Kevin bought 265 shares of Intel stock on January 1, 2019, for $76 per share, with a brokerage fee of $165. Then, Kevin sells all 265 shares for $88 per share on December 12, 2019. The brokerage fee on the sale was $215. What is the amount of the gain/loss Kevin must report on his 2019 tax return

Answers

Answer 1

Answer:

$2800

Explanation:

To find the Gain or loss on the sell of shares we jus need to deduct cost of purchasing and brokerage fee from sale proceeds

12 DECEMBER 2019

Gain/loss = Sales proceeds- Total Cost to purchase - Cost to sell

Gain/loss= ($88 x 265) - $20,305 - $215

Gain/loss= $23,320 - $20,305 - $215

Gain/loss= $2800

WORKINGS

Purchase 1 Jan 2019

265shares x $76per share =  $20,140

Total cost to purchase = $20,140 + $165(brokerage fee)

Total cost to purchase =  $20,305

Cost to sell = $215(brokerage fee)


Related Questions

Required information
An internal control system consists of the policies and procedures managers use to protect assets, ensure reliable accounting, promote efficient operations, and uphold company policies. It can prevent avoidable losses and help managers both plan operations and monitor company and human performance. Principles of good internal control include establishing responsibilities, maintaining adequate records, insuring assets and bonding employees, separating recordkeeping from custody of assets, dividing responsibilities for related transactions, applying technological controls, and performing regular independent reviews. Sarbanes-Oxley Act requires each of the following:
A. An effective internal control.
B. Light penalties for violators.
C. Auditors must evaluate internal controls.
D. Auditor's work overseen by Public Accounting Board.

Answers

Answer:

Options A and D.

Explanation:

Just like it is given in the question above, the concept of internal control system has to do with the regulations and policies that are being set by each companies/firms or agencies or bodies or business organization in order to increase their productivity and efficiency.

The Sarbanes-Oxley Act was enacted on the 30th day of the month of July in the year 2002 by the 107th United States of America congress and its main work or purpose is to make sure sure that there is reliability and transparency in financial and accounting institutions and also to protect investors.

When a breech is perceived, group of people will be appointed to conduct "An effective internal control" and also for the "Auditor's work overseen by Public Accounting Board."

Answer:

A. An effective internal control

C. Auditors must evaluate internal controls

Explanation:

SOX requires managers and auditors whose stock is publicly traded to have an effective internal control system, auditors must evaluate internal controls, violators may receive harsh penalties (not light penalties), and auditors’ work is overseen by Public Company Accounting Oversight Board (PCAOB) (not by the Public Accounting Board).

If Katerina were delivering an expository speech about strip mining, she would be presenting _______________________. a. an informative process speech b. an exposition of a theory, principle, or law c. an exposition of political, economic, social, religious, or ethical issues d. an exposition of historical events and forces

Answers

Answer:

a. an informative process speech

Explanation:

An expository speech is one that explains the processes involved in doing an activity. It is meant to inform the audience on processes involved in executing a task.

In this scenario strip mining is the process of removing the top layer of soil in order to gain access to a mineral. This process is opposed to digging of deep holes to access minerals. The method is commonly used in coal reserves.

An expository speech by Katerina on strip mining will be an informative process speech on this process of mining minerals

Assume that you are a human resource manager of a 5-star international resort chain operating in
a South Pacific country. Your resort CEO recently assigns you to hire one hundred housekeepers
and waiters for your chain of hotels. Besides personality tests, discuss three other selection
measures you could use to select your targeted employees. Justify your choices with relevant
examples

Answers

Answer:

1. Language Skills

2. Specialization

3. Customer relationship skills

Explanation:

It is very important to note that South Pacific countries are home to many tourist, therefore the employees selected if able to speak various languages would be an added competitive advantage for the Hotel.

Also, employees with vast experience in their area of specialization is another factor that should be considered because it is serves as key to getting repeat service purchases in the hospitality industry.

Furthermore, the ability of employees to remain calm even to an irate customer shows a high level of good customer relationship. However, lack of this skill would result in potential loses for the hotel as a result of bad customer rating.

