JacksonIndustries produces two products. The products' estimated costs are as follows:
Product A Product B
Direct Materials $20,000 $15,000
Direct Labor $30,000 $10,000
The company's overhead costs of $200,000 are allocated based on labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What is the total amount of production costs that would be assigned to Product A? (Do not round intermediate calculations.)
a. $200,000
b. $75,000
c. $50,000
d .$150,000
e. $114,285.71

Answers

Answer 1

Answer:

Total production cost= $200,000

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 200,000 / (30,000 + 10,000)

Predetermined manufacturing overhead rate= $5 per direct labor cost

Now, we can allocate overhead to Product A:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 5*30,000

Allocated MOH= $150,000

Finally, the total production cost for Product A:

Total production cost= 150,000 + 20,000 + 30,000

Total production cost= $200,000


Related Questions

Your company sponsors a 401(k) plan into which you deposit 8 percent of your $65,000 annual income. Your company matches 50 percent of the first 3 percent of your earnings. You expect the fund to yield 8 percent next year. Assume you are currently in the 31 percent tax bracket.

Required:
a. How many dollars did you invest out of your salary in your 401(k) plan this year?
b. What is your one-year return?

Answers

Answer:

a. $6,669

b.85.87%

Explanation:

Annual income = $65000

Employee deposit = 8%

= 65000*8%

= $5200

Tax rate given = 31%

Tax savings = $5200*31%

Tax savings= 1/$1,612

Net employee cost = $5200 - $1612

Net employee cost=$3588

Employer deposit = 65,000 * 50% * 3%

Employer deposit= $975

Total employee and employer investment = $5200 + $975

Total employee and employer investment= $6175

Given yield rate = 8%

a) Calculation to determine How many dollars did you invest out of your salary in your 401(k) plan this year

Using this formula

Total investment at end of year 1 = $6,175*(1+yield)

Let plug in the formula

Total investment at end of year 1=$6,175*1.08

Total investment at end of year 1= $6,669

Therefore How many dollars did you invest out of your salary in your 401(k) plan this year is $6,669

b) Calculation to determine your one-year return

Using this formula

One year return = (Year end investment - Employee net cost) / Employee net cost

Let plug in the formula

One year return= ($6,669 - $3588) / $3588

One year return=$3,081/$3,588

One year return= 0.8587*100

One year return= 85.87%

Therefore your one-year return is 85.87%

A fire destroyed a large percentage of the financial records of Carter Health System. You have the task of piecing together information to prepare a financial report. You find the profit margin to be 5.4 percent. If sales were $4 million on total assets of $2 million, and the amount of debt financing was $800,000, what was Carter's return on equity (ROE)?
a. 21.6%.
b. 25.8%.
c. 13.8%.
d. 18.0%.
e. 19.2%.

Answers

Answer:

d. 18.0%

Explanation:

Calculation to determine what was Carter's return on equity (ROE)?

First step is to calculate the Net income

Net income = sales * profit margin

Net income= 4 million * 5.4%

Net income= 216000

Second step is calculate the Equity

Equity = total assets - debt

Equity= 2000000 - 800000

Equity= 1200000

Now let determine the ROE

ROE = Net income/Equity

ROE= 216000/1200000

ROE= 18%

Therefore Carter's return on equity (ROE) is 18%

Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. Required: (1) Prepare the updated stockholders' equity section after the split. (2) Compute the number of shares outstanding after the split.

Answers

Complete Question:

On June 30, Sharper Corporation's stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock-$10 par value, 120,000 shares authorized, 72,000 shares issued and outstanding $ 720,000

Paid-in capital in excess of par value, common stock 310,000

Retained earnings 715,000

Total stockholders' equity  $1,745,000

Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. Required: (1) Prepare the updated stockholders' equity section after the split. (2) Compute the number of shares outstanding after the split. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the updated stockholders' equity section after the split.

Answer:

Sharper Corporation

1. SHARPER CORPORATION

Stockholders' Equity Section of the Balance Sheet June 30

Total stockholders' equity

Common stock-$3.33 par value, 360,000 shares authorized,

216,000 shares issued and outstanding                  $ 720,000

Paid-in capital in excess of par value, common stock 310,000

Retained earnings                                                         715,000

Total stockholders' equity                                       $1,745,000

2. The number of shares outstanding after the split is:

= 216,000 shares.

