Answer:
Materials = 23,000 units
Conversion Costs = 23,000 units
Explanation:
Note that the weighted-average method is being used to calculate the equivalent units.
Using this method, we are interested only in calculating equivalent units in units that were completed and transferred and units of ending work in process.
Calculation of equivalent units of production for Materials and Conversion Costs.
Materials
Completed and transferred (20,000 units × 100%) 20,000
Ending Work In Process (5,000 units × 60%) 3,000
Equivalent units 23,000
Conversion Cost
Completed and transferred (20,000 units × 100%) 20,000
Ending Work In Process (5,000 units × 60%) 3,000
Equivalent units 23,000
During the year, Eastern Gas Pipeline Co. issued 5,000 shares of preferred stock for $25 per share. This transaction is classified as .
Answer: B. Financing cash flow
Explanation:
Financing cashflow activities are those that have to do with the capital raised for the operations of the business. Every cash transaction related to capital falls under Financing activities.
This includes transactions such as issuing shares such as the preferred shares in the question and debt instruments such as bonds. Dividends and treasury purchases also fall under here.
Imagine that in the frame of Azerbaijan National Football Championship Nefthci and Karabakh football teams will have a match in “Shafa Stadium” 31st December 2021. Assume that the stadium has 10,000 seats available and number of seats is fixed. To increase the tax revenue, government authorities impose tax on buyers (fans) at the amount of $2 per seat. Please, explain who will pay the tax by graphic illustration and logical justification. Keep in mind that the stadium is a private property.
Answer:
The fans as they purchase tickets
Explanation:
The government has imposed a $2 tax per seat. The stadium management will increase the price of tickets per seat by at least $2. It means the customers (fans) will pay an extra amount per seat to cater for the taxes.
The stadium management will act as a tax intermediary. They will collect the $2 per seat tax from the ticket sales and remit it to the government.
Discuss the possible consequences of a company having multiple plants, each with a different information system using different part numbers and naming conventions for identical products.
Answer: hhghhvcc
Explanation:
Doug's Boat Shop, Inc. reports operating income of $260,000 and interest expense of $31,200. The average common stockholders' equity during the year was $50,000. The beginning assets balance is $115,000 and ending assets balance is $180,000. What is the leverage ratio
Answer:
2.95
Explanation:
Given that;
Beginning assets = $115,000
Ending assets = $180,000
Operating income = $260,000
Interest expense = $31,200
Average common stockholder equity = $50,000
Average total assets ;
= (Beginning assets + Ending assets) ÷ 2
= ($115,000 + $180,000) ÷ 2
= $147,500
Therefore,
Leverage ratio = Average total assets ÷ Average common stockholder equity
Leverage ratio = $147,500 ÷ $50,000
Leverage ratio = 2.95
Kohl Company lent $49,587 to Hemingway, Inc, accepting Hemingway's 2-year, $60,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare Kohl's journal entries for the initial transaction, recognition of interest each year, and the collection of $60,000 at maturity.
Answer:
Date Account Titles Debit Credit
Notes Receivable $60,000
Discount on Notes Receivable $10,413
Cash $49,587
Discount on Notes Receivable $4,959
Interest Revenue $4,959
Discount on Notes Receivable $5,454
($49587+$4959)*10%
Interest Revenue $5,454
Cash $60,000
Notes Receivable $60,000
The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three products that use this machine. Date concerning those products appear below.
WX KD FS
Selling price per unit $335.20 $228.48 $199.23
Variable cost per unit $259.22 $173.04 $159.57
Minutes on the constraint 7.70 4.50 5.70
Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? Round intermediate calculations to 2 decimal places.
a. $75.98 per minute
b. $6.96 per minute
c. $39.66 per minute
d. $12.32 per minute
Answer:
the least profitable is $39.66 per unit or 9.72 per minute
Explanation:
The computation is shown below:
The Price Per Unit for WX is
= $355.20 - $259.22
= $95.98
Price Per Unit for KD is
= $228.48 - $173.04
= $55.44
And, the Price Per Unit for FS is
= $199.23 - $159.57
= $39.66
Now
Price per Minute for WX is
= $95.98 ÷ 7.70
= 12.46
Price Per Minute for KD is
= $55.44 ÷ 4.50
= 12.32
And, Price Per Minute for FS is
= $55.44 ÷ 5.70
= 9.72
So here the least profitable is $39.66 per unit or 9.72 per minute
This is the answer but the same is not provided
You receive results from the team engagement survey. According to the survey, your team members feel that the feedback they provide to management is not being taken into consideration quickly enough. Assuming all options are possible, what would you be most and least likely to do?