Common stocks typically have which of the following that bonds do NOT have?
I. Voting rights
II. Fixed cash flows
III. Set maturity date
IV. Tax deductibility of cash flows to investors
a) i only
b) i,ii and iv only
c) ii,iii and iv only
d) iv only
e) i, ii,iii and iv

Answers

Answer:

The correct option is A, i only

Explanation:

The voting right attached to common stock means that common stockholders being the original owners of the company have the right to attend the company annual general meetings and vote on issues concerning the efficient running of the company as well as election of board of directors.

Fixed cash flows of annual or semiannual coupon interest, set maturity date including the tax deductibility of cash flows to investors are all features of bonds.

During 2022, Bramble Corp. reported cash provided by operations of $778000, cash used in investing of $672000, and cash used in financing of $186000. In addition, cash spent on fixed assets during the period was $270000. Average current liabilities were $637000 and average total liabilities were $1682000. No dividends were paid. Based on this information, what was Bramble free cash flow

Answers

Answer:

Bramble free cash flow was $508,000

Explanation:

Cash provided by operations = $778,000

Cash used in investing = $672,000

Cash used in financing = $186,000

Cash spent on fixed assets during the period = $270,000

Average current liabilities = $637,000

Average total liabilities = $1,682,000

Free cash flow = Cash flow from operating activities - Capital expenditures

= $778,000 - $270,000

= $508,000

On day 51 a project has an earned value of $600, an actual cost of $650, and a planned cost of $560. Compute the SV, CV, and CPI for the project. What is your assessment of the project on day 51

Answers

Answer and Explanation:

The computation is shown below:

a. Schedule variance (SV)

= Earned value - planned cost

= $600 - $560

= $40

b. Cost variance (CV)

= Earned value - actual cost

= $600 - $650

= -$50

c. Consumer price index (CPI)

= Earned value ÷ actual cost

= $600 ÷ 650

= 0.92

As we can see from the above calculation, the project showed negative CV i.e overbudgeted but at the same time, it also showed Positive SV i.e the project is on schedule.

And, the CPI determines that the completing cost is more than the planned cost that reflects the bad condition

Operating data for Swifty Corporation are presented below. 2022 2021Sales revenue $830,700 $634,900 Cost of goods sold 529,000 415,000 Selling expenses 124,700 73,600 Administrative expenses 78,800 53,900 Income tax expense 33,500 23,400 Net income 64,700 69,000 Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round percentages to 1 decimal place, e.g. 12.1%.)

Answers

Answer and Explanation:

The preparation of the vertical analysis is presented below:

Particulars       Amount           %      Amount    %

Sales                 $830,700 100      $634,900 100

Less:

Cost of goods sold $529,000 63.7    $415,000 65.4

Gross Profit          $301,700 36.3     $219,900 34.5

Less:

Selling Expenses $124,700 15.0       $73,600 11.6

administrative expenses $78,800 9.5   $53,900 8.5

Total Operating

expenses               $203,500 24.5 $127,500  20.9

Income before

income taxes         $98,200          11.8  $92,400  14.5

Less:

Income tax expenses $33,500 4.0    $23,400  3.7

Net Income               $64,700 7.8     $69,000 10.8

Working note

The percentage is like

= Items value ÷ sales × 100

Like for cost of goods sold

= $529,000 ÷ $830,700 × 100

= 63.68%

It is same applicable for other items also

The environmental protection agency of a county would like to preserve a piece of land as a wilderness area. The current owner has offered to lease the land to the county for 20 years in return for a lump-sum payment of $1.1 million, which would be paid at the beginning of the 20-year period. The agency has estimated that the land would generate $110,000 per year in benefits to hunters, bird watchers, and hikers. Assume that the lease price represents the social opportunity cost of the land and that the appropriate real discount rate is 4 percent.a. Assuming that the yearly benefits, which are measured in real dollars, accrue at the end of each of the 20 years, calculate the net benefits of leasing the land.b. Some analysts in the agency argue that the annual real benefits are likely to grow at a rate of 2 percent per year due to increasing population and county income. Recalculate the net benefits assuming that they are correct.c. Imagine that the current owner of the land was willing to sell the land for $2 million. Assuming this amount equaled the social opportunity cost of the land, calculate the net benefits if the county were to purchase the land as a permanent wildlife refuge. In making these calculations, first assume a zero annual growth rate in the $110,000 of annual real benefits; then assume that these benefits grow at a rate of 2 percent per year.

