Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. The trial balances for the two companies on December 31, 20X7, included the following amounts:

Item Mortar Corporation Granite Company


Debit Credit Debit Credit

Cash $38,000 $25,000
Accounts Receivable 50,000 55,000
Inventory 240,000 100,000
Land 80,000 20,000
Buildings and Equipment 500,000 150,000
Investment in Granite Company Stock 202,000
Cost of Goods Sold 500,000 250,000
Depreciation Expense 25,000 15,000
Other Expenses 75,000 75,000
Dividends Declared 50,000 20,000
Accumulated Depreciation $155,000 $75,000
Accounts Payable 70,000 35,000
Mortgages Payable 200,000 50,000
Common Stock 300,000 50,000
Retained Earnings 290,000 100,00
Sales 700,000 400,00
Income from Subsidiary 45,000
$1,760,000 $1,760,000 $710,000 $710,000


Additional Information:

a. On January 1, 20X7, Granite reported net assets with a book value of $150,000 and a fair value of $191,250.
b. Accumulated depreciation on Buildings and Equipment was $60,000 on the acquisition date.
c. Granite's depreciable assets had an estimated economic life of 11 years on the date of combination.
d. The difference between fair value and book value of Granite's net assets is related entirely to buildings and equipment.

Required:
Give all journal entries recorded by Mortar related to its investment in Granite during 20X7.

Answers

Answer 1

Answer:

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Explanation:

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Related Questions

Two-Stage ABC for Manufacturing
Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year:
Activity Cost Pool Activity Cost Activity Cost Driver
Machine setup $720,000 12,000 setup hours
Material handling 120,000 3,000 material moves
Machine operation 680,000 10,000 machine hours
The following data are for the production of single batches of two products, C23 Cams and U2 Shafts during the month of August:
C23 Cams U2 Shafts
Units produced 500 300
Machine hours 4 5
Direct labor hours 200 400
Direct labor cost $5,000 $10,000
Direct materials cost $20,000 $15,000
Tons of materials 13 8
Setup hours 3 7
Determine the unit costs of C23 Cams and U2 Shafts using ABC.
Product Costs
C23 Cams U2 Shafts
Direct materials 30,000 $20,000
Direct labor 5,000 10,000
Manufacturing overhead
Machine setups 150 300
Material handling 780 480
Machine operation 100,000 X 75,000 X
Total job costs $135,930 X $105,830 X
Units produced 500 300
Cost per unit produced 271.86 352.77

Answers

Please find question  attached

Answer and Explanation:

Find answer and explanation attached

Identify cash equivalents from the listed items.

a. Money market funds
b. Supplies
c. Three-month Treasury bills
d. Accounts receivable
e. Prepaid rent

Answers

Answer:

Money market funds , Three-month treasury bills

Explanation:

Cash equivalents are the liquid current assets that are easily convertible into a known cash amount. Examples of cash equivalents are commercial paper, treasury bills, marketable securities, and money market holdings.

Stocks, bonds, and derivatives, are excluded from the category of cash equivalents.

Money market funds , Three-month treasury bills are considered as cash equivalents.

Broussard Skateboard's sales are expected to increase by 25% from $8.6 million in 2019 to $10.75 million in 2020. Its assets totaled $2 million at the end of 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 45%.

Required:
Use the AFN equation to forecast Broussard's additional funds needed for the coming year.

Answers

Answer:

$236,500

Explanation:

Using the AFN equation to forecast Broussard's additional funds

Sales expected in 2019 2,150,000

( 8,600,000* .25)

After-tax profit margin 430,000

(10,750,000*4%)

Dividend payments 193,500

[$430,000 * 45%]

Addition to retained earnings $236,500

[$430,000 - $193,500]

Therefore forecast Broussard's additional funds needed for the coming year will be $236,500

According to the table, which religion had the most active congregations in New Jersey in 1765?


New Jersey – Active Congregations (1765)

Answers

Answer:

Presbyterian

39

Dutch Reformed

Explanation:

just did it on edge ooga booga

Answer:

According to the table, which religion had the most active congregations in New Jersey in 1765?

✔ Presbyterian

How many Quaker congregations were there in 1765?  

✔39

There were the same number of Church of England congregations in New Jersey as

✔Dutch Reformed congregations.

Explanation:

You want to buy a house that costs $140,000. You have $14,000 for a down payment, but your credit is such that mortgage companies will not lend you the required $126,000. However, the realtor persuades the seller to take a $126,000 mortgage (called a seller take-back mortgage) at a rate of 5%, provided the loan is paid off in full in 3 years. You expect to inherit $140,000 in 3 years, but right now all you have is $14,000, and you can afford to make payments of no more than $22,000 per year given your salary. (The loan would call for monthly payments, but assume end-of-year annual payments to simplify things.)