Explanation:

a) Data and Calculations:

Common stock-$10 par value, 120,000 shares authorized,

72,000 shares issued and outstanding                   $ 720,000

Paid-in capital in excess of par value, common stock 310,000

Retained earnings                                                         715,000

Total stockholders' equity                                       $1,745,000

Authorized shares = 360,000 (120,000 * 3)

Outstanding shares = 216,000 (72,000 * 3)

Common stock par value = $3.333 ($10/3)

b) A 3-for-1 stock split means that shareholders will now have 3 shares for each share that they previously held.  Therefore, the outstanding and authorized shares will be multiplied by 3 while the stock price is divided by 3 to arrive at their values after the split.

Which of the following food borne illness has a preventative vaccine

A. E.coli
B.norovirus
C. Hep. A
D. Shigella

Answers

Answer:

C. Hep. A

Explanation:

From the available options, Hep. A is preventable with a vaccine. The vaccine was created in 1995. It is administered to individuals in two seperate doses and usually done with a time span of 6 months between dose. Having both doses administered helps prevent the individuals from the Hep. A virus long term. Like most vaccines, this one has a 95% effectiveness for preventing the virus from affecting the individual's body.

Over a certain period, large-company stocks had an average return of 12.34 percent, the average risk-free rate was 2.53 percent, and small-company stocks averaged 17.25 percent. What was the risk premium on small-company stocks for this period

Answers

Answer: 14.72%

Explanation:

Risk premium is the amount of return that an investment provides over the risk free return of the market. This is to cater for the higher risk that an investor would incur for investing in the stock.

Risk premium for small company stocks = Average return for small stocks - Risk free rate

= 17.25% - 2.53%

= 14.72%

At the end of the previous year, a customer owed Days Company $400. On February 1 of the current year, the customer paid $600 total, which included the $400 owed plus $200 owed through February 1st. The journal entry on February 1 is? (Check all that apply.)

Answers

Answer:

The relevant journal entry would be:

Date                    Account Title                                           Debit            Credit

February 1          Cash                                                       $600

                          Accounts Receivable                                                   $400

                           Revenue                                                                       $200

The entire $600 will be debited to cash to show that $600 was received in cash.

$400 will go to Accounts Receivable to cancel out the debt owed by the customer.

Revenue will be credited $200 for the amount owed through February 1st. Revenue is credited when it increases.

Answer: Cash will debited for $600

Accounts receivable will be credited for $400

Service revenue would be credited for $200

Explanation: it’s was the correct answer on the homework

Alternative or non-traditional assessments are become more popular among teachers. One type of alternative assessment is called ___________

Answers

Answer:

Alternative or non-traditional assessments are becoming increasingly popular with teachers. An alternate evaluation type is called _Task

Explanation:

Zisk Co. purchases raw materials on account Budgeted purchase amounts are April, $80,000, May, $110,000, and June, $120,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $22,000. Prepare a schedule of budgeted cash payments for April, May, and June. (I need ending accounts payable)

Answers

Answer:

A schedule of cash payments for April, May, and June is prepared.

Explanation:

The following image shows the calculation and explanation of the cash payment schedule.

The inventory turnover ratio: Multiple Choice Is used to analyze collectability. Is used to measure solvency. Reveals how many times a company sells its merchandise inventory during a period. Reveals how many days a company can sell inventory if no new merchandise is purchased. Calculation depends on the company's inventory valuation method.

Answers

Answer: Reveals how many times a company sells its merchandise inventory during a period.

Explanation:

The Inventory Turnover Ratio is used to measure how often a company is able to sell off all its inventory within a single period. The higher this is, the better because it means that the company has a high sales rate and is incurring low storage costs since the inventory does not stay with them for long.

It is important to use this ratio relative to the type of industry it is being applied to however. For instance, a car dealership would be expected to have a lower inventory turnover ratio than a grocery store so comparing them using this ratio would be inaccurate.

Stock dividends distributable should be classified on the:________.
A) income statement as an expense.
B) balance sheet as an asset.
C) balance sheet as a liability.
D) balance sheet as an item of stockholders' equity.

Answers

Answer:

a) income statement as an expense

Which of the following is true regarding the corporate form of ownership?

A. All of these

B. Generally has the greatest ability accumulate capital.

C. Separate legal entity in the eyes of the law.

D. Most complex form of ownership.

Answers

Answer:

A. All of these

Explanation:

A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.

