Crane Company sells its product for $60 per unit. During 2019, it produced 48000 units and sold 40000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $9, and variable overhead $3. Fixed costs are: $576000 manufacturing overhead, and $72000 selling and administrative expenses. Under absorption costing, what amount of fixed overhead is deferred to a future period?

Answers

Answer 1

Answer:

$96,000

Explanation:

The computation of the amount of  fixed overhead is deferred to a future period is shown below:

= Unsold units × fixed overhead cost per unit

= 8,000 units × ($576,000 ÷ 48,000 units)

= 8,000 units × $12

= $96,000

The unsold units is

= Produced units - sold units

= 48,000 units - 40,000 units

= 8,000 units

By multiplying the unsold units with the fixed overhead cost per unit  we can get the amount of fixed overhead deferred for a future period and the same is to be considered


Related Questions

As an employee in the Lottery Commission, your job is to design a new prize. Your idea is to create two grand prize choices: (1) receiving $50,000 at the end of each year beginning in one year for 20 consecutive years, or (2) receiving $500,000 today followed by a one-time payment at the end of 20 years. Using an interest rate of 6%, which of the following comes closest to the amount prize (2) needs to pay at the end of year 20 in order that both prizes to have the same present value?
a. $ 326,649
b. $ 440,463
c. $ 114,932
d. $ 393,342
e. $ 235,712

Answers

Answer:

The correct option is  $235,712,option E  

Explanation:

The present value of prize(1) can be computed by using the excel pv formula as shown below:

=-pv(rate,nper,pmt,fv)

rate is interest rate of 6%

nper is the number of years payment would be made which is 20

pmt is the amount of money received per year which is $50,000

fv is the total future worth of the prize (1) which is unknown

=-pv(6%,20,50000,0)

=$573,496.06  

The difference between present value of prize(1) $573,496.06   and $500,000 receivable from prize (2) today is $73,496.06

The difference is today's worth, its future worth can be computed thus:

FV=PV*(1+r)^n

PV is $73,496.06  

r is 6%

n is 20 years

FV=$73,496.06*(1+6%)^20 =$ 235,711.82  

The amount that prize (2) needs to pay after 20 years so that both prizes bear the same present value is closer to Option B. $440,463.

Data and Calculations:

N (# of periods) = 20 years

I/Y (Interest per year) = 6%

PMT (Periodic Payment) = $50,000

FV (Future Value) = $0

Results:

Present Value (PV) = $573,496.06

Sum of all periodic payments = $1,000,000.00

Total Interest = $426,503.94

Thus, the amount that prize (2) needs to pay after 20 years so that both prizes bear the same present value is closer to Option B.

Learn more about the present value of cash flows here: https://brainly.com/question/24674907

Adams operates his $57500 firm using his own equity. Bob operates his firm with $28750 of his own money plus $28750 of debt at a cost of 5 percent interest. Calculate Adams's and Bob's return on equity if their respective businesses produce earnings before interest and tax of $7000. Assume perfect markets.

Answers

Answer:

Adam return on equity is 12.1%. while Bob return on equity is 19.3%

Explanation:

Given that:

Now,

For Adam:

Earnings before interest and taxes (EBIT) = Net income + Interest + Taxes

EBIT = $7000

The equity of shareholders = $57500

The number of debt by which Adams shows no interest expense and no tax expense as perfect market presumed is stated s follows:

ROE = Net income /Average Shareholder Equity

=$7000/$57500

=0.121739

Therefore, Adam return on equity is 12.1%

For Bob

The equity of shareholders = $28750

The expense (interest) = Debt * Interest rate

=$28750 * 0.05

= 1437.5

Thus

Net income = EBIT - Interest

= 7000 -1437.5

=5562.5

Now,

ROE = Net income /Average Shareholder Equity

=5562.5 /$28750

= 0.19347

=19.3%

Therefore, Bob return on equity is 19.3%

Harrod Company paid $5,800 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $5,800, and no adjustments had been made previously. The adjusting entry required on December 31 is:

Answers

Answer:

Prepaid Insurance = credit = $2900.

Prepaid Insurance = debit = $2900

Explanation:

So, we are given the following data or parameters or information which is going to assist us in solving this particular Question or problem;

=> The amount paid for a 4-month insurance premium in advance on November 1, with coverage beginning on that date = $5,800.

=> "The balance in the prepaid insurance account before adjustment at the end of the year =$5,800, and no adjustments had been made previously.