Required:
a. If the loan was amortized over 3 years, how large would each annual payment be? Could you afford those payments?
b. If the loan was amortized over 30 years, what would each payment be? Could you afford those payments?
c. To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means that at the end of the third year, you would have to make the regular payment plus the remaining balance on the loan. What would the loan balance be at the end of Year 3, and what would the balloon payment be?

Answers

Answer:

Kindly check explanation

Explanation:

Given the following :

Cost of house = $140,000

Down payment = $14000

Take back mortgage = 126000 = PV

Rate (r) = 5%

Yearly payment one can afford = 22000

a. If the loan was amortized over 3 years, how large would each annual payment be? Could you afford those payments?

Number of period = 3

Using the relation:

PMT = r(PV) / 1 - (1 + r)^-n

PMT = 0.05(126000) / 1 - 1.05^-3

PMT = 6300 / (1-0.8638375)

PMT = 46,268.23

He won't be able to afford it, as the monthly payment is larger than the affordable amount of $22000

b. If the loan was amortized over 30 years, what would each payment be? Could you afford those payments?

PMT = r(PV) / 1 - (1 + r)^-n

PMT = 0.05(126000) / 1 - 1.05^-30

PMT = 6300 / (1-0.2313774)

PMT = 8196.48

He would be able to afford it, as the monthly payment is lower than the affordable amount of $22000

c. To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means that at the end of the third year, you would have to make the regular payment plus the remaining balance on the loan. What would the loan balance be at the end of Year 3, and what would the balloon payment be?

Present value of remaining balance after the 3rd year:

Present Value (PV) = PMT[(1 - (1 + r)^-n) / r]

Where

PMT = periodic payment = 8196.48

r = Interest rate = 5% = 0.05

n = number of periods = 30 - 3 = 27

PV = 8196.48[(1 - (1 + 0.05)^-27) / 0.05]

PV = 8196.48[(1 - (1. 05)^-27) / 0.05]

PV = 8196.48[0.7321516 / 0.05]

PV = 120,021.32

Balloon payment :

120,021.32 + 8196.48 = 128,217.80

a. The annual payment if the Mortgage was amortized over three years is $45,315.96 (Interest + Principal)

The Mortgage payments are not affordable because his affordability funds are limited to $22,000 annually.

Annual Amortization Schedule  

 Beginning Balance      Interest             Principal        Ending Balance

1             $126,000.00        $5,393.36        $39,922.60        $86,077.35

2              $86,077.35        $3,350.86          $41,965.10          $44,112.18

3                $44,112.18          $1,203.81           $44,112.15                 $0.00

b.  The annual payment if the Mortgage was amortized over thirty years is $8,116.80 (Interest + Principal)

The Mortgage payments are now affordable with his affordability amount of $22,000 per year.

Annual Amortization Schedule for the first three years:  

 Beginning Balance      Interest           Principal     Ending Balance

1            $126,000.00        $6,257.79        $1,859.01         $124,141.04

2             $124,141.04         $6,162.68        $1,954.12        $122,186.97

3            $122,186.97         $6,062.70       $2,054.10        $120,132.93

c. Payments made by the end of the third year were $5,867.07 with a balance of $120,132.93.

Data and Calculations:

Cost of house = $140,000

Down payment = $14,000

Mortgage value = $126,000($140,000 - $14,000)

Mortgage interest rate = 5%

Affordable annual payments = $22,000

Thus, the balloon payment is always based on an agreed percentage of the loan, which is not provided here.

Learn more: https://brainly.com/question/16653335 and https://brainly.com/question/14388610

A company issued 130 shares of $100 par value common stock for $15,400 cash. The total amount of paid-in capital in excess of par is:

Answers

Answer:

$2,400

Explanation:

For par stated shares, any amount paid in excess of the par value is called paid-in capital in excess of par and is included in shareholders equity reserves.

So, from the total price remove the par value price of 130 shares to determine the paid-in capital in excess of par.

Paid-in capital in excess of par = Total Paid - Price at Par

                                                   = $15,400 - (130 shares × $100)

                                                   = $2,400

You purchased a bond at a price of $13,100. In 15 years when the bond matures, the bond will be worth $30,000. It is exactly 7 years after you purchased the bond and you can sell the bond today for $21,300. If you hold the bond until it matures, what annual rate of return will you earn from today

Answers

Answer:

The annual rate of return is 2.10%

Explanation:

The computation of the annual rate of return is shown below:

Let us assume the annual rate of return be K

K is

= {Worth of the bond - selling price of the bond today)^(1 ÷ remaining time period) - 1

= [$30,000 ÷ $21,300]^(1 ÷ 8) - 1

= 2.10%

Hence, the annual rate of return is 2.10%

The same is to be considered

Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows:
Gasoline $2 per gallon
Diesel 1 per gallon
Kerosene 3 per gallon
Using the market value at split-off method, allocate the $12,000 joint cost of production to each product.
Joint Product Allocation
Gasoline $
Diesel
Kerosene
Totals $

Answers

Answer: See attachment

Explanation:

Allocation rate was calculated as:

Gasoline: 6830/13660 × 100 = 50%

Diesel: 2732/13660 × 100 = 20%

Kerosene: 1366/13660 × 100 = 30%

Cost to be allocated:

Gasoline = 50% × $12000 = $6000

Diesel: 20% × $12000 = $2400

Kerosene: 30% × $12000 = $3600

Check the attachment for further details.