This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries. Also, it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity.

Generally, a corporate form of ownership is considered to be perpetual in nature.

Corporations can be sold to investors through stocks or shares, as a public entity. Thus, a company that engages in the sales of ownership shares to many investors is referred to as a corporation.

Some examples of multinational firms are Ap-ple, Volkswagen, G-oogle, Shoprite, Nestlé, Accenture, Shell BP, Chevron etc.

On a related note, an owner of a corporation is commonly referred to as a stockholder.

The true statements regarding the corporate form of ownership are;

I. Generally has the greatest ability accumulate capital.

II. Separate legal entity in the eyes of the law.

III. Most complex form of ownership.

Ivanhoe Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,380 per month. One of the barbers serves as the manager and receives an extra $535 per month. In addition to the base rate, each barber also receives a commission of $3.75 per haircut.
Other costs are as follows.
Advertising $270 per month
Rent $1,010 per month
Barber supplies $0.50 per haircut
Utilities $160 per month plus $0.15 per haircut
Magazines $35 per month
Ivanhoe currently charges $11 per haircut.
Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.)
Total variable cost per haircut
$enter a dollar amount rounded to 2 decimal places
Total fixed
$enter a dollar amount
eTextbook and Media
Compute the break-even point in units and dollars.
Break-even point
enter the Break-even point in units
haircuts
Break even sales
$enter the Break-even sales in dollars
eTextbook and Media
Determine net income, assuming 1,670 haircuts are given in a month.
Net income / (Loss)
$enter net income in dollars

Answers

Answer:

Fredonia Barber Shop

a. Variable costs per haircut = $4.40

   Total monthly fixed costs = $8,910

b. Break-even point in units = 1,350

Break-even point in sales dollars = $14,850

Net income with 1,670 haircuts = $2,120

Explanation:

a) Data and Calculations:

Fixed costs:

Wages of barbers per month =    $6,900 ($1,380 * 5)

Manager's allowance per month = $535

Advertising per month =                 $270

Rent per month =                           $1,010

Utilities per month =                        $160

Magazines per month =                   $35

Total fixed costs per month =     $8,910

Ivanhoe currently charges $11 per haircut.

Variable costs per haircut:

Commission per haircut =       $3.75

Barber supplies per haircut = $0.50

Utilities per haircut =                $0.15

Total variable costs per unit   $4.40

Contribution margin per haircut = $6.60 ($11 - $4.40)

Contribution margin ratio = 0.6

Break-even point in units = $8,910/$6.60 = 1,350

Break-even point in sales dollars = $8,910/0.6 = $14,850

Net income assuming 1,670 haircuts for a month:

Sales revenue = $18,370 ($11 * 1,670)

Variable costs =     7,340 ($4.40 * 1,670)

Contribution       $11,030

Fixed costs            8,910

Net income         $2,120

Nut and Bolt guy Inc, sells nuts, bolts, fasteners and other related equipment. The CFO projects that net FCF for the next three years will be $11,000, $12,500 and $16,000, respectively. After that, the cash flows are expected to increase by 4.5 percent annually. What is the value of the firm if the WACC is 12.2%?

Answers

Answer:

$184791

Explanation:

The calculation of the value of the firm is given below:

Year         Future Cash Flow      PVF at 12.2%      PV of Cash Flow

1                 11000                               0.891                  9801

2               12500                               0.794                  9925

3               16000                                0.708                11328

Total                                                                              31054

Present Value of Terminal Value

= [16000 × (1 + 0.045) ÷ 0.122 - 0.045] × 0.708

= [16720 ÷ 0.077] × 0.708

= 153737

Now

value of Firm = 31054 + 153737

= $184791

Pick the correct statement from below. Multiple Choice Project analysis should only include the cash flows that affect the income statement. A project can create a positive operating cash flow without affecting sales. The depreciation tax shield creates a cash outflow for a project. Interest expense should always be included when analyzing cost-cutting projects. A bid price maximizes profits on a project for the bidding firm.

Answers

Answer:

A project can create a positive operating cash flow without affecting sales.