So, we are asked to determine the adjusting entry required on December 31.

The adjusting entry required on December 31;

Prepaid Insurance = credit = 5800 × 2/4= $2900.

Prepaid Insurance = debit = $2900.

Answer:

Debit Insurance Expense $2,900; Credit Prepaid Insurance $2,900

Explanation:

Total Prepaid Insurance= $5,800

Monthly Insurance=Total Prepaid Insurance / 4 = $1,450

Insurance expenses for 2 month (November and December)= $1,450 * 2 = $2,900

There is no cash transaction in this adjusting entry

When insurance expenses increase= Debit

When decrease in prepaid expenses= Credit

Debit Insurance Expense $2,900; Credit Prepaid Insurance $2,900

A bond was issued three years ago at a price of $1,050 with a maturity of six years, a yield-to-maturity (YTM) of 6.50% compounded semi-annually, and a face value of $1,000 with semi-annualy coupons. What is the price of this bond today immediately after the receipt of today's coupon if the YTM has risen to 7.75% compounded semi-annually

Answers

Answer:

$967.20

Explanation:

the YTM formula = {coupon + [(face value - present value)/time]} / [(face value + present value)/2]

to determine the coupon rate we fill the equation with the known factors:

0.065 = {coupon + [(1,000 - 1,050)/12]} / [(1,000 + 1,050)/2]

0.065 = (coupon - 41.67) / 1,025

66.625 = coupon - 4.167

coupon = 66.625 + 4.167 = $70.792  

three years later, the YTM = 7.5%, what is the PV? Again we use the YTM formula:

0.0775 = {70.792 + [(1,000 - x)/6]} / [(1,000 + x)/2]

0.0775(500 + 0.5x) = 70.792 + 166.67 - 0.1667x

38.75 + 0.03875x = 237.462 - 0.1667x

0.20545x = 198.712

x = 198.712 / .20545

x = $967.20

A company’s trial balance included the following account balances: Accounts Payable $ 19,207 Accounts Receivable 81,336 Cash 73,324 Income Tax Payable 3,512 Inventory 25,816 Note Payable, due in two years 1,709 Equipment 54,128 Stockholders’ Equity 202,808 Supplies 5,512 Wages Payable 12,880 What is the amount of the current ratio? (Round your answer to 2 decimal places.)

Answers

Answer:

5.22

Explanation:

The formula for calculating the current ratio is as follows:

Current ratio = Current assets / Current liabilities .......... (1)

From the question, we have:

Current assets = Accounts Receivable + Cash + Inventory + Supplies = $81,336 + $73,324 + $25,816 + $5,512 = $185,988.

Note: Equipment is not a current asset but a fixed asset.

Current liabilities = Accounts Payable + Income Tax Payable + Wages Payable = $19,207 + $3,512 + $12,880 = $35,599.

Note: Note Payable, due in two years is not a current liability but a long term liability since it is not payable within one year.

Substituting the values into equation (1) we have:

Current ratio = $185,988 / $35,599 = 5.22

The current ratio of 5.22 indicates that the company more than enough current assets, 5.22 times, to pay of its current liabilities.

This year Barney purchased 500 shares of Bell common stock for $20 per share. At year-end the Bell shares were only worth $2 per share. What amount can Barney deduct as a loss this year

Answers

Answer:

Barney is not entitled to a loss deduction.

Explanation:

Barney is not qualified for a loss deduction. Barney cannot have any realization because the stock has not been sold or become worthless. If Barney's stock becomes worthless then generally he may deduct its tax basis in the stock as a worthless stock loss for the year in which the stock becomes worthless.

Grosheim Incorporated has fixed expenses of $211,500 per year. Right now, Grosheim Incorporated is selling its products for $100 per unit. Management is contemplating a 20% increase in the selling price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will pay the same amount for variable costs next year). If fixed costs increase 10% next year, and the new selling price per unit goes into effect, how many units will need to be sold to breakeven?