How should you handle an employee who keeps coming to you asking for information regarding major policies, vacations, and benefit(s)?

Answers

Answer:

tell him to not talk about politics at work and stop asking for more vacations and benifits.

Explanation:

tell him arguing about policies means less work done. And if he would get more vacation days, and more benifits the other employees would think you are showing favoritism.

Target (TGT) recently earned a profit of $4.15 per share and has a P/E ratio of 23.19. Earnings have been growing at 11.5 percent per year over the past few years. If this growth continues, what would the stock price be in five years if the P/E ratio remains unchanged

Answers

Answer:

$165.85

Explanation:

Calculation for what would the stock price be in five years

First step is to calculate the EPS in 5 years

Using this formula

EPS in 5 years=EPS 0 (1+ Growth rate)^n

Let plug in the formula

EPS in 5 years=4.15*(1+11.5%)^5

EPS in 5 years=$7.1519

Now let calculate for the stock price in 5 years

Using this formula

Stock price in 5 years=P/E ratio*EPS in 5 years

Let plug in the formula

Stock price in 5 years=23.19*$7.1519

Stock price in 5 years=$165.85

Therefore what would the stock price be in five years is $165.85

research how consumers might use dispute resolution to resolve conflicts with businesses.

Answers

Answer:

The two most popular types of dispute resolution are mediation and arbitration. In mediation, a neutral third party — a mediator — helps you and the other party try to resolve the problem through facilitated dialogue. However, it's up to you and the other party to reach an agreement.

Explanation:

Answer:

what I researched is that

Explanation:

Explanation.

Crinkle Cut Clothes Company manufactures two products CC1 and CC2. Current direct material and direct labor costs are detailed below. Next year the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is estimated to be $350,640. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $20 per hour and the company expects to manufacture 42,000 units of CC1 and 111,000 units of CC2 next year.


CC1: Direct material per unit $37.10, Direct Labor Dollars Per Unit $22.40
CC2: Direct material per unit $25.20, Direct Labor Dollars Per Unit $15.40

Required:
Compute the plantwide overhead rate for next year.

Answers

Answer:

Units of what?

Explanation:

Pearsall Company's defined benefit pension plan had a PBO of $275,000 on January 1, 2021. During 2021, pension benefits paid were $45,000. The discount rate for the plan for this year was 11%. Service cost for 2021 was $88,000. Plan assets (fair value) increased during the year by $55,000. The amount of the PBO at December 31, 2021, was:

Answers

Answer:

$329,150

Explanation:

Calculation for the amount of the PBO at December 31, 2021

PBO/1/1 $265,000

Add Service Cost 80,000

Add Interest Cost 29,150

($265,000 x 11%)

Less Benefits Paid (45,000)

PBO 12/31 $329,150

Therefore The amount of the PBO at December 31, 2021, was: $329,150

Suppose you are the agent for a baseball pitcher. Suppose he is offered the following contract by the New York Yankees: a signing bonus of $3,000,000 (to be received immediately), a first year’s salary of $6,000,000 (to be received one year from today), a second year’s salary of $7,000,000 (to be received two years from today), and a third year’s salary of $8,000,000 (to be received three years from today). Suppose he is offered the following contracts by the San Francisco Giants: a signing bonus of $6,000,000, a first year’s salary of $5,500,000, a second year’s salary of $6,000,000, and a third year’s salary of $6,000,000.
If you believe the interest rate is 10%, which offer would you advise the pitcher to accept?
Would your advice change if you believed the interest rate were 5%?

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

New York Yankees:

Signing bonus= $3,000,000

Cf1= $6,000,000

Cf2=  $7,000,000

Cf3= $8,000,000

San Francisco Giants:

Signing bonus= $6,000,000

Cf1= $5,500,000

Cf2=  $6,000,000

Cf3= $6,000,000

The best option is the one with the higher Present Value.