Explanation:

A project cash flow analysis permits to look the cash inflows and cash outflows that are along with the existing or upcoming project. Also it addressed the opportunity cost

So as per the given situation, it involved that project in which it establish the positive operating cash flow without impacting the sales

Therefore as per the given options, the above statement represent an answer

If fixed costs are $1,464,000, the unit selling price is $220, and the unit variable costs are $114, what are the break-even sales (units) if fixed costs are increased by $46,400? a.11,399 units b.21,374 units c.17,099 units d.14,249 units

Answers

Answer:

d.14,249 units

Explanation:

Break-even sales (units) = Fixed Costs ÷ Contribution per unit

Where,

Contribution per unit = Unit Selling Price - Unit Variable Cost

                                   = $106

therefore,

Break-even sales (units) = ($1,464,000 + $46,400) ÷ $106

                                        = 14,249

thus,

the break-even sales (units) if fixed costs are increased by $46,400 is 14,249 units.

Hellman Industries is estimating the weighted average cost of capital of its new project. The company plan to finance this new project by 50 percent ordinary shares, 10 percent preference equity and rest by issuing debt. The return on FTSE 100 index is 11.4 percent and the 3 months’ treasury bills yield is 4%. The Hellman beta is 1.05. The average yield to maturity of Hellman semiannual coupon bonds is 8.3 percent. The Preference share are currently valued at £76, with a par value of £100 and an 8% dividend. The Hellman Industries is in the 40% marginal Tax bracket. a. Find the Pretax cost of Debt,

Answers

Question Completion:

a. Find the Pretax cost of Debt, cost of preference, and ordinary shares.

b. Calculate Hellman Pre- tax and after Tax WACC.

Answer:

Hellman Industries

a) Pretax cost of debt = Yield on bonds = 8.3%

b) Cost of Common equity

= 11.77%

c) Cost of preferred stock

= 10.53%

d) Pre-tax WACC

= 10.3%

e) After-tax WACC

= 8.93%

Explanation:

a) Data and Calculations:

                                           

Weight of Common stock = 50%

Weight of Preferred stock = 10%

Weight of Debts (Bonds) = 40% (100% - 50% - 10%)

Market return on common stock = 11.4%

Risk-free return (treasury bills yield) = 4%

Beta = 1.05

Average yield to maturity of Hellman semiannual coupon bonds = 8.3%

Market price of Preferred stock = £76 per share

Par value of Preferred stock = £100

Dividend rate of Preferred stock = 8%

Dividend per share = £8 (£100 * 8%)

Cost of Preferred stock = £8/£76 * 100 = 10.53%

Marginal tax rate = 40%

a) Pretax cost of debt = Yield on bonds = 8.3%

After-tax cost of debt = 8.3% (1 - 0.4) = 4.98%

b) Cost of Common equity, Re = Risk Free Rate + Beta x (Market Return - Risk Free Rate) = 4% + 1.05 x (11.4% - 4%)

= 4% + 1.05 * 7.4%

= 4% + 7.77%

= 11.77%

c) Cost of preferred stock = Dividend per share/Price * 100

= $8/$76 * 100

= 10.53%

d) Pre-tax WACC = 50% * 11.77% + 10% * 10.53% + 40% * 8.3%

= 5.885 + 1.053 + 3.32

= 10.258

= 10.3%

e) After-tax WACC = 50% * 11.77% + 10% * 10.53% + 40% * 4.98%

= 5.885 + 1.053 + 1.992

= 8.93%

Show what happens to the firm's output choice and profit if the price of the product falls from $52 to $42. If the market price falls from $52 to $42, then the firm's output will decrease or increase from _____units to _____ units. (Enter your responses using integers.)

Answers

Answer: The firm's output will therefore decrease from 9 units to 8 units.

Explanation:

This firm most likely operates in a competitive market where price is the same as marginal revenue.

In such a market, firms will try to maximize output by selling at a level where Price is equal to Marginal cost and if they cannot get here, they try to make them as close as possible so long as marginal cost does not exceed price.

As this is the case, when the price was $52, the closest Marginal cost that isn't higher than price was $45 for an output level of 9 units.

If the product falls to $42, the closest marginal cost that isn't higher than the cost is $38 for 8 units.

The firm's output will therefore decrease from 9 units to 8 units.

Write an example of liability accounts

Answers

or example, if a business takes out a mortgage payable over a 15-year period, that is a long-term liability. ... Some examples of short-term liabilities include payroll expenses and accounts payable, which include money owed to vendors, monthly utilities, and similar expenses.
Answer
Ex: A liability account is used to store all legally binding obligations payable to a third party.

direct operating margin may be used to determine departmental?