Answers

Answer: The answer is given below

Explanation:

Here , we are going to apply the present value of annuty formula.

a. Social Opportunity cost = $1.1 Million

The Yearly cash flows = $110,000

Time (n) = 20 years

The Discount rate (R) = 4%

Net benefits= Present value of cash inflows - the intial socail opportnity cost

Net benefits= Yearly cash flow × (1 - 1/(1+R)^n) / R - 1100000

Net benefits = 110000 × (1 - 1/1.04^20)/0.04 - (1100000)

= $394936

b. We will use the formula for present value of an annuity with the growth rate in benefits as 2 percent.

Firstly, dg= (0.04 - 0.02)/ (1+0.02)

= 0.01961

PV(benefits) = [($110,000)÷ (1+0.02)][1-(1+dg)-20]/dg]

= $1,770,045

NPV = $1,770,045 - $1,100,000= $670,045

Assume that HotLap, Inc., a manufacturer of laptop computers, is considering a merger with SassyChips, a leading producer of computer chips. HotLap believes such a merger would benefit their business by giving them a guaranteed steady supply of the chips they need to make their laptops, and more control over the way those chips are designed. If this merger occurs, it would be an example of:____________.
1. contract manufacturing.
2. a vertical merger.
3. a conglomerate merger.
4. a franchise arrangement.
5. a horizontal merger.
6. a leveraged buyout.

Answers

Answer:

Option B  

Explanation:

In simple words, vertical merger refers to the joining of the two separate entities that provide value to different level of supply chains. Such mergers are implemented by the entities to take advantage of realized synergies.

These mergers provide many benefits such as reduced cost or steady supply but the acquiring entity gets the burden to operate a separate entity and manage it.

Assume India can produce either 15 bottles of milk or 50 cartons of eggs using all of its available resources, and Indonesia can produce either 25 bottles of milk or 35 cartons of eggs using all of its available resources. After each country fully specializes in producing the good in which it has a comparative advantage, how many cartons of eggs will India produce

Answers

Answer:

50 cartons of eggs

Explanation:

The comparative advantage is a principle in which a country specializes in the production a good in which it has a lower opportunity cost than others.

                 Bottles of milk     cartons of eggs

India                  15                              50

Indonesia          25                             35

In this situation, the opportunity cost for India of producing 1 bottle of milk is producing 3.33 cartons of eggs. The opportunity cost for Indonesia of producing 1 bottle of milk is producing 1.4 cartons of eggs. This means that Indonesia has a lower opportunity cost and a comparative advantage in producing bottles of milk.

In the other part, the opportunity cost for India of producing 1 carton of eggs is producing 0.3 bottles of milk and the opportunity cost for Indonesia of producing 1 carton of eggs is producing 0.71 bottles of milk. This means that India has a lower opportunity cost and a comparative advantage in producing cartons of eggs.

According to this, India would specialize in producing eggs as it has a comparative advantage and the country will produce 50 cartons of eggs.

"Cincinnati Supply, Co. is a local supplier to the Kraft Heinz Company, which is the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world. Cincinnati Supply, Co. purchased new furniture at a cost of $33,000 on January 1. The furniture is estimated to have a useful life of 6 years and a $3,000 salvage value. The company uses the straight-line method of depreciation. What is the amount of depreciation expense reported on December 31

Answers

Answer:

Annual depreciation= $5,000

Explanation:

Giving the following information:

Purchasing price= $33,000

Salvage value= $3,000

Useful life= 6 years

To calculate the depreciation expense under the straight-line method, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (33,000 - 3,000)/6