Answers

Answer:

Breakeven in units is 3231

Explanation:

Breakeven units=fixed costs/contribution margin per unit.

new selling price=$100*(1+20%)=$120

variable cost per unit=$120*40%=$48

contribution margin=selling price per unit-variable cost per unit

contribution margin per unit=$120-$48=$72

fixed costs next year=$211,500*(1+10%)=$232,650.00  

breakeven units=$232,650.00/$72=3231

Maria Am Corporation uses a process costing system. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Baking Department, the cost of beginning work in process inventory was $3,570, the cost of ending work in process inventory was $2,860, and the cost added to production was $43,120. Required: Prepare a cost reconciliation report for the Baking Department for JuneBanking DeparmentBost ReconciliationCosts to be accounted forBlank blank blank amountBlank blank blank amountTotal costs to be accounted forCosts accounted for as followsBlank blank blank amountBlank blank blank amountTotal cost accounted for

Answers

Answer:

Explanation:

The following information can be derived from the question above:

The cost of the beginning work in the process inventory = $3,570

The cost of the ending work in the process inventory = $2,860

The cost that is added to the production = $43,120.

In the attached document, it should be noted that the cost of goods that were transferred out was calculated as:

The total cost to be accounted for minus the cost of the ending work in the process inventory. This is:

= 46690 - 2860

= 43830

The cost reconciliation report for the Baking Department for June has been solved and attached.

Karim Corp. requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,400, and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.

July August September
Cash receipts $20,000 $26,000 $40,000
Cash payments 28,000 30,000 22,000

Required:
Prepare a cash budget for July, August, and September.

Answers

Answer:

                                           Karim Corp

                                          Cash Budget

                                                 July              August         September

Cash inflows:                         $20,000      $26,000         $40,000                   

Cash outflows:                     ($28,000)    ($30,000)       ($22,000)

Monthly cash flow:                ($8,000)       ($4,000)          $18,000          

Monthly interests:                           $0             ($76)          ($116.76)

Initial cash balance:                $8,400       $8,000         $8,000

Ending cash balance:                $400          $3,924       $25,883.24

Required bank loan:               $7,600          $4,076                   $0

Payment of bank loan:                  $0                 $0          ($11,676)

Total                                         $8,000         $8,000       $14,207.24           

Explanation:

A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.

Problem 15-12 Below is a list of prices for zero-coupon bonds of various maturities. Maturity (Years) Price of $1,000 Par Bond (Zero-Coupon) 1 $ 974.85 2 882.39 3 847.70 a. A 5.6% coupon $1,000 par bond pays an annual coupon and will mature in 3 years. What should the yield to maturity on the bond be? (Round your answer to 2 decimal places.) b. If at the end of the first year the yield curve flattens out at 6.5%, what will be the 1-year holding-period return on the coupon bond? (Round your answer to 2 decimal places.)

Answers

Answer:

a. 5.63%

b. 5.72%

Explanation:

to calculate YTM of zero coupon bonds:

YTM = [(face value / market value)¹/ⁿ] - 1

YTM₁ =  [(1,000 / 974.85)¹/ⁿ] - 1 = 2.58%YTM₂ =  [(1,000 / 882.39)¹/ⁿ] - 1 = 6.46%YTM₃ =  [(1,000 / 847.70)¹/ⁿ] - 1 = 5.66%

a. A 5.6% coupon $1,000 par bond pays an annual coupon and will mature in 3 years. What should the yield to maturity on the bond be?

the bond's current market price:

$1,000 / 1.0566³ = $847.75$56/1.0258 + 56/1.0646² + 56/1.0566³ = $54.59 + $49.41 + $47.47 = $151.47current market price = $999.22

YTM = [C + (FV - PV)/n] / [(FV + PV)/2] = [56 + (1,000 - 999.22)/3] / [(1,000 + 999.22)/2] = (56 + 0.26) / 999.61 = 5.63%

b. If at the end of the first year the yield curve flattens out at 6.5%, what will be the 1-year holding-period return on the coupon bond?

the bond's current market price:

$1,000 / 1.065³ = $827.85$56/1.0258 + 56/1.065² + 56/1.065³ = $54.59 + $49.37 + $46.36 = $150.32current market price = $978.17

you invest $978.17 in purchasing the bond and you receive a coupon of $56, holding period return = $56 / $978.17 = 5.72%

The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $36,016. During October, the total cash deposited was $138,030, and checks written totaled $138,571. The bank statement indicated a balance of $43,940 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: A. Checks outstanding totaled $6,281. B. A deposit of $1,796 representing receipts of October 31, had been made too late to appear on the bank statement. C. The bank had collected for Coastal Bike Co. $5,670 on a note left for collection. The face of the note was $5,400. D. A check for $570 returned with the statement had been incorrectly charged by the bank as $750. E. A check for $210 returned with the statement had been recorded by Coastal Bike Co. as $120. The check was for the payment of an obligation to Rack Pro Co. on account. F. Bank service charges for October amounted to $26. G. A check for $1,394 from Bay View Condos was returned by the bank due to insufficient funds.