Answers

Answer:

can be dhkfgjhhhhddrreerrtyuuuuu7u77tt7ui

You wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annual annuity of $30,000 for 25 years after retirement. During the period before retirement you can earn 11 percent annually, while after retirement you can earn 13 percent on your money. What annual contributions to the retirement fund will allow you to receive the $30,000 annuity

Answers

Answer:

$3,425.08

Explanation:

The computation of the annual contributions to the retirement fund is shown below:

The Present value of  the annuity is

= $30,000 × [1 - (1 ÷ (1 + 13%)^25)] ÷ 13%

= $219,899.55

Now  

Future value of annuity = P×[(1+r)^n-1]÷r

$219,899.55 = P×[(1+11%)^20-1]÷11%

Hence, Annual contribution required, P = $3,425.08

All of the following are properties of typical indifference curves except Select one: a. indifference curves are bowed outward. b. higher indifference curves are preferred to lower ones. c. indifference curves do not cross. d. indifference curves are downward sloping.

Answers

Answer:

A

Explanation:

An indifference curve is a graph that shows the two combinations of goods for which an individual is indifferent in its consumption.

Points on an indifference curve represents various combination of goods to which an individual is indifferent to

higher indifference curve represents higher level of utility

On December 31, 2018, a company had assets of $34 billion and stockholders' equity of $28 billion. That same company had assets of $50 billion and stockholders' equity of $12 billion as of December 31, 2019. During 2019, the company reported total sales revenue of $27 billion and total expenses of $25 billion. What is the company's debt-to-assets ratio on December 31, 2019

Answers

Answer:

131.6%

Explanation:

Total assets is $50 billion

Liabilities = 50-stock holder equity which is $12 billion

= 50-12

= $38 billion

Therefore the debt to assets ratio can be calculated as follows

= 50 billion/38 billion

= 1.3157×100

°= 131.6

Hence the debts to assetsrayion is 131.6%

Davis-Bell Corporation has an activity-based costing system with three activity cost pools - Machining, Setting Up, and Other. The company's overhead costs have already been allocated to the cost pools and total $5,800 for the Machining cost pool, $4,700 for the Setting Up cost pool, and $7,500 for the Other cost pool. Costs in the machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products are below: MHs Batches Product Z7 3,800 700 Product K9 6,200 300 Total 10,000 1,000 Calculate activity rates for each activity cost pool using activity-based costing. Determine the amount of overhead cost that would be assigned to each product using activity-based costing.

Answers

Answer and Explanation:

The computation is given below:

Calculation of Activity Rates

Cost Pool         Cost Driver          Cost          Activity Rate

Machining     Machine Hours     $5800       $0.58 (5800 ÷ 10000)

Setting Up       Batches                $4700       $4.70 (4700 ÷ 1000)

Calculation of Overhead Cost to each Product:

Particulars      Product Z7                      Product K9                      Total

Machining   $2204 ($0.58 × 3800)     $3596 ($0.58 × 6200)    $5800

Setting Up    $3290 ($4.7 × 700)         $1410 ($4.7 × 300)          $4700

                   $5494                               $5006                             $10500

Rachelle transfers property with a tax basis of $740 and a fair market value of $935 to a corporation in exchange for stock with a fair market value of $620 and $93 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $222 on the property transferred. What is the corporation's tax basis in the property received in the exchange

Answers

Answer:

$927

Explanation:

Calculation to determine the corporation's tax basis in the property received in the exchange

The corporation's TAX BASIS in the property received in the exchange will be TAX BASIS of $740 plus gain recognized of $187 Calculated as ($935-$740) and Assuming the corporation sells the property for the amount of $935, the gain recognized will be $187.

Therefore the corporation's tax basis in the property received in the exchange will be :

Corporation's tax basis=Tax Basis +Gain recognized

Corporation's tax basis=$740+($935-$740)

Corporation's tax basis=$740+$187

Corporation's tax basis=$927

Elite Trailer Parks has an operating profit of $293,000. Interest expense for the year was $38,800; preferred dividends paid were $31,500; and common dividends paid were $36,900. The tax was $65,500. The firm has 20,200 shares of common stock outstanding.

Required:
a. Calculate the earnings per share and the common dividends per share for Elite Trailer Parks.
b. What was the increase in retained earnings for the year?

Answers

Answer:

a.Earnings per share $7.78

Dividends per share $1.83

b. $120,300

Explanation:

a. Calculation to determine the earnings per share and the common dividends per share for Elite Trailer Parks.