Annual depreciation= $5,000

The year-end 2009 balance sheet for Tom's Copy, Inc. lists common stock ($1.00 par value) of $ 5,870 , capital surplus of $ 17,290 and retained earnings of $ 47,076 . On the 2010 year-end balance sheet, retained earnings are listed as $ 50,350 . The firm's net income in 2010 was $ 9,811 . No stock was issued or repurchased in 2010. What were dividends per share paid by the firm in 2010

Answers

Answer:

$1.11 per share

Explanation:

For computing the dividend per share first we have to determine the dividend by applying the following formula

Amount of dividend = Beginning balance of retained earnings + Net Income - Ending balance of retained earnings

= $47,076 + $9,811 - $50,350

= $6,537

And, the number of shares  is

= $5,870  ÷  $1 par

= 5,870 shares

So, the Dividend per share is

= Dividend ÷ number of shares

= $6,537  ÷  5,870 shares

= $1.11 per share

A new equipment has been proposed by engineers to increase the productivity of a welding operation of a local fabrication plant. The investment cost is $25,000, and the equipment will have a market value of $5,000 at the end of a study period of five years. Increased productivity attributable to the equipment will amount to $10,000 per year after operating costs have been subtracted from the revenue generated by the additional production. If MARR is 12%, is investing in this equipment feasible

Answers

Answer:

NPV =$13,884.89

Investing the the equipment id feasible because it has a positive NPV, thus implies that it will increase the wealth of the company by $13,884.8963

Explanation:

The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.

NPV of an investment:

NPV = PV of Cash inflows - PV of cash outflow

Initial cost = 25,000

Present value of the cash inflow

PV of annuity= 1 -(1+r)^(-n)/r × Annual cash flow

A-10,000, r- 12%, n- 5

PV of annual cash inflow = 10,0000× (1-  (1.12^(-5)/0.12=36,047.762

Present Value of Scrap value

PV = S×× (1+r)^(-n)

S- scrap value , n- 5, r 12%

PV of scrap Value = 5,000 × (1.12)^(-5)= 2,837.13

NPV= 36047.76202+ 2837.134279  - 25,000= 13,884.89

NPV =$13,884.89

Investing the the equipment id feasible because it has a positive NPV, thus implies that it will increase the wealth of the company by $13,884.8963

Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest will provide $ 9 comma 000 in the first​ year, and will grow by 7 ​% per​ year, forever. If the interest rate is 10 ​%, how much must Martin provide to fund this​ bequest?

Answers

Answer:

$300,00

Explanation:

In a situation where the interest rate is said to be 10% the amount that Martin must provide in order to fund this​ bequest will therefore be:

Bequest first year $9,000/(Interest rate 10%-

Increase of 7 ​% per​ year)

Hence:

$9,000/0.03

=$300,000

Therefore $300,00 will be provided to fund the bequest

If he goes to college, he will spend $22,000 on tuition, $11,000 on room and board, and $1,700 on books. If he does not go to college, he will earn $12,000 working in a store and spend $6,000 on room and board. Taio's cost of going to college is

Answers

Answer:

$40,700

Explanation:

To determine Taio's cost of going to college you need to find the economic cost that involves all the costs that you need to cover to receive a benefit and the opportunity costs that refer to what you would have received if you had chosen a different alternative. According to this, Taio's cost is equal to all the acounting costs related to going to college plus the opportunity costs that are the benefits lost from the other option which was not going to college.

Accounting costs= $22,000+$11,000+$1,700= $34,700

Opportunity costs= $12,000-$6,000= $6,000

Taio's cost of going to college is equal to the acount costs plus the opportunity costs:

$34,700+$6,000= $40,700

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.
April May June
Current month purchases 70%
Ending accounts payable 30 %
Total purchases
ZISK CO.
Schedule of Cash Payments For April, May, and June
Аpril May June
Cash payments for
Current month purchases
Prior month purchases
Budgeted cash payments for materials

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Budgeted purchase:

April= $80,000

May= $110,000

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

April:

Purchase from April= 80,000*0.7= 56,000

From previous month= 22,000

Total cash= 78,000

May:

Purchase from May= 110,000*0.7= 77,000

From previous month= 80,000*0.3= 24,000

Total cash= 101,000

June:

Purchase from June= 120,000*0.7= 84,000

From previous month= 110,000*0.3= 33,000

Total cash= 117,000

Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: January February March $ 3 Material purchases 14,870 11,690 12,760 Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $7,200. The budgeted cash payments for materials in January are
A. $13,580.
B. $13,815
C. $9,980
D. $7,200.
E. $19,960.