Answer: Most: Discuss the issue with your team. Ask team members for suggestions on how to better incorporate their
Least: Talk to your peers who received similar feedback and brainstorm together on how to better engage the team.
Explanation:
You probably wish you could get more input from your employees if you're like most managers. Quality feedback will help all of you work together, improve your style of leadership, and make sure you catch problems before they become big issues.
While the members of your team must be the ones to come up with the ideas, there are many things you can do to make it better and more productive to produce them.
Your methodology offers an example.
A young college student was making a purchase at her local department store. The clerk suggested that she would get an additional 15% off the purchase price if she would sign up for a store credit card. Which of the following statements discusses how a personal finance expert might view this incentive?
a. Reports indicate that students are particularly vulnerable to these tactics. If you fail to pay off the balance, you end up paying much more than the original purchase price for your items.
b. An expert would advise you that the more credit cards you hold, the better your credit rating will be with the three major credit rating companies. Actuaries average the opinions of each credit card company to determine your score.
c. A personal finance expert would encourage her to take the incentive, particularly if interest rates on the card remain below 20%.
d. A personal finance expert would advise a college student to always take this incentive seriously because it is like trade credit for businesses
Answer: a. Reports indicate that students are particularly vulnerable to these tactics. If you fail to pay off the balance, you end up paying much more than the original purchase price for your items.
Explanation:
Even though financial advice is usually tailormade for the individual, a financial expert would most likely give this advice to a student because students are indeed vulnerable to such tactics.
They would be more prone to spend more in the store as a result of the credit card and this will lead to them being unable to pay off balances which will then lead to them paying much more than the original price they would have paid.
Total liabilities and stockholders' equity $1,279,600 Accounts payable at the end of December would be:
Answer:
d. $258,700
Explanation:
Note: The full question is attached as picture below
Purchase Budget for December
Particulars Amount
Cost of goods sold (65% of 390,000) $253,500
Add: Desired ending inventory $208,000
(80% of following monthly COGS)
Total inventory required $461,500
Less: Beginning inventory $202,800
Purchases $258,700
Thus, the Accounts payable at the end of December is $258,700
High Sky Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below:
Activity level 90 guests
Variable overhead costs:
Supplies $234
Laundry 315
Fixed overhead costs:
Utilities 220
Salaries and wages 4,290
Depreciation 2,680
Total overhead cost $7,739
The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 99 guests?
a. $61,541.00
b. $7,793.90
c. $8,512.90
d. $7,739.00
Answer:
b. $7,793.90
Explanation:
Calculation for What would be the total budgeted overhead cost for a month if the activity level is 99 guests
TOTAL BUDGETED OVERHEAD COST
Overhead costs:
Variable overhead costs:
Supplies $ 257.40
[ ($234 ÷ 90 guests)*99 guests].