Answers

Answer:

Explanation:

This is an incomplete question and the missing part is as listed.

A) Prepare a bank reconciliation as at October 31, 20Y9

B)Jornalize the necessary entry

C)If a balanced sheet was prepared for Coastal Bike Co., what amount should be reported as cash?

Solution

Opening cash balance -  36,016

Cash deposited -             138,030

Check written -                (138,571)

                                         35,475

Bank reconciliation for Coastal bike as at October 31 20Y9

Cash balance according to Bank statement  -                43,940

Unrecorded deposit               1796

Bank error (750-570)               180

Outstanding checks               6281

Total adjustment                                                                   4,305

Adjusted balance                                                                 39,635

Cash balance after considering the month,s transaction   35,475

Note collected by bank                    5670

Bank charges                                       26

Returned checks                               1,394

Error in recording check(210-120)       90

Total adjustment                                                                      4160

Adjusted balance                                                                    39,635

B

Entries that increase cash

Description                               Debit                    Credit

Cash                                          5670

Note receivable                                                     5400

Interest Income                                                        270

Accounts payable (Rack pro)      90

Accounts receivable (Bay view) 1394

Bank charges                                26

Cash                                                                         1510

c

Amount to be recorded as cash in balanced sheet

Opening cash balance -  36,016

Cash deposited -             138,030

Check written -                (138,571)

                                         35,475

Computing investing cash flows
Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be indicated with a minus sign.) Sold a truck costing $48,000, with $25,200 of accumulated depreciation, for $11,200 cash. The sale results in a $11,600 loss. Sold a machine costing $13,800, with $9,600 of accumulated depreciation, for $8,200 cash. The sale results in a $4,000 gain. Purchased stock investments for $17,600 cash. The purchaser believes the stock is worth at least $33,200.

Answers

Answer: Please refer to Explanation

Explanation:

The Cash Flow Statement was created to ensure that businesses would know just how much hard cash they actually have. This Statement is therefore different from others in that in only records cash when it has been received and/or disbursed thus making it easier for a company to know how much cash it has.

The Investing Section of the Cashflow statement deals with fixed assets as well as transactions involving securities and bonds of other entities as those are investments.

When cash is spent on these transactions it is a Cash Outflow and is therefore subtracted.

When cash is received from such transactions it is considered a cash inflow and is added.

Effects of Above Transactions.

Sold a Truck for $11,200. This will INCREASE the Investing Cash Flow by $11,200.

Sold a Machine for $8,200. This will INCREASE the Investing Cash Flow by $8,200.

Purchased stock investments for $17,600 cash. This will DECREASE the Investing Cash Flow by -$17,600 as it was a cash Outflow.

The Investing Section of the Cash Flow Statement will look like,

Sold a Truck $11,200

Sold a Machine $8,200

Purchased stock investments -$17,600

Net Cashflow from Investing Activities $1,800

In January 2020, the management of Sheridan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred.

Feb. 1 Purchased 500 shares of Muninger common stock for $27,500.
Mar. 1 Purchased 700 shares of Tatman common stock for $17,500.
Apr. 1 Purchased 40 $1,050, 6% Yoakem bonds for $42,000. Interest is payable semiannually on April 1 and October 1.
July 1 Received a cash dividend of $0.50 per share on the Muninger common stock.
Aug. 1 Sold 167 shares of Muninger common stock at $65 per share.
Sept.1 Received a $1 per share cash dividend on the Tatman common stock.
Oct. 1 Received the semiannual interest on the Yoakem bonds.
Oct. 1 Sold the Yoakem bonds for $41,000.

Required:
At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share. Prepare the adjusting entry at December 31, 2020, to report the investment securities at fair value. All securities are considered to be trading securities.

Answers

Answer:

Sheridan Company

Adjusting Entries for reporting fair values of investments:

December 31, 2020:

Debit Investment in Muninger $333

Credit Unrealized Gains on Investment $333

To record the fair value of common stock investment.

Debit Unrealized Loss on Investment $700

Credit Investment in Tatman $700

To record the fair value of common stock investment.