Answers

Answer:

Total= $14,635

Explanation:

Giving the following information:

Cost of materials:

January= 14,870

February= 11,690

March= 12,760

Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase.

The December Accounts Payable balance is $7,200.

To calculate the cash disbursement for January, we need to use the following structure:

Cash collection:

Accounts Payable= 7,200

Cash From January= (14,870*0.5)= 7,435

Total= $14,635

A North Face retail store in Chicago sells 500 jackets each month. Each jacket costs the store $100 and the company has an annual holding cost of 25 percent.The fixed cost of a replenishment order (including transportation) is $100. The store currently places a replenishment order every month for 500 jackets. What is the annual holding and ordering cost? On average, how long does a jacket spend in inventory? If the retail store wants to minimize ordering and holding cost, what order size do you recommend? How much would the optimal order reduce holding and ordering cost relative to the current policy?

Answers

Answer:

1) What is the annual holding and ordering cost?

annual ordering cost = $100 x 12 = $1,200

annual holding cost = ($100 x 25%) x [500 x 1/2(average inventory)] = $6,250

total $7,450

2) On average, how long does a jacket spend in inventory?

= 30 days / 2 = 15 days

3) If the retail store wants to minimize ordering and holding cost, what order size do you recommend?

economic order quantity (EOQ) = √[(2 x annual demand x order cost) / annual holding cost per unit]

EOQ = √[(2 x 6,000 x 100) / 25] = √48,000 = 219.09 units ≈ 219 units

4) How much would the optimal order reduce holding and ordering cost relative to the current policy?

EOQ = 219

total number of orders = 6,000 / 219 = 27.4 per year

average inventory = 219 / 2 = 109.5 units

annual ordering cost = $100 x 27.4 = $2,740

annual holding cost = ($100 x 25%) x 109.5 = $2,737.50

total $5,477.50

annual savings = $7,450 - $5,477.50 = $1,972.50

On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $264,000. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $24,000. On March 1, 2021, the truck was sold for $115,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service.Required: 1. Prepare the journal entry to update depreciation in 2021 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $141,000, prepare the journal entry to record the sale.

Answers

Answer:

1.

1 March 2021    

Depreciation expense                                          $5000 Dr

       Accumulated depreciation-Delivery truck             $5000 Cr

2.

1 March 2021

Accumulated depreciation-Delivery truck          140000 Dr

Cash                                                                          115000 Dr

Loss on Disposal                                                      9000 Dr

             Delivery Truck                                                   264000 Cr

3.

1 March 2021

Accumulated depreciation-Delivery truck          140000 Dr

Cash                                                                          141000 Dr

             Delivery Truck                                                   264000 Cr

             Gain on disposal                                                  17000 Cr

Explanation:

1.

Depreciation expense is the systematic allocation of an asset's cost over its estimated useful life.

The straight line method of depreciation charges a constant depreciation expense each period. The formula for depreciation expense per period under this method is,

Depreciation expense = (Cost - Residual value)  /  Estimated useful life of the asset

The depreciation expense per year of delivery truck under this method will be,

Depreciation expense per year =  (264000 - 24000) / 8 = $30000 per year

The depreciation expense to be charged in 2021 will be for 2 months.

Depreciation expense 2021 = 30000 * 2/12    = $5000

2.