To calculate the present value, we need to use the following formula on each cash flow:

PV= Cf/(1+i)^n

a) New York Yankees:

Cf0=3,000,000

Cf1= 6,000,000/1.1= 5,454,545.45

Cf2=  7,000,000/1.1^2= 5,785,123.97

Cf3= 8,000,000/1.1^3= 6,010,518.41

Total PV= $20,250,187.83

San Francisco Giants:

Cf0= 6,000,000

Cf1= 5,500,000/1.1= 5,000,000

Cf2= 6,000,000/1.1^2= 4,958,677.69

Cf3= 6,000,000/1.1^3= 4,507,888.81

Total PV= $20,466,566.5

At an interest rate of 10%, the contract of San Francisco Giants is the more profitable.

b) i= 5%

New York Yankees:

Cf0=3,000,000

Cf1= 6,000,000/1.05= 5,714,285.71

Cf2=  7,000,000/1.05^2= 6,349,206.35

Cf3= 8,000,000/1.05^3= 6,910,700.79

Total PV= $21,974,192.85

San Francisco Giants:

Cf0= 6,000,000

Cf1= 5,500,000/1.05= 5,238,095.24

Cf2= 6,000,000/1.05^2= 5,442,176.87

Cf3= 6,000,000/1.05^3= 5,183,025.59

Total PV= $21,863,297.7

At an interest rate of 5%, the contract of New York Yankees is the more profitable.

Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit 7 Macy returns 125 units because they did not fit the customer 's needs (invoice amount: $1,750). Allied restores 8 Macy discovers that 200 units are scuffed but are still of use and, therefore, keeps the units. Allied sends cash per unit (for a total cost of $20,000) terms 2/10, n/60. The goods cost Allied $15,000 the units, which cost $1,250, to its inventory. Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage allowances, and any cash discount. 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, Exercise 5-4 Recording sales, sales returns, and sales allowances LO P2
Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.) View transaction list Journal entry worksheet Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000).
Note: Enter debits before credits. Date General Journal Debit Credit May 03

Answers

Answer:

May 3 No Journal Entry

May 5

Dr Merchandise Inventory 21,000

Cr Accounts Payable 21,000

May 7

Dr Accounts Payable 1,750

Cr Merchandise Inventory 1,750

May 8

Dr Accounts Payable 300

Cr Merchandise Inventory 800

May 15

Dr Accounts Payable 18,950

Cr Merchandise Inventory 379

Cr Cash 18,571

Explanation:

Preparation of Journal entries

May 3 No Journal Entry

May 5

Dr Merchandise Inventory 21,000

(1,500 * $14 per unit )

Cr Accounts Payable 21,000

(To record the purchase of inventory)

May 7

Dr Accounts Payable 1,750

Cr Merchandise Inventory 1,750

(To record the purchase return)

May 8

Dr Accounts Payable 300

Cr Merchandise Inventory 800

(To record the allowance to Macy)

May 15

Dr Accounts Payable 18,950

($21,000-$1,750-$300)

Cr Merchandise Inventory 379

($21,000-$1,750-$300)*2%

Cr Cash 18,571

($21,000-$1,750-$300)*98%

(To record the payment on account)

Can anyone help me match these into the correct category?

Answers

Answer:

see below

Explanation:

Hotel chain owner

Owns all the products of the groupOwns the brand nameOwns all the properties in the groupRetains all profits of the group

Franchise hotel owner

Pays a fee to use the brand name and productsOwns one or more independent units

A hotel chain owner owns the entire business either as an individual or in a group. They have exclusive rights to the brand name of the business. They keep all the profits from the business but suffer all the losses.

A franchise is a business relationship where the business owner( the franchisor) grants a license to a third party ( the franchisee) to start and run a business similar to that of the franchisor. The franchisee gets permission to operates under the franchisor's brand name, colors, design, layout, and operating processes. They are allowed to trade franchisor's products and services.

The following balance sheet for the Hubbard Corporation was prepared by the company:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2016
Assets
Buildings $760,000
Land 280,000
Cash 70,000
Accounts receivable (net) 140,000
Inventories 260,000
Machinery 290,000
Patent (net) 110,000
Investment in marketable equity securities 80,000
Total assets $1,990,000
Liabilities and Shareholders' Equity
Accounts payable $225,000
Accumulated depreciation 265,000
Notes payable 520,000
Appreciation of inventories 90,000
Common stock, authorized and issued
110,000 shares of no par stock 440,000
Retained earnings 450,000
Total liabilities and shareholders' equity $1,990,000
Additional information:
1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $60,000 but, due to a significant increase in market value, is listed at $140,000. The increase in the land account was credited to retained earnings.
2. Marketable equity securities consist of stocks of other corporations and are recorded at cost, $30,000 of which will be sold in the coming year. The remainder will be held indefinitely.
3. Notes payable are all long-term. However, a $200,000 note requires an installment payment of $50,000 due in the coming year.
4. Inventories are recorded at current resale value. The original cost of the inventories is $170,000.
Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2016.