Laundry $346.50
[($315 ÷ 90 guests)*99 guests]
Total variable overhead cost 603.90
($ 257.40+$346.50)
Fixed overhead costs:
Utilities 220.00
Salaries and wages 4,290.00
Depreciation 2,680.00
Total fixed overhead cost 7,190.00
(220.00+4,290.00+2,680.00)
Total budgeted overhead cost$7,793.90
(7,190.00+603.90)
Therefore What would be the total budgeted overhead cost for a month if the activity level is 99 guests will be $7,793.90
Sabv Corporation's break-even-point in sales is $840,000, and its variable expenses are 75% of sales. If the company lost $34,000 last year, sales must have amounted to:
Answer:sales must have amounted to:$704,000
Explanation:
Contribution ratio = Sales ratio - Variable cost ratio
= 100%- 75%
=25%
Sales to break even = Fixed expenses / Contribution margin ratio
Therefore,
Fixed expenses = Sales to break even x Contribution margin ratio
=$840,000 x 25%
=$210,000
Contribution margin can also be calculated as
Fixed expenses- Operating loss
=$210,000 -$34,000
=$176,000
Sales = Contribution margin/ Contribution ratio
= $176,000/25% =$704,000
20192018201720162015 Sales$656,856$432,142$358,624$243,135$180,100 Cost of goods sold 337,397 222,192 186,298 125,649 91,851 Accounts receivable 31,726 25,194 24,602 14,199 12,355 Compute trend percents for the above accounts, using 2015 as the base year.\
Answer:
Trend Percent for Net Sales :
2016 = 135.00 %
2017 =199.00%
2018 = 239.9 %
2019 = 364.7 %
Trend Percent for Cost of goods sold :
2016 = 136.7 %
2017 = 202.8 %
2018 = 241.9 %
2019 = 367.33 %
Trend Percent for Accounts receivable :
2016 = 114.9 %
2017 = 199.00 %
2018 = 203.9 %
2019 = 256.7 %
Explanation:
2019 2018 2017 2016 2015
Sales $656,856 $432,142 $358,624 $243,135 $180,100
Cost of goods sold 337,397 222,192 186,298 125,649 91,851 Accounts receivable 31,726 25,194 24,602 14,199 12,355
Trend Percent for Net Sales :
2016 Current Year Sales/ Base year Sales = $243,135 /$180,100
= 135.00 %
2017 Current Year Sales/ Base year Sales = $358,624 /$180,100 = 199.00%
2018 Current Year Sales/ Base year Sales =$432,142 / $180,100
= 239.9 %
2019 Current Year Sales/ Base year Sales = $656,856 /$180,100
= 364.7 %
Trend Percent for Cost of goods sold :
2016 Current Year CGS/ Base year CGS = $125,649 /91,851 = 136.7 %
2017 Current Year CGS/ Base year CGS = $ 186,298 /91,851 = 202.8 %
2018 Current Year CGS/ Base year CGS =$ 222,192/ 91,851 = 241.9 %
2019 Current Year CGS/ Base year CGS= $337,397 /91,851 = 367.33 %
Trend Percent for Accounts receivable :
2016 Current Year A/R/ Base year A/R = $14,199 /12,355 = 114.9 %
2017 Current Year A/R/ Base year A/R= $ 24,602 /12,355= 199.00 %
2018 Current Year A/R/ Base year A/R=$ 25,194 / 12,355 = 203.9 %
2019 Current Year A/R/ Base year A/R = $31,726 /12,355 = 256.7 %
Farm Equipment, Inc., produces tractors and other farm machinery. Each piece of equipment is built to customer specifications. During May, its first month of operations, Farm Equipment, Inc., began working on three customer orders: jobs 1, 2, and 3. The following transactions occurred during May:
Purchased production materials on account totaling $450,000
Processed material requisitions for the following items:
Job 1 direct materials $77,600
Job 2 direct materials $38,600
Job 3 direct materials $45,000
Indirect materials $87,000
Processed timesheets showing the following:
Job 1 direct labor hours (700 hours) $14,800
Job 2 direct labor hours (550 hours) $11,800
Job 3 direct labor hours (300 hours) $ 6,500
Indirect labor $ 9,700
Applied overhead using a predetermined rate of 160 percent of direct labor cost
Completed job 1 and transferred it to finished goods
Delivered job 1 to the customer and billed her $140,000. (Hint: Two entries are required—one for the cost of the goods and another for the revenue.)
Required: Calculate the production costs incurred in May for each of the three jobs. (Answers must be entered as numbers only. No spaces, dollar signs, commas, decimals, etc. Example: 50000)
Job 1
Job 2
Job 3
Total
Direct Materials
A. $
D. $
G. $
$161,200
Direct Labor
B. $
E. $
H. $
$33,100
Manufacturing Overhead
C. $
F. $
I. $
$52,960
Total Cost Per Job:
$116,080
$69,280
$61,900
$247,260
Using the previous information, make the appropriate journal entry for each item described above. Assume all payments will be made next month. You will use the following accounts at least once: Raw Materials Inventory, Accounts payable, WIP Inventory, Manufacturing Overhead, Raw Materials Inventory, Wages Payable. (Answers must be entered as numbers only. No spaces, dollar signs, commas, decimals, etc. Example: 50000)
05/01/20XX
J.
$450,000
K.
