of an expansionary fiscal policy.
According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers
Hence, to combat a recession with discretionary fiscal policy, Congress and the president should decrease taxes to increase consumer disposable income.
Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for $53,200 with an adjusted basis of $31,920 for $35,112. Later in the year, Lena sold another piece of equipment purchased two years ago with an adjusted basis of $15,960 for $10,374. What is the amount and character of Lena's gain or loss?
Answer:
Ordinary gain $3,192; Loss $5,586
Explanation:
Calculation to determine the amount and character of Lena's gain or loss
Based on the information given she has an ORDINARY GAIN § 1245 DEPRECIATION RECAPTURE of the amount of $3,192 calculated as ($35,112 − $31,920) from the sale of the first equipment as well as § 1231 LOSS of the amount of $5,586 ($10,374 − $15,960) from the sale of the second equipment.
Therefore the amount and character of Lena's gain or loss will be Ordinary gain of $3,192 and Loss of $5,586.
Indiana Co. began a construction project in 2021 with a contract price of $162 million to be received when the project is completed in 2023. During 2021, Indiana incurred $40 million of costs and estimates an additional $84 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed.
Suppose that, in 2022, Indiana incurred additional costs of $65 million and estimated an additional $52 million in costs to complete the project. Indiana (Do not round your percentage calculated):
A) Recognized $8.91 million gross profit on the project in 2022.
B) Recognized $11.91 million gross profit on the project in 2022.
C) Recognized $3.00 million loss on the project in 2022.
D) Recognized $8.91 million loss on the project in 2022.
Answer:
D) Recognized $8.91 million loss on the project in 2022.
Explanation:
The computation is shown below:
For Year 2021:
Percentage of work completed in the year 2021 is
= $40 ÷ ($40 + $84)× 100
= $40 ÷ $124 × 100
= 32.26%
Profit on the contract is
= Contract price - Already incurred cost - Expected cost
= $162 - $40 - $84
= $38
Profit to be recognized in the year 2016 is
= profit × percentage of completion
= $38 × 32.26%
= $12.256
For Year 2022:
Percentage of work completed in the year 2017 is
= ($40 + $65) ÷ ($40 + $65 + $52)
= $105 ÷ $157 × 100
= 66.88%
Profit on the contract is
= Contract price - Already incurred cost - Expected cost
= $162 - $40 - $65 - $52
= $5
Profit that should be recognized till the year 2017 is
= profit × percentage of completion
= $5 × 66.88%
= $3.344
Profit to be recognized in the year 2017 is
= $3.344 - $12.256
= 8.91 million loss
Given the following information, calculate the debt coverage ratio for this investment. Potential gross income: $120,000, Vacancy rate: 9%, Net operating income: $57,900, Operating expenses: $51,300, Acquisition Price: $520,000, Debt service: $40,000.
Answer:
the debt coverage ratio is 1.4475 times
Explanation:
The computation of the debt coverage ratio is shown below;
The Debt coverage ratio for investment is
= net operating income ÷ Total debt
= $57,900 ÷ $40,000
= 1.4475 times
BY dividing the net operating income by the total debt we can get the debt coverage ratio
hence, the debt coverage ratio is 1.4475 times
Assume that a profit-maximizing firm which competes in a purely competitive product industry has only two factor inputs, labor and capital, and that resource prices remain constant. This firm finds that the marginal revenue product of labor (MRP) when divided by the price for labor (MRC) is less than one. The firm also finds that the marginal revenue product for capital (MRP) when divided by the price (MRC) is greater than one. If this firm wishes to produce the same amount of output with these two resources, but minimize the cost of output, this firm must employ:________
a. less labor and more capital
b. more capital
c. more labor and capital
d. less labor
e. more labor and less capital
Answer: a. less labor and more capital
Explanation:
When the Marginal Revenue Product of Labor (MRP) is divided by the price for labor (MRC), the result is less than 1. This means that for every dollar spent on labor, labor produces less than a dollar. The labor is therefore not efficient.
This is the reverse for capital where the marginal revenue product for capital (MRP) when divided by the price (MRC) is greater than one which means that for every dollar investment in capital, more than a dollar is made.
As capital is more efficient, it would make sense to invest more in capital whilst reducing the investment in labor as this would lead to more gain for the company.