Answers

Answer:

                       HUBBARD CORPORATION

              Balance Sheet as at December 31, 2016

Assets                                                    Amount$

Current assets                                      

Cash                                                       70000  

Marketable securities                            30000  

Accounts receivable (net)                      140000  

Inventories                                              170000

Total current assets                               410000

Investments:

Marketable securities       50000

Land held for sale             60000

Total investments                                   110000  

Property, plant, and equipment:    

Land                                  140000    

Buildings                           760000

Machinery                         290000

                                          1190000

Less: Accumulated           -265000  

         depreciation

Net property, plant, and equipment     925000

Intangible assets:

Patent                                                         110000

Total assets                                               1555000

                                                  Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable                                                      225000

Current maturities of long-term debt                        50000

Total current liabilities                                               275000  

Long-term liabilities

Notes payable                                               470000

Shareholders’ equity:

Common stock, no par value                 440000

110,000 shares  authorized; 110,000      

shares issued and outstanding    

Retained earnings                                   370000

Total shareholders’ equity                                          810000

Total liabilities and shareholders’ equity                  1555000

Gilbert is considering purchasing the Side Steamer 3000, a higher-end steamer, which costs $12,000, and has an estimated useful life of 6 years with an estimated salvage value of $1,200. This steamer falls into the MACRS 5-years class, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The new steamer is faster and would allow for an output expansion, so sales would rise by $2,000 per year; even so, the new machine's much greater efficiency would reduce operating expenses by $1,400 per year. To support the greater sales, the new machine would require that inventories increase by $2,900, but accounts payable would simultaneously increase by $700. Gilbert's marginal federal-plus-state tax rate is 40%, and its WACC is 12%.
a. Should it replace the old steamer?b. NPV of replace = $2,083.51
SHOW WORK HOW TO GET THIS ANSWER

Answers

Answer:

Explanation:

initial outlay $12,000 + ($2,900 - $700) = $14,200

depreciable value = $10,800

depreciation per year:

$2,160$3,456$2,073.60$1,244.16$1,244.16$622.08

incremental revenues = $2,000 + $1,400 = $3,400

CF year 0 = -$14,200

CF year 1 = [($3,400 - $2,160) x 0.6] + $2,160 = $2,904

CF year 2 = [($3,400 - $3,456) x 0.6] + $3,456 = $3,422.40

CF year 3 = [($3,400 - $2,073.60) x 0.6] + $2,073.60 = $2,869.44

CF year 4 = [($3,400 - $1,244.16) x 0.6] + $1,244.16 = $2,537.66

CF year 5 = [($3,400 - $1,244.16) x 0.6] + $1,244.16 = $2,537.66

CF year 6 = [($3,400 - $622.08) x 0.6] + $622.08 + $1,200 + $2,200 = $5,688.83

 

WACC = 12%

a) the steamer should not be replaced, since the NPV is negative.

b) Using a financial calculator, NPV = -$14,200 + $13,298.29 = -$901.71

On January 1, 2021, NFB Visual Aids issued $720,000 of its 20-year, 8% bonds. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $600,000 as determined by their market value in the over-the-counter market. General (risk-free) interest rates did not change during 2021. (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.)
Required:
1-a. Determine the price of the bonds at January 1, 2021.
1-b to 4. Prepare the necessary Journal entries.

Answers

Answer and Explanation:

The computation of price of the bonds is shown below:-

Interest on Bond = Bond Face Value × Interest rate × 6 ÷ 12 months

= $720,000 × 8% × 6 ÷ 12

= $28,800

Present Value of interest payments = Interest on bond × PVAF(i%, n)

i = semi annual discounting rate = 10% × 6 ÷ 12

= 5%

n = number of semi annual periods

= 20 years × 2 periods

= 40 periods

Present Value of interest payments = $28,800 × PVAF(5%, 40)

= $28,800 × 17.15909

= $494,182

Present Value of Redemption Value = Redemption Value × PVF(5%, 40)

= $720,000 × 0.142046

= $102,273

Price of Bonds = $494,182 + $102,273

= $596,455

1-b The Journal entries are shown below:-

a. Cash Dr, 596,455

    Discount on Bonds Payable Dr, $123,545

                      To Bonds Payable $720,000

(Being the issuance of bonds is recorded)

b. Interest Expense Dr, $29,823 (596,455 × 10% × 6 ÷ 12)

             To Discount on Bonds Payable $1,023

             To Cash $28,800 ($720,000 × 8% × 6 ÷ 12)

(Being the first interest payment is recorded)

c. Interest Expense Dr, $29,874 (($596,455 + $1,023) × 10% × 6 ÷ 12)

              To Discount on Bonds Payable $1,074

              To Cash Dr, $28,800

($720,000 × 8% × 6 ÷ 12)

(To record the second interest payment)

d. Unrealized Holding Loss Dr, 1,448

                  To Fair Value Adjustment $1,448

(Being adjust the bonds to their fair value is recorded)

Working Notes:

1) Bonds Payable Value after adjusting Discount

= $596,455+$1,023+$1,074

= $598,552

Fair Value of Bonds as on Dec 31 = $600,000

Fair Value adjustment amount is

= $600,000 - $598,552

= $1,448

Use demand and supply diagrams (with proper labels and arrows) to show the effect of
a) a reduction in price of DVD Players on market for DVDs.
b) reports that eating chocolate adds to your life expectancy (!!) on the market for chocolate candy bars.
c) an additional $1 a pack sales tax on cigarettes along with a ban on advertising cigarettes.
d) automation in fast food industry on market for unskilled fast food workers.
e) an increase in interest rate on the stock market.
f) flooding in the southeast on market for fruits and vegetables.

