Answer:
1. January 01, 2021
Dr Cash 513,221
Cr Premium on Bonds Payable 43,221
Cr Bonds Payable 470,000
2. June 30, 2021
Dr Interest Expense 17,963
Dr Premium on Bonds Payable 837
Cr Cash 18,800
3 December 31, 2021
Dr Interest Expense 17,933
Dr Premium on Bonds Payable 867
Cr Cash 18,800
Explanation:
1. Preparation of the journal entry Record the bond issue on January 1, 2021
January 01, 2021
Dr Cash 513,221
Cr Premium on Bonds Payable 43,221
(513,221-470,000)
Cr Bonds Payable 470,000
(To Record the bond issue )
2. Preparation of the journal entry to record the first two semiannual interest payments
June 30, 2021
Dr Interest Expense 17,963
(513,221*7%*6/12)
Dr Premium on Bonds Payable 837
(18,800-17,963)
Cr Cash 18,800
(470000*8%*6/12)
(To record first two semiannual interest payments)
3.Preparation of the journal entry to record the first two semiannual interest payments
December 31, 2021
Dr Interest Expense 17,933
(513,221*7%*6/12)
Dr Premium on Bonds Payable 867
(18,800-17,963)
Cr Cash 18,800
(470000*8%*6/12)
(To record first two semiannual interest payments)
A sum of money was shared
between Joan and Ngozi in the
ratio 5:3. If Joan's share was 40.00,
how much was the original sum of
money?
Answer:
6400
Explanation:
Let the shares of money for Joan and Ngozi be 5x and 3x respectively.
Joan's share = 40.00 (given)
Therefore,
5x = 40,00
x = 40,00/5
x = 800
5x + 3x
= 8x
= 8*800
= 6400
Original sum of money = 6400
What is Quantitative method
Answer:
Quantitative methods emphasize objective measurements and the statistical, mathematical, or numerical analysis of data collected through polls, questionnaires, and surveys, or by manipulating pre-existing statistical data using computational techniques.
Explanation:
You own a portfolio that has $1,600 invested in Stock A and $2,700 invested in Stock B. Assume the expected returns on these stocks are 11 percent and 17 percent, respectively. What is the expected return on the portfolio
Answer:
the expected return on the portfolio is 14.77%
Explanation:
The computation of the expected return on the portfolio is shown below:
The expected return is
= ($1,600 ÷ $4,300) × 11% + ($2,700 ÷ $4,300) × 17%
= 14.767 %
= 14.77%
The $4,300 comes from
= $1,600 + $2,700
= $4,300
hence, the expected return on the portfolio is 14.77%
The same is considered
Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.10; direct labor, $13.10, variable overhead $2.10 and fixed overhead, $7.10. An outside supplier has offered to sell the product to Paxton for $31.40. Compute the net incremental cost or savings of buying the component.Multiple Choice$2.10 cost per unit.$7.10 savings per unit.$0 cost or savings per unit.$7.10 cost per unit.$2.10 savings per unit.
Answer:
$0 cost or savings per unit
Explanation:
Cost to Buy
Purchase Price $31.40
and,
Costs to Make
Direct materials $9.10
Direct labor $13.10
Variable overhead $2.10
Fixed Overheads $7.10
Total $31.40
therefore
The net incremental cost or savings of buying the component is $0 cost or savings per unit
McCanless Co. recently purchased an asset for $2,100,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. What is the amount of depreciation in Year 2
Answer:
$933,450
Explanation:
Calculation to determine What is the amount of depreciation in Year 2
using this formula
Year 2 depreciation=Year 2 depreciation percentage* Asset purchased
Let plug in the formula
Year 2 depreciation = .4445*$2,100,000
Year 2 depreciation = $933,450
Therefore the amount of depreciation in Year 2 will be $933,450
Software Distributors reports net income of $48,000. Included in that number is depreciation expense of $6,500 and a loss on the sale of land of $4,300. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $18,000, a decrease in inventory of $11,500, and an increase in accounts payable of $38,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
Answer:
Operating Activities Section
Net Income $48,000
Adjust for non -cash items :
Depreciation expense $6,500
Loss on the sale of land $4,300
Adjust for changes in working capital :
Decrease in accounts receivable $18,000
Decrease in inventory $11,500
Increase in accounts payable $38,000
Net Cash Provided by Operating Activities $126,000
Explanation:
The Indirect Method of preparing the cash flow from operating activities section reconciles the Net Income for the Year to Operating Cash flow amount.