The accumulated depreciation of truck on 1 March 2021 is,

Depreciation for 6 months of 2016 = 30000 * 6/12 = $15000

Depreciation for 4 years (2017 to 2020) = 30000 * 4 = $120000

Depreciation for 2 months of 2021 = $5000

Accumulated depreciation at 1 March 2021 = 15000 + 120000 + 5000

Accumulated depreciation at 1 March 2021 = $140000

Net Carrying value of asset = 264000 - 140000 = $124000

Loss on disposal as asset is sold for less than its carrying value is,

loss on disposal = 115000 - 124000   = - $9000 (loss on disposal)

3.

As the asset is sold for more than its carrying value, the gain on disposal is,

Gain on disposal = 141000 - 124000    = $17000 (gain on disposal)

Macro-economiscs college level .

Answers

Answer/Explanation:

A. Increase in import WOULD NOT lead to a decrease in national income because it would lead to increase in revenue derived from import duties.

B. A decrease in interest (leakage) WOULD lead to decrease in national income because it will increase borrowing and reduces investment.

C. A decrease in money supply (money available in an economy) WOULD NOT lead to decrease in national income because it reduces inflational rate.

D. An increase in exchange rate WOULD lead to decrease in national income because it would encourage capital flight.

E. A decrease in foreign income WOULD lead to decrease in national income because it reduces revenue earnings.

Analyze the events​ chronologically, one transaction at a​ time, beginning with the transaction on the 5th. For each transaction that follows​ the transaction on the​ 5th, calculate the balance in each account after analyzing its effect on the accounting equation. After calculating the ending balance of each account on the 30​th,
calculate total assets and total liabilities and equity.​(Complete only the necessary answer boxes for your transaction lines.​ [Do not enter any zeros for your transaction​ lines.] Carry down all balances to the​ "Bal." line, including zero balance​accounts, entering a​ "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses. Abbreviations​used: A/P​ = Accounts​ Payable; A/R​ = Accounts​ Receivable; Com.​= Common; Contr.​ = Contributed; Div.​ = Dividends; Exp.​ = Expense; Furn.​ = Furniture; Liab​ = Liabilities; Rev.​ = Revenue; Sup.​ = Supplies; Util.​ = Utilities.)

Answers

QUESTION COMPLETION:

TRANSACTIONS:

April 5 Shaff deposited $40,000 in a new business bank account titled Apr. Abraham Shaff, CPA. The business issued common stock to Shaff.

April 6 Paid $200 cash for letterhead stationery for new office

April 7 Purchased office furniture for the office on account, $8,000.

April 10 Consulted with tax client and received $2,900 for services rendered. 11 Paid utilities, $280.

April 12 Finished tax hearings on behalf of a client and submitted a bill for accounting services, $8,000.

April 18 Paid office rent, $1,700.

April 25 Received amount due from client that was billed on April 12

April 27 Paid full amount of accounts payable created on April 7

April 30 Cash dividends of $2,500 were paid to stockholders.

Answer:

See attached.

Explanation:

The question requires business events to be analyzed chronologically with each event's impact on the accounting equation.

The accounting equation states that Assets equal Liabilities plus Equity (Assets = Liabilities + Equity).  The implication of this equation is that given each business transaction, Assets will always be equal to Liabilities and Equity.  Two accounts or more are usually affected by each transaction.  It may be two assets accounts or one asset and liabilities, etc.  Expenses and Income impact the Retained Earnings, which is part of the Equity.

Assets are the resources owned by the business, while liabilities are financial obligations to third parties that contribute to the owned resources.  Equity is the funds contributed by the stockholders, including the earnings retained from business.  Equity, therefore, represents the ownership interest in the assets after liabilities have been deducted.

Pelzer Printing Inc. has bonds outstanding with 10 years left to maturity. The bonds have a 9% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $950.70. The capital gains yield last year was -4.93%. What is the yield to maturity

Answers

Answer:

The answer is 9.85%

Explanation:

The number of periods N = 9years(10 years minus 1 year ago)

Yield to Maturity (I/Y) = ?