Answers

Answer:

Please check the attached images for the graphs

Explanation:

a.DVD players and DVDs are complements

Complement goods are goods that can be used together. If the price of one Dvd payers falls, the demand for DVDs would increase. This would lead to a rightward shift of the demand curve. Equilibrium price and quantity would increase

b. As a result of the report, the demand for chocolate candy bars increases. This would lead to a rightward shift of the demand curve. Equilibrium price and quantity would increase

c. As a result of the policies, the demand for cigarettes would fall. This would lead to a leftward shift of the demand curve. Equilibrium price and quantity would fall.

d. As a result of the automation, there would be less need for unskilled labour. As a result, the demand for unskilled labour would fall. This would lead to a leftward shift of the demand curve. Equilibrium price and quantity would fall.

e. increase in interest rate increases the demand for bonds. This would lead to a rightward shift of the demand curve. Equilibrium price and quantity would increase

f. as a result of the flooding, there would be a reduction in supply. The supply curve would shift leftward. Equilibrium price would rise and equilibrium quantity would fall

Oriole Products manufactures two component parts: AJ40 and AJ60. AJ40 components are being introduced currently, and AJ60 parts have been in production for several years. For the upcoming period, 1,500 units of each product are planned for manufacturing. Assume that the only relevant overhead cost is for engineering change orders (any requested changes in product design or the manufacturing process). AJ40 components are expected to require 4 change orders and AJ60 only 2. Each AJ40 requires 1 machine hour, and each AJ60 requires 1.5 machine hours. The cost of a change order is $420.

Required:
Estimate the cost of engineering change orders for AJ40 and AJ60 components if Blue uses a traditional costing method and machine hours as the allocation base.

Answers

Answer:

Total allocated cost for AJ40 $189,000

Total allocated cost for AJ60 $283,500

Total $472,500

Explanation:

Calculation to Estimate the cost of engineering change orders for AJ40 and AJ60

First step is to calculate for the Total number of change orders

AJ40 AJ60

Units planned 1,500 1,500

÷No. of change orders 4 2

=Total number of change orders 375 +750=1,125

Second step is to for the Total cost of change order

AJ40 AJ60

Units planned 1,500 1,500

×Machine hours per unit 1 1.5

=Total machine hours required 1,500 + 2,250 =3,750

Third step is to find the Total cost of change order

AJ40 AJ60

Total number of change orders 375 750

× Cost of a change order $420 $420

=Total cost of change order $157,500 $315,00

Total cost of change order=$157,500 +$315,000

=Total cost of change order = $472,500

Now let Estimate the cost of engineering change orders for AJ40 and AJ60 using Traditional system

TRADITIONAL SYSTEM

Total allocated cost for AJ40 $189,000 (472,500*1,500/3,750)

Total allocated cost for AJ60 $283,500 (472,500*2,250/3,750)

Hence,

Total allocated cost for AJ40 $189,000+Total allocated cost for AJ60 $283,500

=$472,500

Bill and Ted are deciding what musical instruments they want to learn pick between the guitar, keyboard, and the drums to play for their band. They can They both want to have a good band, but also each has a preference over what to play. Both like the guitar over all else. However, Bill likes the keyboard more than the drums and Ted likes the drums more than the keyboard. What is crucial is that each chooses a different instrument, otherwise the band is pretty terrible. The actual combination does not affect the quality of the band. One night, Bill and Ted simultaneously reveal to each other what instrument they have bought and learned to play. Since they bought AND learned to play the instru- are committed to it! Given the information above, answer the following: ment they
1. Does either Bill or Ted have a dominant/dominated strategy? Explain
2. If Bill picks the keyboard, is it a best response for Ted to pick the drums? Explain
3. If Ted picks the guitar, is it a best response for Bill to pick the keyboard? Explain
4. Can there exist a Nash equilibrium in which Bill picks the drums and Ted picks the keyboard? Explain
5. Can there exist a Nash Equlibrium in which Bill picks the guitar and Ted picks the drums? Explain

Answers

Answer and Explanation:

1. There is no dominant strategy as each person has to respond with a different strategy like using a different instrument depending on the instrument chosen by the other to achieve best payoff

2. If Bill picks keyboard then it would be best for Ted to pick guitar as this is his preferred instrument which would bring best payoff

3. If Ted picks guitar, then bull should pick keyboard which he prefers and would be the best payoff

4. A nash equilibrium would not exist here since Ted should choose guitar if bull chooses drums and bill should choose guitar if Ted chooses keyboard

5. A Nash equilibrium can exist here since Ted should choose drums when bill chooses guitar.

The purpose of a bond sinking fund is to: Multiple Choice accumulate funds needed to pay the tax liability on the bond proceeds. accumulate funds to pay the regular interest payments. hold the bond proceeds until the funds need disbursed. repay bonds early either through purchases or calls. repay bondholders from a trust fund if the issuer defaults.