This reconciliation adjusts non cash items previously included in net income and changes in working capital to arrive at Operating Cash flow amount as shown above.
Summit Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at May 31, the end of the fiscal year, the following balances were taken from the ledger of Summit Services:
Fees Earned $243,000
Dividends 33,000
Rent Expense 50,800
Retained Earnings 540,000
Supplies Expense 12,400
Wages Expense 213,300
Miscellaneous Expense 5,900
Required:
Journalize the closing entries required to close the accounts.
Answer:
May-31
Dr Fees earned $243,000
Retained earnings $33,500
Cr Rent expense $50,800
Cr Supplies expense $12,400
Cr Wages expense $213,300
Cr Miscellaneous expense $ 4,300
May-31
Dr Retained Earnings $33,000
Cr Dividends $33,000
Explanation:
Preparation to Journalize the closing entries required to close the accounts.
May-31
Dr Fees earned $243,000
Retained earnings $33,500
($213,300+$12,400+$50,800-$243,000)
Cr Rent expense $50,800
Cr Supplies expense $12,400
Cr Wages expense $213,300
Cr Miscellaneous expense $ 4,300
(To close the Expenses )
May-31
Dr Retained Earnings $33,000
Cr Dividends $33,000
(To close the dividends )
explain 2 benefits of being self-employed.
The two benefits of being self-employed includes
one will be in controlone is at will of making his/her own work scheduleWhat is self-employment?A self-employment refers to working for oneself or as owner of a business rather than for an employer.
It is when someone earns money by working for themselves instead of for another person or company.
In conclusion, a self-employer is an entreprenuer.
Read more about self employment
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What does "opting out" enable people to do?
A. It allows them to sue companies who use deceptive advertising
techniques.
B. It allows them to let companies know that they do not want them
to share certain information with third parties.
C. It allows them to safeguard their children against hazardous
products.
D. It allows them to rest assured that they won't be discriminated
against when applying for employment.
Answer:
It allows them to let companies know that they do not want them to share certain information with third parties.
Explanation:
"Opting-out" allows people to let companies know that they do not want them to share certain information with third parties. Thus, the correct answer is option (B).
What is opting-out?A person must actively take steps to withdraw their consent for something in order to opt-out. For instance: The user must consciously check the boxes above if they do not want to receive any additional communications. They can opt-in by doing nothing.
There are a number of ways for people to opt out of getting unwanted information about goods or services. This choice is frequently connected to direct marketing initiatives like e-mail or direct mail marketing.
Therefore, people can let companies know that they do not want them to share certain information with third parties by opting out .
To learn more on opting out, here:
https://brainly.com/question/8444030
#SPJ2
Which of the following is the most profitable investment for a candy shop that earns $1 profit per pound of candy? (5 points) Group of answer choices:
Worker at $10 per hour, producing eight pounds of candy per hour
Worker at $12 per hour, producing 16 pounds of candy per hour
Machine with $5 per hour operating cost, producing 10 pounds of candy per hour Machine with $8 per hour operating cost, producing 14 pounds of candy per hour
Worker at $12 per hour, producing 16 pounds of candy per hour
Answer:
Worker at $12 per hour, producing 16 pounds of candy per hour
Explanation:
On December 1, 2021, Coronado Industries exchanged 48000 shares of its $10 par value common stock held in treasury for a used machine. The treasury shares were acquired by Coronado at a cost of $45 per share, and are accounted for under the cost method. On the date of the exchange, the common stock had a fair value of $60 per share (the shares were originally issued at $35 per share). As a result of this exchange, Coronado's total stockholders' equity will increase by
Answer:
$2,880,000
Explanation:
Calculation to determine what Coronado's total stockholders' equity will increase by
Increase in total stockholders' equity =[(48000*45)-(48000 * (60-45))]
Increase in total stockholders' equity =$2,160,000+$720,000
Increase in total stockholders' equity =$2,880,000
Therefore the total stockholders' equity will increase by $2,880,000
On January 1, 2020, Jacobs Company sells land financed through an $80,000 note, issued by Andress Company. The note is an $80,000, 8%, annual interest-bearing note. Andress agrees to repay the $80,000 proceeds on December 31, 2021. The prevailing interest rate on similar notes is 11%. Assume that the cost of the land is equal to the fair value of the note.