Present value of the bond (PV) = $950.70

Future value of the bond(FV) = $1,000

Annual payment (PMT) = $90 (9% x $1,000)

Using a financial calculator to solve the problem ( BA II plus Texas instruments):

Yield to Maturity (I/Y) = 9.85%

A manufacturing plant is planning to replace outdated equipment with more energy-efficient and environmental-friendly equipment. Two models are under consideration. Model A is sold for $159,000 and can produce at an optimum speed of 78 unit/hour. Model B is sold for the same price, but can produce at an optimum speed of 76 unit/hour. Model A requires 6 hours of maintenance for every 4300 units produced, while Model B requires 5 hours of maintenance for every 3300 units. The maintenance cost for both models is $100 per hour. The variable operating cost is $340 per hour for Model A and $290 per hour for Model B. Due to obsolete parts, there is a sunk cost of $2700 for model A and $1900 for Model B .
1. If the price of the product is $150 per unit and the company expects to sell 145,000 units each year, which model should be selected?
2. What is the estimate of the cummulative average hours per unit required to produce the 5th unit of a production run that has a(n) 78% learning curve, if the first unit takes 50 hours?

Answers

Answer:1.  Model A,

2. 33 hours

Explanation:

Write a linear cost function equation for each of the following conditions. Use y for estimated costs and X for activity of the cost driver.

a. Direct manufacturing labor is $10 per hour.

b. Direct materials cost $15.60 per cubic yard.

c. Utilities have a minimum charge of $5,000, plus a charge of $0.30 per kilowatt-hour.

d. Machine operating costs include $300,000 of machine depreciation per year, plus $100 of utility costs for each day the machinery is in operation.

Answers

Answer:

a)

y = $10x

b)

y = $15.6x

c)

y = $5000 + $0.3x

d)

y = $300000 + $100x

Explanation:

y for estimated costs and X for activity of the cost driver. Linear cost function is given as:

y = a + bx.

Where y is the cost being predicted, x is the cost driver, a is the fixed cost (intercept) and b is the variable cost per unit (slope)

a) Since Direct manufacturing labor is $10 per hour,  variable cost (b) =  Direct manufacturing labor = $10

Therefore:

y = $10x

b) variable cost (b) =  Direct materials cost = $15.60 per cubic yard.

Therefore:

y = $15.6x

c) Fixed cost (a) = utilities = $5000 and  variable cost (b) =  charges = $0.3 per kilowatt-hour. Therefore:

y = $5000 + $0.3x

d) Fixed cost (a) = Machine operating costs = $300000 and  variable cost (b) =  utility costs = $100 per day. Therefore:

y = $300000 + $100x

The market and Stock J have the following probability distributions: Probability rM rJ 0.3 15% 20% 0.4 9 5 0.3 18 12 a. Calculate the expected rates of return for the market and Stock J. b. Calculate the standard deviations for the market and Stock J.

Answers

Answer: The answer is provided below

Explanation:

The expected rates of return for the market = 13.5

the expected rates of return for the market and Stock J = 11.6

The standard deviations for the market = 3.85

The standard deviations for Stock J = 6.22

The explanation has been attached.

Four of the ships sought a passage along a southern...……
1 coast
2 inland
3 border
4 body of land with water on three sides
5 non of the above
what is the answer

Answers

4

A peninsula is a piece of land connected to the mainland by an isthmus and projecting into the ocean such that it is surrounded on three sides by water.

Synovec Corporation is expected to pay the following dividends over the next four years: $6.20, $17.20, $22.20, and $4.00. Afterward, the company pledges to maintain a constant 5.5 percent growth rate in dividends forever. If the required return on the stock is 9 percent, what is the current share price

Answers

Answer:

Current price =$125.56

Explanation:

According to the dividend valuation model, the value of a share is the present value(PV) of its future expected dividend discounted at the required rate of return.