Answers

Answer:

repay bonds early either through purchases or calls.

Explanation:

A bond sinking fund can be defined as a restricted asset containing money owned by a company and set aside to repay bonds early or pay off a debt.

The purpose of a bond sinking fund is to repay bonds early either through purchases or calls. It is usually reported in the balance sheet after the current assets section.

Also, a bond sinking fund when properly implemented through the process of making regular deposit, helps to provide security for bondholders.

A $3.6 million state lottery pays $15,000 at the beginning of each month for 20 years. How much money must the state actually have in hand to set up the payments for this prize if money is worth 5.8%, compounded monthly

Answers

Answer:

Present Value= $2,128,538.66

Explanation:

Giving the following information:

Cash flow= $15,000

Number of periods= 20*12= 240

Interest rate= 0.058/12= 0.00483

First, we need to calculate the future value of the monthly payments:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV={15,000*[(1.00483^240) - 1]} / 0.00483

FV= $6,765,529.2

Now, the present value:

PV= FV/(1+i)^n

PV= 6,765,529.2 / 1.00483^240

PV= $2,128,538.66

Bill works at Peterbuilt on the assembly line producing truck frames. Bill is exceptionally knowledgeable about the equipment needed to do his job and often makes recommendations to management on the specifications for and alternative suppliers of needed equipment. Given Bill’s position on the assembly line as an operator, he probably functions in the buying center at Peterbuilt as a(n):

Answers

Answer:

A User

An Initiator

An Influencer

Explanation:

Bill’s position on the assembly line as an operator, he probably functions as a user, influencer, initiator by putting machines parts together, ensure maintenance, helps in decision making and also influence the sales of machines parts, negotiate sales and other duties.

How has the introduction of these markets, technologies and resources affected the lifestyle of the people of Cuba

Answers

Answer:

he economy of Cuba is a largely planned economy dominated by state-run enterprises. The government of Cuba owns and operates most industries and most of the labor force is employed by the state. Following the fall of the Soviet Union in 1991, the ruling Communist Party of Cuba encouraged the formation of worker co-operatives and self-employment. However, greater private property and free market rights were granted by the 2019 Constitution.[10][11] It has also been acknowledged that foreign market investment in various Cuban economic sectors increased before 2019 as well.[12][13]

As of 2000, public-sector employment was 76% and private-sector employment (mainly composed of self-employment) was 23% - compared to the 1981 ratio of 91% to 8%.[14] Investment is restricted and requires approval by the government. The government sets most prices and rations goods to citizens. In 2016 Cuba ranked 68th out of 182 countries, with a Human Development Index of 0.775, much higher than its GDP per capita rank (95th).[15]As of 2012, the country's public debt comprised 35.3% of GDP, inflation (CDP) was 5.5%, and GDP growth was 3%.[16]

Housing and transportation costs are low. Cubans receive government-subsidized education, healthcare and food subsidies.[17]

The country achieved a more even distribution of income after the Cuban Revolution of 1953–1959,[citation needed] which was followed by an economic embargo by the United States (1960- ). During the Cold War period, the Cuban economy was heavily dependent on subsidies from the Soviet Union, valued at $65 billion in total from 1960 to 1990 (over three times as the entirety of U.S. economic aid to Latin America), an average of $2.17 billion a year.[18] This accounted for anywhere between 10% and 40% of Cuban GDP, depending on the year.[19] While the massive Soviet subsidies did enable Cuba's enormous state budget, they did not lead to a more advanced or sustainable Cuban economy; although described by economists as "a relatively highly developed Latin American export economy" in 1959 and the early 1960s, Cuba's basic economic structure changed very little between then and 1990. Tobacco products such as cigars and cigarettes were the only manufactured products among Cuba's leading exports, and even these were produced by a preindustrial process. The Cuban economy remained inefficient and over-specialized in a few highly subsidized commodities provided by the Soviet bloc countries.[20] Following the collapse of the Soviet Union, Cuba's GDP declined by 33% between 1990 and 1993, partially due to the loss of Soviet subsidies[21] and a crash in sugar prices in the early 1990s. It rebounded in the early 2000s due to a combination of marginal liberalization of the economy and heavy subsidies from the friendly government of Venezuela, which provided Cuba with low-cost oil and other subsidies worth up to 12% of Cuban GDP annually.[22] Cuba retains high levels of healthcare and education.[23]