$450,000
Purchased Production Materials on Account
05/XX/20XX
WIP Inventory
L. $
Manufacturing O/head
M. $
Raw materials Inventory
$248,200
Transfer Raw Materials into WIP
05/XX/20XX
WIP Inventory
N. $
Manufacturing Overhead
$9,700
Wages Payable
$42,800
Apply labor costs to Inventory
05/01/20XX
WIP Inventory
$52,960
Manufacturing Overhead
$52,960
Apply Man. Overhead to Inventory costs
Answer:
true
Explanation:
kkkkkkkk
Latiker, Inc., manufactures and sells two products: Product Y9 and Product W0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product Y9 100 8 800
Product W0 100 10 1,000
Total direct labor-hours 1,800
The direct labor rate is $15.40 per DLH. The direct materials cost per unit for each product is given below:
Direct Materials Cost per Unit
Product Y9 $253.00
Product W0 $278.80
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Activity Cost Pools Activity Measures Overhead Cost Product Y9 Product W0 Total
Labor-related DLHs $61,488 800 1,000 1,800
Machine setups setups 50,687 400 300 700
Order size MHs 155,754 5,000 5,200 10,200
$267,929
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
a. $31.15 per setup
b. $26.27 per setup
c. $29.95 per setup
d. $72.41 per setup
Answer: $72.41 per setups
Explanation:
The activity rate for the machine setups activity cost pool under activity-based costing would be calculated as the estimated overhead cost divided by the total expected activity. This will be:
= 50687/700
= $72.41 per setups
Therefore, the answer is $72.41 per setups.
Which of the following is not one of the eight recognized consumer rights? a. right to the satisfaction of basic needs b. right to simplicity c. right to a healthy environment d. right to be informed
Answer:
B.) right to simplicity
Explanation:
:)
The right to simplicity is basically one which is not recognized as one of the eight consumer rights. Thus option (b) is correct.
What are the consumer rights?Consumer rights are a set of rights and protections that are afforded to consumers when they engage in economic transactions with businesses or service providers.
These rights are designed to ensure that consumers are treated fairly and have access to the information and resources they need to make informed decisions.
These rights are often enshrined in consumer protection laws and regulations, and are enforced by government agencies and consumer advocacy organizations. By using these individuals can protect themselves from fraud, deception, and unfair business practices.
The right to simplicity is not included in the eight recognized consumer rights. Therefore, option (b) is correct.
Learn more about consumer rights here:
https://brainly.com/question/27317480
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Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $415,000, actual labor hours were 21,000. The predetermined manufacturing overhead rate per direct labor hour would be:
Answer:
The predetermined manufacturing overhead rate per direct labor hour is $20
Explanation:
The computation of the predetermined manufacturing overhead rate per direct labor hour is shown below:
= Estimated manufacturing overhead ÷ direct labors hours
= $400,000 ÷ 20,000 direct labor hours
= $20
hence, the predetermined manufacturing overhead rate per direct labor hour is $20
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Doc Xpress has an in-house staff of 35 employees who provide transcriptions of phone and video conferences for a range of clients. When the economy was tight, the CEO of Doc Xpress froze all hardware and software upgrades for five years. In terms of a situation analysis, this decision was likely based on a
Answer:
external threat
Explanation:
This decision was likely based on an external threat. Which in this scenario is the economy. Economy is considered as an external threat because it is not in the control of the company itself but still directly affects the everyday business operations of the company as well as it's profit and costs. All of this equates to how well the company performs, therefore in a situation where the economy poses a threat decisions need to be made such as the one in this scenario.
On January 1, 2021, Gundy Enterprises purchases an office building for $338,000, paying $58,000 down and borrowing the remaining $280,000, signing a 9%, 10-year mortgage. Installment payments of $3,546.92 are due at the end of each month, with the first payment due on January 31, 2021.
Required:
Record the purchase of the building on January 1, 2021.
Answer:
Debit Building $338,000
Credit Cash $58,000
Credit Notes Payable $280,000
Explanation:
Preparation of the journal entry to Record the purchase of the building on January 1, 2021.
Based on the information given we were told that the company purchases an office building for the amount of $338,000 which means that if they paid $58,000 down and as well borrowed the remaining amount of $280,000 the journal entry to Record the purchase of the building on January 1, 2021 will be :
Debit Building $338,000
Credit Cash $58,000
Credit Notes Payable $280,000
(Being to record the purchase of building)
The Treasury bill rate is 3.5%, and the expected return on the market portfolio is 10.4%. Use the capital asset pricing model. a. What is the risk premium on the market?