Harvey Hotels has provided a defined benefit pension plan for its employees for several years. At the end of the most recent year, the following information was available with regard to the plan: service cost: $6.2 million, expected return on plan assets: $1.2 million, actual return on plan assets: $1 million, interest cost: $1.4 million, payments to retired employees: $2 million, and amortization of prior service cost (created when the pension plan was amended causing a drop in the projected benefit obligation): $1.1 million. What amount should Harvey Hotels report as pension expense in its income statement for the year? Group of answer choices $7.5 million $8.7 million $7.7 million $1.4 million
Answer:
$7.5 million
Explanation:
Calculation to determine What amount should Harvey Hotels report as pension expense in its income statement for the year
Service cost $6.2 million
Add Interest cost $1.4 million
Less Expected return on plan assets($1.2 million)
Add Amortization of prior service cost $1.1 million
Pension expense $7.5 million
Therefore the amount that Harvey Hotels should report as pension expense in its income statement for the year is $7.5 million
Why would a Roth 401(k) investment plan allow you to invest the most amount of money?
Answer:
401k
Explanation:
investment plan allow you to invest the most amount of money? ... A Roth 401(k) plan takes money after tax has been removed from gross income, and has a contribution limit, but withdrawal is tax free. A Roth Individual Retirement Account allows you to draw a fixed amount that is not taxed.
The political business cycle refers to Group of answer choices the fact that about every four years some politician advocates greater government control of the Fed. the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected. the part of the business cycle caused by the reluctance of politicians to smooth the business cycle. changes in output created by the monetary rule the Fed must follow.
Answer:
the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.
Explanation:
A political business cycle can be defined as a business cycle that typically arises from the manipulation and tweaking of economic policy tools such as fiscal policy and monetary policy by incumbent (serving) politicians, in order to stimulate and enhance the economy of a particular country before an election. Thus, this would go a long way to boost the chances of the candidate representing the particular political party and reelection into office by the people.
Hence, the political business cycle refers to the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.
The Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.
Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).
Additionally, Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being such as Real GDP.
Sunland Company had the following department data: Physical Units Work in process, beginning 0 Completed and transferred out 90900 Work in process, ending 7800 Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?
Answer:
Equivalent units of production= 98,700
Explanation:
Giving the following information:
Physical Units Work in process, beginning 0
Completed and transferred out 90,900
Work in process, ending 7,800
Materials are added at the beginning of the process.
To calculate the equivalent units, we need to use the following formula:
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= 0 + 90,900 + 7,800*1
Equivalent units of production= 98,700
Because the materials are added at the beginning of the process, the percentage of completion is 100%.
what's the meaning of GDP?
what's the meaning of GDP?
It means Gross domestic product.
Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
Gross domestic product tracks the health of a country's economy. It represents the value of all goods and services produced over a specific time period within a country's borders. ... Investors can use GDP to make investments decisions—a bad economy means lower earnings and lower stock prices.
Stockton Company Adjusted Trial Balance December 31 Cash 6,175 Accounts Receivable 2,278 Prepaid Expenses 694 Equipment 14,639 Accumulated Depreciation 2,479 Accounts Payable 1,546 Notes Payable 4,744 Common Stock 1,000 Retained Earnings 12,765 Dividends 969 Fees Earned 6,312 Wages Expense 2,622 Rent Expense 708 Utilities Expense 449 Depreciation Expense 262 Miscellaneous Expense 50 Totals 28,846 28,846 Determine the total assets.
Answer:
$26,265
Explanation:
Assets are economic resources controlled by the entity from which future economic benefits are expected to flow into the entity.
Total Assets Calculation
Cash $6,175
Accounts Receivable $2,278
Prepaid Expenses $694
Equipment $14,639
Accumulated Depreciation ($2,479)
Total $26,265
Which of the following is an example of a positive economic statement? a. If crime rates reduced, the world would be a better place to live in. b. An increase in the price of gasoline will cause a reduction in the amount of gasoline purchased. c. Workers with families should be paid at least the minimum wage. d. Corrupt politicians ought to be voted out of office. e. Marginal tax rates should be reduced for individuals in the highest tax bracket.
Answer: An increase in the price of gasoline will cause a reduction in the amount of gasoline purchased.
Explanation:
An example of a positive economic statement is "when the price of gasoline should increase so this result in a decrease in the value of gasoline purchased.
The following information regarding the positive economic statement is as follows:
It disclosed the real situation. In this, the statement should be verified and begins with what scenarios i.e. what would be, what is, etc.It should depend upon the evidence and facts that should be measurable.Therefore, all the other options are incorrect.