Explanation:

a) Feb. 1, Muniger Common Stock  500 shares at $55  for $27,500

August 1, Sold                                  167 shares at $65 for  $10,855

December 31 Remaining at fair value, 333 shares at $56 for $18,648

Fair Value Gain = $1 x 333 shares = $333

b) Tatman Common Stock  700 shares for $17,500

March 1, Common Stock 700 shares at $25 for $17,500

December 31, Remaining at fair value, 700 shares at $24 for $16,800

Fair Value Loss = $1 x 700 = $700

c) Trading Investments are held for short-term purposes to take advantage of dividends and changes in the market price of the investments.  These securities are accounted for at fair value.  The requirement is that at the end of the accounting period, the fair value is determined and used to value the investment.  Unrealized Gains or Losses are recorded, depending on their fair values.  The gains or losses become realized when the investments are sold.

1. Identify each account as asset (A), liability (L), or equity (E).2. Identify whether the account is increased with a debit (DR) or credit (CR).3. Identify whether the normal balance is a debit (DR) or credit (CR).a. Interest Revenueb. Accounts Payablec. Common Stockd. Office Suppliese. Advertising Expensef. Unearned Revenueg. Prepaid Renth. Utilities Expensei. Dividendsj. Service Revenue Requirements

Answers

Answer: Please refer to Explanation

Explanation:

.a. Interest Revenue. This is EQUITY. It increase with a CREDIT. Normal Balance is CREDIT.

Interests Revenue is earned like revenue and as such is credited. In the balance sheet it will be with Equity as it increases the Retained Earnings of a firm.

b. Accounts Payable. LIABILITY.

Increases by CREDIT.

Normal Balance is CREDIT.

Accounts Payable are the result of buying goods on account meaning the firm owes the entities in question. It is credited to show an increase.

c. Common Stock. EQUITY.

Increases by CREDIT.

Normal Balance is CREDIT.

As a Capital balance, common stock is credited to show and increase and debited to show a decrease because it signifies that the business owes the holders/owners.

d. Office Supplies. ASSET

Increase by DEBIT.

Normal Balance is CREDIT.

As an asset, Office Supplies is recorded in the debit section and is debited to show increase.

e. Advertising Expense. EQUITY.

Increases by DEBIT.

Normal Balance is DEBIT.

Increases by DEBIT.

Advertising as an expense is taken from the Revenue. This makes it am Equity item. When it is debited, it increases and this normal Balance reflects a debit balance.

f. Unearned Revenue. LIABILITY.

INcrease is CREDITED

Normal Balance is CREDIT.

Unearned Revenue is a liability because the company owes performance to an entity for work that they have already been paid for. As such it's balance is increased by a Credit.

g. Prepaid Rent. ASSET.

Increase by DEBIT.

Normal Balance is DEBIT.

Prepaid rent means that the company paid for rent in advance and so it owed till the rent can be apportioned to a particular period. For this reason it is an asset and increases by DEBIT.

h. Utilities Expense. EQUITY.

Increases by DEBIT.

Nomal Balance is DEBIT.

As an expense that goes from the revenue it is an equity item and increases by debit. Normal Balance is also debit.

i. Dividends. EQUITY.

Increases by DEBIT.

Normal Balance is DEBIT.

Dividends are paid from Retained Earnings and as such belong in the Equity section. Dividends increase by being debited.

j. Service Revenue. EQUITY.

Increase by CREDIT.

Normal Balance is CREDIT.

As Revenue for the business it belongs in the EQUITY section. It is added to retained earnings and as it is revenue, it increases when it is credited.

Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $103 for the skirt:
Determining opportunity cost Juanita is decidin
Store Travel Time Each Way Price of a Skirt
(Minutes) (Dollars per skirt)
Local Department Store 15 103
Across Town 30 89
Neighboring City 60 63
Juanita makes $16 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
Store Opportunity Cost of Time Price of a Skirt Total Cost
(Dollars) (Dollars per skirt) (Dollars)
Local Department Store 103
Across Town 89
Neighboring City 63
Assume that Juanita takes opportunity costs and the price of the skirt into consideration when she shops. Juanita will minimize the cost of the skirt if she buys it from the:_________.

Answers

Answer:

Juanita should purchase the skirt at the store across town because the total economic cost will be lowest.