Required:
Prepare all entries for Jacobs over the note term, including any year-end adjustments. Use the effective interest method to amortize the discount.
Answer:
Entries are shown below.
Explanation:
To record the journal entries, we first need to calculate interest payment and principal as per the present value. This is done below:
PV Factor Present Value
Interest Payment $6,400 1.7125 $10,960
Principal $80,000 0.8116 $64,928
$75,888
Journal Entries
Date Particular Debit ($) Credit ($) Working
Jan 1, 2020 Note Receivable 80,000
Discount on Receivable 4,112
Land 75,888
Dec 31, 2020 Cash 6,400
Discount on Receivable 1,948 (8348-6400)
Interest Revenue 8,348 (75888*11%)
Dec 31, 2021 Cash 6,400
Discount on Receivable 2,162 (4279-3600)
Interest Revenue 8,562
(75888+1,948)*11%
Dec 31, 2021 Cash 80,000
Notes Receivable 80,000
TB MC Qu. 10-63 (Static) ABC Corporation makes a product that uses a ... ABC Corporation makes a product that uses a material with the following direct material standards: Standard quantity 3.8 pounds per unit Standard price $4.00 per pound The company produced 7,300 units in November using 28,710 pounds of the material. During the month, the company purchased 30,800 pounds of the direct material at a total cost of $117,040. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for November is:
Answer:
the materials quantity variance for November is $3,880 unfavorable
Explanation:
The computation of the materials quantity variance for November is shown below:
As we know that
Material Quantity variance is
= Standard Price × (Actual Quantity used - Standard Quantity)
= $4 × (28,710 - (7,300 units × $3.8 per pound))
= $4 × (28,710 - 27,740)
= $3,880 unfavorable
hence, the materials quantity variance for November is $3,880 unfavorable
According to the law of demand, as prices fall, ceteris paribus
quantity demanded decreases.
demand increases.
quantity demanded increases.
demand decreases
Answer:
quantity demanded increases
Explanation:
price and demand are inversely related
this means as price falls it increases the willingness and ability of consumers to purchase a product.
Sunland Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $223,000; and fixed costs $70,800. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase selling price by 10% with no change in total variable costs or sales volume. Net income $enter a net income if the selling price is increased by 10% 2. Reduce variable costs to 56% of sales. Net income $enter a net income if the variable costs are reduced to 56% of sales 3. Reduce fixed costs by $18,000. Net income $enter a net income if the fixed costs are reduced by $18,000
Answer:
See below
Explanation:
Given selling price per unit = $300,000/5,000 units = $60
1. Increase selling price by 10% with no change in total variable costs or sales volume
Selling price = $60 × 1.1 = $66
Sales revenue = $66 × 5,000 units = $330,000
Increase in sales revenue = $330,000 - $300,000 = $30,000
Here, as costs remains the same, Net income will increase as much as the increase as sales revenue which is $30,000
2. Reduce variable cost to 56% of sales
New variable cost = $330,000 × 56% = $184,800
Saving in variable cost = $223,000 - $184,800 = $38,200
Here, as the fixed cost and sales revenue remains the same, net income will increase as much as the saving in variable cost which is $38,200
3. Reduce fixed cost by $18,000
As the variable cost and sales revenue remains the same, net income will increase as much as the savings in fixed cost which is $18,000
Identify each person in the table as structurally, frictionally, or cyclically unemployed.
a. Lorenzo recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work.
b. Teresa is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full time job.
c. Neha just graduated from college and is looking for a full- time position with an investment banking firm.
Answer:
a. Structurally unemployed.
b. Cyclically unemployed.
c. Frictionally unemployed.