Answer:
6.9%
Explanation:
Treasury bill rate is 3.5%
Market portfolio is 10.4%
Therefore the risk premium on the market can be calculated as follows
= 10.4%-3.5%
= 6.9%
Hence the risk premium is 6.9%
A large human population, both globally and within individual countries, has been a concern since the time of Thomas Malthus. Country X is 95% desert. The government of Country X is concerned about not having enough arable land (land capable of being used to grow crops) in the country to produce the food needed to feed its population without increasing food imports. One government official proposes a project to irrigate large areas of the desert to convert these areas of desert to agricultural fields.
Required:
Describe one potential benefit of this proposed project.
Answer:
The most obvious potential benefit is turning desert land into arable land. As total arable land increases, the country will be able to grow more crops. As more crops are grown and harvested, the country will be able to feed larger populations without having to import large amounts of food. E.g. in many Arab nations, food and water are scarce and they are forced to import most of their food. If they didn't have oil exports, they wouldn't be able to pay for these imports.
Lenore, a single California taxpayer, has taxable income before capital gains of $78,000 and a long-term capital gain of $5,000 on the sale of RSS stock. What is the total amount of California state tax Lenore will pay on the capital gain
Answer:
As we all know Long term capital gain is always taxed at 15% as per the federal taxation but in California the taxation is bit different the long term capital gain is not taxed separately it is included in the income and it is considered as Ordinary income and is taxed at regular individual tax rates. So, Tax that Lenore as to pay as per the Federal Taxation is 15% of $5,000 = $750. But Tax that Lenore gas to pay as per the California Taxation is 9.3% of $ 5,000 = $465, which is treated as a tax paid on ordinary income.
Collin and Scott are co-founders of the Russian River Brewing Company. Which three tools and methods are the co-founders not likely to adopt to promote the brewery's operational excellence and further the cause of good strategy execution
Answer:
strategic resource training, standard industry techniques, and competitor strength matrix techniques
Explanation:
The three tools and techniques that co-founders not likely to adopt for promoting the operational excellence is training of strategic resource, techniques of standard industry and the third one is techniques of competitor strength max
As these three tools and methods would not help the company for promoting the same
Therefore the first option is correct
Under the modern traditional theory, the sovereign may nationalize foreign-owned property only where: a. it is for a public purpose. b. the foreign firm that owned the property was operating it unprofitably. c. a communist government takes over the country. d. the foreign firm has continuously violated the laws of the host country.
Answer: a. it is for a public purpose.
Explanation:
According to the Modern Traditional theory on compensation which deals with the seizure of foreign-owned property by the government of the nation in which the property is located, the sovereign authorities may nationalize foreign-owned property if it is deemed to be for public use.
If the government has shown that nationalization is for the good of the nation, the theory espouses that it is allowed. They would however have to provide adequate compensation to those whom the property was seized from.
The net income reported on the income statement for the current year was $73,600. Depreciation recorded on store equipment for the year amounted to $27,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of YearCash $23,500 $18,700Accounts receivable (net) 56,000 48,000Merchandise inventory 35,500 40,000Prepaid expenses 4,750 7,000Accounts payable (merchandise creditors) 21,800 16,800Wages payable 4,900 5,800Required:A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.B. Briefly explain why net cash flow from operating activities is different than net income.
Answer:
A. Cash Flows from Operating Activities
Adjusted cash flow $101,000
Working capital adjustments:
Accounts receivable (8,000)
Inventory 4,500
Prepaid expenses 2,250
Accounts payable 5,000
Wages payable (900)
Net cash from operations $103,850
B. The difference in the net cash flow from operating activities and the net income results from the basis of calculating each parameter. The net cash flow from operating activities is calculated based on the cash basis while the net income is calculated based on the accrual basis and the latter takes into account all income and expenses whether cash movement is involved or not.