Contents

1 History

1.1 Before the Revolution

1.2 Cuban Revolution

1.3 Special Period

1.4 Recovery

1.5 Post-Fidel reforms

1.5.1 International debt negotiations

2 Sectors

2.1 Energy production

2.1.1 Energy sector

2.2 Agriculture

2.3 Industry

2.4 Services

2.4.1 Tourism

2.4.2 Retail

2.5 Finance

2.6 Foreign investment and trade

2.7 Currencies

2.8 Private businesses

3 Wages, Development, and Pensions

4 Public facilities

5 Connection with Venezuela

6 Economic freedom

7 Taxes and revenues

8 See also

9 References

9.1 Citations

9.2 Sources

10 External links

History

Before the Revolution

Although Cuba belonged to the high-income countries of Latin America since the 1870s, income inequality was high, accompanied by capit

Explanation:

hope it helps i took a long time plz mark as brainly

The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm. Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining-balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/2021 year-end financial statements for Company B:


Income Statement
Depreciation expense $12,500
Balance Sheet

Assets:
Plant and equipment, at cost $125,000
Less: Accumulated depreciation (50,000)
Net $75,000

You also determine that all of the assets constituting the plant and equipment of Company B were acquired at the same time, and that all of the $125,000 represents depreciable assets. Also, all of the depreciable assets have the same useful life and residual values are zero.

Required:
a. In order to compare performance with Company A, estimate what B's depreciation expense would have been for 2021?
b. If Company B decided to switch depreciation methods in 2021 from the straight line to the double-declining-balance method, prepare the 2021 journal entry to record depreciation for the year

Answers

Answer:

a. Company B's depreciation expense for 2021 is $12,800  

b. Accumulated Depreciation (Dr.) $23,800

Plant and equipment (Cr.) $23,800

Explanation:

The depreciation expense of 2021 will be $12,800. The cost of plant and equipment is $125,000.

Depreciation 2018 : $125,000 * 10% = 12,500 * 2 = $25,000

2019 : $125,000 - $25000 = $100,000 * 10% * 2 = $20,000

2020: $100,000 - $20,000 = $80,000 * 10% * 2 = $16,000

2021 : $80,000 - $16,000 = 64,000 * 10% * 2 = $12,800

Due to use, wear and tear, or obsolescence, the monetary worth of an object decreases with time. Depreciation is the term used to describe this reduction.

A.Company B's depreciation expense for 2021 is $12,800  

B. Accumulated Depreciation (Dr.) $23,800

Plant and equipment (Cr.) $23,800

Solution:-

The depreciation expense of 2021 will be $12,800. The cost of plant and equipment is $125,000.

Depreciation 2018 : $125,000 * 10% = 12,500 * 2 = $25,000

2019 : $125,000 - $25000 = $100,000 * 10% * 2 = $20,000

2020: $100,000 - $20,000 = $80,000 * 10% * 2 = $16,000

2021 : $80,000 - $16,000 = 64,000 * 10% * 2 = $12,800

To know more about depreciation, refer to the link:-

https://brainly.com/question/14971715

What is the growth rate of nominal​ GDP? Y0 real GDP= $1200 (in millions) Y1 real GDP= $1400 (in millions) Y0 price level= 125 Y1 price level= 140

Answers

Answer:

12%

Explanation:

The computation of the growth rate of nominal GDP is shown below:

As we know that

Nominal GDP = Real GDP × (Price level ÷ 100)

For

Nominal GDP, Y0

= $1,200 × (125 ÷ 100)

= $1,500

And,

Nominal GDP, Y1 is

= $1,200 × (140 ÷ 100)

= $1,680

Now the growth rate of nominal GDP is

= ($1,680 ÷ $1,500) - 1

= 12%

Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $45,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 5.5%. He currently has $100,000 saved, and he expects to earn 9% annually on his savings. How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal?

Answers

Answer:

Explanation:.

DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $8,000, an estimated life of 10 years, a salvage value of $1,000, and annual operating costs estimated at $0.01 per 1,000 gumdrops. Machine A37Y has a first cost of $8,000, a life of 10 years, and no salvage value. Its annual operating costs will be $260 regardless of the number of gumdrops produced. MARR is 6%/year, and 30 million gumdrops ware produced each year.
Based on an internal rate of return analysis, which machine should be recommended?

Answers

Answer:

I would recommend Machine 7745

Explanation:

Machine 7745

initial outlay = $8,000

operational costs per year = $300

depreciation cost per year = $700

salvage value (at year 10) = $1,000

total costs per year (1 - 9) = $1,000

total costs year 10 = $0

using an excel spreadsheet, the IRR = 2%. Since you are analyzing costs only, not incremental revenue, then you must select the project with the lowest IRR.

 

Machine A37Y

initial outlay = $8,000

operational costs per year = $260

depreciation cost per year = $800

total costs per year (1 - 10) = $1,060

using an excel spreadsheet, the IRR = 4%

 

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