Explanation:
Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;
I. Natural Rate of Unemployment (NU).
II. Frictional unemployment rate (FU).
III. Structural unemployment rate (SU).
IV. Actual unemployment rate (AU).
V. Cyclical unemployment rate (CU).
a. Structurally unemployed: Lorenzo recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work.
b. Cyclically unemployed: Teresa is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full time job. A cyclical unemployment can be defined as a type of unemployment which is typically related to changes in the business, economy or industry cycle such as recession, governmental policies etc.
c. Frictionally unemployed: Neha just graduated from college and is looking for a full- time position with an investment banking firm.
60. Pricing decisions may include which of the following?
a. Bundling
b. Pricing Strategy
C. Target group their concepts of Value
d. All of the above
Answer:
b. Pricing Strategy is the right answer
Explanation:
please mark me as brainliest answer
Answer:
Hello There!!
Explanation:
I think the answer is possibly d. All of the above.
hope this helps,have a great day!!
~Pinky~
The market demand curve in perfect competition is found by A. the interaction of supply and demand at the individual firm and consumer levels. B. horizontally summing the demand curves of the individual consumers. C. utility maximizing behavior of the "representative consumer." D. horizontally summing the supply curves of the individual firms in the industry.
Answer:
b
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
the demand curve is a graph of the quantity demanded on the vertical axis and the price on the horizontal axis. it is downward sloping
market demand curve is the aggregation of demand curves
Because goods are identical, market demand curve can be determined by horizontally summing the demand curves of the individual consumers
Management of Mittel Company would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported:
Inspection time 0.2 days
Wait time (from order to start of production) 17.0 days
Process time 3.1 days
Move time 0.9 days
Queue time 4.2 days
Required:
a. Compute the throughput time. (Round your answer to 1 decimal place.)
b. Compute the manufacturing cycle efficiency (MCE) for the quarter.
c. What percentage of the throughput time was spent in non–value-added activities?
d. Compute the delivery cycle time.
e. If by using Lean Production all queue time during production is eliminated, what will be the new MCE?
Answer:1.
a)Through put time =8.4days
b)The manufacturing cycle efficiency =36.9%
c)percentage of the through put time spent on non–value-added activities =63.1%
d)Delivery time =25.4days
e) The New manufacturing cycle efficiency =73.8%
Explanation:
1. The through put time is given as
Process time + Inspection time + Move time+Queue time
Through put time=3.1 + 0.2 + 0.9 + 4.2
Through put time=8.4days
2. The manufacturing cycle efficiency
,is given as
Process ÷Through put time
manufacturing cycle efficiency
, =3.1/8.4=0.369=36.9%
3. The manufacturing cycle efficiency
, is 36.9%
Thus percentage of the throughput time spent in non–value-added activities is given as
1 - 36.9% = 63.1%
4.The delivery cycle time is calculated as
Wait time + through put time
Delivery cycle =17.0 + 8.4 = 25.4 days
5. The New manufacturing cycle efficiency is calculated as
Process ÷through put time
But the new through put time =8.4 -4.2=4.2
New manufacturing cycle efficiency =3.1 / 4.2 = 0.7380
=73.8%
Mark has invested $300 at age 16 into a money market account earning 6%. What will his investment be worth?
Answer:
Future Account Value = $ 161,327.31
Explanation:
Investment Amount (PV)
The starting amount you invest in the account or your current balance in an existing investment account
Future Account Value (FV)
The return amount you want to attain. Your target amount.
Number of Years (n)
Several years you will invest.
Interest Rate (R)
The annual interest rate you expect on your invested money
Compounding (m)
The periodic compounding of your investment account
Contributions (PMT)
The payment amount you will contribute to your investment account periodically
Frequency of Contributions (q)
The periodic timing of your contributions
A disadvantage of the corporate form of business ownership is that:
a) shareholders receive dividends.
b) most shareholders have little direct control over how the company is managed.
shareholders are not personally liable for the debts
of the corporation except to
the extent of their investment.
c)the life of the corporation is ongoing even after the death of a shareholder.
Answer:
b) most shareholders have little direct control over how the company is managed.