Explanation:

three options:

local store 15 minutes away and a price of $103across town 30 minutes away and a price of $89neighboring city 1 hour away and a price of $63

Juanita makes $16 per hour at her work, and her purchase decision includes the opportunity cost of lost wages:

total economic cost:

local store = $103 + [1/4 hours x 2 (round trip) x $16] = $111across town = $89 + [1/2 hours x 2 (round trip) x $16] = $105neighboring city = $63 + [1 hour x 2 (round trip) x $16] = $95

Juanita should purchase the skirt at the store across town because the total economic cost will be lowest ($105)

Opportunity costs are the benefits lost or extra costs incurred for choosing one activity or investment over another alternative. Economic costs include both accounting costs and opportunity costs.

Purpose of Assignment The purpose of this assignment is for students to employ capital budgeting techniques using time value of money concepts to determine the acceptability of large dollar value assets. Assignment Steps Scenario: A firm has projected free cash flows of $575,000 for Year 1, $625,000 for Year 2, and 650,000 for Year 3, $725,000 for Year 4, and 850,000 for Year 5. The projected terminal value at the end of Year 5 is $6,000,000. The firm's Weighted Average cost of Capital (WACC) is 12.5%. Create a Microsoft® Excel® document to determine the Discounted Cash Flow (DCF) value of the firm based on the information provided above. Recommend acceptance of this project using net present value criteria using a Microsoft® Word® document. Include up to what level of initial investment you would accept the project? Why? Give a complete explanation of up to 350 words. Display your calculations. Coursehero

Answers

Answer:

Present Value 5,715,331.32

We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital structure of the company

Accepting a project with a higher cost will not generate enought cashflow to sustain the patyment of debt and the return expected from the stockholders therefore, will generate a economic result and investor will leave the company for other which can sustain their desired return.

Explanation:

We are going to discount the yearly cash-flow at the given rate of 12.50%

then, the terminal value which is the present value of the future period will also be discounted at this rate.

The sum of all this will be the present value of the firm.

[tex]\left[\begin{array}{ccc}$Year&$Cash Flow&$Discounted\\1&575000&511111.11\\2&625000&493827.16\\3&650000&456515.77\\4&725000&452613.93\\5&850000&471689.61\\$terminal&6000000&3329573.74\\Present&Value&5715331.32\\\end{array}\right][/tex]

The formula we use the present value of a lump sum:

[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]

We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital estructure of the company

Elaborate on two instances at the workplace where "silence is golden " may be applicable.

Answers

Answer:

It could be applicable when there is a negative compliment: When this happens it is best and advisable to be silent about it and continue with the work activities. Negative compliments are usually hurtful to the recipients and tempers may flare up if words are exchanged.

It could also be applicable when important informations are passed during meetings: Some meetings at work requires dissemination of information with various steps in accomplishing them. If an individual isn’t silent and pays less attention, a step may be missed and will make the worker being unable to perform the task.

On August 2, 2018, Wendy purchased a new office building for $3,800,000. On October 1, 2018, she began to rent out office space in the building. On July 15, 2022, Wendy sold the office building. If required, round your answers to the nearest dollar.
a. What MACRS convention applies to the new office building?
b. What is the life of the asset for MACRS?
c. Wendy's cost recovery deduction for 2018 is $_________ and for 2022 is ____________$ .

Answers

Answer:

a. Mild Month MACRS convention applies to the new office building

b. The life of the asset under MACRS is 39 years

c. The cost recovery deduction for 2018 is $20,330

The cost recovery deduction for 2022 is $52,776

Explanation:

a. According to the given data Mild Month MACRS convention is applicable here because real property is placed in service in the middle of the month in which acquired.

b. The life of the asset under MACRS is 39 years

c. cost recovery deduction for 2018= $3,800,000*0.535%

cost recovery deduction for 2018=$20,330

cost recovery deduction for 2022= $3,800,000*2.564%

cost recovery deduction for 2022= $52,776

Marx and Springsteen provides​ hair-cutting services in the local community. In February, the business cut the hair of 200 ​clients, earned $ 5,100 in​ revenues, and incurred the following operating​ costs:

Hair saloon expense: $500
Building rent expense: 1458
Utilities expense: 200
Depreciation expense--- Equipment: 50

Required:
What was the cost of service to provide one haircut?