Thus we can conclude that an example of a positive economic statement is "when the price of gasoline should increase so this result in a decrease in the value of gasoline purchased.
Learn more about economics here: brainly.com/question/17408105
Hordel Company needs to determine a markup for a new product. Hordel expects to sell 6,100 units and wants a target profit of $93 per unit. Additional information is as follows: Variable product cost per unit $ 80 Variable administrative cost per unit 35 Total fixed overhead 53,000 Total fixed administrative 11,050 Using the variable cost method, what markup percentage to variable cost should be used
Answer:
See below
Explanation:
Total variable cost = Variable product cost + Variable administrative cost per unit
= (6,100 × $80 per unit) + (6,100 × $35)
= $488,000 + $213,500
= $701,500
Total fixed cost = Total fixed overhead + Total fixed administrative cost
= $53,000 + $11,050
= $64,050
Total fixed cost per unit = $64,050 ÷ 6,100 = $10.5
Total cost = Total variable cost + Total fixed cost
= $701,500 + $64,050
= $765,550
Target profit = 6,100 × $93 = $567,300
Desired selling price = Total cost + Target profit
= $765,550 + $567,300
= $1,332,850
Desired selling price per unit = $1,332,850 ÷ 6,100 = $218.5
Therefore,
Markup percentage on variable cost
= [(Desired selling price per unit - Variable cost per unit) ÷ Variable cost per unit] × Variable cost per unit
= [($218.5 - 115) ÷ (115)] × 115
= 103.5%
On March 1, Bartholomew Company purchased a new stamping machine with a list price of $87,000. The company paid cash for the machine; therefore, it was allowed a 5% discount. Other costs associated with the machine were: transportation costs, $3,000; sales tax paid, $6,520; installation costs, $1,850; routine maintenance during the first month of operation, $2,900. What is the cost of the machine
Answer:
$94,020
Explanation:
Calculation for the cost of the machine using the formula below:
Cost of the machine = New stamping machine - (New stamping machine × Discount percentage) + Transportation + Sales tax + Installation
= $87,000 - ($87,000 × 5%) + $3,000 + $6,520 + $1,850
= $87,000 - $4,350 + $3,000 + $6,520 + $1,850
= $94,020
Therefore, cost of the machine is $94,020
Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $95,500) is worth $114,600 and Johnathan's land has a fair market value of $90,725, Johnathan also gives Logan cash of $23,875.
a. What is Logan's recognized gain?
b. Assume instead that Johnathan's land is worth $90,000 and he gives Logan $10,000 cash. Now what is Logan's recognized gain?
Answer:
A. $19,100 Recognized Gain or Fairmarket Value of ($23,875).
B.$19,100 Recognized Gain or Fairmarket Value of ($10,000).
Explanation:
a. Calculation to determine Logan's recognized gain
Based on the given information in a situation where Jonatha land is worth the amount of $90,725, which means Logan's RECOGNIZED GAIN will be $19,100, the lower of the REALIZED GAIN calculated as ($114,600 amount realized − $95,500 adjusted basis = $19,100) or the FAIRMARKET VALUE of the boot received of the amount of ($23,875).
b. Based on the information given assuming Johnathan and is been worth the Amount of $90,000 which therefore means that Logan's RECOGNIZED GAIN will be the amount of $19,100, the lower of the realized gain calculated as ($114,600 amount realized − $95,500 adjusted basis = $19,100) or the FAIRMARKET VALUE of the boot received OLog the amount of ($10,000).
Your financial investments consist of U.S. government bonds maturing in twenty years and shares in a start-up internet company. If interest rates on newly-issued government bonds increase, then the price of your bonds will _____ and the price of the shares you own will _____.
Answer:
Decrease, Decrease
Explanation:
From the question we are informed about my financial investments which consist of U.S. government bonds maturing in twenty years and shares in a start-up internet company. In the case whereby the interest rates on newly-issued government bonds increase, then the price of my bonds will decrease and the price of the shares you own will decrease. Financial investment can be regarded as asset which one put money on hoping that there will be growth of the asset and the asset will appreciate to sum of money larger than the asset. Bond is an example of this, a bond can be explained as fixed income instrument which is a representation of a loan that is set up by an investor given out to a borrower. This borrower could be governmental or Corporate.
The Owners of bonds could be
debtholders as well as creditors of the firm that issue it i.e the issuer. Details of bonds is " end date"