First step is to calculate the Increase in retained earnings

Operating profit $293,000

Interest expense ($38,800)

=Earnings before taxes $254,200

Less Taxes ($65,500)

Earnings after taxes = $188,700

Preferred dividends ($31,500)

Available to common stockholders $157,200

Common dividends ($36,900)

Increase in retained earnings $120,300

($157,200-$36,900)

Now let determine Earnings per share and Dividends per share using this formula

Earnings per share = Available to common stockholders/ Number of common shares outstanding

Let plug in the formula

Earnings per share = $157,200/20,200

Earnings per share= $7.78

Dividends per share = Common dividends/ Number of shares outstanding

Let plug in the formula

Dividends per share=$36,900/20,200

Dividends per share= $1.83

Therefore the earnings per share and the common dividends per share for Elite Trailer Parks is:

Earnings per share $7.78

Dividends per share $1.83

B. Based on the information above calculation in (a) the increase in retained earnings for the year is $120,300

A manufacturing firm has a marketable permit that currently allows for 150 tons of emissions. However, the marketable permit is shrinkable and the firm will only be allowed 100 tons of emissions next year. The manufacturing firm projects that its optimal emissions next year will be 160 tons. It is the best interest of the manufacturing firm to purchase permits allowing for _______ tons of emissions.

Answers

Answer: 60

Explanation:

Since we are given the information that the firm will only be allowed 100 tons of emissions next year while the manufacturing firm projects that its optimal emissions next year will be 160 tons, then it will be in the best interest of the manufacturing firm to purchase permits allowing for (160 - 100) = 60 tons of emissions.

The correct answer is 60 tons of emissions.

At the beginning of the year, Nothing More, Corp., had a long-term debt balance of $38,554. During the year, the company repaid a long-term loan in the amount of $11,714. The company paid $4,710 in interest during the year, and opened a new long-term loan for $10,250. What was the cash flow to creditors during the year

Answers

Answer: $6,174

Explanation:

Cash flow to creditors during the year is the amount that was paid to creditors less the amount that was received from them.

The relevant formula is:

= Long term loan repaid + Interest paid - Addition to long term loan

= 11,714 + 4,710 - 10,250

= $6,174

Warren Co. recorded a right-of-use asset of $820,000 in a 10-year finance lease. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset after two years will be:

Answers

Answer:

$656,000

Explanation:

Calculation to determine what The balance in the right-of-use asset after two years will be

Using this formula

Right-of-use asset after 2 years balance=Value of Asset- (Value of Asset*Used year)/Estimated Life

Let plug in the formula

Right-of-use asset after 2 years balance= $820,000 - ($820,000 / 10) * 2

Right-of-use asset after 2 years balance=$820,000-$164,000

Right-of-use asset after 2 years balance= $656,000

Therefore The balance in the right-of-use asset after two years will be:$656,000

Company A produces paper and sells it to Company B for a total of $183. Company B uses the paper to make books and then sells the books to consumers for a total of $342.What is the value of GDP in this simple economy?

Answers

Answer:

$159

Explanation:

Value = cost of books - cost of paper

342 - 183 = 159

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

the cost of paper is not included because it is an intermediate good and not a final good.

An intermediate good is a good that is used in the production of the final good.

If it is added to GDP, it would result in double counting

The value of GDP in this simple economy is $159.

A gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

The formula for GDP is Consumption spending by households + Investment spending by businesses + Government spending + Net export

Note that "the cost of paper is not included because it is an intermediate good and not a final good and an intermediate good is a good that is used in the production of the final good"

The value of GDP = Cost of books - Cost of paper

The value of GDP = 342 - 183

The value of GDP = 159

In conclusion, the  value of GDP in this simple economy is $159.

Read more about gross domestic product

brainly.com/question/1383956

A special investment project will require 5 years of planning and implementation, but will allow your firm to receive $350,000 at the end of years 6, 7, 8, 9, and 10. If the appropriate discount rate is 13%, what is the present value of those cash flows

Answers

Answer: $668,154

Explanation:

The present value would be the sum of the present values of the five cashflows.

= 350,000 / 1.13⁶ + 350,000 / 1.13⁷ + 350,000 / 1.13⁸ + 350,000 / 1.13⁹ + 350,000 / 1.13¹⁰

= $668,154.28

= $668,154

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