Answers

Answer:

Cost of service to provide one haircut is $ 11.04

Explanation:

Hair saloon expense: $500

Building rent expense: $1,458

Utilities expense: $200

Depreciation expense --- Equipment: $50

Total operating cost = Hair saloon expense + Building rent expense + Utilities expense + Depreciation expense

= $500 + $1,458 + $200 + $50

= $ 2,208

Total hair cuts = 200

Therefore, cost per hair cut = Total operating cost ÷ Total hair cuts

= $2,208 ÷ $200

=  $ 11.04

Consider the business Dave’s Doughnuts. Which of the following is a sunk cost of this business? Group of answer choices The monthly rent Dave must pay to use a building downtown The wages Dave pays to his workers who make the doughnuts The expenses that went into research and development of a new doughnut flavor The salary that Dave could be earning elsewhere if he didn’t own the business None of the above

Answers

Answer:

The expenses that went into research and development of a new doughnut flavor

Explanation:

A sunk cost is a cost that has already been incurred and cannot be recovered. It is money that has already been spent. Sunk costs are bygone and are not to be considered when deciding whether to continue an investment project.

The expenses that went into research and development of a new doughnut flavor is a sunk cost since the cost has been incurred already and cannot be recovered because it is not a relevant cost.

Kenzie is a research scientist in Tallahassee, Florida. Her spouse Gary stays home to take care of their house and two dogs. Kenzie's total wages for 2019 were $60,500 from which $5,900 of federal income tax was withheld. ​ Calculate the income tax due or income tax refund on Kenzie and Gary's 2019 individual income tax return. Use the tax formula for individuals and show your work.

Answers

Answer:

tax due 1,848 (presenting head of household)

Explanation:

They will use Head of household

As Gary do not work and this will report the better tax-burden for them

Tax bracket table for the year ended December 31th 2019

10%   $         0 to $13,850

12%   $13,851 to $52,850

22%   $52,851 to $84,200

13.850 x 10% = 1,385

(52,850 - 13,850) x 12% = 4,680

(60,500 - 52,850) x 22% = 1,683

Total tax:  7.748

tax due 7,748 - 5,900 = 1,848

On January 1, 20X8, Potter Corporation acquired 90 percent of Shoemaker Company’s voting stock, at underlying book value. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Shoemaker at that date. Potter uses the fully adjusted equity method in accounting for its ownership of Shoemaker. On December 31, 20X9, the trial balances of the two companies are as follows: Based on the preceding information, what amount would be reported as income to controlling interest in the consolidated financial statements for 20X9?

Answers

Answer:

$138,000

Explanation:

Subsidiary is a company which is controlled by its parent. Potter Corporation acquired 90% stock in Shoemaker Company. The non controlling interest is 10% in Shoemaker Company. The company made a profit of $1,380,000. The 90% share will be allocated to the parent company and only 10% share will be allocated to the Non Controlling Interest.

Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $483,000, has an estimated useful life of 10 years and an estimated residual value of $63,000. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?

Answers

Answer: $42,000

Explanation:

Using a straight line Depreciation method means that the Equipment will be depreciated uniformly throughout it's life.  i.e by the same amount.

Depreciation = (Cost - Residual Value) / Useful Life

= (483,000 - 63,000) / 10

= 420,000/10

= $42,000

The annual Depreciation amount for Year 1 - 3 is $42,000 and will be the same as long as the Equipment is in service.

. Gwen is leading a meeting and wants to make sure that they stick to the agenda and end on time. What should she do to move the meeting along? a. Say as much as possible during the meeting. b. Move divergent topics to a separate list to be discussed later. c. Not worry so much about time; the most important thing is to make sure that all agenda items are discussed fully. d. Ask anyone who monopolizes the conversation to leave.

Answers

Answer:

b.

Explanation:

When leading a meeting with many different topics, the best way to move the meeting along faster so that it ends in time is to move divergent topics to a separate list to be discussed later. This would remove the unimportant topics from that specific meeting and allow the very specific important topics to be discussed thoroughly in that meeting, thus moving it along but still being as efficient as possible. The divergent topics can be scheduled to be discussed at a later date when they are of a higher priority.

Nenn Co.'s allowance for uncollectible accounts was $190,000 at the end of 2024 and $200,000 at the end of 2023. For the year ended December 31, 2024, Nenn reported bad debt expense of $26,000 in its income statement. What amount did Nenn debit to the appropriate account in 2024 to write off actual bad debts?