The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 21,700 pounds of the direct material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 per hour.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The variable overhead efficiency variance for June is: _________
a. $36 U
b. $36 F
c. $40 U
d. $40 F
Answer:
d. $40 F
Explanation:
Calculation to determine what The variable overhead efficiency variance for June is
First step is to calculate the SH
SH = 2,500 units × 0.4 hour per unit
SH= 1,000 hours
Now let calculate the Variable overhead efficiency variance
Using this formula
Variable overhead efficiency variance = (AH - SH) × SR
Let plug in the formula
Variable overhead efficiency variance= (980 hours - 1,000 hours) × $2 per hour= (-20 hours) × $2 per hour
Variable overhead efficiency variance= $40 F
Therefore Variable overhead efficiency variance is $40 F
Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays.
Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following:
Cost Per Room Night (at normal occupancy)
Housekeeping service................................................................$ 23
Utilities............................................................................................7
Amenities........................................................................................3
Hotel depreciation.........................................................................55
Hotel staff (excluding housekeeping)............................................42
Total....................................................................................$130
The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms.
A. What is the contribution margin for a room night under the normal pricing if only the hotel depreciation and hotel staff (excluding housekeeping) are assumed fixed for all occupancy levels?
B. Determine the contribution margin for a room night under the proposed weekend pricing.
C. Prepare a differential analysis showing the differential income for an average weekend between the existing (Alternative 1) and discount (Alternative 2) price plan.
D. Should management accept the proposed weekend pricing plan? Explain.
Answer: See explanation and attachment
Explanation:
a. What is the contribution margin for a room night under the normal pricing if only the hotel depreciation and hotel staff (excluding housekeeping) are assumed fixed for all occupancy levels?
Price = $180
Less: Variable Costs:
House keeping staff = $23
Utilities = $7
Amenities = $3
Total variable costs = $33
Contribution margin = $147
B. Determine the contribution margin for a room night under the proposed weekend pricing.
Price = $120
Less: Variable Costs:
House keeping staff = $23
Utilities = $7
Amenities = $3
Total variable costs = $33
Contribution margin = $87
C. Prepare a differential analysis showing the differential income for an average weekend between the existing (Alternative 1) and discount (Alternative 2) price plan.
Check attachment for solution
D. Should management accept the proposed weekend pricing plan? Explain.
No. From the calculation in C, there is reduction in income.
Which of the following is recorded in a country’s balance of payments accounts?
Answer:
Considering there are no options to pick from, the following accounts are recorded in a country’s balance of payments accounts:
1. the current account
2. the capital account
3. the financial account.
Explanation:
Therefore;
1. The current account is part of the country’s balance of payments accounts to define the inflow and outflow of goods and services into a particular country.
2. The capital account is also a country’s balance of payments account that documents all the international capital transfers of a country.
3. The financial account is part of the country’s balance of payments accounts where the international monetary flows concerning the investment in the business, real estate, bonds, and stocks are fully recordsd.
Jacques lives in Miami and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jacques does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this guitar business.
Identify each of Jake's costs in the following table as either an implicit cost or an explicit cost of selling guitars.
Implicit Cost Explicit Cost
The wages and utility bills that Jake pays
The salary Jake could earn if he worked as an accountant
The wholesale cost for the guitars that Jake pays the manufacturer
The rental income Jake could receive if he chose to rent out his showroom
Complete the following table by determining Jake's accounting and economic profit of his guitar business.
Profit (Dollars)
Accounting Profit
Economic Profit
Answer:
Explicit Costs
The wages and utility bills that Jake pays
The wholesale cost for the guitars that Jake pays the manufacturer
Implicit costs
The salary Jake could earn if he worked as an accountant
The rental income Jake could receive if he chose to rent out his showroom
Accounting profit = $62,000
economic profit = $-3000
Explanation:
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Jacques forgoes the opportunity to earn a salary and rent out his showroom when he started his business
Accounting profit= total revenue - explicit cost
$793,000 - ($430,000 + $301,000) = $62,000
Economic profit = accounting profit - implicit cost
$62,000 - (50,000 + 15,000) =$-3000
What are the dimensions of organizational climate in restaurant management?
Presented below are selected ledger accounts of Whispering Corporation as of December 31, 2020.