Explanation:
a) Data and Calculations:
Net income = $73,600
Depreciation 27,400
Adjusted cash flow = $101,000
Working capital balances:
End of Year Beginning Increase/Decrease
of Year
Cash $23,500 $18,700 $4,800
Accounts receivable (net) 56,000 48,000 8,000
Merchandise inventory 35,500 40,000 $4,500
Prepaid expenses 4,750 7,000 2,250
Accounts payable
(merchandise creditors) 21,800 16,800 5,000
Wages payable 4,900 5,800 900
Cash Flows from Operating Activities
Adjusted cash flow $101,000
Working capital adjustments:
Accounts receivable (8,000)
Inventory 4,500
Prepaid expenses 2,250
Accounts payable 5,000
Wages payable (900)
Net cash from operations $103,850
In most business environments, who is responsible for coordinating, controlling, and managing the database
Answer:
The database administrator
Explanation:
DATABASE ADMINISTRATOR is a person who sole responsibility is to help manage, control and coordinate everything that has to do with a business, company or an organization database by backing up data and ensuring that all the data are often made available when needed which is why in most business environments DATABASE ADMINISTRATOR are mostly an important role because they help to plan, manage , Create backup as well as monitor and optimized the database’s performance.
Therefore in most business environments the person who is responsible for coordinating, controlling, and managing the database is called
DATABASE ADMINISTRATOR
Complete the sentence about course credit.
Amy is enrolled at the state university as well as at her high school, and she takes classes at both. She’ll get
for her courses, which will count as both high school and college classes.
Answer:
Articulated credit
Explanation:
Answer: concurrent enrollment
Explanation:
If the Federal Reserve lowers the target federal funds rate,
a. liquidity in the banking system is increased
b. the discount rate rises
c. securities prices fall
d. required reserves are decreased
Answer:
a. liquidity in the banking system is increased
Explanation:
Federal fund rate is the rate of interest where a depository institution lends the money that is maintained at the federal reserve for other depository institution. It would be applied to the creditworthy institution who is very creditworthy for the loans i.e. overnight
Now in the case when the federal reserve reduce the fund rate of target federal so the possibility of borrowing would be cheaper that rise the liquidity
Hence, the option a is correct
Abbott Landscaping purchased a tractor at a cost of $29,000 and sold it three years later for $15,700. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $4,000 residual value. Tractors are included in the Equipment account.
Required:
Record the sale of equipment.
Answer:
Cash 15700 Dr
Accumulated depreciation 15000 Dr
Equipment - Tractor 29000 Cr
Gain on sale - Equipment 1700 Cr
Explanation:
The straight line method of depreciation charges a constant depreciation expense per year throughout the useful life of the asset. The formula for depreciation expense under this method is,
Depreciation expense = (Cost - Residual value) / Estimated useful life of the asset
Depreciation expense per year = (29000 - 4000) / 5 = $5000 per year
As the asset was sold after three years, the accumulated depreciation on the asset would be = 5000 * 3 = $15000
The NBV or carrying value of the asset will be = 29000 - 15000 = 14000
The gain on sale of equipment will be = 15700 - 14000 = $1700
Randall invested 200,000 in activity A and 100,000 in activity B (both passive) in 1998 at the beginning of 2011 randall’s at-risk amount was 20,000 in A and 15,000 in B activity a had a loss of 25,000 and activity B had income of 30,000 what is the amount of income or loss recognized in 2011 from these activities?
a- 0
b- 5,000 income
c- 10,000 income
d- 25,000 losses
Answer:
c- 10,000 income
Explanation:
The computation of the mount of income or loss recognized in 2011 from these activities is shown below
As in the question it is mentioned that the activity A has $20,000 risk so $20,000 would be allowed. And, there is a passive income of $30,000
So the amount of the income recognzied would be
= $30,000 - $20,000
= $10,000 income
Therefore the correct option is c.
Bateman Corporation sold an office building that it used in its business for $800,750. Bateman bought the building 10 years ago for $599,625 and has claimed $201,125 of depreciation expense. What is the amount and character of Bateman's gain or loss
Answer:
Bateman Corporation
a. The amount of the gain = $402,250.
b. The character of the gain is long-term capital gain.
Explanation:
a) Data and Calculations:
Sale proceeds from office building = $800,750
Purchase cost of building = $599,625
Period of building before sale = 10 years
Depreciation claimed on building = $201,125
Net book value of building = $398,500 ($599,625 - $201,125)
Capital gain on sale of building = $402,250 ($800,750 - $398,500)
b) Bateman Corporation will record a capital gain of $402,250. This is the difference between the sale proceeds from the building and the net book value of the building after deducting the depreciation expenses claimed on the building. It is a long-term capital gain, which is taxed under the reduced rate.