Answers

Answer:

The amount Nenn debited to write off of actual bad debt is $36,000

Explanation:

Allowance for Uncollectible beginning = $200,000

Allowance for Uncollectible at the end = $190,000

Bad debt expense reported = $26,000

Amount Nenn debited to write off of actual bad debt = $200,000 + $26,000 - $190,000 = $36,000

Kevin owns a retail store, and during the current year, he purchased $610,000 worth of inventory. Kevin's beginning inventory was $67,000, and his ending inventory is $77,200. During the year, Kevin withdrew $1,780 in inventory for his personal use. Calculate Kevin's cost of goods sold for the year.?

Answers

Answer:

COGS= $598,020

Explanation:

Giving the following information:

Kevin owns a retail store, and during the current year, he purchased $610,000 worth of inventory. Kevin's beginning inventory was $67,000, and his ending inventory is $77,200. During the year, Kevin withdrew $1,780 in inventory for his personal use.

We need to deduct the inventory used for personal use.

To calculate the cost of goods sold, we need to use the following formula:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 67,000 + 610,000 - 77,200 - 1,780

COGS= $598,020

Among the 1,000 policyholders of the auto insurance company, 400 are classified as low-risk drivers and 600 are classified as high-risk drivers. In each month, the probability of zero accidents for high-risk drivers is 0.80 and the probability of zero accidents for low-risk drivers is 0.90. Calculate the expected bonus payment from the insurer to the 1000 policy

Answers

Answer:

50,400

Explanation:

We are required to

Calculate the expected bonus payment from the insurer to the 1000 policyholders in one year:

X = case of 0 accident

E[X] = 400 x P(X | low risk) + 600 x P (X | high risk)

= (400 x 0.9) + (600 x 0.8)

= 840

Expected bonus = 840 x 5 dollars x 12 months

= 50400

Lolita, a Mexican business woman, came to Redmond Washington to negotiate a business deal with Microsoft. Lolita, assuming business was formal, dressed in a formal suit, nylons, and high heels. She met with the Vice President of Worldwide Sales at Microsoft, Kevin Johnson, and greeted him with, "Good morning Vice President Johnson." Kevin was dressed in jeans and sneakers and addressed Lolita with, "Hello Lolita, nice to finally meet you in person." Lolita was offended by this greeting. This example illustrates which assumption about intercultural communication?

Answers

Answer:

b) all of these are true.

Explanation:

The scenario described in the question illustrates differences in communication rules that suffer from different cultural influences, this is what we perceive when Mexican Lolita may have been surprised that the American Kevin Johnson communicated with her in a more informal way at a formal work meeting. , and therefore felt offended, as he took into account the type of cultural communication in his country of origin, disregarding the intercultural differences in communication that occur in different countries.

So the ideal is that in a case like the one described in the question, where there are negotiations for business deal with international companies, employees are prepared to relate professionally with different types of people, observing the type of communication context, understanding that there are differences intercultural experiences that imply in the way people relate to each other even in the work environment, and above all, maintain ethics and respect for each and every culture different from yours.

Brian and Kim have a 12-year-old child, Stan. For 2019, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. Click here to access the income tax rate schedules. If Stan's parents elected to report Stan's income on his parents' return, what would the tax on Stan's income be?

Answers

Answer:

The answer is $393

Explanation:

Solution

In this case, we will find the tax on Stan's income which is stated below:

Stan's adjusted gross income = 4500

The standardized deduction = 1050

The unearned taxable income = 3450

With ordinary rate, the less statutory deduction is = 1050

The taxable income that is subject to his parent's rate = 2400

The tax with ordinary rate = (1050 * 10%) =105

The Tax with parent's rate is = (2400 * 12%) = 288

Hence,

The tax on Stan's income would be = 105 + 288 = $393

Note: Kindly find an attached copy of the Tax rate schedules as part of the question to this solution

Suppose Binder corporatio's common stock has a return of 17.61 percent. The risk-free rate is 3.68 percent, the market return is 12.4 percent and there is no unsystematic risk affecting Binder's return. Given the one-factor arbitrage pricing model, what is the factor beta

Answers

Answer:

1.597

Explanation:

The computation of the factor beta using the one-factor arbitrage pricing model is shown below:

As we know that

= (Expected rate of return - risk-free rate of return) ÷ (market rate of return-risk-free rate of return)

= (17.61% - 3.68%) ÷ (12.4% - 3.68%)

= 1.597

We simply applied the above formula to determine the factor beta and the same is to be considered

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