We will sum the PV of its future dividends as follows:

PV in year 1 = 6.20 ×   1.09^(-1)= 5.69

PV in year 2 = 17.20 × 1.09^(-2)= 14.48

PV in year 3 = 22.20 ×  1,09^(-3)=17.14

PV in year 4 = 4 × 1.09^(-4)= 2.83

PV in year 5 and beyond =  (4 × 1.055)/(0.09-0.055) ×1.09^(-4)    = 85.42

Current price = 5.69  + 14.48 + 17.14  +  2.83  + 85.42 = 125.56

Current price =$125.56

         

In 2010, the MoreForLess Company had revenues of $2,000,000 while costs were $1,500,000. In 2011, MoreForLess will be introducing a new product line that will generate $200,000 in sales revenues and $160,000 in costs. Assuming no changes are expected for the other products, the differential operating profit for 2011 is

Answers

Answer:

Differential profit Profit = $40,000

Explanation:

The differential operating profit is the difference between the operating profit before the introduction of the product and after the introduction of the new product

Profit = Revenue - costs

Profit before the introduction of the new product

= 2,000,000 - 1,500,000 = 500,000

Profit after the introduction of the new product

New revenue =  (2,000,000 + 200,000) = 2,200,000

Cumulative cost = 1,500,000 + 160,000 =  1,660,000

Profit = 2,200,000 - 1,660,000 = 540000

Differential profit Profit =  540,000 - 500,000= $40,000

The Work-in-Process inventory account of a manufacturing firm shows a balance of $3,980 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $660 and $460 for materials, and charges of $560 and $740 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of:

Answers

Answer:

Predetermine overhead rate as a percentage of direct labor cost is 120%

Explanation:

To calculate the predetermined overhead rate, we first need to determine the total overheads under the balance of $3980 for two jobs.

The total cost of both jobs which are uncompleted equals,

Total cost both jobs = (660 + 560)   +   (460 + 740)

Total cost both jobs = 1220 + 1200  = $2420

Thus, the overhead cost involved in both jobs is,

Total Overhead cost = 3980 - 2420    = $1560

This total overhead of $1560 has been absorbed on the basis of a predetermine overhead rate based on the direct labor cost. The total direct labor cost involved under both uncompleted jobs is,

Total direct labor cost both jobs = 560 +740   = $1300

So, the predetermined overhead rate is,

Overhead rate = Total overheads / total direct labor cost

Overhead rate = 1560 / 1300    

Overhead rate = $1.2 per $1 of direct labor cost

Expressed as a percentage of direct labor cost, it is:

% Overhead rate = 1560 / 1300    * 100   =  120% of direct labor cost

Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds at par with the intent and ability to hold the bonds until they matured in 2025, so Bloom classifies their investment as HTM. Unfortunately, a combination of problems at Taylor Company and in the debt market caused the fair value of the Taylor investment to decline to $600,000 during 2018.

Required:

For each of the following scenarios, prepare appropriate entry(s) at December 31, 2018, and indicate how the scenario will affect the 2018 income statement (ignoring income taxes).

1. Bloom now believes it is more likely than not that it will have to sell the Taylor bonds before the bonds have a chance to recover their fair value. Of the $400,000 decline in fair value, Bloom attributes $250,000 to credit losses, and $150,000 to noncredit losses.

2. Bloom does not plan to sell the Taylor bonds prior to maturity, and does not believe it is more likely than not that it will have to sell the Taylor bonds before the bonds have a chance to recover their fair value. Of the $400,000 decline in fair value, Bloom attributes $250,000 to credit losses, and $150,000 to noncredit losses.

Answers

Answer:

1)

Since Bloom plans to sell the bonds, it must record the entire loss as credit loss (loss on sale of bonds)

Dr Other than temporary impairment loss 400,000

    Cr Discount on bond investment - Taylor bonds 400,000

Credits losses must be recognized as a loss in earnings in the income statement.

2)

Journal entry to record credit loss:

Dr Other than temporary impairment loss 250,000

    Cr Discount on bond investment - Taylor bonds 250,000

Journal entry to record non-credit loss:

Dr Other than temporary impairment loss 150,000

    Cr Fair value adjustment - Taylor bonds 150,000

Non-credit losses must be recognized as part of other comprehensive income/loss and must be disclosed separately than credit losses. They must be reported in the balance sheet (they lower retained earnings directly), not the income statement.

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