Cash $65,000
Administrative expenses 130,000
Selling expenses 104,000
Net sales 702,000
Cost of goods sold 273,000
Cash dividends declared (2020) 26,000
Cash dividends paid (2020) 19,500
Discontinued operations (loss before income taxes) 52,000
Depreciation expense, not recorded in 2019 39,000
Retained earnings, December 31, 2019 117,000
Effective tax rate 20%
Required:
a. Compute net income for 2020.
b. Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information.
Answer:
Part a
Whispering Corporation
Income Statement for the year ended December 31, 2020.
Net Sales 702,000
Less Cost of Sales (273,000)
Gross Profit 429,000
Less Expenses
Administrative expenses (130,000)
Selling expenses (104,000)
Depreciation expense (39,000)
Net Income 195,000
Part b
Whispering Corporation
Partial income statement for the year ended December 31, 2020.
Continuing Activities 195,000
Less Discontinued operations ( 52,000
Total Comprehensive income 143,000
Explanation:
Income Statement only includes incomes and expenses.
Earnings per share is what shareholders expect to receive per share out of profits earned.
Stork Associates paid $65,400 for a 20-seat skybox at Veterans Stadium for eight professional football games. Regular seats to these games range from $55 to $165 each. At one game, an employee of Stork entertained 18 clients. Stork furnished food and beverages for the event at a cost of $2,200. The game was preceded by a bona fide business discussion, and all expenses are adequately substantiated.
a. Stork can deduct $ for this event.
b. If there was no bona fide business discussion either preceding or after the event, there is and the deduction would be $.
Answer: a. $1100
b. $0
Explanation:
It should be noted that according to IRS, 50% of the expenses on business meals will be deducted by tax payers when some conditions are met such as:
• Expenses incurred shouldn't be costly or extravagant.
• Expenses are necessary.
• Expenses on meal were incurred separately from expenses on entertainment.
• The taxpayer was present there when the expenses were incurred.
Based on the above,
a. The amount that Stork can deduct will be:
= 50% × $2200
= 0.5 × $2200
= $1100
b. If there was no bona fide business discussion either preceding or after the event, the deduction will be $0 because in such case, no expenses were incurred on food or entertainment.
A plant manager wants to know how much she should be willing to pay for perfect market research. Currently there are two states of nature facing her decision to expand or do nothing. Under favorable market conditions the manager would make $100,000 for the large plant and $5,000 for the small plant. Under unfavorable market conditions the large plant would lose $80,000 and the small plant would make $0. If the two states of nature are equally likely, how much should she pay for perfect information
Answer:
She should pay $25,000 for perfect information.
Explanation:
Since it is assumed that the two states of nature are equally likely, we therefore have:
P1 = Probability favorable market condition = 50%, or 0.5
P2 = Probability of unfavorable market condition = 50%, or 0.5
For large plant, we have:
Amount to make under favorable market condition = $100,000
Amount to make unfavorable market condition = -$50,000
Therefore, we have:
Expected value of the amount to make from large plant = (P1 * $100,000) + (P2 * (-$50,000)) = (0.5 * $100,000) + (0.5 * (-$50,000)) = $25,000
For small plant, we have:
Amount to make under favorable market condition = $5,000
Amount to make unfavorable market condition = $0
Therefore, we have:
Expected value of the amount to make from small plant = (P1 * $5,000) + (P2 * $0) = (0.5 * $5,000) + (0.5 * $0) = $2,500
Decision
Expected value of the amount to make from large plant = $25,000
Expected value of the amount to make from small plant = $2,500
Since the expected value of the amount to make from large plant of $25,000 is larger than the expected value of the amount to make from small plant of $2,500, this implies that the maximum the plant manager can make is $25,000.
Therefore, she should pay $25,000 for perfect information.
There are assumptions that currently and in the past alcohol and cigarettes advertisements were responsible for a very large percentage of sports bill boards in Namibia. What explanation can you offer for why these products are used to dominate the sports bill boards medium. Discuss with clear examples
Answer:
The advertisements make both drinking and smoking appear like casual and ordinary activities. The adverts function as a superpower by negligibly pressuring sports prayers and fans to consume alcohol and cigarettes. For instance, the adverts have messages to encourage viewers to us beer and switch to become champions like a winning football club.
Explanation: